Purdue University
Account Management Guidelines
&Account Management
Process Guide
http://www.purdue.edu/SPS/index.html
Account Management Basic Skills Presenters
Joma Roe 45378 Jenny Siemers 44856 Bonnie Taylor 41074 Matt Clawson 46947 Leslie Vogel 41053
Account Management Basic Skills
Introduce Yourself Department Position Length of time in position
One thing you would like to learn from this training
Contents/Agenda
Mission Statement Account Establishment Account Transaction and Document
Management Cash Management Closeout Management
Mission Statement
Account Management at Purdue University exists to provide timely and accurate financial information to principal investigators, department heads, administrators and external funding providers. This information is used by Business Services and other university staff in decision making, project planning, policy analysis, program planning and long range financial planning.
Mission Statement Cont...
Proper account management allows Business Services staff to be proactive rather than reactive and is increasingly important as we respond to diminishing resources. Proactive account management requires that each staff member integrate account management tools, techniques, and thought processes into their daily activities. This integration is a basic expectation for each Business Services staff member.
Summary
The Account Management Guidelines are expectations for Funds 500-699 (SPS Fund range), 700-750 (Dept. Gift Account Fund Range), and 840 (Endowments).
Account Establishment Proposal
Transmittal Checksheet Statement of Work Budgets
• Internal• External
Award Document
Account Establishment Factors in establishing a new account:
Source of Funding Size of award ($)/length (time involved) Sponsor reporting/billing requirements Use of existing account - contract support,
voluntary support
Account Establishment Proper classification Timely establishment and notification Award Documentation
Account Establishment
FOR SPS ACCOUNTS: Proper Classification
Research (RE) Instruction (IN) Other Sponsored Programs (OSP) Fellowship (FE)
Account Establishment Not fully executed document from agency
University Backed NTP Department Backed NTP
Fully executed award document from agency SPS New Account Set-Up Checklist Goal of 24 hour award establishment
• Electronic Notice of Award Email Major/Minor System – Budgets to be provided by
dept. Transfer of Single account Cost Sharing (1008/JV)
• Routing process
Account Transaction and Document Management Fiscal year 02-03
Approximately 18,039 correcting documents processed
Cost of single correcting document• It costs approximately $50 to process an
invoice voucher when the rewriting of a check or canceling a check is involved.
Account Transaction and Document Management
Departmental Actions Departmental New Account Set-up Checklist
Confirm Notice of Award with Award Document COEUS Budgets Cost Share Documentation
Signature Delegation
Account Transaction and Document Management
Maintain Allocability Supporting Documentation
Procurement process should include documented academic authorization for the purchase. The documentation serves as the
proof of allocability.
Account Transaction and Document Management
Verify Appropriate Signature Approval
If signature approval is delegated, an appropriate authorization form for each project account should be completed and maintained with the project account. The form must be completed by the PI and should verify who is authorized to purchase on the account.
Account Transaction and Document Management
The authorization form should include: PI name Project Account Title and account number Date form completed List of individuals authorized and any
restrictions
Each purchase request should be reviewed for the appropriate authorizing signature!
Account Transaction and Document Management Procurement and Account Management
Review for the following• Account number(s)• Object Code (Object Code Listing)• Available Funds (FIBS)• Allowability and Allocability (Costing Website and
Sponsor Guidelines)• Obtain prior approval if necessary
• Within the project period
Account Transaction and Document Management
Use DSS queries referenced in the Account Management Process Guide to monitor account expenditures and balances.
Key Word to remember PROACTIVE
Account Transaction and Document Management SPS Queries
acctbal4.bqy – 4 month history of o/d accounts swatcash.bqy – list of accounts with a cash deficit reptreq1.bqy – reports that are due / overdue to sponsor Swatxany.bqy – expired accts. with a management balance ntp3mo.bqy – accounts that have been on NTP > 3 months vcs.bqy - amount of VCS recorded for a particular project Swat011.bqy – reports 011 cost sharing fa_validate.bqy - provides list of newly established accts A/R Aging Detail Report Type C (Pagecenter) – lists aging
receivables
Account Transaction and Document Management Business Office Queries
acctbal.bqy - 4 month history of all acct. balances acctbal2.bqy – 4 month history of o/d accounts swatexp.bqy – accounts expiring in 120 days or less swatany.bqy – list of expired accounts with mgmt balances paysum.bqy – payroll information by account txnbyact.bqy – help to find transactions causing o/d
Account Transaction and Document Management
Maintain Appropriate Balances Gift and Award Funds:
Cash balances > $0 should be maintained on 700-701, 703-750, & 840 funds
Account balances should be reviewed and appropriate actions taken monthly
All overdrafts should be monitored on a continuous basis and the appropriate staff should be notified
Account Transaction and Document Management
Sponsored Program Funds (500-699) Balance for 500-699 funds should not be < $0.
