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Financial Reporting

Financial Reporting

An annual Statement of Account is required within 90 days of the grant year end. The Statement of Account form is available in PDF or Excel format. 

Our Research Policies page also describes policies and practices which govern how grant and award funds are spent. 

Financial Reporting 

1. Host Institution/Arthritis Society Agreement   

Grants are made only with the consent and knowledge of the administrative head of the institution at which they are to be held and institutions must abide by the policies contained in the Host Institution/Arthritis Society Agreement. Funds will not be released to successful applicants without these approvals.  

2. Notification of award (NOA)  

Successful applicants will receive an official “Notification of Award” (NOA) which will set forth the duration of the grant period and the amount approved. The financial and research office of the university or institution concerned will be informed of the details of the grant.  A revised Notification of Award will only be sent if there is a change in the amount or terms of the grant.  

3. Start date  

The start dates for grants and awards are varied. The start date will be noted clearly on the Notification of Award (NOA). 

4. Authorization of expenditures  

An individual account must be maintained for each grant and all expenditures must be authorized by the grantee or by his or her authorized designate.  

5. Administration and payment of funds  

Funds for all grants are administered by the financial officer of the university or institution concerned. Payments will normally be made in quarterly installments. See Administration and Reporting for details on the submission of reports.  

6. Disbursement of funds by the Host Institution   

Payment of accounts for the purposes specified in the grant is made by the financial officer of the Host Institution, upon authorization from the grantee. The total disbursements must not exceed the award and any expenditures in excess of the award will not be assumed by the Arthritis Society nor reimbursed by it to the university or institution concerned. Expenditures are to be made only for the purposes set forth in the terms of the grant and any alternative use of funds requires prior approval of the Arthritis Society.  

7. Separate accounting  

Separate accounting must be kept when more than one grant is received by an investigator. Interchange of an expenditure from one project to another requires prior approval of the Arthritis Society.  

8. End of grant/early termination of a grant   

Termination of Research Grant Award:   A research grant award may be terminated before the end of the project if:  

  1. the Principal Investigator (PI) requests, in writing, that the award be terminated;  
  2. the PI is unable to carry out the research at the original institution;  
  3. the sponsoring institution requests in writing that the award be terminated because of the PI's termination of his/her academic appointment;  
  4. the PI fails to notify the Arthritis Society of any change in his/her affiliation with the department or institution on record at the time the award was made;  
  5. the PI changes any aspect of the award from that which was originally approved by the Society, including significant changes in the specific aims of the research studies, without prior notification and approval by the Arthritis Society;  
  6. annual progress and financial reports are not received from the PI within 30 days of the final notice;  
  7. the PI is found by an institutional investigation to have committed scientific misconduct or fraud; and/or  
  8. the Arthritis Society’s Board of Directors deems termination necessary for any reason.  

Expenditures incurred after the termination date will not be accepted. The Host Institution is expected to return any unexpended balances as of the termination date and no later than six-months past the end date. In the case of grants that are discontinued for any reason (e.g., early termination), the Arthritis Society must be notified immediately.   

9. Carryover of grant funds  

Within  a grant term:  Any unexpended funds within the term of a grant can be carried forward into the next year however where the total amount expended in the year differs by 30% of the budgeted amount found on the NOA, a brief explanation/justification is required with the submission of the Statement of Account, as detailed in section 13 d) below.  If the amount in the year differs by 50% or more, a request to retain funds along with a justification and revised project plan must be submitted to research@arthritis.ca.   

At the end of a grant term:  Grantees are permitted to carry forward, into any renewal grant, an unspent balance (surplus only) of up to $50,000 for up to one (1) year beyond the normal termination date of a grant, without in any way affecting concurrently held grants, any subsequent grants, or any pending grant applications. It is not necessary for investigators to apply for formal approval for amounts under $50,000. All monies carried forward beyond the termination date of a grant, regardless of amount, will be subject to the Arthritis Society usual accounting policies and will be subject to the usual end-of-grant financial accounting policies in force at the time. Surpluses in excess of those limits must be refunded to the Arthritis Society and deficits larger than $5,000 must not be carried forward into any renewal grant.  

Please see Item 10 for retaining funds beyond the normal termination date.  

10. Use of unspent funds at the termination date and extending the termination date (no-cost extension)  

Surpluses of up to $25,000 may be retained for up to 12 months beyond a grant termination date for expenditures on that grant. A statement of account must be provided for any funds expended beyond the normal termination date.  

