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, University 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 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.