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SITE VISITS

Accountability and performance measurement lie at the heart of any Government of Canada program. The Indirect Costs Program manages both of these responsibilities through regular site visits.

The selection of institutions to be visited is based on the following criteria:

• the risk factor;
• the provincial location of the institution; and
• the size of the institution.

Visits to high-risk sites are priorities. The risk is determined to be high where there are third-party transfers of funds, such as between a university and its affiliated research hospitals and/or health-research institutes.

It is also deemed important to visit institutions of various sizes in as many provinces as possible.

The site visit team is composed of the senior program manager, the performance analyst, or the program analyst.

Objectives of the site visits

The Secretariat monitors the management of Indirect Costs grants during site visits to the institutions.

Financial monitoring:

• to review the effectiveness of controls and systems in place to ensure that Indirect Costs Program policies and regulations are followed;
• to review the expenditures or the fund allocation methodology in order to ensure they are in accordance with the program guidelines; and
• to obtain feedback on the program’s financial management practices.

Program monitoring:

• to share information regarding the objectives of the Indirect Costs Program and its guidelines;
• to establish and maintain a harmonious and collaborative working relationship with Canadian postsecondary institutions and their affiliates;
• to discuss issues and challenges associated with the Indirect Costs Program; and
• to obtain feedback on the program’s policies and guidelines.

Performance monitoring:

• to substantiate performance data provided by the institution to the Secretariat; and
• to collect additional information on program performance.

Completing the site visit questionnaire

Once the date of a visit has been determined, the Secretariat sends a questionnaire to the institution. This questionnaire was developed to help institutions prepare for the visit, instead of scrambling to locate data once the visiting team is on site.

The completion of the questionnaire is required four to six weeks prior to the site visit to allow program staff time to review the information and prepare for the visit.

A two-pronged approach has been adopted for site visits:

Qualitative testing

First, the program representatives meet with officials at the institution (and the affiliated institutions, if applicable) to discuss the program and the management of funds. Then, site visits take place at some of the university’s and affiliated institution’s facilities that have benefited from the grant. These visits provide opportunities to collect additional data on program outcomes and impacts.

The site visit team also meets with the vice-president of research to collect more in-depth information on the program’s strategic objectives, such as the institution’s renewed ability to meet their mandates, the strategic investment of Indirect Costs grants to optimize the federal investment in university-based research and the institution’s ability to provide world-class research facilities and thus contribute to the attractiveness of the Canadian research environment.

Quantitative testing

The institutions must provide access to supporting documentation records and other information related to the grant (including funds transferred to affiliated institutions) that may reasonably be requested during the course of a site visit and respond fully and frankly to any requests the Secretariat may make for information concerning the indirect costs expenditures. (See the Grant management sub-section "Keep appropriate records and supporting documentation").

The quantitative testing is carried out in one of two ways:

• a review of a sample of transactions from the general ledger; or
• a review of the funding allocation.

Generally, detailed spreadsheets are reviewed that show:

• how the grant was distributed internally and to health affiliates, if applicable;
• what proportion of the indirect costs have been covered by the grant in each of the five expenditure categories; and
• the actual expenditures incurred during the year.

Follow-up to site visits

Following the site visit, the Secretariat sends a letter to indicate if the objectives of the visit were met. The letter also highlights specific achievements and best practices observed at the institution and its affiliates.

In cases where weaknesses might have been noted, the Secretariat makes recommendations for a corrective course of action and requires that the institution submit a response within a given timeframe.