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1. Background
1. Background
This document is provided by the NIHR RDN Coordinating Centre (RDNCC) to set out to RRDN Host organisations and Delivery Organisations the key control principles and relevant documentation in relation to NIHR RDN funding and Excess Treatment Cost (ETC) payments as per the appropriate section of The Financial Management of the RDN Performance and Operating Framework (POF) 2024/25.
It is the expectation of the RDNCC that RDN Host and Delivery Organisations will ensure appropriate financial controls are in place for the management of NIHR RDN funds allocated to them and Excess Treatment Cost payments. Sections 2 to 11 include further detail regarding expected controls.
Sections 2 to 10 relate to RDN Funding and section 11 relates specifically to the management and payment of Excess Treatment Costs.
For RRDN Funding, section 2 pertains to general principles and sections 3 to 9 pertain to seven core areas of financial control:
Funding Allocations
Payments
Budgetary Control
Reporting
Monitoring of Delivery organisations
Commercial Cost Recovery
Finance Tool.
It is noted that the control measures in Sections 3 to 9 need to be commensurate with the level of RDN funding allocated.
Each core area of financial control includes the financial objective, the expected controls, examples of expected documentation and whether the control is relevant to the RRDN Host Organisation and/or Delivery Organisations.
The RRDN Host Organisation must be able to supply evidence on request to the Department of Health and Social Care, its statutory or regulatory auditors or other authorised agencies that RDN funding has been used, and ETC payments have been made, in accordance with the contractual obligations.
2. General Principles
2. General Principles
G1 - A documented scheme of delegation for financial decisions for the RRDN exists which is formally approved and subject to annual review
G1 - A documented scheme of delegation for financial decisions for the RRDN exists which is formally approved and subject to annual review
Expected Documentation: Scheme of Delegation
Host: Control expected
Delivery organisation: Control expected
G2 - The financial management, budgeting and reporting of RDN funding is managed by suitably qualified and experienced finance staff both within the RRDN Host Organisation and in Delivery Organisations, commensurate with the level of funding
G2 - The financial management, budgeting and reporting of RDN funding is managed by suitably qualified and experienced finance staff both within the RRDN Host Organisation and in Delivery Organisations, commensurate with the level of funding
Expected Documentation:
Job descriptions
Organisational charts
Host: Control expected
Delivery organisation: Control expected
G3 - Activities outlined in this document are subject to an internal audit of the RRDN Host Organisations at least once every three years
G3 - Activities outlined in this document are subject to an internal audit of the RRDN Host Organisations at least once every three years
Expected Documentation: Control report, using recognised reporting standards
Host: Control expected
Delivery organisation: Control not expected
3. Funding Allocations - Controls FA1 to FA7
3. Funding Allocations - Controls FA1 to FA7
Financial objective - to ensure funding is allocated to support the delivery of RDN Portfolio research activity and is used solely for these purposes.
FA1 - Defined documented processes exist for local funding allocations and business planning which detail the timetable, allocation of responsibilities and approval process
FA1 - Defined documented processes exist for local funding allocations and business planning which detail the timetable, allocation of responsibilities and approval process
Expected Documentation: Standard Operating Procedure
Host: Control expected
Delivery organisation: Control not expected
FA2 - Decisions on funding allocations to the RRDN Host Organisation and Delivery Organisations are made by the appropriate groups within The RRDN Governance and Management Boards and Groups, in accordance with their Terms of Reference. Where decisions about funding and/or redistributions in year are delegated, this must be clearly defined within the scheme of delegation, stating the group/individual and monetary levels to which a delegated decision can be made. These decisions must be documented
FA2 - Decisions on funding allocations to the RRDN Host Organisation and Delivery Organisations are made by the appropriate groups within The RRDN Governance and Management Boards and Groups, in accordance with their Terms of Reference. Where decisions about funding and/or redistributions in year are delegated, this must be clearly defined within the scheme of delegation, stating the group/individual and monetary levels to which a delegated decision can be made. These decisions must be documented
Please note the following points in relation to actions required for any potential underspends.
Any Delivery Organisation with a risk of underspend below 2% of the budget or under £100,000 (whichever is lower) will be managed by the RRDN Management Team and the Delivery Organisation and mitigation plans reported to the RDNCC.
Any Delivery Organisation with a risk of underspend of over 2% of the budget or over £100,000 (whichever is higher) a plan to mitigate this risk will be developed by the RRDN Management Team and the Delivery Organisation and agreed with RDNCC.
