Tri-Agency Guide on Financial Administration – Renewal

The Agencies, comprised of the Natural Sciences and Engineering Research Council of Canada (NSERC), the Canadian Institutes of Health Research (CIHR), and the Social Sciences and Humanities Research Council of Canada (SSHRC), have embarked on a renewal initiative to streamline and simplify the administration and use of grant funds. The centerpiece of this initiative is the development of a ‘principles-based’ Tri-Agency Guide on Financial Administration that has the following objectives.

• Promote efficiencies
• Reduce administrative burden
• Provide greater flexibility to administering institutions and grant recipients in ensuring the appropriate accountability and use of grant funds

The Division of the Vice-President, Research & Innovation (VPRI) in collaboration with stakeholders across the University of Toronto (U of T) have made significant progress over the past several months in reviewing and revising institutional policies to support the requirements in the new Guide.

The new Guide sets out four basic principles and a set of directives that collectively provide a framework governing the appropriate use of Agency grant funds. The appropriateness of a grant fund expenditure should be assessed against the following steps in order of precedence.

• The program / funding opportunity description for that grant
• The four principles
• The relevant directive details
• Applicable U of T policies and guidelines
   

Principles

Grant expenditures must meet the following principles.

• Contribute towards the direct costs of the research/activities for which the funds were awarded, with benefits directly attributable to the grant
• Not be provided by the administering institution to their research personnel
• Be effective and economical
• Not result in any personal gain for members of the research team
   

 * The italicized sections of the principles are further defined in Appendix 1: Definition of Terms in the new Guide.
 

Directives

According to the Guide, the directives (mandatory requirements) provide direction for administering institutions and grant recipients to exercise sound judgment and due diligence in their decision-making process concerning the use of Agency grant funds. The five directives are outlined below. Information about each directive, including their related principles, roles and responsibilities, and specific requirements, are detailed in the new Guide.

• Employment and Compensation Expenses
• Goods and Services Expenses
• Travel and Travel-Related Subsistence Expenses
• Hospitality Expenses
• Gifts, Honoraria, Incentives

 

Program / Funding Opportunity & Institutional Policies

In addition to the four principles and the directives, the eligible use of grant funds is also governed by certain allowances or restrictions that may be included in a program or funding opportunity description (for example, things that would be for the sole purpose of that program only and not necessarily considered eligible under the principles and directives). In addition, the assessment of the appropriateness of grant fund expenditures will now have a greater reliance on U of T policies and guidelines such as the Guide to Financial Management when the new Guide is silent, or defers to institutional policies (e.g. for the directive on travel and travel-related subsistence costs.)

For those instances where a cost is mentioned in the Guide (e.g. as a directive) and in U of T policies, the more restrictive rule applies.
 

Retroactive Expenses

Expenses against Tri-Agency grants and awards cannot be incurred during the retroactive period, which is the period between the date that the grant recipient is formally notified of the funding decision and the effective grant start date (where the notification occurs before the grant start date).

Exceptions may be considered in consultation with the program officer in the VPRI (see the section ‘Contacts’ below). Expenses must be eligible in accordance with the Guide, program / funding opportunity literature and institutional policies. 

The Guide lists the roles and responsibilities of the Agencies, administering institutions, and grant recipients (and any delegates) necessary to ensure the sound stewardship of Agency funds. Further information about the respective roles and responsibilities are outlined in the Agreement on the Administration of Agency Grants and Awards by Research Institutions, the program/funding opportunity literature, and any relevant Agency agreements.
 

Agencies

• Set out the terms and conditions governing the administration of grants by the institution
• Communicate and consult with the institution on the introduction of new policies or changes to its existing policies that may have a significant impact on the institution, to the extent reasonably possible
• Make funds available, in a timely manner, to grant recipients
• Conduct periodic reviews of the use and administration of grant funds
• Oversee approval of changes to grant administration that have financial implications for the Agency
• Have the right to terminate a grant when agency requirements can no longer be met

Administering Institutions

• Develop and implement effective policies, administrative systems, procedures and controls to ensure that all activities funded by an agency are conducted in compliance with legislated requirements, agency policies and procedures and other grant funding agreements
• Monitor the eligibility of their recipients throughout the term of the grant and advise the relevant agency immediately of any change in the eligibility status of an applicant or recipient
• Withhold or withdraw approval of expenditures that contravene an agency or institutional policy or the terms and conditions of the grant
• Provide training to staff and grant holders on the institution’s policies and practices with respect to tri-agency grant administration
• Provide adequate physical and organizational infrastructure for the conduct of research training, and other funded activities
• Oversee and submit grant amendments to the relevant agency
• Keep complete and accurate records to:
  
  • Report on the use of agency funding, including verifiable audit trails with complete supporting documentation for each transaction, for at least seven years
  • Report on the use of the grant funds annually

Grant Recipients & Any Delegate

• Are expected to conduct their research in a manner that adheres to the Tri-Agency Framework: Responsible Conduct of Research
• Hold the authority to use the grant funds in accordance with the Tri-agency’s principles and directives as outlined in the TAGFA
• Are responsible for authorizing* grant expenditures and any charges or adjustments made to the grant recipient’s grant account

* Only the grant recipient can delegate their authority to use grant funds to others. Similarly, only grant recipients or individuals duly delegated by grant recipients are able to authorize grant expenditures or other charges to the recipient’s grant account.

The new Guide took effect on April 1, 2020. U of T grant recipients of Agency funds are required to follow the principles and directives in the new Guide in combination with U of T policies and guidelines and applicable Tri-Agency program / funding opportunity literature.

The Division of the VPRI has been working in collaboration with stakeholders at U of T to conduct a thorough review of U of T policies and guidelines to ensure that that our policy framework meets the requirements of the new Guide.  To aid grant recipients and support staff in navigating the new Guide in tandem with institutional policies, the VPRI has developed a number of resources and training tools.

This four-part tutorial  is aimed at helping grant recipients understand the new Guide.

 

Last updated Wednesday January 3, 2024

If you have questions about eligible or ineligible expenses related to your specific research award, please reach out to the Research Officer on the University of Toronto Research Account (UTRAC), noted in the top header, or the appropriate program officer by searching the VPRI staff directory on the Contact Us page.

Please check back for additional resources as they become available.