Operating Procedures Manual

2.11.3.1. Research and Sponsored Programs Collections

Policy

All contracts and grants received by the University are to be directed through the Research and Sponsored Programs office to avoid any contractual liabilities. It is also the responsibility of the principle investigator (PI) and the respective department to determine the financial viability of sponsors before entering into a contractual agreement.

Research and sponsored programs collection efforts on past-due accounts held by the University will be conducted under the supervision of the director of research accounting. Under various circumstances the director of research accounting may request the assistance of the other departmental personnel to effect collections on past-due accounts; this assistance should be provided as needed in the interest of protecting the assets of the University.

The chief financial officer, controller, and the director of research accounting shall ensure that every available effort is made to effect collections prior to the initiation of legal action to collect on any overdue accounts.

Accounts deemed uncollectable will be written off to the departmental index where the receivable was incurred. In the event that the receivable is paid, the department index that funded the write-off will receive the credit.

General Information

Collections involve efforts to obtain monies due the University from debtors; normally, the amounts due have extended beyond the credit terms offered by the University. This section does not apply to federal loan programs that have separate collection guidelines.

Procedure

To expedite payment of the past due accounts, the principle investigator does the following:

1. Receives memos from Research Accounting of accounts 61 days past due and contacts their technical point of contact at the sponsoring agency, either in writing or by telephone and requests payment.


2. Responds, in writing, to Research Accounting the outcome of their contact with the sponsor.


3. Receives memos from Research Accounting with notification of the University's intent to refer sponsors to an outside collection agency for accounts that reach over a 91 day overdue status.


4. Responds, in writing, to Research Accounting whether or not to refer the sponsor to an outside collection agency.

NOTE: Once Research Accounting receives an acknowledgment from the principle investigator, the receivable will be referred to the collection agency. If the account is deemed uncollectable by outside agencies, it will be referred to the controller. The controller will determine if legal action should be initiated or will approve a write-off of the amount. If the controller determines legal action is not warranted the reason will be documented in writing and filed with the collection dossiers for the affected accounts.

5. Supplies Research Accounting with the departmental index number to write off any uncollectable payments.