Expected Documentation:
Scheme of Delegation/RRDN Governance Framework/Terms of Reference
Documented funding approval process/sign off
Minutes of meetings where decision taken or documented sign off
Host: Control expected
Delivery organisation: Control not expected
FA3 - Each year the RRDN must have a documented Local Funding Model, which includes the principles and rationale supporting it. This must be reviewed and agreed by the appropriate RRDN Governance and Management Boards and Groups. The Local Funding Model must be publicly available in a stand-alone document
FA3 - Each year the RRDN must have a documented Local Funding Model, which includes the principles and rationale supporting it. This must be reviewed and agreed by the appropriate RRDN Governance and Management Boards and Groups. The Local Funding Model must be publicly available in a stand-alone document
Expected Documentation:
Local Funding Model paper
The appropriate RRDN Governance and Management Boards and Group minutes
Host: Control expected
Delivery Organisation: Control not expected
FA4 - Delivery Organisation budget and plans for NIHR funded resources are detailed in the Annual Financial Plan, and state the nature of the expense items (staff/non-staff), the cost, and the purpose. This must be submitted to the Finance Tool within the specified deadlines and in line with the POF Support Page (PSP004)
FA4 - Delivery Organisation budget and plans for NIHR funded resources are detailed in the Annual Financial Plan, and state the nature of the expense items (staff/non-staff), the cost, and the purpose. This must be submitted to the Finance Tool within the specified deadlines and in line with the POF Support Page (PSP004)
Expected Documentation: Annual Financial Plan and associated budget papers
Host: Control expected
Delivery organisation: Control expected where Delivery Organisation inputs directly to the Finance Tool
FA5 - The appropriate RRDN Governance and Management Boards and Groups must formally review and approve the Annual Financial Plan for the RRDN which includes, as a minimum, allocations to each Delivery Organisation and a brief rationale of funding allocations
FA5 - The appropriate RRDN Governance and Management Boards and Groups must formally review and approve the Annual Financial Plan for the RRDN which includes, as a minimum, allocations to each Delivery Organisation and a brief rationale of funding allocations
Expected Documentation:
The RRDN Governance and Management Boards and Groups Terms of Reference
The RRDN Governance and Management Boards and Groups Minutes
Host: Control expected
Delivery organisation: Control not expected
FA6 - Initial funding allocations must be communicated in writing to Delivery Organisation and or documented within the contract between the RRDN Host Organisation and Delivery Organisation
FA6 - Initial funding allocations must be communicated in writing to Delivery Organisation and or documented within the contract between the RRDN Host Organisation and Delivery Organisation
Expected Documentation:
Contract between RRDN Host Organisation and Delivery Organisation
Letters/emails between RRDN Host Organisation and Delivery Organisation
Host: Control expected
Delivery organisation: Control not expected
FA7 - Any changes to the initial allocations to Delivery Organisations in the Annual Financial Plan should be (a) clearly identified in the quarterly financial returns in the Finance Tool, (b) authorised through the RRDNs procedures for allocation of funding to Delivery Organisations, (c) executed in compliance with the provisions in the Delivery Organisation agreements
FA7 - Any changes to the initial allocations to Delivery Organisations in the Annual Financial Plan should be (a) clearly identified in the quarterly financial returns in the Finance Tool, (b) authorised through the RRDNs procedures for allocation of funding to Delivery Organisations, (c) executed in compliance with the provisions in the Delivery Organisation agreements
Expected Documentation:
Quarterly financial returns in the Finance Tool
Formal record of allocation decision, showing decision made, by whom and the date
Contract variation / execution evidence
Host: Control expected
Delivery organisation: Control not expected
4. Payments – Controls PA1 to PA10
4. Payments – Controls PA1 to PA10
Financial objective – to ensure all payments made to distribute allocated funding are valid, complete, accurate, appropriately authorised and made promptly and within 30 days.
The assumption is that funding payments are only made from the RRDN Host Organisation to Delivery Organisations. If funding payments are made from a Delivery Organisation, for example if a Delivery Organisation has responsibility to make Primary Care payments to GPs, all controls in this section will also be applicable to that organisation.
