Sponsored Accounts Receivable. Receivable Accounts What are they for? How are they used? Why should...

Sponsored Accounts Receivable

Receivable Accounts

What are they for? How are they used? Why should I care?

Billable Awards

For each billable award, a separate and unique receivable account is established

Subledger convention:Fxxx – FederalSxxx – StatutoryNxxx – Non-Government

Non-Billable Awards

Generic Receivables:

Endowed accounts – G29-(F)(S)(N)xxx Statutory accounts – 729-(F)(S)(N)xxx

Receivable Account Numbers The receivable account tied to

each award account can be found in the ACC-REC-NUM field of the main award account

Non-generic receivable account information (for billable awards) can also be found in the SPS Portal

Recording a Receivable

For every invoice that is produced:

The main award account is credited (shows as revenue)

The associated receivable account is debited (shows as expense)

Recording a Payment

For each payment that comes in for a billed receivable:

The receivable is credited (shows as revenue)

A bank or clearing account is debited

Calculating Cash Received

To calculate the amount of funds actually

received on an award:

Combine the revenue total on the main award account (plus any sub-accounts) with the receivable account balance

Example: Payments based on invoices only.

Budget Expense Revenue Balance20,000 10,000 7,000 10,000

Budget Expense Revenue Balance0 7,000 5,000 -2,000

Payments received = $5,000

A99-N030

A99-8300

Example: Some payments based on invoices, others not.

Budget Expense Revenue Balance20,000 10,000 9,000 10,000

Budget Expense Revenue Balance0 7,000 5,000 -2,000

Payments received = $7,000

A99-8300

A99-N030

Cash Receipts

Payments by check – mostly non-government entities:

Received at Tompkins County Trust Company SPS Lockbox:

PO Box 22, Ithaca, NY 14851-0022

Received by DFA or SPS Received by departments

Cash Receipts (cont’d)Checks received by or forwarded to

DFA by departments or sent directly to the SPS lockbox:

Processed as one daily batch by TCTC

Distributed to proper accounts via JEMS journal entries – not as regular receipts – by SPS-Financial

Electronic PaymentsAutomated Clearing House (ACH) –

mostly federal agencies: Daily transmittal of electronic payment

information by TCTC Not unique to SPS; ACH payments for the

entire university are recorded in one daily batch

Distributed by SPS-Financial via JEMS journals

Main Advantage: Fast payment Main Disadvantage: Difficult to identify

NYS ACH Electronic Payments

Used by most state agencies Daily notification of activity Not unique to Sponsored activity Distributed via JEMS journal by

Unrestricted Funds

Foreign Payments Checks drawn on foreign currency Foreign wires

Both are handled by Cash Management

Bank fees may apply Charged to award unless closed

Payments Without a Home Payments received for new awards

whose accounts have not yet been established Funds are placed into a holding account

until the award account is set up Payments received that can’t be

identified by SPS-Financial Funds are placed into Cashier’s

Unidentified Receipts

Past-Due Receivables

All invoices for which payment has been outstanding for over 90 days are considered delinquent and receive follow-up action by SPS-Financial

Common Reasons for Delinquency Lost invoice Bureaucratic red-tape

Approval issues Systems issues

Agency staff turnover Additional back-up/explanation required Missing/late deliverables Waiting for funding from prime sponsor Inability to pay – financial problems

Department Notification

Monthly account reports, BRIO queries

Direct contact from SPS – Financial Quarterly Receivable Report

Quarterly Receivable Report

Account Agency Date Closed Account Balance Amount Over 90 DaysSource TitleLast Transcation Investigator

A99-F009 USDA 15,000.00 4,000.004100 Rural Development Study20060301 A99-8420 Smith

Sponsor is processing payment.

A99-S010 NYS-O NYSERDA 2005/12/31 3,000.00 3,000.005090 Farm Waste Management 20051201 A99-8350 Jones

Sponsor is withholding payment pending receipt of final technical report.

SPONSORED FUNDS ACCOUNTINGANALYSIS OF ACCOUNTS RECEIVABLE EXCEEDING 90 DAYS

For the Month Ending JULY 31, 2006

Accounts in Default

Recourses: Pressure sponsor via phone calls

and letters from DFA Involve PI and department/college

administration Involve Counsel’s Office in

collection effort Flag sponsor in portal

What can YOU do? Notify SFS-Financial of any known issues

which could delay payment significantly Be aware of requirements and

contingencies Help assure that all technical deliverables

and required back-up documentation is submitted in a timely manner

Understand the risk involved with each award, particularly when dealing with smaller companies or companies with unknown track records at the university