| Policy Number: RES 101 | Policy Title: Financial Administration of Research Funds |
| Supersedes Existing Policy? Yes | Policy Owner: Manager, Research Administration |
| Associated Procedure: No | Policy Sponsor: Executive Director, Indigenous Engagement and Applied Research |
| Next Review Date: April 2029 | Date Last Approved by the CET: April 22, 2026 |
1. Introduction and Purpose
As an administering institution for research funding, Loyalist College protects the college’s integrity and fiscal accountability through the alignment of its financial practices with the Tri-Agency Guide on Financial Administration (TAGFA) and all relevant legislation, including the Guidelines for the General Research Fund (GRF). The TAGFA governs the administration of grant funds awarded by the three granting agencies – the Canadian Institutes of Health Research (CIHR), the Natural Sciences and Engineering Research Council of Canada (NSERC), and the Social Sciences and Humanities Research Council of Canada (SSHRC).
The purpose of this policy is to outline the college’s administration framework for all research funds and the management of the General Research Fund, to ensure and underscore the integrity, transparency, and accountability of the college’s research activities.
2. Application
This policy applies to the financial administration of all research awards, contracts, and grants, including all Tri-Agency research awards and the General Research Fund (GRF) at Loyalist College.
Where the granting agency has requirements beyond those of the college, those requirements will be met by the researcher or the college, as applicable.
3. Definitions
Authority to use funds (ATUF) period. The period during which grant funds are to be spent, between the start date of the grant as noted on the formal notification of the award and the end date of the grant; this period also includes automatic extensions or any other requests for an extension.
Claimant. Any individual making a business expense claim under the terms of this policy.
Delegate. The employee who has been delegated authority by the employee who holds permanent authority, as granted under this policy.
Direct costs. Essential expenditures that would not have been incurred had the grant not been undertaken. Accordingly, they can be directly assigned to the grant activities with a high degree of accuracy.
Family-related responsibilities. Responsibilities related to the health or care of a person in a familial relationship.
Gifts. Cash or in-kind items provided freely (i.e., requiring no payment in return), as a token of appreciation, respect and/or goodwill.
General research fund (GRF). A designated fund established to manage residual balances from any applicable Tri-Agency grants (NSERC and SSHRC) that have reached their end date. The GRF is used to support the college’s research priorities and is held by the authority of the President and CEO.
Grant recipient. Grant holder or grantee. The grant recipient holds the financial authority of the awarded grant funds.
Honoraria. One-time payments offered as a token of appreciation for services not traditionally compensated, such as guest lectures.
Incentives. Cash or in-kind items offered to participants to establish potential participant pools or to acknowledge their participation in the research activities.
Indirect costs. The operational costs that underpin an institution’s research activities (i.e., heating, lighting, ethics reviews, management of intellectual property, environmental assessment, and safety compliance). The services that give rise to indirect costs are institutionally based and are not specific to individual research grants.
Outstanding commitment. An outstanding commitment (unpaid invoice) occurs when the grant recipient, or administering institution, has received a good or service before the end date of the grant or, if applicable, within the ATUF period of the grant and the invoice for the good or service was not paid within that timeline.
Research activity. Activities encompassing applied research − both course-based and industry-focused − as well as scholarly research initiatives that contribute to academic and practical advancements.
Research personnel. Individuals employed by the college to work on research activities who are not tied to a specific grant.
Residual balance. Refers to the funds remaining in a grant account after the payment of all outstanding commitments and expenses incurred on or before the grant end date.
Retroactive period. The retroactive period begins as of the date the grant recipient is formally notified of the funding decision and ends on the actual start date of the grant.
4. Policy
Loyalist College is committed to the responsible and transparent management and use of all research grant funds, disbursing them for authorized expenditures and completing all required financial reporting.
Loyalist College recognizes the importance of equity, diversity, inclusion, and Indigenous rights in research. This includes promoting equitable and inclusive practices, working toward eliminating systemic biases in research, and applying fiscally responsible approaches to administering research funds.