PA1 - Responsibility for approving payments to Delivery Organisations is clearly allocated and is in accordance with the RRDN Host Organisation’s Scheme of Delegation and authorised signatory list
PA1 - Responsibility for approving payments to Delivery Organisations is clearly allocated and is in accordance with the RRDN Host Organisation’s Scheme of Delegation and authorised signatory list
Expected Documentation:
RRDN Host Organisation Scheme of Delegation Authorised signatory list for RRDN payments
Documented RRDN procedures/Standard Operating Procedures
Host: Control expected
Delivery organisation: Control expected
PA2 - Those individuals responsible for checking and authorising payments have sufficient knowledge and access to the contractual amounts agreed, thereby ensuring payments are correct
PA2 - Those individuals responsible for checking and authorising payments have sufficient knowledge and access to the contractual amounts agreed, thereby ensuring payments are correct
Expected Documentation: Documented RRDN procedures/Standard Operating Procedures
Host: Control expected
Delivery organisation: Control expected
PA3 - Where payments are based on an invoice, the payments can only be made against a properly completed and authorised invoice
PA3 - Where payments are based on an invoice, the payments can only be made against a properly completed and authorised invoice
Expected Documentation: Invoices paid to be filed (electronic or paper) and show appropriate authorisation
Host: Control expected
Delivery organisation: Control not expected
PA4 - Where payments are based on a payment schedule (e.g. 1/4 of the approved amount to be paid in advance each quarter), this schedule should be documented and available to the individual approving the payments
PA4 - Where payments are based on a payment schedule (e.g. 1/4 of the approved amount to be paid in advance each quarter), this schedule should be documented and available to the individual approving the payments
Expected Documentation: Master payment schedule document incorporating in year amendments, updated as payments made
Host: Control expected
Delivery organisation: Control not expected
PA5 - Where payments are activity specific and/or are based on an activity report, i.e. not based on a standard amount each month or quarter, the payment invoice received should be reconciled to an independent activity report before authorisation for payment. It should be ensured that the invoice is valid, complete, accurate, relates to the correct period and is not a duplicate charge
PA5 - Where payments are activity specific and/or are based on an activity report, i.e. not based on a standard amount each month or quarter, the payment invoice received should be reconciled to an independent activity report before authorisation for payment. It should be ensured that the invoice is valid, complete, accurate, relates to the correct period and is not a duplicate charge
Expected Documentation:
Documented Standard Operating Procedure
Sufficient backing documentation to enable those authorising to see the amount invoiced has been reconciled to the appropriate activity report and the rates used are correct.
Evidence of authorisation
Host: Control expected
Delivery organisation: Control not expected
PA6 - Where a trigger payment system is used, e.g. where GP payments are based on activity reports, sufficient controls should exist to ensure the payments are valid, complete, accurate, authorised, relate to the correct period and are not a duplicate charge. An audit trail should exist showing how the payments are derived from the activity report
PA6 - Where a trigger payment system is used, e.g. where GP payments are based on activity reports, sufficient controls should exist to ensure the payments are valid, complete, accurate, authorised, relate to the correct period and are not a duplicate charge. An audit trail should exist showing how the payments are derived from the activity report
Expected Documentation:
Documented Standard Operating Procedure
Sufficient backing documentation to enable those authorising to see the amount to be paid is reconciled to the appropriate activity report and the rates used are correct.
Evidence of authorisation
Host: Control expected
Delivery organisation: Control not expected
PA7 - There is appropriate segregation of duties between the approval of funding and approval of payments. No one person should be able to both approve funding allocations and approve payments to an organisation
PA7 - There is appropriate segregation of duties between the approval of funding and approval of payments. No one person should be able to both approve funding allocations and approve payments to an organisation
Expected Documentation: Review of funding approval processes and payment authorisation processes to ensure adequate segregation.
