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Funding Review Assurance Questionnaire - Guidance

Contents

Published: 28 June 2021

Version: 2.0 - June 2023

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Funding review process

Organisations ('The Contractor' or 'Organisation') in receipt of NIHR funding undergo annual funding reviews (AFRs) to ensure that they have effective and appropriate governance, financial and risk management systems in place.

The Funding Review Assurance Questionnaire (FRAQ) is used to help the Department of Health and Social Care (DHSC) assess the level of arrangements, systems and control in place.

More information is available in the NIHR Research Funding Good Practice Guide.

An AFR involves the following process:

  1. DHSC informs the organisation of its intention to undertake an AFR using FRAQ.
  2. The organisation duly completes the FRAQ template, provides all the necessary documents, self-scores on each FRAQ question and sends the funding review submission to the NIHR.
  3. NIHR/DHSC reviews the funding review submission, provides a score on each FRAQ and shares overall feedback.
  4. NIHR/DHSC will arrange site visit for few selected organisations.

The outcome of the funding review is to gauge the overall capacity of an organisation to manage NIHR funding appropriately. In doing so it will hopefully provide assistance to organisations to review and improve their internal procedures and processes.

This guide is meant to assist in the completion of the FRAQ and covers the following:

  1. Aim of the FRAQ template
  2. Self-scoring system
  3. Explanation of the FRAQ template

Section 1: Aim of the FRAQ template

The FRAQ template is used to conduct a funding review for an organisation that receives research funding from NIHR.

The FRAQ focuses on five key areas:

  1. Governance arrangements
  2. Financial controls
  3. Finance management
  4. Finance systems
  5. Risk management

The results of the financial review should enable the contractor to assess how well their projects are being implemented in terms of these key areas.

The final outcome of FRAQ is important, but what really matters most is the actions the contractor takes to address any key findings and recommendations which could, for example, be already identified by formal audits.

Section 2: Self-scoring system

Organisations that complete the FRAQ template are invited to self-score their performance using the following system.

ScoreMeaningDescription

0

No policy or practice exists

If the questions asked is not applicable to the organisation please indicate clearly so that '0' score is not awarded by error.

1

Not effective

This is where a policy (or practice) exists but for some reasons does not work in practice.

2

Sometimes effective

Effective less than 50% of the time.

3

Mostly effective

Effective between 50% and 80% of the time.

4

Very effective

Effective more than 80% of the time.

5

Always effective

Effective 100% of the time.

Once the contractor has completed the self-score, the form should be returned to NIHR for review. NIHR will then review the submissions and cross check whether the self-score matches the evidence provided.

A feedback conversation may be scheduled to discuss the results, especially where there is a significant difference between the self-score and NIHR/DHSC score. We hope this will address any issues in a mutually beneficial manner.

Section 3: Explanation of the FRAQ template

The organisation is required to complete the FRAQ Excel template and attach relevant supporting documentary evidence. Wherever possible, please demonstrate compliance using concise evidence. If you share a large document, please provide the exact reference (paragraph/page number) rather than just share a full document.

This table provides further explanation of each column in the FRAQ Excel template.

Column

Description

Explanation

A

FRAQ Question

None.

B

FRAQ Reference No.

Unique identifier (numeric) for each question for ease of reference. Use this as prefix for attachments.

C

FRAQ Question (revised)

Assurance question.

D

Control Area

Finance Management (FM), Financial Controls (FC), Finance System (FS), Risk Management (RM) or Governance Arrangements (GA).

E

Yes / No if applicable otherwise choose one of the following: NA / NW / WT / WW (as may be applicable in your circumstances)

An answer to a question may be yes or no. If the question does not need a yes or no answer, other options can be one of the following: NA = not applicable, NW = not working, WT=working towards or WW = working well (with evidence provided (in column G) justifying the selection made).

F

Description to further explain E where you deem fit/necessary

Use this to provide concise explanation of the selection made in E.

G

Documents Reference No. & Name

An organisation must prefix the FRAQ reference number in all attachments. For Example, 1.11 Cost Identification Process Organisation.

H

Relevant pages in the document (or copy & paste brief description)

For shared documents, please cite exact clause/chapter/sub-reference in the document provided. For example, if you are explaining cost identification process in say page 19 and 20 of an Organisational manual.

I

Self-Score (0-5)

An organisation is free to self-score 0-5 as deemed appropriate provide adequate evidence is demonstrated; this should be based on current practice and not desired future situation/position. 

J

Reason for self-score

This is provided to explain the score further if the Organisation deems it appropriate; in case of any mitigating reasons for low self-score please describe it in column K. For example, you could say the policy is new and therefore not tested or applied.

K

Explanation (Required if F and or G is insufficient)

Any other information that is relevant to the question can be shared here.