Account Transaction and Document Management
If < $0, the following will occur:• Business Manager will be notified. Business
Office has three days to notify SPS of their intended action --
• Request SPS to lock the account• Request account remain open by preparing
correcting documents to return the account to a positive balance and notifying SPS
• Request a Continuation NTP if additional funds are expected
• SPS will lock the account if no response is received within three days
Account transaction and Document Management
Steps to Clear Overdrafted Accounts • Move charges to an appropriate account.
Remember monthly cut off dates.• If allowable, record expenses as Voluntary
Cost Sharing (VCS).• Change demurrage, MERS numbers, etc. to
prevent additional overdrafts.• Major/minor accounts-- is a budget
reallocation appropriate?
Account Transaction and Document Management
Departmental Business Office Staff is to confirm charges are being posted appropriately to the FSSR at various stages of the project
Examples• F&A• Cost Sharing• Encumbrances• Subcontracts
Account Transaction and Document Management
SPS Suspense/Dept. Default Account Business Office staff responsible for clearing the
departmental default suspense account must be on the e-mail list server
You will be notified by email when default suspense entries post.
Website to subscribe to suspense: http://directory.purdue.edu/directory-bin/majorcool
Account Transaction and Document Management Account Expiration Procedures
Remember, it is important to be timely. Refer to the Account Management Guidelines for the appropriate actions.
• Process Guide Decision Chart• Review of all cost share commitments
• Memo Match email
• Review account for potential problems
Cash Management
A. Cash Handling• University Cash handling manual• Separation of Duties• Keep investments informed for large dollar
transactions
B. Management Reports• Daily Cash Balance Report• Cash Deficit Report• Account Receivable Aging Report
Cash Management C. Academic Staff Reporting Requirements
• Payments tied to reports
D. Grant/Contract Negotiation• Payment terms are negotiated at the beginning by the
University Contracting Group
E. Billings• Billings are scheduled to be printed the second
Tuesday of each month. The accounts receivable area is in charge of getting those invoices out within 5 working days.
F. Collection• Collection effort begins after an invoice has aged 45
days. As the invoice continues to age, it becomes the responsibility of all parties (SPS, Department Business Office, and PI) to try and collect the outstanding income.
Close Out Management
Sponsored Program Funds• Ready for closing 60 days after expiration
(accounts automatically lock 50 days after expiration--MARK BYPASS)
Subcontracts • Need to be ready to close within 30 days
after expiration so the prime can be closed in a timely manner
Fiscal reports and final billings • Will be submitted in accordance with
sponsor guidelines
Close Out Management
Accounts to be ZERO in 4 months after expiration, unless awaiting income
Follow management expectations set for SPTS reporting requirements
Close Out Management
Tools• Closing Checklist for Department Business Offices• Closing Checklist for SPS• Account Management Process Guide closing
queries
http://www.adpc.purdue.edu/SPS/index.html
Close Out Management
Scenarios and actions to be taken, of overdrafted accounts and that can’t be cleared within 90 days of expiration & have no approved plan
• Overdrafted accounts with only Salary and Wages expenditures
• > $100 academic department clears• < or = $100 SPS clears
Close Out Management
• Overdrafted Accounts with S&E are to be cleared by the academic department
• Overdrafts of $25.00 or less, (not fitting the above two scenarios) where the department has attempted to clear, will be cleared by SPS
Close Out Management
Accounts with Positive Balances• Fixed Price (University entitled to retain
funds)• balance transferred to 100 fund, in
accordance with Instruction No. 4
Balance less than $5.00• SPS will follow guidelines and clear if
appropriate
Close Out Management
Overdrafts and balances that do not fit the scenarios described above should be discussed with appropriate staff in order to achieve resolution
Close Out Management Non SPS Funds (700-750 and 840 Funds)
• Accounting Services requests a once a year review to delete accounts
• Utilize management reports to review those accounts with no activity
• Does the activity still require a separate account?
• Consider the purpose and the expense to maintain
Close Out Management If account is no longer useful—
• Ensure that the cash balance is zero• Clear balance to a residual• Send a 1209 or email to the appropriate
accountant for the fund and ask the the fund be inactivated
http://www.adpc.purdue.edu/Account/staff.htm
The account will stay open for one complete fiscal year after the inactive date
Completion of this annual review will realize university savings in materials, time, and staff resources