Host: Control expected
Delivery organisation: Control expected
PA8 - Payments should be correctly coded to the general ledger. The general ledger cost code structure should be sufficiently detailed to enable the reconciliation of payments made to individual funding approvals
PA8 - Payments should be correctly coded to the general ledger. The general ledger cost code structure should be sufficiently detailed to enable the reconciliation of payments made to individual funding approvals
Expected Documentation:
Financial ledger chart of codes
Mapping of financial ledger chart of codes to Finance Tool categories/subcategories
Host: Control expected
Delivery organisation: Control not expected
PA9 - There should be a minimum quarterly reconciliation between funding approved and that paid to the RRDN Host Organisation and each Delivery Organisation
PA9 - There should be a minimum quarterly reconciliation between funding approved and that paid to the RRDN Host Organisation and each Delivery Organisation
Expected Documentation: Evidence of reconciliation and review, e.g. reconciliation sheet
Host: Control expected
Delivery organisation: Control not expected
PA10 - The RDNCC is placing reliance on the RRDN Host Organisation's internal controls in relation to recording of payments and creditor payments system. If any key control failings are identified through RRDN Host Organisation audits which could impact on RRDN monies these should be notified immediately to the RRDN Network Director
PA10 - The RDNCC is placing reliance on the RRDN Host Organisation's internal controls in relation to recording of payments and creditor payments system. If any key control failings are identified through RRDN Host Organisation audits which could impact on RRDN monies these should be notified immediately to the RRDN Network Director
Expected Documentation:
Annual declaration from RRDN Host Organisation to RDNCC
Notification from RRDN Host Organisation to RRDN Network Director
Host: Control expected
Delivery organisation: Control not expected
5. Budgetary Control – Controls BC1 to BC7
5. Budgetary Control – Controls BC1 to BC7
Financial objective – to implement a budgetary control system to monitor actual expenditure to the Annual Financial Plan and use this information to ensure an accurate full year forecast is produced at least quarterly. This forecast will be managed to ensure a breakeven position.
BC1 - Budgetary responsibility should be clearly allocated to an individual at the RRDN Host Organisation and at each Delivery Organisation
BC1 - Budgetary responsibility should be clearly allocated to an individual at the RRDN Host Organisation and at each Delivery Organisation
Expected Documentation:
Scheme of Delegation
Standard Operating Procedure
Job descriptions
Host: Control expected
Delivery organisation: Control not expected
BC2 - All transactions should be properly recorded in the general ledger in ring-fenced accounts in accordance with UK Accounting Standards and be made available on request
BC2 - All transactions should be properly recorded in the general ledger in ring-fenced accounts in accordance with UK Accounting Standards and be made available on request
Expected Documentation: Ledger/budget reports
Host: Control expected
Delivery organisation: Control not expected
BC3 - The RRDN Network Director should regularly (at least quarterly) receive and review information/reports from the RRDN Host Organisation. As a minimum this should include:
BC3 - The RRDN Network Director should regularly (at least quarterly) receive and review information/reports from the RRDN Host Organisation. As a minimum this should include:
invoices received from funded organisations
payments approved, awaiting payment
payments made
any payments which are being queried
income received, e.g. RDNCC funding, income received back for commercial studies
details of any accruals made and deferred income.
Any anomalies should be investigated, explained and reported.
Expected Documentation: Financial Management Systems/budget reports from RRDN Host Organisation
Host: Control expected
Delivery Organisation: Control not expected
BC4 - All income and expenditure transactions recorded on the respective general ledgers of the RRDN Host Organisation and Delivery Organisations should reconcile to the Annual Financial Plan (budget) and the quarterly returns submitted on the RDN Finance Tool (actual). Variances should be investigated and explained and the full year forecast as reported on the RDN Finance Tool updated appropriately. This would allow any funding variances to be reallocated to other emerging priorities or to other Delivery Organisations
BC4 - All income and expenditure transactions recorded on the respective general ledgers of the RRDN Host Organisation and Delivery Organisations should reconcile to the Annual Financial Plan (budget) and the quarterly returns submitted on the RDN Finance Tool (actual). Variances should be investigated and explained and the full year forecast as reported on the RDN Finance Tool updated appropriately. This would allow any funding variances to be reallocated to other emerging priorities or to other Delivery Organisations
Expected Documentation: Budget report reconciliations and variance review
Host: Control expected
Delivery organisations: Control expected
BC5 - The RDN should obtain regular information on the budgetary position of RDN Delivery Organisations and Primary Care activity at least quarterly, i.e. actual spend against forecast expenditure level, and the likely full year forecast. This should be reconciled to the Annual Financial Plan. Variances should be investigated and explained and the full year forecast as reported on the Finance Tool updated appropriately. This would allow any funding variances to be reallocated to other emerging priorities or to other RDN Delivery Organisations
BC5 - The RDN should obtain regular information on the budgetary position of RDN Delivery Organisations and Primary Care activity at least quarterly, i.e. actual spend against forecast expenditure level, and the likely full year forecast. This should be reconciled to the Annual Financial Plan. Variances should be investigated and explained and the full year forecast as reported on the Finance Tool updated appropriately. This would allow any funding variances to be reallocated to other emerging priorities or to other RDN Delivery Organisations
Expected Documentation:
Reconciliation of data input into Finance Tool by Delivery Organisation to plan and variance review
Reconciliation of Primary Care cost to activity and variance review
Host: Control expected
Delivery organisations: Control expected
BC6 - The RDN should obtain relevant information from Delivery Organisations that could impact forecast expenditure i.e. recruitment to vacant posts, research activity as it deems necessary to ensure that the quarterly returns submitted onto the Finance Tool are accurate
BC6 - The RDN should obtain relevant information from Delivery Organisations that could impact forecast expenditure i.e. recruitment to vacant posts, research activity as it deems necessary to ensure that the quarterly returns submitted onto the Finance Tool are accurate
Expected Documentation: Any relevant report deemed necessary
Host: Control expected
Delivery Organisations: Control expected
BC7 - The RRDNs must spend their funding within their "funding categories" as per section 4 (financial arrangement) in their contractual agreement. For clarity the "funding categories" are detailed in Appendix 1 and the total funding allocations were provided to the operational directors on 26 February 2025 and updated on the Finance Tool on 28 February 2025. However, should funding be required to be moved between funding categories then the following guidance should be followed: 2025-26 Expenditure Principles Final.
