Financial Services

Financial Services

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Internal vs. External Funding

Internal and external research funding must usually be segregated and managed in separate research projects.  For example, research funding received from an external source should never be deposited into an internally funded project, such as a Special Research Project.  While exceptions to this rule may apply, these must be approved by Research Accounting, Financial Services.

Reasons for this necessity vary, including the requirement to maintain a clear and separate audit trail for externally sponsored research projects, as these projects may be subject to external examination.  Therefore, expense transactions must be clearly associated with the external funds which relate to it.

In addition, externally restricted research funding is handled differently than internally restricted research funding, for financial statement purposes.  Therefore, it is important to maintain a clear separation of these funds, in order to comply with accounting standards.

It is also important to note that new research funding requires that an updated Budget Template Form be submitted through the TRAQ system by Principal Investigators, in order to ensure the project budget is updated accordingly, as this will affect the available balance remaining in the project.

If new research funding is received, and you are unsure as to where this revenue belongs, you may contact Research Accounting at for guidance.

Kind Regards,

Research Accounting

Financial Services