However, when the expected surplus exceeds $25,000, more than 12 months are required to complete the work or substantive work remains, grantees must apply for a no-cost extension. This will allow the remaining funds to be expended after the end date but will not provide any additional funds. Consideration for a no-cost extension will be given where work remains to be completed combined with persuasive justification or where a grantee has taken an extended leave of absence during the term of the award. The request should be submitted to the Director, Research Operations. Include the following information:  

  • an explanation for the delay   
  • a brief description of the work remaining with an estimate of the time required to complete the work   
  • a projected figure for the unexpended balance at the termination date to be carried into the extension period   

11. Overlap  

Should the awardee receive another award(s) for the same project during the term of the Society’s award, the awardee must notify the Society within 30 days of receiving notice of the award and is expected that the recipient will decline one of the awards.  

12. Top up Funding  

The Arthritis Society may consider on a case-by-case basis, providing “top-up” funds under the following circumstances:    

  1. Term of the new award is shorter than the term of the Society’s award;  
  2. Value of the award is less than the value of the Society’s award;  
  3. Value of the award is less than the amount requested in the proposal submitted to the funding agency; or 
  4. Value of the training award is less than the minimum stipend as required by the department where the trainee is registered;

All such requests must be sent in writing to the Arthritis Society on formal letterhead via email.  

Should the Arthritis Society grant the recipient’s request, the recipient will be required to uphold all requirements of a full award.  

13. Statement of Account for grant funds  

a)  Submission of statement  
A Statement of Account (PDF, Excel) must be submitted annually by the Host Institution, in the format required by the Arthritis Society, for each project for which funds have been awarded. The Statement must be received within 90 days of the end of each grant year to ensure that subsequent payments are not delayed. For example, a grantee with a September 1 start date must submit a Statement of Account by November 30 to ensure that their March 1 payment is released. Subsequent quarterly payments will not be released until an acceptable Statement for the previous year is received and approved. Delayed payments will be released with the next scheduled installment.  

b) Signatures  
The annual Statement of Account must be signed by both the grantee and the Financial Officer responsible for overseeing the administration of the grant. In circumstances where the grantee is unavailable to sign the statement, such as the absence due to a sabbatical leave, the grantee’s designate can sign the statement if the Arthritis Society has been informed of the designate in advance. In addition, the name of the individual who prepared the Statement is required.  

c) Committed funds  
The reporting of committed funds is not required as grant surpluses or deficits within the term of a grant are allowed. Institutions can make accruals in the final year if the goods were used during the grant period but not billed as of the scheduled end date.  

d) Details of expenditures  
Where the total amount expended in the year differs by 30% of the budgeted amount found on the NOA, a brief explanation/justification is required with the submission of the Statement of Account. The Arthritis Society may request further information from the grantee or Host Institution at any time (e.g., when expenditures are vastly different from the requested budget or when there is a large under-or over-expenditure in any year). Also, the grantee may be required to provide an itemized account of expenditures supported by backup documentation.   

e) Audit   
The Arthritis Society reserves the right to audit the Statement of Account.  

f) Expenditure categories  
Note: All charges to a grant account must directly relate to the project for which funds were awarded. Please contact the Arthritis Society if you have any questions regarding eligible expenditures.    

Salaries and benefits: Report the total of all salaries and benefits relating to the grant. Proportional expenses should be applied for partial effort of any project team member. It is not necessary to record the name and salary amount for each individual paid on the grant. However, institutions must have payroll details available for review to support the total salaries and benefits reported on the statement.   

Expendables/supplies: Report all expenditures directly relating to the grant. Costs may include expendable lab supplies (i.e., tips, tubes, reagents, etc.), animals and housing costs, per patient costs, printing survey instruments and small equipment (<$1,000).   

Equipment: In addition to any equipment budget requested within an application that is approved, all grantees may use 5% or $10,000 for the purchase of equipment. This allowance is an annual calculation but can be expended at any time over the term of the grant. The cost of installation of equipment can only be charged if requested as part of the budget request.  

Animals and upkeep: Report all expenditures directly related to the grant.   

Books and journal subscriptions: When the total for books and journals purchased exceeds $1,000 annually, the grantee must attach a list with full justification when submitting the Statement of Account. Do not include the cost of preprints and reprints as such expenditures would be reported under “Miscellaneous”.   

Conference travel: Report all expenditures associated with cost of presenting results and/or attendance at scientific conferences.  Travel expenses must be in accordance with the Society’s policies.  Expenditures may also include the cost of travel associated with an approved sabbatical leave for the grantee, travel support for a postdoctoral fellow who is about to take up an initial appointment in the laboratory of a grantee, or travel costs associated with a visiting scientist who will be contributing to the funded project.   

Research travel: Expenditures reported should relate to the cost of conducting the research (e.g., periodic team meetings for multi-centred studies, mileage charges to conduct interviews with study subjects, etc.)   

Services: Expenditures reported can include the cost-of-service contracts, consultants, etc. An itemized list on, or attached to, the Statement of Account must be provided.   