BC7 - The RRDNs must spend their funding within their "funding categories" as per section 4 (financial arrangement) in their contractual agreement. For clarity the "funding categories" are detailed in Appendix 1 and the total funding allocations were provided to the operational directors on 26 February 2025 and updated on the Finance Tool on 28 February 2025. However, should funding be required to be moved between funding categories then the following guidance should be followed: 2025-26 Expenditure Principles Final.
Expected documentation:
A summary of the transactional moves must be provided to the RDNCC as part of their quarterly submission within the Finance Tool.
Host: Control expected
Delivery Organisations: Control expected
6. Reporting – Controls RE1 to RE5
6. Reporting – Controls RE1 to RE5
Financial objective - to ensure financial reports produced and provided to stakeholders are accurate, complete and up to date.
These controls have been deemed applicable to Delivery Organisations to the extent that they may produce financial reports relating to their own financial position as an RRDN member. It is appreciated that not all Delivery Organisations will do so and in such cases the control will not be applicable.
RE1 - Responsibility for the production, review and authorisation of RRDN financial position reports should be clearly allocated. This applies to reports to RDNCC, the RRDN Host Organisation, Delivery Organisations and to any groups as per the Scheme of Delegation
RE1 - Responsibility for the production, review and authorisation of RRDN financial position reports should be clearly allocated. This applies to reports to RDNCC, the RRDN Host Organisation, Delivery Organisations and to any groups as per the Scheme of Delegation
Expected Documentation:
Scheme of Delegation
Finance procedures/processes
Job descriptions
Host: Control expected
Delivery organisations: Control expected
RE2 - A schedule of regular financial reports and outputs produced by the RRDN should be prepared, setting out the 'key reports', their purpose, their frequency and recipients
RE2 - A schedule of regular financial reports and outputs produced by the RRDN should be prepared, setting out the 'key reports', their purpose, their frequency and recipients
Expected Documentation: Schedule of reports
Host: Control expected
Delivery organisations: Control expected
RE3 - For all 'key reports' defined, a timetable should exist, setting out the individuals responsible for producing the reports, individuals responsible for reviewing the reports, reporting periods, cut off deadlines for data submission, and report production dates
RE3 - For all 'key reports' defined, a timetable should exist, setting out the individuals responsible for producing the reports, individuals responsible for reviewing the reports, reporting periods, cut off deadlines for data submission, and report production dates
Expected Documentation: Schedule of key reports listing relevant information such as timetable, individual responsible etc.
Host: Control expected
Delivery organisations: Control expected
RE4 - All 'key reports' should be reviewed prior to final production/publication/submission/distribution. This review should be documented
RE4 - All 'key reports' should be reviewed prior to final production/publication/submission/distribution. This review should be documented
Expected Documentation:
Report authorisation evidenced, e.g.:
on copies of the report
through the use of a checklist
via the organisation's automated workflow system.
Host: Control expected
Delivery organisations: Control expected
RE5 - In respect of financial quarterly returns submitted to the Finance Tool:
RE5 - In respect of financial quarterly returns submitted to the Finance Tool:
all actual costs reported should be reconciled to the ring-fenced account in the respective organisation's general ledger
staff reported have been engaged to support the delivery of research activities at the level of WTE and Band reported
all non-staff expenditure is supported by with appropriate evidence
all returns are reviewed prior to submission.