5. Roles and Responsibilities
The Researcher(s) will:
- Ensure all expenditures are economical, essential, and integral to the research.
- Ensure compliance with all college, granting agency, and TAGFA requirements.
- Inform the Manager, Research Administration of any changes in status that impact grant funds.
- Maintain complete and accurate records of agency funding use for a minimum of seven years.
The Manager, Research Administration, Applied Research and Innovation Office (ARIO) will:
- Ensure all expenditures are economical, essential, and integral to research activities.
- Ensure all expenditures comply with college, granting agency, and TAGFA requirements.
- Conduct annual researcher eligibility confirmations.
- Assist researcher(s) in completing reports and/or forms.
- Liaise with granting agencies, the college, and researcher(s) to ensure financial compliance.
- Compile and complete all required financial reporting, collaborating with the Finance department to ensure accuracy and completeness.
- Maintain complete and accurate records of agency funding use.
The Finance Department will:
- Collaborate with the Manager, Research Administration to complete financial transactions involving research funds or assets.
- Work with the Manager, Research Administration to review and ensure financial documentation is accurate and complete.
- Maintain complete and accurate financial records.
6. Administration of Research Grant Funds
The college ensures alignment of the granting agency’s financial guidelines, any applicable college finance and research policies, and all Tri-Agency requirements in the use of research funds. Grant funds may be used to cover direct research costs, while indirect costs are supported only if explicitly allowed by program guidelines or through dedicated supplements, such as the Research Support Fund.
6.1 Eligibility of Applicants and Recipients
The Applied Research and Innovation Office (ARIO) verifies and monitors the eligibility of applicants and recipients who hold Tri-Agency grants and awards, conducting annual eligibility confirmations. In addition to any agency requirements, the college requires grant recipients and research personnel to abide by RES 102 Responsible Conduct of Research and the approval of the Loyalist College Research Ethics Board in instances of research involving human participants through RES 104 Ethical Conduct of Research involving Human Participants. This requirement ensures research practice integrity, as mandated by the Tri-Council Policy Statement: Ethical Conduct for Research Involving Humans.
Grant recipients are required to promptly inform the ARIO of any status changes that may impact their eligibility. The ARIO will notify the agency by submitting a completed Grant Amendment Form, which the agency will review to determine whether eligibility can be maintained. If eligibility is lost, the agency may provide time to re-establish eligibility or terminate the grant. In such an instance, grant funds cannot be used unless a phase-out period is granted by the agency.
6.2 Grant Fund Financial Authority
The grant recipient holds the authority to use the grant funds. This authority may be delegated by the grant recipient; any delegated authority must be documented with the use of Appendix A Grant Recipient Delegation of Authority Form and submitted to the Manager, Research Administration.
6.3 Oversight of Grant Funds
The college maintains oversight of the grant funds utilized by the grant recipient through the approval of the expenditures. Grant funding expenditures must follow FIN 200 Procurement, ADMIN 126 Including Indigenous Knowledge and Community Members in College Activities, and the approval processes within FIN 504 Business Expense Reimbursements, Travel, and Hospitality. All grant statements of account are reviewed by the ARIO and the Finance department.
Grant recipients, or their authorized delegates, are responsible for ensuring alignment with TAGFA and college policies, as well as assuring all expenditures adhere to approved project proposals and objectives. Grant recipients must maintain supporting documents and may be required to provide a justification for expenses should the college or the agency request one. All supporting documentation must be kept for at least seven years.
Grant recipients are not required to strictly adhere to the allocation of funds set out in the funding application if they use their grant for the broad purpose for which it was originally awarded. At the approval of the ARIO, and subject to granting agency guidelines, eligible expenses incurred during the retroactive period may be paid from the grant account during the active period of the grant (the authority to use funds period).
