• Section 1 - Purpose
• Section 2 - Authority
• Section 3 - Scope
• Section 4 - Procedure
• Governance, Roles and Responsibilities
• Research Funding Sources
• Pre-Award and Due Diligence
• Establishing a Funded Research Project
• Managing a Funded Research Project
• Completing a Funded Research Project
• Research Debts, Partner Termination and Financial Risk Management
• Internal Research Funds
• Compliance, Audit and Assurance
• Section 5 - Definitions

Section 1 - Purpose

(1) The procedure outlines the requirements for staff across RMIT and its controlled entities to establish and manage research funding in accordance with the Research Policy. It ensures:

1. accountable and effective management of research funds
2. appropriate financial and risk management when entering into Research Contracts
3. compliance with University policies, including the Financial Management Policy.
4. compliance with relevant external regulatory, contractual and funding body requirements.

(2) All research funding activities must align with RMIT’s ethics, integrity, sustainability and conflict of interest frameworks. Where a potential agreement may present ethical or reputational risks to RMIT, additional information must be sought before proceeding. This may require enhanced due diligence and, where appropriate, escalation through formal approval processes (e.g. escalation to the Risk team or Foreign Relations team)

Section 2 - Authority

(3) This procedure is established under the Research Policy and aligns with the Financial Management Policy and Delegation of Authority Policy.

Section 3 - Scope

(4) This procedure applies to all staff, students, visiting researchers, and honorary and adjunct appointees undertaking or supporting research at RMIT or its controlled entities and external research locations RMIT is obliged to consider. References to external research funding include competitive proposals, direct engagements with external partners, commissioned research and other approved external funding arrangements that support research activity.

Section 4 - Procedure

Governance, Roles and Responsibilities

(5) Research Funding activities must be managed in accordance with the Contract Management Policy and approved delegations and governance requirements. Where research activity is supported through a gift instrument or other philanthropic funding arrangement, relevant University gift acceptance, donor due diligence and governance requirements must also be considered.

1. The Lead Researcher is responsible for the overall delivery, financial management, and compliance with the terms of the Research Contract.
2. Heads of School, Executive Deans or equivalents are responsible for ensuring that proposed research projects are academically, operationally, and financially appropriate.
3. Research Contracts and Awards Management are responsible for supporting contract administration and ensuring alignment with funding agreements.
4. Finance is responsible for supporting financial governance, accounting, invoicing, audit coordination, and compliance oversight.
5. External research funding will be managed within an academic school or college, unless approved otherwise.

(6) All approvals and key decisions relating to Research Contracts must be recorded in nominated University systems, which act as the official system of record.

(7) Appropriate separation of duties must be maintained between approval, financial management, and oversight responsibilities and comply with the Conflict of Interest Policy.

Research Funding Sources

(8) All proposed external research funding sources will be consistent with RMIT’s values, strategic objectives and commitment to ethical, responsible and sustainable research, including consideration of environmental, social and governance (ESG), research integrity, reputational risk, prohibited-source and University governance requirements in accordance with RMIT’s Sustainability Policy and Corporate Social Responsibility Due Diligence Instruction, and alignment with RMIT’s Research Security Framework.

(9) RMIT will not accept funding from the tobacco industry for research, nor promote or advertise any research funding opportunities from the tobacco industry.

Pre-Award and Due Diligence

(10) All external research funding opportunities, proposals or arrangements must:

1. Comply with University policies and procedures
2. Align with funding body requirements
3. Be reviewed and approved through the appropriate University process before submission, acceptance, execution or commencement, as applicable.
4. Only be recorded or reported as HERDC reportable research income where the funded activity and supporting documentation meet the applicable HERDC research income reporting requirements.

(11) Corporate Social Responsibility (CSR) due diligence must be undertaken prior to engagement with a research partner, to assess ethical, reputational and governance risks.

(12) Financial onboarding of Research Partners is governed by the Revenue Contracts and Debtors Procedure, including credit assessment requirements, materiality thresholds and exemptions. Where a payment cannot be secured upfront, or a partner has an existing outstanding debt, appropriate approval must be obtained from the relevant Financial Delegate to accept any associated financial risk. Where the arrangement is governed by a gift instrument or similar donor arrangement, applicable University gift acceptance and donor due diligence requirements must also be considered.