Miscellaneous: When the total expense exceeds $5,000, details must be included with the Statement of Account. These expenditures may include:   

  • advertising costs for recruiting personnel 
  • office supplies and services (e.g., stationary, telephone, photocopying, courier) 
  • cost of reprints and preprints   

Note: All charges to a grant account must directly relate to the project for which funds were awarded.  Please contact the Arthritis Society if you have any questions regarding eligible expenditures.  

g) Ineligible expenditures  
Expenditures which cannot be charged to grants include, but are not limited to, the following:   

  • salaries and/or benefits of the PIs, co-applicants and faculty members 
  • deductions for CPP/QPP, WCB/WSIB Employment Insurance, provincial health taxes, fringe benefits such as medical, dental or private pension plans for students   
  • deductions for CPP/QPP, WCB/WSIS, Employment Insurance, provincial health taxes, fringe benefits such as medical, dental or private pension plans for postdoctoral fellows unless mandated by the Host Institution as a result of a formal agreement (e.g., unionization of PDF’s)   
  • academic fees for students or postdoctoral fellows   
  • top-up charges for maternity leave benefits 
  • secretarial salaries 
  • overhead or infrastructure charges/levies (e.g., building maintenance, computer network charges, etc.). Only shared services (e.g., glass washing, etc. on a pro-rated basis) are acceptable. Percentage charges/levies/tithes are not permitted (only actual charges are allowed) 
  • indirect costs (as described in the Arthritis Society’s Indirect costs policy 
  • laboratory or office furniture 
  • entertainment or hospitality costs 
  • membership fees 
  • administrative support supplied by the host institution (i.e., purchasing, accounting, finance, etc.) 
  • activities by researchers not on the grant, or activities related to other grants 
  • cell phone charges unless required for project/study funded 
  • construction or renovation costs 
  • any salaries/charges unrelated to the grant (e.g., union secondments, employee-related benefits such as severance/placement/counselling fees as individuals working on a AS funded grant are employees of their institution)   

14. Statement of account for STARS Career Development Awards   

a) Submission of statement  
A Statement of Account (PDF, Excel) must be submitted by the Host Institution, in the format of STARS Career Development Awards. The Statement must be received within 90 days of the end of each grant year to ensure that subsequent payments are not delayed. The statement of account form is available on the website(link).  

b) Signatures  
The annual Statement of Account must be signed by both the grantee and the Financial Officer responsible for overseeing the administration of the award. In addition, the name of the individual who prepared the statement is required.  

c) Expenditure categories  

Salaries and benefits: Report the total of all salaries and provide details of those being paid (e.g., title of position and amount).  
Expendables/supplies:  Report all expenditures directly relating to this grant as described under Statement of Account for grant funds, Item 13 f).  
Major equipment:  Report as outlined and approved in budget.  

All other items should be reported as described in Statement of Account for grant funds Item 13 f).  

d) Ineligible  expenses 
Refer to Statement of Account for grant funds Item 13 g) for a list of ineligible expenditures. 

15. Statement of account for Trainee awards (graduate and post-doctoral fellows) 

a) Submission of statement  
A Statement of Account (PDF, Excel) must be submitted by the Host Institution, in the format required by the Institute, for trainee salary awards. The Statement must be received within 90 days of the end of each grant year to ensure that subsequent payments are not delayed. The statement of account form is available on the website.  

b) Signatures 
The annual Statement of Account must be signed by both the supervisor (for trainees) and the Financial Officer responsible for overseeing the administration of the award. In addition, the name of the individual who prepared the statement is required.  

c) Expenditure categories  
Salaries and benefits: Report the total of all salaries and provide details of those being paid (e.g., title of position and amount). This is the only category of expenditure permitted for training awards.   

16. Statement of account for Arthritis Centre grants   

a) Submission of statement  
A Statement of Account (PDF, Excel) must be submitted by the Host Institution, in the format required by the Institute, for arthritis centre grants. The Statement must be received within 90 days of the end date. Outstanding statements will result in delays in any future successful grants. The statement of account form is available on the website.  

b) Signatures  
The annual Statement of Account must be signed by both the grantee and the Financial Officer responsible for overseeing the administration of the award. In addition, the name of the individual who prepared the statement is required.  

c) Expenditure categories 

Salaries and benefits: Report the total of all salaries and provide details of those being paid (e.g. title of position and amount).  
Expendables/supplies: Report all expenditures directly relating to this grant as described under Statement of Account for grant funds, Item 13 f).  
Major equipment: Report as outlined and approved in budget.  All other items should be reported as described in Statement of Account for grant funds Item 13 f).  

d) Ineligible  expenses   
Refer to Statement of Account for grant funds Item 13 g) for a list of ineligible expenditures.