6.4 Transfers of Grant Funds
The Finance department may facilitate fund transfers between institutions through collaboration with ARIO. Invoices, contracts, and advances are not considered grant fund transfers. The college may approve fund transfers that support research directly tied to the grant, are authorized by the grant recipient, and comply with agency policies through an agreement. For any fund transfers to the college, the college will ensure there is an agreement in place that adheres to all agency guidelines prior to approving the transfer.
Such fund transfers represent a transfer of responsibilities and the authority to use the funds. Any such transfer agreement will adhere to the Tri-agency Guide on Financial Administration Appendix 2: Transfer of funds agreement requirements (eligible and non-eligible institutions).
6.5 Extensions
Grant instalments may be deferred to extend the authority to use funds (ATUF) period when justified, for a maximum of two years. Any approved deferrals will initiate a change to adjust the original grant end date to match the approved deferral date.
When grant recipients have a build-up of funds in their grant account and have determined that the scheduled instalment for the next financial year will not be needed at that time, they are responsible for informing the Manager, Research Administration that a deferral of the next instalment is necessary.
The Manager, Research Administration will submit deferral requests by completing and submitting the Grant Amendment Form. The agencies may require the grant recipient to justify the need for the next instalment; approval of this step is at the sole discretion of the agency. If extensions are denied, unspent funds are reconciled within three months of the grant’s end date or the automatic extension period.
The grant recipient’s authority to use the grant funds beyond the ATUF period may be extended by the relevant agency to allow grant recipients to bring research activities to a close. In these instances, a Grant Amendment Form will be submitted by the Manager, Research Administration prior to the grant’s end date or automatic one-year extension period end date.
If an extension is not approved, the grant recipient must pay all expenses within three months, or, if applicable, before the end of the automatic one-year extension period for use of the funds provided by the agency. Requests will not be considered if the grant funds remaining have been returned to the funding agency or transferred to the General Research Fund (GRF), or if financial reporting for any of the grant’s fiscal periods has not been completed.
The grant recipient is responsible for informing all relevant parties of the outcome of extension requests.
6.6 Ownership of Research Assets
Loyalist College retains ownership of all items purchased through funded research, including consumables, non-capital equipment, and small wares, unless explicitly documented otherwise within the research agreement. Any loan of research assets or equipment will follow PHY 306 Loan of College Equipment.
Ownership changes through transfer or sales require prior approval of the Executive Director, Indigenous Engagement and Applied Research and the Senior Vice-President, Corporate Services and CFO. Ownership changes may also require agency approval, and any proceeds from sales must be directed toward research purposes. All ownership changes will be managed by Procurement.
Financial Reporting Requirements
The ARIO and the Finance department will collaboratively prepare and submit all mandatory reporting for awarded grant funds and retains signed copies of all documents for a mandatory period of 7 years. The grant recipient is responsible for reviewing and signing the completed forms.
The ARIO and the Finance department will collaboratively complete and submit annual statement of account expenditures to the relevant agency for each grant with the completion of Grants in Aid of Research Statement of Account: Form 300 and Grants in Aid of Research Statement of Account, College and Community Innovation Program: Form 301 for the period ending March 31 every year.
An additional submission of Grants in Aid of Research Statement of Account: Form 300 and Grants in Aid of Research Statement of Account, College and Community Innovation Program: Form 301 will be completed by the ARIO and reviewed by the Finance department at the conclusion of the grant. The ARIO and the Finance department collaboratively review the annual reconciliation report on grant instalment payments from the agencies.
7. Direct Cost Eligible Expenses under TAGFA
The college ensures sound judgement and due diligence by requiring that grant expenditures across all expense categories are only approved should they be effective and economical, directly related to the research for which the funds were awarded, not provided directly to research personnel, and not resulting in personal gain for the grant recipient.
7.1 Employment and Compensation Expenditures
Compensation may include salary or stipends. However, funds cannot be used to pay grant recipients or individuals conducting independent research as part of their employment, an appointment, or position, nor can they be used to compensate individuals expected to collaborate free of charge. Any consulting fees for grant recipients or collaborators working voluntarily are not reimbursable.