Expected Documentation:
Ledger to Finance Tool reconciliation
Review of staff on Finance Tool
Documentation to support non-staff amounts
RRDN Network Director submission on Finance Tool
Host: Control expected
Delivery organisations: Control expected
7. Monitoring of RRDN Delivery Organisations – Controls MO1 to MO2
7. Monitoring of RRDN Delivery Organisations – Controls MO1 to MO2
Financial objective – to obtain assurance that the financial information provided by the Delivery Organisations is accurate and complete and that all costs are valid and appropriately authorised.
MO1 - Responsibility for monitoring the activities of Delivery Organisations is clearly vested in the RRDN contractual framework. In the event of any issues being identified an escalation process for resolution should exist. This responsibility for ensuring appropriate monitoring and resolution of issues should be clearly allocated to an individual in the RRDN Host Organisation
MO1 - Responsibility for monitoring the activities of Delivery Organisations is clearly vested in the RRDN contractual framework. In the event of any issues being identified an escalation process for resolution should exist. This responsibility for ensuring appropriate monitoring and resolution of issues should be clearly allocated to an individual in the RRDN Host Organisation
Expected Documentation:
RRDN Contract
Performance and Operating Framework
Host: Control expected
Delivery organisations: Control not expected
MO2 - A Standard Operating Procedure should exist which highlights the RRDN's approach to monitoring Delivery Organisations in order to obtain assurance that RDN funding is used solely to deliver research activities as per the contract. In addition, all financial amounts are accurate, complete, valid and appropriately authorised
MO2 - A Standard Operating Procedure should exist which highlights the RRDN's approach to monitoring Delivery Organisations in order to obtain assurance that RDN funding is used solely to deliver research activities as per the contract. In addition, all financial amounts are accurate, complete, valid and appropriately authorised
Monitoring is likely to involve different approaches commensurate with the level of funding. We would expect monitoring assurance to be achieved in a number of ways including financial control visits, operational link knowledge and visit, knowledge of staff working at Delivery Organisations and review of quarterly financial information.
It is still acceptable for visits to occur remotely, however these must be robust and ensure they still deliver assurances around the appropriate use of funds with appropriate authorisations.
In particular, for each Category A Delivery Organisation a rolling programme of monitoring visits is developed and documented setting out:
the frequency of monitoring visits
focus areas
the assurance work to be undertaken by the RRDN representative.
The assurance work undertaken by the RRDN representative must as a minimum cover the controls in this document which are applicable to Delivery Organisations. In visits where significant deficiencies are found a follow up visit should be carried out within a shorter time frame to the normal cycle (e.g. after 3 to 6 months).
Other Delivery Organisations which receive minimal funding need not be visited unless a particular risk or concern has arisen or the RRDN wishes to include such Delivery Organisations as part of the monitoring visit programme.
Expected Documentation:
Standard Operating Procedure
Monitoring visit programme of work
Reporting of results
Follow up actions
Host: Control expected
Delivery organisations: Control not expected
8. Commercial Cost Recovery
8. Commercial Cost Recovery
In respect of commercial contract research, in line with the ‘Attributing the cost of health and social care Research & Development (AcoRD)’ guidance, the NHS (meaning NHS Trusts and other providers of NHS services) is required to recover, from industry (meaning the commercial Sponsor), all costs of the research study over and above the standard NHS Treatment Cost.
An NHS Trust / provider may use RDN funding to meet the commercial contract research costs, on condition that the Trust / provider subsequently recovers these costs from the commercial Sponsor. The use of this funding is unrestricted except for expenditure on equipment / capital.
There is no expectation that RDN funding used to support commercial contract research will be reimbursed to the RRDN central budget, and RRDN managers should not seek to recover this funding.
9. Finance Tool – Controls FT1 to FT3
9. Finance Tool – Controls FT1 to FT3
Financial Objective - users are adequately trained, access is restricted and quality control procedures are in place to ensure information is accurate, valid and complete.
