Carry Forward Guidelines - 2015-16 - ver 2.1.docCarry Forward Guidelines - 2015-16 - ver 2.1
GUIDELINES
FOR THE CARRY FORWARD OF UNSPENT /
UNCLAIMED GRANT ALLOCATIONS
Version 2.1
November 2015
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CONTENTS
ACRONYMS ............................................................................................................ 2
SCOPE...................................................................................................................... 3
PURPOSE .................................................................................................................. 3
CRITERIA .................................................................................................................. 4
CARRY FORWARD PROCESS AND TIME LINES .................................................... 5
ACRONYMS
BF
= Brought Forward
CF
= Carry Forward
ED
= Executive Director
FY
= Financial year
GMSA
= Grants Management & Systems Administration
NRF
= National Research Foundation
PFMA
= Public Finance Management Act
SARChI
= South African Research Chairs Initiative
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SCOPE
The Carry Forward (CF) process described below is used to roll over
unclaimed/unspent NRF awards from one financial year (FY) to the next.
As a schedule 3A entity the NRF is governed by the Public Finance
Management Act (PFMA) and must ensure generally recognised
accounting practices on the management of funds at its disposal.
Not all unspent funds can be rolled over to the following funding year.
The NRF uses clear and transparent criteria to decide which funds can or
cannot be carried forward. Furthermore, the NRF seeks inputs from the
beneficiary institutions1 before making the final decision.
The CF process is performed annually from December to February. This
timing is crucial as it should occur after the FY-end of most of the NRF’s
beneficiary institutions (December) and prior to the FY-end of the NRF
(March of the following year).
Within the NRF, the process is managed by the Directors in the Grants
Management & Systems Administration (GMSA).
PURPOSE
The purpose of the CF process is to ensure that funding, which has been
awarded but has not been spent or claimed within a prescribed period, is
either utilized in the following FY or returned to the NRF and made
available for re-allocation.
The CF process is intended to 1. allow grantholders the flexibility of using grant funds appropriately
during the duration of their approved projects;
2. avoid withdrawing funds from institutions at which commitments have
been made by the grantholder, but not yet expensed; and
1
A beneficiary institution, i.e. where a grant is administered, includes the following:
Higher Education Institutions, Science Councils, Museums, approved NGOs;
approved State-funded research institutions and other NRF Recognised Research
Institutions.
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3. Make best possible use of the limited grant funds and therefore
minimize money that is tied up but not being used.
CRITERIA
1. Funds awarded to a grantholder towards operating costs (including
running, sabbatical and equipment costs) that are unspent or
unclaimed by year-end will be carried forward automatically within
a multi-year grant with the exception of grants in the Incentive
Funding for Rated Researchers Programme.
Research Development Grants for Y-Rated Researchers was
awarded in 2015 and must be spent over 3 years ie until 2017, no
motivations are needed and the unspent portion will be carried
forward automatically
The NRF will not allow funds to be carried forward if less than 50% in
case of all other grants and (60% in case of SARChI) of the total
awarded operating costs, including BF from the previous financial
year, has been expensed (claimed). In such cases a strong
motivation is required and uploaded on the NRF Online Submission
system.
At the end of a multiple year award or final year of funding of a
grant, the carry forward of unspent/unclaimed funds must be
motivated for consideration by the NRF.
2. Any grant that has been awarded between August and December
will be carried forward automatically to the following funding year,
with the exception of SARChI funding instrument does not award full
funding for grants awarded between July and December.
3. Any unspent balance less than R 500.00 per line item will not be
carried forward.
4. Carry forward of funds already BF from the previous grant year, may
not be carried forward a second time.
5. Institutions must provide the 1:1 commitment on carry forward
funding that has been approved by funding instruments where an
institutional contribution is a requirement.
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6. Grants allocated on an annual basis (e.g. Thuthuka), will not accept
motivations for CF of activities that have not occurred in the year of
the award. Requests for these funds should have been motivated
for in the Annual Progress Report and budgeted for appropriately.
No unspent student funding will be carried forward
to the following grant year
CARRY FORWARD PROCESS AND TIME LINES
The CF process, with its associated time lines, is described below:
1.
The Finance Officer of the beneficiary institution must draw an
expenditure report by logging on to the NRF Online Submission
system. This report must be drawn in December directly after the
institution has entered its expenditure reporting. The report contains
a list of 2015 grants for the particular institution, with details of each
grant’s financial status to date. Institutions must use this report as a
guide to identify possible motivations for CFs to be submitted taking
into consideration final expenditure reports still to be entered by the
institution.
By whom: Institution’s Finance Officer
By when: Early December 2015
2.
The Finance Officer of the beneficiary institution will need to
indicate the committed amount per grant item with respect to
official purchase orders where tax invoices are still outstanding.
Copies of these orders will have to be sent to the NRF. The Research
Officer of the beneficiary institution will also need to obtain the
amount to be carried forward per grant item from grantholders in
cases where no official commitment has been raised. Failure to
complete this exercise will imply that the institution could become
liable for a commitment made by the grantholder after the
withdrawal of the award.
By whom: Institution’s Finance & Research Officers
By when: Mid January 2016
3.
Final expenditure (claims) must be entered directly onto the NRF
Online Submission system.
By whom: Institution’s Finance Officer
By when: 4 February 2016
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4.
Where appropriate, grantholders must briefly but clearly motivate
per grant item why committed and/or uncommitted amounts
should be carried forward.
5.
Grantholder motivations are submitted to the Institution Finance
Officer on the NRF Online Submissions System.
6.
Finance Officer checks amounts and submits to the Designated
Authority.
7.
DA checks motivations and either Resets for editing or submits to the
NRF for processing
8.
Motivations must be entered on the system as outlined below and
needs to be endorsed by the Finance Office and submitted to the
NRF by the deadline date.
By whom: Grantholders and Finance Officer
By when: 12 February 2016
9.
Motivations are sent to relevant Directors for consideration,
recommendation and approval/rejection by the respective
Executive Directors.
By whom: GMSA
By when: End February 2016
10.
All CFs are processed as per approved list. Grantholders can view
their 2015 grant statements as notification of the approved CF.
These CFs will be indicated with the acronym BF. Grant Statements
can be viewed by following the steps below:
Login on NRF Online Submission (https://nrfsubmission.nrf.ac.za)
Go to “Grantholder Tools”
Click on “Statements”
Select the grant
The system will default to the current funding year
Click on “View” to open the statement
By whom: Grantholders
By when: March 2016
11.
The institution’s Finance Officer can draw an expenditure report for
2015 by logging on to the NRF Online Submission System. The report
will contain a list of all grants for 2015 including the approved CFs. If
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a requested CF does not appear on the expenditure report or grant
statement, it is an indication that the CF was not approved.
By whom: Institution’s Finance Officer
By when: April 2016
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Online process for submitting Carry Forward requests
Grantholders:
Go to the NRF Online Submission System (https://nrfsubmission.nrf.ac.za)
Log in and go to Grantholder Tools under “Quick Links”
Select “Carry Forwards”
Select a Grant
Select a funding category and click on REQUEST.
Complete all the relevant fields and SAVE.
Requests should be submitted from the grid.
Finance Officers:
Go to the NRF Online Submission System (https://nrfsubmission.nrf.ac.za) –
if you are not registered on this system, please register to access the tools.
Log in and go to Institution Facilities
Select “Carry Forwards”
A list of Carry Forward requests will appear
These requests should be submitted to the NRF by the deadline date
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