Any individual employed and compensated by another organization for their time spent on the funded research cannot be compensated from the grant funds. However, grant funds can be used to reimburse the organization for costs incurred in compensating the individual for time spent on the grant activities.
Compensation is permitted for Indigenous Elders, Knowledge Keepers, and Indigenous Persons affiliated with not-for-profit organizations, provided they are not already being compensated for research activities.
Any adjustments to grant accounts with respect to compensation expenses require documentation to justify the adjustment, as well as the grant recipient’s (or their delegate’s) authorization.
7.2 Goods and Services Expenditures
Procurement of any goods and services must be in alignment with this policy and FIN 200 Procurement. Any contracted service expenditures must also follow Section 7.1, Employment and Compensation Expenditures.
7.3 Travel and Hospitality Expenditures
Travel-related subsistence and hospitality expenditures are allowed under TAGFA when such expenses are directly tied to research objectives. Hospitality expenditures may only be incurred for networking purposes when they are a form of courtesy or to provide cultural respect, or if they may be required in the acquisition of an activity that facilitates or contributes to achieving research objectives; day-to-day research team interactions are ineligible. Any travel or hospitality related costs associated with alcoholic beverages will not be reimbursed.
Such expenditures, including reasonable out-of-pocket expenses, can be claimed for the grant recipient and other individuals who contribute to the funded research. All pre-approvals for travel and hospitality expenses, as well as the processes for requesting reimbursement, must follow FIN 504 Business Expense Reimbursements, Travel, and Hospitality. Any hospitality-related expenditures should be pre-approved and have a documented rationale attached. For claimants other than the grant recipient, the affiliation with the funded research activities must be documented by the grant recipient.
Carbon offset credits for approved travel may be included in travel costs as part of the Greening Government Strategy: A Government of Canada Directive.
7.4 Gifts, Honoraria, and Incentives
Gifts, honoraria, and incentives can be provided to individuals or groups participating in research should their involvement in the research activities be voluntary, and when the recipient is not a member of the grant team. Any expenditures of this nature are subject to prior approval by the Loyalist College Research Ethics Board.
Gifts may be offered to establish or facilitate relationships with individuals or groups who are involved in the research as participants or as research partners/contributors (e.g., guest researchers, research partners, or community partners) when they are provided as a formal courtesy or when they are prescribed by cultural heritage or established traditions.
In recognition of the cultures and traditions of Indigenous, First Nations, Métis, and Inuit Peoples, Elders and other Knowledge Keepers who also fulfill another role (i.e., an independent researcher) may be provided with gifts in a ceremonial or other appropriate context that are considered eligible expenses. In these instances, the Tsi Titewaya’taró:roks Indigenous Centre, ADMIN 126 Including Indigenous Knowledge and Community Members in College Activities and the Guidelines for Acknowledging Territory Protocols for Working with Elders, Knowledge Keepers, and Community Members should be consulted and adhered to.
7.5 Over-expenditures and Outstanding Commitments
The agencies assume no responsibility for over-expenditures; the grant recipient is responsible for ensuring that there are no over-expenditures or over-commitments for current and prior fiscal periods for grant funds.
Grant recipients are required to ensure all outstanding commitments are paid prior to the grant’s end date. Pre-payment for a cost of a good or service that will be provided after the end date of the grant − or, if applicable, the ATUF period of the grant − is not classified as an outstanding commitment. Pre-payments for goods or services received after the grant end date are ineligible costs.
8. The General Research Fund (GRF)
Loyalist College maintains a General Research Fund (GRF) to manage residual balances from any expired NSERC and SSHRC grants. The college reinvests these funds to support and enhance research initiatives that are of strategic importance to the college.
8.1 Financial Authority
Loyalist College maintains the GRF as a trust account under the authority of the President and CEO or their authorized delegate. Only the President and CEO (or their delegate) may authorize expenditures, which must be documented through written approval.
8.2 Residual Balances for Expired CIHR Grants
Any residual balance remaining in the grant account for an expired CIHR grant will be returned to the agency.
