SU is registered for VAT and should, therefore, comply with the VAT Act (Act 89 of 1991). The VAT implications should be considered during the project proposal phase in order to incorporate these in the budget as well as in the contract amount.
The Financial Policy (section 3.1) provides the financial guidelines (as specified by the Act) that are applicable when SU wants to institute a claim for VAT, the method used to determine a cost centre's VAT claim percentage and for the issuing of invoices.
| Income accounts when invoices are created for foreign income: | Income accounts for domestic income - VAT is levied: | Income accounts for domestic income - NO VAT is levied: |
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| 5387: Income received towards bursaries
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Contact:
Riaan Basson | 021 808 4500 | Email Riaan
All research, consulting, external work and goods delivered by departments must be invoiced via the debtor system. No invoice may be created on Stellenbosch University letterheads or generated by computer programmes. The debtor system should be used at all times to create invoices.
The Financial Policy (section 2.7) stipulates SU's rules and regulations with regard to the issuing of invoices and the income accounts that should be used.
The person who issues the invoice must ensure that the correct income account is used. Refer to the Financial Policy (section 6.1) for the accounts that should be used for invoicing against research cost centres.
Payment should be made into the University's account electronically or per cheque with the invoice number as a reference.
Refer to VAT under Financial Information for the relevant income accounts.
- Departments issue/create their own invoices via the debtor system; please contact the relevant financial or administrative officer in your department or faculty to assist you in this regard.
- When a department's debtor(s) have debt outstanding for more than 90 days, the relevant department is responsible for following up on the outstanding income.
- No request per invoice from the debtor system may be made for donations that qualify for a Section 18(A) donation receipt. Please contact Development and Alumni Relations.
- No invoices may be issued towards income account 5596 without prior approval from Financial Services.
- No income may be recorded against an expense account.
Contact:
Tronel Claassens | 021 808 4534 | Email Tronel
The Financial Policy (section 6.1) as approved by the Finance Committee states that a unique cost centre must be created for each research contract that has financial implications. Projects related to the specific research contract can be managed through this cost centre, thus reporting is clear and income sources are not mixed. The cost centre will be closed as soon as the contract comes to an end.
Guidelines for the creation of a new cost centre are set out in Section 2.1 of the Financial Policy. A cost centre application form can be downloaded from the Finances webpage.
Closure of a cost centre - Department’s responsibility:
Identify cost centres that must be closed and inform Financial Services or Financial Management Systems:
- That the balance of the cost centre equals zero.
- To which new cost centre the balance should be journalized.
- That no commitments reflect on the cost centre.
- That no assets are linked, and if so, the assets must be moved to the appointed cost centre.
- That no remuneration is being paid from the cost centre if so, Human Resources must be informed of the new cost centre.
Contact:
Marinda Kotze | 021 808 3167 | Email Marinda
PURPOSE OF THE POLICY
Since SU is largely dependent on outside funds to undertake competitive teaching, research and community interaction, academics are encouraged to obtain outside funds and thereby promote SU's core activities. However, teaching, research and community interaction projects that are funded from outside funds are associated with certain indirect costs, and the motivation for the ICRR is to recover these indirect costs and to manage the University as a financially sustainable enterprise.
BACKGROUND
The ICRR Policy went through various iterations of consultation and adjustment before it was approved by the Senate on 30 August 2013 and the SU Council on 30 September 2013. The ICRR Policy on third-stream income replaced the 12% Levy policy (active since 19 January 2004) from the 1st of October 2013.
Click here for more information regarding full costing and full cost templates.
Contact:
| General questions regarding the ICRR policy : | Questions relating to the exemption of the ICRR (which will only be approved in exceptional cases): |
Audrey Erasmus | 021 808 9018 | Email Audrey Chantal Hugo | 021 808 9368 |Email Chantal | Ilse Griffiths | 021 808 4539| Email Ilse |
PREPARING BUDGETS
A detailed budget should be prepared for each research contract that has financial implications. Some funding agencies are very prescriptive regarding which items will be funded and can be included in the budget. It is important to ensure that the budget is complete and includes all possible costs. You are kindly requested to contact the project accountants during the proposal phase for assistance with the preparation of a budget.
PURPOSE OF THE FULL COST POLICY
The purpose of the policy is to set a standard basis for calculating full costs related to research and research-related contracts at SU.
BACKGROUND
Under the new Intellectual Property Rights from Publicly Financed Research and Development Act, No. 51 of 2008, any research funded via private funding on a full cost basis, will usually not be subjected to this legislation (refer clause 15.4 of the relevant Act). It is therefore in the interest of SU and its research partners to ensure that the costing of all research and research- related contracts take place on a full cost basis where applicable.
Contact:
Suzette Els (Project Accountant) | 021 808 9963 | Email Suzette
Reinet Uys (Director: Financial Services) | 021 808 9729 | Email Reinet
Audrey Erasmus (Full Cost Accountant) | 021 808 9018 | Email Audrey
Chantal Hugo (Full Cost Accountant) | 021 808 9368 | Email Chantal
Eugene Baugaard (Head: Grants Management -Tygerberg) | 021 938 9126 | Email Eugene
** Project accountants are available to assist with all financial aspects of research contracts.
Services offered include:
- Support and advise project leaders with:
- the compilation of project budgets and research proposals (including NIH, EU, USAID, DST, etc.),
- the financial aspects of research contracts and grants
- Financial and contractual management of sponsored research grants
- Management and facilitation of interfaces between the research environment and the Finance Division & Research Development
- Liaison with national and international funding institutions
- Compilation of management reports and projections
- Compilation of financial statements as well as statements that conform to sponsors' and/or IFRS requirements
- Preparation of audit working papers and liaison with auditors
You are kindly requested to contact the project accountants during the proposal phase for assistance with the above-mentioned matters.
Contact:
Suzette Els (Project Accountant) | 021 808 9963 | Email Suzette
Eugene Baugaard (Head: Grants Management - Tygerberg) | 021 808 9126 | Email Eugene