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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