8.3 Residual Balance Transfers for Expired SSHRC and NSERC Grants
Residual balances from expired SSHRC and NSERC grants may be transferred to the GRF after:
- all expenses and eligible outstanding commitments have been paid on or before the grant’s end date.
- the ARIO has submitted the completed statements of account using Grants in Aid of Research Statement of Account: Form 300 or Grants in Aid of Research Statement of Account, College and Community Innovation Program: Form 301.
- Any other specific agency criteria have been met and approval from the agency has been granted.
Loyalist College transfers residual balances to the GRF only in the following instances:
- The residual balance originates from an eligible program listed in the Table of Agencies’ Programs Eligible for a Transfer to the Institution’s General Research Funds (GRF) Account or a Refund.
- The balance is 50 percent or less of the awarded grant; any higher amount is deemed to be an unspent grant and a reimbursement to the agency is required.
- The college has spent at least 50 percent of the opening balance of its GRF during the current year.
- The granting agency has approved the transfer.
8.4 Allocation of GRF Funds
Loyalist College requires applicants to submit a detailed proposal to access GRF funding to the Manager, Research Administration. Applications are reviewed by the Applied Research Leadership Team. Funding will be prioritized for research projects that support research priorities at the college, as well as those that enhance the quality of research in the fields of natural sciences and engineering or social sciences and humanities. Eligible proposals will be presented to the College Executive Team for approval.
GRF funds are only available for direct research-related costs, such as personnel, equipment, travel, and knowledge mobilization, and exclude indirect cost coverage. All GRF expenditures must comply with the expenditure principles outlined within this policy in accordance with TAGFA. GRF transfers will be monitored to comply with agency conditions and ensure funds are used strategically and responsibly.
8.5 Annual Reconciliation and Reporting
The ARIO and the Finance department will collaboratively prepare statements of account using Grants in Aid of Research Statement of Account: Form 300 and Grants in Aid of Research Statement of Account, College and Community Innovation Program: Form 301 for each GRF account. The ARIO will submit the statements annually by September 30.
8.6 Leaves for research, career advancement, personal growth, or professional development
The college supports and facilitates maternity, parental, medical, or family-related leave during grant-funded research. Grant recipients will follow leave terms as outlined by HR 230 Request for Leaves or their applicable collective agreement.
The ARIO will ensure grants are issued as scheduled and will request extensions, with or without supplemental funds, if:
- Grant recipients (or their delegates) maintain their responsibilities during the leave, if the research continues.
- Grant recipients meet agency-specific eligibility and program requirements, with college assurance of such requirements.
- Grant funds are used in accordance with set guidelines during the leave and any extension period.
Grant recipients may request extensions of up to two years, subject to agency approval and program terms. The ARIO will submit these requests using the Grant Amendment Form.
For eligible students and postdoctoral fellows paid from grant funds, the ARIO will request maternity or parental leave supplements from the agency. The agencies will provide supplements within 12 months of a child’s birth or adoption, covering up to 12 months of leave based on the current salary or stipend and dependent on the ATUF period of the grant and not on other funding sources. If both parents are funded by grants, they may share the leave for a combined maximum of 12 months. Pro-rated supplements will apply to part-time researchers. Loyalist College will submit requests for leave supplements and extensions through the Grant Amendment Form for agency approval prior to or during the eligible paid parental leave period.
10. References
- Agreement on the Administration of Agency Grants and Awards by Research Institutions, 2023
- Greening Government Strategy: A Government of Canada Directive, 2017
- Guidelines for the General Research Fund, 2020
- Table of Agencies’ Programs Eligible for a Transfer to the Institution’s General Research Funds (GRF) Account or a Refund, 2026
- Tri-Agency Guide on Financial Administration (TAGFA), 2020
- Tri-Agency Guide on Financial Administration Appendix 2: Transfer of funds agreement requirements (eligible and non-eligible institutions), 2020
- Tri-Council Policy Statement: Ethical Conduct for Research Involving Humans, 2022