(13) A risk assessment must be considered for all funded research, including consideration of financial risk, delivery risk, partner risk and termination risk. Risk assessment should also consider the potential for partner withdrawal, milestone dispute or early termination, including whether staff, student or other committed costs may exceed funding received or contractually recoverable amounts.

(14) Lead Researchers must ensure the full cost of research is accurately reflected in the relevant funding documentation, including proposals, budgets, contracts, partner agreements or other approved funding records, in accordance with applicable University costing, pricing, financial governance and competitive neutrality requirements.

(15) Risk assessments and budgets must be developed with active input from the Lead Researcher, either through available support tools or, where feasible, with support from relevant specialist teams. Lead Researchers provide the project-specific technical expertise and delivery assumptions required to inform scope, risk and budget development, while professional and central teams provide and maintain supporting tools, advice and compliance review.

(16) Where HERDC reportable research income is anticipated, the project scope, agreement, budget and supporting documentation must be sufficient to demonstrate that the funded activity meets the applicable HERDC research definition and reporting criteria. Classification of funding as research funding for internal management purposes does not automatically mean the income is HERDC reportable. HERDC reportability must be assessed separately against the applicable reporting requirements.

(17) Where appropriate, payment schedules, milestone acceptance processes and termination provisions should be reviewed to mitigate financial exposure to RMIT, including recovery of committed costs.

Establishing a Funded Research Project

(18) A research project must not commence, and expenditure must not be incurred, until all the following conditions are met:

1. A Research Contract (or funding agreement and associated contract), is fully executed by all parties in accordance with the Contract Management Policy
2. All relevant approvals are identified and initiated at project commencement, as applicable, and are obtained and current before the relevant regulated activity commences, including where that activity occurs at a later project stage.
3. A project record has been established in the Financial System.
4. Applicable compliance training has been completed.
5. A Project Manager role has been assigned within the financial system in accordance with the Delegations of Authority Policy.

Managing a Funded Research Project

(19) The Lead Researcher is responsible for ensuring:

1. Effective delivery of the project in accordance with the Research Contract
2. Monitoring of project milestones and contractual obligations
3. Timely notification of milestone completion
4. Promptly escalate to Research and Innovation, and where relevant Finance, Research Contracts/Legal and the applicable School/College financial delegate, where a funded research project may not be completed within the approved timeframe, or where there is a material partner concern, emerging dispute, milestone delay or dispute, payment delay, request for material scope change, or indication that the partner may pause, withdraw from, or terminate the project.

(20) Finance will prepare and issue all research invoices in accordance with the contract terms.

(21) Researchers must ensure:

1. Expenditure aligns with the approved project purpose, budget, and timeframe
2. Expenditure complies with RMIT procurement, finance, and employment policies
3. Staff and student costs align with the funding period and conditions

(22) Where required, variations to project scope, budget or timelines must;

1. Be approved in writing by the funding body
2. comply with contractual requirements.

(23) Internal funding towards an external research project must only be used for its approved purpose unless otherwise approved by the relevant financial delegate

(24) Honorary researchers must nominate an eligible RMIT staff member to undertake the Project Manager role for financial management purposes, with School approval.

(25) External research income must not be transferred or distributed between project records. Only income specified in the Research Contract may be allocated to a project record and must be recorded against the applicable Higher Education Research Data Collection research sub-category.

Completing a Funded Research Project

(26) The Lead Researcher must:

1. Notify Awards Management of project completion or seek an extension where required
2. Ensure all contractual reporting obligations are fulfilled
3. Confirm completion of all financial and reporting obligations
4. Review and certify financial acquittals prior to the financial certification by the nominated Research Finance delegate.

(27) Awards Management may provide support as required to confirm contractual obligations have been met and are responsible for closing a project record in RMIT's research administration system.

