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Managing third-party funds

Contents

Management principles, general

Inventory

Overheads / project lump sum / programme lump sum

Programme lump-sum compensation

Money available for test subjects

Spending on entertainment / entertainment and catering costs

Debit account procedures

Insurance

Use of third-party funds

Interest earnings

 

Management principles, general

The notice of approval, the conditions of approval and rules for use must be implicitly observed. Necessary deviations, e.g. converting staff positions or redistributing materials, must be coordinated between the funding body and the Research Division. Explicit provisions of the funding body take precedence over state administrative regulations, as long as they are not countered by statutory provisions or collective agreements. The funds are available beyond the financial year without a time limit, as long as the approval conditions of the funding body do not provide otherwise. The funds must be managed in such a way as to cover all activities. If there is a shortfall, the University will be liable to the funding body, and internally the project leader and/or the institute (debit account procedure).

Approval notice

Scientific services

 

Inventory

Pursuant to the third-party guidelines, "objects acquired from third-party funding" become the property of the State of Baden-Württemberg. They must be labelled and made the subject of an inventory.

Inventory rules

Third-party funding guidlines (PDF) (Ger)

 

Overheads / project lump sum / programme lump sum

In addition to the direct project funds, different funding bodies available make a lump sum for indirect costs. The lump sum is divided on the basis of 70% to the President’s Office and 30% to the project leader. The distribution rule follows the strategic goal of ensuring the University’s structural ability to take action. The President’s Office uses the lump sum to cover overheads, mainly for infrastructure costs (energy, facility management).

The possible division of the 30% share between the institute and the project leader is decided separately by each institute. The procedure shall be set out in the institutes’ rules for administration and use or in rules of procedure, in compliance with the Heidelberg principle that the matter appears in the institute budget.

Details on overheads calculation may be taken from the fact sheets on the individual funding bodies in the Download area of the Research Division website.

Foundations do not grant any funds for overheads and sponsoring does not generally cover overheads.

Forms, guidelines, model contracts (Ger)

Sponsoring

 

Programme lump-sum compensation

As of 1 January 2019, the President's Office will accrue 100% of the programme and project lump sums and other overheads. As compensation, 30% of the lump sum amounts will be paid into a decentralised budget account from budgetary funds (so-called programme lump-sum compensation).

The accrual of 100% of the lump sums in the central budget and their direct expenditure for energy and infrastructure in the corresponding budget year explicitly meet the provisions set forth by funding organisations, including the German Research Foundation. For uniformity, this process will apply to all lump sums and overheads from funders (e.g. BMBF, EU). Thirty percent of the lump sums will be transferred from budgetary funds into a decentralised budget account to be set up by the university administration specifically for this purpose, giving the institutes, central research institutions, and project managers greater budgetary freedom. The programme lump-sum compensation is flexible, accruable funding and therefore not tied to a specific use plan.
Providing the 30% portion from budget funds does not deviate from the university's valid 70/30 rule.
The existing lump-sum accounts from third-party funds will not be converted to budget accounts and can continue to be managed based on their balance on 31 December 2018. These accounts are not subject to accrual on 1 January 2019.
To ensure that the decentralised institutions suffer no financial disadvantage from this rule, the compensation funds are exempted from structural allocations and contributions to cover land losses.

Memorandum no. 13/2018 (PDF) (Ger)

 

Money available for test subjects

Anyone taking part in third-party-funded scientific studies as a test subject can receive an allowance. The precondition is that the payment has been expressly approved by the external funder. The allowance must be paid directly to the test subject by payment order via the University financial accounts office. Alternatively, leaders of scientific studies may be paid a sum on account, either in cash or by bank transfer (G/L account 26706), which they will then pass on in cash to the test subject, who must sign a receipt, or by means of a bank transfer.

n this case, the payment route must be documented, either by the recipients signing a receipt, or by the bank statements of those involved. The difference compared to the sum paid on account will be returned to Heidelberg University. Only the test subject money actually used will be booked on the allowance account (G/L account no 63693) by the SAP program.

Should test subjects express the wish that the allowance go to a nonprofit organisation they must forward the amount to the desired organisation themselves. The University is not permitted to transfer the sum directly to the said organisation.

 

Spending on entertainment / entertainment and catering costs

Specific rules by a third-party funding body are given preference, as long as they do not conflict with existing statutory regulations (particularly the budgetary regulations of the State of Baden Württemberg). If no special rules are laid down, the same rules will apply to third-party funds as to state funds; here the University’s own rules for catering and entertainment must be observed. These rules and other information are available on the pages of the Finance Division.

Entertainment costs (Finance Division)

 

Debit account procedures

If there is a deficit after concluding a third-party funded project, the Research Division will inform the project leader by email and request that the account be balanced. If that does not happen, the Research Division will send a reminder to the project leader, pointing out any third-party funding existing in the project leader’s department. A copy of this reminder will be delivered to the respective head of the institute. If the account is still not balanced, the Research Division will send a reminder to the executive director of the institute concerned, pointing out that the account will perhaps be balanced by the highest University authorities.

The project leader will receive a copy of this reminder. If the account is not balanced hereupon the deficit will be covered by institute’s own budget. The debit account procedure will also apply with overheads and non-earmarked accounts. These should, in principle, not run up a deficit.

 

Insurance

The State of Baden-Württemberg fundamentally follows the principle of self-insurance, i.e. the University is not permitted to conclude insurance policies and has to cover damage with budgetary funds. By way of exception, objects financed by third-party funds may be insured if the funding body requires this and reimburses the bonuses or if the insurance contribution can be paid privately by third-party funds. In the case of research contracts by private third parties, the University can conclude third-party liability insurance policies if the project is linked to special risks and the insurance contribution can be paid out of the remuneration available. Independently of that, insurance policies are possible in special cases – see the Finance Division’s website for further information.

Insurance at the expense of third-party funds (PDF) (Ger)

 

Use of third-party funds

The following rules apply: the rules for use of the third-party funding body, along with the third-party funding rules and budget rules of the state of Baden-Württemberg.

Third-party funding guidlines (PDF) (Ger)

Landeshaushaltsordnung

 

Interest earnings

Third-party credit balances on project accounts may be invested for interest, depending on the requirements of the funding body. This applies to EU projects, industrial projects and funds from other third-party funding bodies, which allow investment for interest. After the annual statement the interest earned is distributed to the third-party funds. A base amount of EUR 250 is retained for central infrastructure. The remaining interest is credited to the third-party projects. The administrative assistant responsible in the Research Division can give more information.

E-Mail: Seitenbearbeiter
Letzte Änderung: 2019-12-16
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