Collection of Sponsored Funds: Receivable Monitoring

Process for uncollectible sponsored program accounts

In accordance with the University’s Accounts Receivable Write-off Policy dated October 18, 1999, all sponsored program grants that have been expired for two years with delinquent account receivables will be deemed uncollectible and subject to write-off. