Sponsored Programs Administration (SPA) and the Office of Clinical Research (OCR), are working collaboratively to improve the financial management of clinical research studies.
The following project components are slated for inclusion in the initial roll-out:
Implementation of Standard Budgets and Central Budget Review
SPA has created a standard workbook tool to allow study teams to easily consider and compile trial budget inputs. This tool will suggest common study ideas, provide usual and customary charges for various inputs, and provide multiple spreadsheet options for negotiating with sponsors who hold specific preference as to how costs are represented. Investigators can also use these standard templates to expedite a central review of their study budgets to ensure all required costs are included and communicate any concerns where a proposed budget may yield significant deficit. This tool will allow study teams to make informed financial decisions about their studies.
Shift Research Finances to Accrual Accounting
UTSW is changing its accounting mechanisms for clinical research from traditional cash-basis accounting to accrual-basis accounting. This shift is not only consistent with best practices and accounting principles but will benefit the PI/Study Team by allowing expenses to be immediately recorded to the respective clinical trial project ID, rather than awaiting cash receipt from sponsors. This will also facilitate up-to-date financial reports for a given study allowing for review of expense-to-revenue and actual-to-budget results.
Use of Distributed Billing Clinical Trial Invoicing Tool
The institution is also moving to promote use of PeopleSoft for direct invoicing to sponsors at the department level and through the financial system of record for clinical trials. This change will benefit the PI/Study Team in that it will be easier for the institution to route revenue from the sponsor back to the appropriate study budget in a timely fashion.
Availability and Monitoring of Profit & Loss (P&L)
Historically, we have not been assessing longitudinal P&L at the study level. Instead, we had to wait until revenue was recognized which resulted in significant time delays. This switch to the central financial system will afford the PI/Study Team a singular, central tool for creation/tracking of invoices and real-time assessment of the health of the study.
These needed and important changes for our institution will empower our clinical researchers with more accurate and timely financial data. We will be working closely with the researchers and departmental divisions as we roll this out. If you have questions, please do not hesitate to reach out at any time through ServiceNow.
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