FT1 - The RRDN Host organisation has a system in place to ensure that Delivery Organisations (where applicable) are adequately trained on the use of the Finance Tool and the financial management and reporting requirements for RRDN funding
FT1 - The RRDN Host organisation has a system in place to ensure that Delivery Organisations (where applicable) are adequately trained on the use of the Finance Tool and the financial management and reporting requirements for RRDN funding
Expected Documentation: Training programme document
Host: Control expected
Delivery organisations: Control not expected
FT2 - A suitable person at the RRDN is responsible for allocating appropriate access rights for individuals across the RRDN Host Organisation and Delivery Organisations (where applicable). Access rights are reviewed at least annually and amended where an individual has changed roles and removed from inactive users
FT2 - A suitable person at the RRDN is responsible for allocating appropriate access rights for individuals across the RRDN Host Organisation and Delivery Organisations (where applicable). Access rights are reviewed at least annually and amended where an individual has changed roles and removed from inactive users
Expected Documentation: Evidence of review
Host: Control expected
Delivery organisations: Control not expected
FT3 - The RRDN Host Organisation has a system of control in place to ensure the quality of information input into the Finance Tool each quarter and to ensure the latest NIHR RDN Funding Reporting Guidance (PSP004) is followed. Responsibility for carrying out these quality assurance checks should be clearly allocated
FT3 - The RRDN Host Organisation has a system of control in place to ensure the quality of information input into the Finance Tool each quarter and to ensure the latest NIHR RDN Funding Reporting Guidance (PSP004) is followed. Responsibility for carrying out these quality assurance checks should be clearly allocated
Expected Documentation: Checklist of quality controls to perform quarterly including check by individual. Check to be signed off as evidence of completion
Host: Control expected
Delivery organisations: Control expected
10. Applicable Human Resources Related Expenditure
10. Applicable Human Resources Related Expenditure
RDN Funding can be used against the following HR related expenditure:
Salary costs including increments
NHS Pension costs - Up to 14.38% employer contribution
(As noted below, additional employer contribution funded by NHS Business Service Authority centrally and should not be funded by the RDN)
Additional employer contributions funded by NHS Business Service Authority centrally and should not be funded by the RDN.
Employers National Insurance contributions
PAYE including Apprenticeship Levy
Employer Overheads - a maximum allowance of 8% of total staff costs (including on-costs)
Maternity costs - preference is to cover a replacement role for the absence period (must not cover both the maternity pay and cost of covering the role)
Short term sickness leave (as defined by the organisation)
RDN Funding cannot be used for the below expenditure types:
Redundancy and pay protection costs, other than the specially agreed values discussed with DHSC
NHS Pension contributions above 14.38% (additional employer contribution funded by NHS Business Service Authority centrally and should not be funded by the RRDN)
Both maternity pay and cover for the role (it is allowed to use RDN funding for only one of these)
Long term sickness leave (as defined by the organisation)
For all other expenditure types not outlined below please refer to AcoRD, Schedule of Events Cost Attribution Template, and Local Organisation policy for guidance on allowable expenditure.
11. Excess Treatment Costs – Controls EX1 to EX9
11. Excess Treatment Costs – Controls EX1 to EX9
Financial Objective - to ensure the payment of Excess Treatment Costs is made and accounted for, as instructed by the RDNCC. Further information can be found in PSP096.
