FINANCIAL MANAGEMENT

1. UP Manila Research Financial Management of RGAO-Collected Administrative Overhead Cost (AOC)
   1. All research funding agreement payments will be made to UP Manila to be deposited in a trust fund called “UP Manila Research Administrative Overhead Fund”. RGAO will receive the checks for official recording and appropriate tracking and forward these checks to the UP Manila with advice on the manner of partition of the funds.
   2. If specifically requested or required by the sponsor or UP Manila in accordance with the provisions of Clinical Trial Agreement (CTA), only the AOC shall be collected by RGAO.
   3. RGAO shall pay RIDO for the cost of technical and ethical review (preferably at the start of the evaluation) and shall obtain the said payment from the sponsor as a component of the AOC. However, in special cases, the RIDO fee can be directly provided for in budgets of the research sponsors separate from the AOC and these can be paid directly to UP Manila as was done by some government and private sponsors.
   4. Distribution for the utilization of overhead cost shall follow the “The Policies and Guidelines on the Use of University Administrative Overhead Funds” approved by the BOR at its 1147th meeting held on 21 December 2000 and the subsequent 1245th BOR meeting on 25 June 2009. Research funds of RGAO as deposited into the UP Manila Research Administrative Overhead Fund when deemed necessary may also be used to support research management in UP Manila upon written approval of the Chancellor.
      
      
2. UP Manila Research Administrative Overhead Fund
   (Approved by BOR during its 1245th meeting on 25 June 2009)
   1. The Trust Fund
      1. Trust Fund Name
         The “UP Manila Research Administrative Overhead Fund”
         
         
      2. Main Purpose of the UP Manila Research Administration Overhead Fund
         The UP Manila Research Administrative Overhead Fund shall exist primarily as a depository of institutional fees collected by UP Manila from government and private institutions that sponsor research projects submitted by UP Manila employees, excluding the research grants from the UP System. It shall also be the depository of the funds from institutions and/or philanthropists who may wish to donate funds for research undertakings
         
         The funds will enable RGAO to continue its operation as a self- sustaining office and will allow the office to support financially and administratively research management in UP Manila.
         
         
      3. Uses of the Fund
         The Chief Coordinator of RGAO will prepare an annual plan indicating a system of priorities for the use of the fund with the approval of the UP Manila Chancellor upon the recommendation of the VCR. RGAO will monitor the distribution of the funds and submit a report to the UP Manila Chancellor at the end of the calendar year. The UP Manila Administrative Overhead Trust Fund will primarily be used for the following purposes (see figure 2):
         1. RGAO Fund
            This will be a subfolder under the UP Manila Administrative Overhead Fund. This fund will be used primarily for (1) RGAO Personnel Services and (2) Maintenance, Operating and Overhead Expenses. Funds for the Personnel Services will be utilized after a year of operation subject to the availability of funds. Any residuals from the expenses will be pooled and utilized to support research management in UP Manila if deemed necessary and if approved by the UP Manila Chancellor upon endorsement of the VCR.

            In addition, the fixed RIDO fee shall be deducted from the RGAO component that comprises 50% of the Administrative Overhead Fund.

         2. Research Unit Fund (RUF)
            This will be the second subfolder under the UP Manila Administrative Overhead Fund which is 50% of the Administrative Overhead Cost. The Research Unit Fund will be reserved for the participating research unit which as stipulated in the 1147th meeting of the UP Board of Regents in 2000 provides that units which generate research grants will receive the Research Unit Fund. Each research unit (NIH, College of Medicine, Nursing, Dentistry, etc.) will have a subfolder under this fund. The funds may be utilized by the different departments to support research with the written favorable recommendation of the college dean/unit head that maintains an account in UP Manila upon approval of the Chancellor.

      4. Donations with Specific Donees
         When a donor specifies a donee, 5% is retained by RGAO as administrative cost and 95% is given to the donee through the participating Research Unit Fund.
         
         
      5. Sources of Funds
         The UP Manila Research Administrative Overhead Fund will have two major sources of funds: (a) administrative overhead fees collected from various externally funded research projects conducted in UP Manila which are approximately 15% of the research project budget and (b) donations for research from individuals or private organizations.
         
         
         Flowchart of Distribution of Administrative Overhead Cost
         from Research Projects (15% of Research Project Budgets)
         
         
         
         
         1. Administrative Overhead Cost/Fees (AOC) (15% of Research Project Budgets)
            Administrative overhead cost/fees are approximately 15% of the research project budget but this may vary depending on the category of the research project. No administrative overhead fees are collected when the research granting body is part of the UP System. For example, if a research project conducted in NIH is sponsored by the OVCR, no administrative overhead fees will be collected. If however the research granting body is a foreign organization then an administrative overhead fee would be collected depending on the research category and availability of funds for administrative fees of institutions like international organizations such as World Health Organization (WHO), United States Agency for International Development (USAID), etc.

            Upon collection of the administrative overhead fees from the various research projects, the Research Unit Fund will receive 50% of the fee (AOC). The exact amount that goes to the different participating research units will depend on their contribution to the AOC. The different participating research units may be the NIH, UPCM or other UP Manila colleges where the research project is conducted or where the project emanates from.

            When the research budget amounts to PhP200,000.00 or less, the collection of the AOC is utilized only for the RIDO fee. For a budget higher than PhP200,000.00 from externally funded research projects, the partition scheme as shown in Figure 2.3. will be followed.

         2. Donations for Research
            Only 5% of donations for research from private individuals or institutions are retained by RGAO as administrative fee. Ninety-five percent of the donation is given to the donee specified by the donor through the donee’s mother unit. If there is no specified donee, 95% of the donation will be used to support innovative research projects and research activities in UP Manila as approved by the UP Manila Chancellor upon endorsement of the VCR.

Flowchart of Distribution of Administrative Overhead Cost from Donations