Accounts Receivable Process

  1. Interim Reporting
    1. Aging Report - monthly
      • Total A/R
      • Six aging categories from 0-60 days to greater than 180 days
      • Line designating >150 days outstanding
      • Includes project End Date
    2. Status Report -  quarterly (Oct, Jan, April & July)
      • Greater than 150 days outstanding
      • Includes comments describing account status
      • Includes project End Date
    3. Potential Charge-off List - May
      • To prepare for Year-end financial reporting
    4. Distribution - Financial Officer (FO), Grant Administrator (GA), Office of
      Sponsored Programs, Associate Controller and Assistant Controller of FOs
    5. Financial risk sponsors shared quarterly with OSP and entered into SIMS
    6. Trending to compare aging categories’ percent of total A/R and relative
      comparisons
  2. Aging Report format and how reports prepare
    1. Based on BINR, built from the invoice level
    2. Only invoices entered into IBIS (browse invoice information)
    3. Different than ICAG balance, expenditures not invoiced
    4. Aged based on invoice date, assuming a 30-day term, back off 30 days for number
      of days delinquent
    5. Partial payments, invoice date rather than last payment. Status Report includes
      date of last payment
  3. Collection Process Matrix, Page 2
    1. New tools, freeze account
      • 30-Day Warning
      • 90-Day grace period with Letter of Guarantee
    2. Communication:
      • Copies of reminder notices sent via email to sponsor with copies to GA and
        FO
      • Copies of 3rd Request also sent to the Principle Investigator (PI)
      • Associate Dean of Research also notified when sponsor given 30-day
        Warning
Collection Process Matrix
1 2 3 4 5 6
Invoice Date  Invoice Payable 2nd Request
3rd Request.
PI asked to contact
sponsor.
 
Research Accounting
will contact sponsor.
Freeze Warning
 
Begin process of freezing
account. Associate Dean
can request grace
period.
 
3/15/2014  4/15/2014 5/15/2014  6/15/2014  7/15/2014  8/15/2014
Days outstanding  30 61 - 90 91 - 120 121 - 150 151 - 180
Days past due   31 - 60 61 - 90 91 - 120 121 - 150

Collection Process Matrix Descriptions

  1. Research Accounting (R/A) mails original invoice to the sponsor.
  2. Unless otherwise stated in the agreement, the invoice is presumed to be due within 30 days of Invoice date.
  3. 60 - 90 days outstanding, R/A sends 2nd Request for payment.
  4. 91 - 120 days outstanding, 3rd Request sent. Principal Investigator (PI) asked to contact sponsor's technical contact.
  5. 121 - 150 days outstanding, R/A will discuss the account with the department and contact the sponsor to determine the problem and to seek payment. R/A will notify FO, Research Administrator, and PI regarding problems with deliverables, which should be addressed promptly. When appropriate, R/A will notify sponsor that account will be frozen unless payment or satisfactory arrangements.
  6. 151 - 180 days outstanding, R/A will begin the process of freezing the account. Associate Dean can request a grace period (between 30 and 90 days), by signing a Letter of Guarantee. If the account is frozen, R/A will proceed with collections, which may involve assigning the account to a collection agency.
Who Knows What When
  2nd Request 3rd Request. PI requested to contact sponsor. Research Accounting  will contact sponsor.  Freeze Warning Begin Process to freeze account. Associate Dean can request a grace period.
Financial Officer Yes Yes Yes Yes
Research Administrator Yes Yes Yes Yes
Principal Investigator   Yes Yes Yes
Associate Dean     Yes Yes
Assistant Controller     Yes Yes
OSP, Assistant VP     Yes Yes
Corporate Controller       Yes
Senior VP of Research       Yes

 

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