EX1 - Responsibility for making Excess Treatment Cost (ETC) payments from ETC Funding to Delivery Organisations is clearly allocated and is in accordance with the RRDN Host Organisation’s Scheme of Delegation and authorised signatory list
EX1 - Responsibility for making Excess Treatment Cost (ETC) payments from ETC Funding to Delivery Organisations is clearly allocated and is in accordance with the RRDN Host Organisation’s Scheme of Delegation and authorised signatory list
Expected Documentation:
RRDN Host Organisation Scheme of Delegation
Authorised signatory list for RRDN payment
Host: Control expected
Delivery organisation: Control not expected
EX2 - The financial management, authorising of payments, and reporting of payments is managed by finance staff within the RRDN Host Organisation who have sufficient knowledge and experience to undertake these responsibilities
EX2 - The financial management, authorising of payments, and reporting of payments is managed by finance staff within the RRDN Host Organisation who have sufficient knowledge and experience to undertake these responsibilities
Expected Documentation:
Job descriptions
Documented RRDN procedures/Standard Operating Procedures
Host: Control expected
Delivery organisation: Control not expected
EX3 - Payments should be made to Delivery Organisations within 30 days from the date of the payment being received by the RRDN Host Organisation, as per the payment schedules provided by the RDNCC, and unless advised otherwise by the RDNCC. No invoices are required in order for the RRDN Host Organisation to make these payments to the providers
EX3 - Payments should be made to Delivery Organisations within 30 days from the date of the payment being received by the RRDN Host Organisation, as per the payment schedules provided by the RDNCC, and unless advised otherwise by the RDNCC. No invoices are required in order for the RRDN Host Organisation to make these payments to the providers
Expected Documentation: Payment Reconciliation report
Host: Control expected
Delivery organisation: Control not expected
EX4 - Payments should be correctly coded to the general ledger. The general ledger cost code structure should be sufficiently detailed to enable the reconciliation of ETC payments received from DHSC and ETC payments made to Delivery Organisations
EX4 - Payments should be correctly coded to the general ledger. The general ledger cost code structure should be sufficiently detailed to enable the reconciliation of ETC payments received from DHSC and ETC payments made to Delivery Organisations
Expected Documentation: Structure of general ledger codes
Host: Control expected
Delivery organisation: Control not expected
EX5 - All transactions should be properly recorded in the general ledger in accordance with Accounting Standards, and be made available on request
EX5 - All transactions should be properly recorded in the general ledger in accordance with Accounting Standards, and be made available on request
Expected Documentation: Ledger/transaction reports
Host: Control expected
Delivery organisation: Control not expected
EX6 - The RRDN Host Organisation's internal controls for recording payments and receipts in the payment system must be robust and ensure that any failings are identified, anomalies investigated, explained and reported immediately to the RRDN Network Director and the NIHR RDNCC via the ETC help desk inbox (etc.helpdesk@nihr.ac.uk)
EX6 - The RRDN Host Organisation's internal controls for recording payments and receipts in the payment system must be robust and ensure that any failings are identified, anomalies investigated, explained and reported immediately to the RRDN Network Director and the NIHR RDNCC via the ETC help desk inbox (etc.helpdesk@nihr.ac.uk)
Expected Documentation:
Payment Reconciliation report
Notification from RRDN Host Organisation to the RRDN Network Director and NIHR RDNCC
Host: Control expected
Delivery organisation: Control not expected
EX7 - A quarterly reconciliation between ETC payments received by the RRDN Host Organisation and those paid to Delivery Organisations should be reported to the RDNCC within the specified timelines, using the template provided
EX7 - A quarterly reconciliation between ETC payments received by the RRDN Host Organisation and those paid to Delivery Organisations should be reported to the RDNCC within the specified timelines, using the template provided
Expected Documentation: Payment Reconciliation report
Host: Control expected
Delivery organisation: Control not expected
EX8 - Activities outlined in this document are subject to an internal audit at least once every three years
EX8 - Activities outlined in this document are subject to an internal audit at least once every three years
Expected Documentation: Control report, using recognised reporting standards
Host: Control expected
Delivery organisation: Control not expected
EX9 - ETC payments by the RRDN Host Organisation must only be made to Delivery Organisations who have signed a Delivery Organisation sub-contract or received a letter outlining the payments from the Host using the RDNCC’s ETC payment letter template
EX9 - ETC payments by the RRDN Host Organisation must only be made to Delivery Organisations who have signed a Delivery Organisation sub-contract or received a letter outlining the payments from the Host using the RDNCC’s ETC payment letter template
Expected Documentation: Appropriate Category A, B or C sub-contract between RRDN Host Organisation and Delivery Organisation, or evidence of ETC payment letter template used to inform Delivery Organisation of payment.
Host: Control expected
Delivery organisation: Control expected
Abbreviations
Abbreviations
AcoRD: Attributing the costs of health and social care Research & Development
CCG: Clinical Commissioning Group
CSP: Contract Support Pages
DHSC: Department of Health and Social Care
ETC: Excess Treatment Cost
GP: General Practitioner
ICB: Integrated Care Board
NHS: National Health Service
NIHR: National Institute for Health and Care Research
POF: Performance and Operating Framework
RDN: Research Delivery Network
RDNCC: Research Delivery Network Coordinating Centre
RRDN: Regional Research Delivery Network
SOP: Standard Operating Procedure
WTE: Whole Time Equivalent
Version Control
Version Control
Version number: 3.2
Effective from date: June 2025
Changes: 2025/26 Section 5 Budgetary Control BC1 - BC7. BC7 added
Contact
Contact
RDNCC's Network Finance Team
Email: rdnfinance@nihr.ac.uk
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