Faculty & Staff

Essentials

The arrangements for financial management of international operations vary from project to project, depending on the financial risk associated with the project. The following checklist is drawn from the ICAP SOPs’ lengthy section on this subject. It is a management tool for implementing the essential elements of financial management in more complex, large-scale operations, which typically are categorized as major, ongoing field operations.

PIs may select from the checklist those elements that apply in their context and make their own list to guide staff engaged in financial management of the project. This entails the PI using his/her judgment in establishing control systems and accountability mechanisms, and making provisions for audits.

As stated above, the PI is ultimately responsible for the financial management of a grant or contract. He/she will be held accountable for any audit findings as well as for any disallowances by the funding agency. Disallowances may require allocation of other (unrestricted) funds to cover grant expenses or contract charges that are not allowable under the award (see Limitations on Expenses).

Select a topic from the dropdown list below to learn more about specific financial management topics.

Internal Controls

• Establish, properly document, regularly review, and improve internal controls in field locations
• Enforce Columbia University’s conflict of interest policies and avoid all financial and commercial benefit to employees
• Ensure finance staff take the time and effort to properly charge each expense to the appropriate corresponding funding source and sub-code
• If the documentation provided in support of an expense is not adequate proof of payment for one reason or another, have on file an approved Request for Policy Exception or Adjustment

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Expenses

For information on allocation of expenses and cost transfers, see Allocation and Cost Transfer, and for detailed information on limitations on expenses, see Limitations on Expenses  and Travel.

• Ensure relevant staff know what are allowable and allocable expenses and what are valid business purposes
• Translate into English the key points of information on receipts
• Include conference fliers or meeting agendas for reimbursement of conference or training expenses
• Clearly identify the vehicle with which vehicle-related expenditures (operation, maintenance, and insurance) are associated
• Before authorizing any payment, review supporting documentation, question unusual items, and make sure that all necessary information is provided
• When approving expenditures, be cognizant of the approved budget and of what expenses are allowed under each funding instrument
• If there is an electronic funds transfer (EFT) system available, use this instead of checks, especially for payment of staff salaries and for supplies by known vendors

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Record Keeping

See Record Keeping and Retention for further information on this topic.

• Keep all financial records, supporting documentation, statistical records, and all other pertinent records for the time period stipulated by the funding agency (for USG agencies, seven years from the date of the submission of the final expenditure report), unless local laws require retaining documents for a longer period
• Ensure that staff who handle records are aware of the record retention policy and that supervisors are overseeing compliance with it

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Cash Management

For detailed information on international bank accounts and petty cash funds, see DAF and Cash Management.

• If operating a petty cash fund, have proper internal controls in place
• Have cash in lockable safes that are burglarproof and fire-resistant and kept in a lockable room
• Communicate with the Department Administrator prior to opening, changing, or closing any bank account and obtain University approval when required
• Perform monthly bank account reconciliations

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Budgets

• Provide managers with adequate budget vs. actual expenditures reports to fulfill their budget monitoring responsibilities
• Protect the confidentiality of salary information

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University Financial Reporting

For detailed information on finance reports and reconciliations, see University Financial Reporting. For expense reimbursement and replenishment, see Reimbursement & Replenishment. For effort reporting and certification, see Effort Reporting.

• Prepare and submit Finance Reports to the Department Administrator on a monthly basis, including in each report the updated 12-month expenditure forecast
• Make a diligent effort to obtain reimbursement on all value added tax (VAT) paid, and document that effort (see Appendix 35 of the ICAP SOPs)
• Have all staff certify their level of effort on a project
• If funding agencies’ representatives in country request financial reports in addition to those that are contractually required, notify the PI and Department Administrator prior to proceeding

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Procurement and Property Management

For further information on procurement and USG regulations, see Procurement. For details on property management including property logs, see Property Management.

• Adhere to assigned authority levels and requirements for purchase orders and bids
• Follow USG restrictions on procurement and to the greatest extent practicable, purchase U.S.- produced and sold goods over foreign goods
• On all purchase orders made with USG funds in the amount of US$25,000 or greater, obtain written certification from vendors that they have not been debarred (prohibited) from doing business with the U.S. government
• Obtain prior approval from funding agencies when purchasing restricted items such as pharmaceuticals
• As required by Mailman School and the funding agency, obtain Mailman School and funding agency approval prior to making an expenditure for building alterations and renovations, subgrants and subcontracts, consultants, international travel, and vehicles and other major equipment
• Maintain a property log recording the purchase of new assets and disposition of old ones, update it at the end of the fiscal year (June 30), and submit it to the Department Administrator by July 15
• Have property insurance at the level required to protect the viability of the international project and in accordance with funding agency requirements and local law
• Lease any required vehicles if possible; if procurement is necessary, have the vehicle purchased by Columbia University or the local entity, not by an individual
• Immediately report any theft or other loss of University property to the Department Administrator, including vehicle accidents

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Expenditure Authority

Within a University department, a PI and possibly other officers working on an international project may be granted departmental authorization function (DAF) authority where necessary to allow the project to function efficiently and effectively. DAF authority gives the designated individual authority to approve project expenditures. The PI should work with the Department Administrator to obtain DAF authority or to find out who already has DAF authority and what level of expenditure authority has been accorded to them.

For further information, see the University’s policy on Departmental Authorization Function.

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Other Financial

For further information see Audits.

• Conduct regular financial oversight visits to project sites
• Keep monthly payroll registers and perform monthly reconciliations of staff salaries to ensure that they are in accordance with the letters of appointment
• Be prepared for audits, e.g., by preparing and filing documentation at the time expenses are incurred

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