Університети і лідерство (Jun 2024)
Financial Management of International Projects: Practical Recommendations for Higher Education and Research Institutions
Abstract
The article is prepared based on the experience of financial management of implementing the European Union Project "Reinventing displaced universities: enhancing competitiveness, serving communities" (REDU), Grant Agreement No. 2020/415-429. The analysis of institutional experience of partner universities in implementing the REDU project confirms the impact on both the national financial accounting and management system and European policies on the model of institutional financial management of international projects funded by the EU. Two approaches adopted by higher education institutions in the field of financial management have been identified: an approach that adheres to budgetary norms and limits in the use of grant funds, and an approach oriented towards grantor limits and norms. Under the first approach, higher education institutions are not confident in financial autonomy in managing grant funds, while the second approach is more progressive and oriented towards European practices within national legislation. It has been proven that under both approaches, universities formulate institutional policies for effective project financial management, which is important for systemic development and financial stability of the university. The principles of project financial management have been identified. The main documents necessary for consideration in grant finance management at the grantor, national, and institutional levels have been highlighted. Best practices for team formation and partner interaction, project revenue and expenditure planning, currency exchange operations and exchange rate usage, salary payments, travel reimbursements, equipment and service procurement, compliance with expenditure eligibility rules, documentation preparation, and financial reporting submission are proposed. Practical issues and conclusions of project implementation will be useful for project and financial managers, accountants working with international projects funded by the European Union.
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