International Insights

Building Administrative Capacity in Developing Countries, March 14, 2007

In our article “The IAC: Inventing a Better Future,” we talked about the merits of building scientific and technological capacity in developing countries. However, building this capacity poses or can be hindered by administrative challenges.

Most of the time, the in-country policies governing the administration of award funds are very different from NIH policies. In addition, many sites do not have the appropriate financial infrastructure to adequately manage the large amount of grant funds.

NIAID has developed a couple of ways to address these issues as well as to help foreign sites understand and abide by NIH funding policies. One of these methods is an on-site Financial Organization System (FOS) Review.

Financial Organization System Review

A NIAID contractor conducts the on-site review; a NIAID grants management specialist may accompany the contractor.

Three or four weeks before traveling to the site, the contractor sends an agenda for the visit, a list of documents that need to be available during the visit, and a review tool called the Financial Organization Systems. See Preparing for a Foreign Organization System (FOS).

This FOS is a 20-page document containing questions about:

• Research funding.
• Institute financial policies.
• Grants management.
• Tracking and reporting process.

During the review, the contractor provides useful information about financial systems and NIH policies for tracking and managing awards to the foreign site administrator and principal investigator. At the conclusion of the visit, the contractor discusses any accounting strengths and weaknesses that he or she observed with the foreign staff.

Back in the U.S., the contractor briefs NIAID staff (program, grants or contract specialists, project officer) about any compliance issues at the reviewed site.

DEA’s Office of International Extramural Activities then sends a letter to the site detailing recommendations to help resolve any compliance issues and to enhance current systems.

NIAID gives the site 30 to 60 days to make the necessary changes or to submit a plan for addressing compliance issues.

Top Ten Areas of Concern

Based on more than 80 site visits that NIAID has conducted, it has identified the following ten most recurring issues:

• Lack of understanding the terms and conditions of the Notice of Award.
• Unaware of the need to conduct OMB A-133 audits.
• Lack of understanding on how to budget for true costs.
• Unclear on how and when to transfer funds to a local bank.
• Lack of procedures for verifying time and attendance of research project participants.
• Allowable salary supplements.
• Incorrect calculation of percent effort.
• Incomplete or lack of written policies and procedures related to grants.
• Lack of formal or standardized subawards (consortium agreements).
• Late submission of progress reports such as financial status reports.

Sustainable Capacity

The resolution of these areas of concern increases the capacity of a foreign site to adequately manage NIH funds. This administrative capacity will aid the progress of research.

In addition, incorporating local personnel ensures that these new processes meld with local practices which will guarantee the sustainability of the new systems.

Contact for Article Questions or Comments

Maryam Oladipupo
Office of International Extramural Activities, NIAID International Grants and Contracts
Email: oladipupom@niaid.nih.gov
Phone: +1 301 451-7372

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