(28) Finance is responsible for:

1. Final reconciliation of the project
2. Closure of the project record in RMIT’s financial system once all obligations are met.
3. Preparation and lodging of all financial acquittals, ensuring alignment with financial system.

(29) Where surplus funds remain:

1. If required by the Research Contract, funds must be returned
2. If not required, funds may be transferred to an Eligible Research Fund (ERF) in accordance with RMIT Guidelines for the closure of external research projects, subject to any applicable funding agreement or approved funding terms.

(30) Unspent internal contributions will not be carried forward beyond project closure.

Research Debts, Partner Termination and Financial Risk Management

(31) Research customer invoices are subject to 30-day payment terms.

(32) The Lead Researcher must:

1. Monitor outstanding invoices through the Finance System (via dashboard or automated notifications)
2. Support applicable teams in debt collection activities where required.

(33) Where there is a risk that an invoice will not be paid:

1. The Lead Researcher must escalate risks to the Financial Delegate, Dean, and Associate Dean (Research), including Finance, Research Contracts, Awards Management and Research Partnerships in communication.
2. Prior to escalation the Lead Researcher should seek support from Finance in ensuring the financial risk is understood in full.
3. Appropriate actions may include pausing the project or seeking advice from Research Contracts or Legal Services Group.
4. Financial delegate approval is required for additional external legal support, given associated costs.

(34) Finance will manage all accounting associated with debt recovery processes. Support from the Lead Researcher and/or Legal may be required, including for provisioning and write-off, in accordance with applicable policy. Financial delegate approval is required for write-off (e.g. Dean or Dean equivalent)

(35) The relevant College delegate will receive periodic reporting on outstanding research debts. Research-related invoices must be monitored, reviewed and escalated through appropriate University financial governance processes, having regard to the age and materiality of the debt, likelihood of recovery, contractual position and broader partner risk. Finance will coordinate the debt recovery process, with input from the Lead Researcher, Research and Innovation, Research Contracts or Legal Services, and relevant College representatives where required.

(36) Where a partner terminates or indicates an intention to terminate a funded research arrangement, Research and Innovation, Research Contracts/Legal and Finance should be consulted to assess contractual recovery options, revenue received, committed costs, forecast residual deficit and the required approval pathway for any unfunded exposure. Any residual deficit or unfunded exposure must be assessed, documented and approved in accordance with the relevant financial delegations, including confirmation of the proposed funding source or treatment.

(37) This section applies to customer invoices issued by RMIT and overdue amounts owed to RMIT. Gift-related commitments should be managed in accordance with applicable University processes and any governing gift instrument, unless the arrangement includes invoicing, contractual payment features or other enforceable payment obligations requiring Finance debtor management.

Internal Research Funds

(38) Internal Research Funds (IRF) projects are established to manage internal research funding allocations.

(39) IRFs may include:

1. External Funding non-HERDC (minor revenue)
2. Eligible Research Funds (ERF)
3. R&I support funding
4. College or School support
5. Philanthropic funding

(40) Expenditure within IRFs must:

1. Comply with RMIT policies and funding guidelines
2. Be incurred within approved allocations (ERF)
3. Be expended by 31 December of the relevant financial year unless otherwise approved.

(41) Unspent funds may not be carried forward unless explicitly approved.

(42) Where IRF balances are subject to specific approved funding terms, expenditure and any approved carry-forward must be managed consistently with those terms and relevant financial governance requirements.

Compliance, Audit and Assurance

(43) Research Contracts are subject to internal and external compliance, audit, and assurance requirements. Where applicable

1. The cost of external audits must be included in proposal budgets
2. Audit requirements must be met in accordance with Research Contracts.

(44) Finance is responsible for coordinating audit activities.

(45) The Lead Researcher must:

1. Support the audit process
2. Provide technical or project specific input as required

(46) All project records must:

1. Be accurate, complete and accessible
2. Comply with RMIT record-keeping requirements
3. Support audit and assurance activities

(47) Failure to comply with audit and assurance requirements may result in:

1. Ineligible expenditure
2. Financial recovery actions
3. Reputational risk to the University.

Section 5 - Definitions