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Interest on Research Grants Procedure

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Section 1 - Purpose

(1) This Procedure states the University's requirements for adoption of compliance measures for recording and attributing accrued interest to research cost centres, where required by grant funding bodies.

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Section 2 - Scope

(2) All University of Canberra (University) staff and affiliates (academic, professional and honorary appointments) undertaking research activities.

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Section 3 - Procedure

(3) Identification of cost centre requiring interest accrual:

  1. Research Services as part of their contract review process, will identify if there is a requirement for interest to be accrued and attributed to the project. The contract is then registered as an Interest Accrual Cost Centre (IACC).
  2. Research Services enters the research contract details into the research contract management system, known as Pure, enters a relevant code or marker in the database to identify the cost centre as an IACC, together with the requirements for interest to be accrued and attributed to the project.

(4) Calculation of interest amount:

  1. Research Services provides Finance with a listing each quarter from Pure of those research cost centres identified as IACCs, which need to have interest calculated and attributed.
  2. Interest will be calculated based on the average balance of the research cost centre over the quarter, using the 11am Cash Management account interest rate on the last day of the quarter.
  3. Finance  will process a journal entry at the end of each quarter for the interest accrued for the three months in the quarter.
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Section 4 - Roles and Responsibilities:

Role Responsibilities
Research Services At time of the research contract review. Identify research grants that should accrue interest on research grant funds.

At time of entering research contract details into Pure. Mark or record research grant in Pure as an Interest Accrual Cost Centre (IACC).

Provide Finance with listing of IACCs from Pure on a quarterly basis - the Interest Accrual Cost Centres that requires interest to be accrued.
Finance
(Quarterly)		 To calculate interest to be accrued on research grant funds and process
relevant journal entries
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Section 5 - Implementation and Reporting

Action step(s) Responsibility
Policy to be reviewed Deputy Vice-Chancellor 
Policy to be presented to approving body Executive Management
Policy to be approved Deputy Vice-Chancellor
All Research Projects in Pure to be reviewed and IACCs to be identified and marked Research Services
Interest to be calculated and attributed to IACCs Finance
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Section 6 - Definitions

(5) The definitions for this Procedure are the same as the definitions for the Interest on Research Grants Policy.

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Section 7 -  Policies

(6) Refer Interest on Research Grants Policy.