Creating a Billing
Departments are responsible for accurate, timely billings to customers for non-sponsored receivables. Sponsored Financial Reporting (SFR) is responsible for generating accurate, timely billings to sponsors for sponsored receivables. These billings must be recorded in the University’s Enterprise Financial System (EFS) or a financial system approved by the Controller or designee. Departments should record receivables at the time the goods or services have been provided and not wait until the payment is received. Departments must have appropriate internal controls when working with accounts receivable such as separation of duties, processes to ensure appropriate payment application, and collection processes and procedures including write-offs.
Departments must select a payment term to be applied to the billing, not to exceed the term of Net 30 days unless otherwise stated in an approved contract. Sales tax must be collected (charged) that is applicable for the item or service being sold, the location where the goods or services are provided, and the customer’s tax status. Any adjustment or change to an existing invoice (credit only, credit and rebill, or chartstring correction) must be adequately documented and justified, in order to provide a complete audit trail. Departments that interface billing activity to EFS must reconcile the activity in the source system with EFS at least monthly to ensure all activity is being billed.
All payments to the University should be in US Dollars. Payment methods accepted by the University are cash, check, electronic funds transfers (EFTs) and credit/debit cards (non-sponsored only). Departments will be charged for all fees associated with EFT or credit card payments. These fees should be factored into the department’s rates and cannot be separately charged to a customer.
Collection and Write-off of Outstanding Receivables
Departments, SFR and Accounts Receivable Services (ARS) have a shared responsibility to monitor and follow a regular collection schedule with appropriate escalation actions for those receivables not paid in full within the 30 days.
ARS is responsible for the collection of non-sponsored receivables in EFS. SFR is responsible for the collection of sponsored receivables. Departments provide assistance to ARS and SFR with collection as necessary. Departments utilizing an approved financial system should establish written collection procedures and make every effort to collect any outstanding receivables. Any outstanding balance, regardless of amount or the billing system, may be referred to either the Office of the General Counsel (OGC) or collection agencies if not resolved in a specified time period.
If a customer has a pattern of non-payment to the University for sponsored or non-sponsored activity, they may be deemed not creditworthy by ARS or SFR. Departments may choose to discontinue providing goods or services or halt research until such a time as the internal credit rating has improved and the risk of non-payment has decreased.
Late fees may be charged on past due balances as provided by law and as permitted by contract.
Fees paid to collection agencies will be deducted from any monies collected from the customer.
Departments must use a non-sponsored chartstring to cover expenses associated with a receivable that has been deemed uncollectible after all reasonable collection efforts have been taken. Departments are responsible for designating the non-sponsored chartstring to which these expenses will be charged. If the receivable (or portion thereof) is subsequently collected from the customer/sponsor, the collected amount will be credited to the chartstring that covered the expenses. Write-offs over $500 must be approved in advance by the University Controller or designee.
- Sponsored receivables– Departments are responsible for moving the uncollectible costs to a non-sponsored chartstring. If the department does not move the uncollectible costs, SFR will move the uncollectible costs to the default program and charge the department a fee to perform this service.
- Non-sponsored receivables– ARS is responsible for processing the write-off of non-sponsored receivables.
Student accounts receivables are handled separately from this process.
Reason for Policy
To maximize the University's cash flow through the timely collection of receivables; minimize exposure from uncollectible receivables; and to increase the integrity of the financial statements through consolidation of receivables and revenues. To comply with contractual obligations and rules of the University’s banks and financial institutions. Promotes oversight and accountability for uncollectible costs by ensuring that all costs incurred are managed by the responsible units. Timely movement of uncollectible costs will result in proper classification of expenses, which will lead to more accurate and complete financial information, and increased compliance with regulations regarding costs and cash management.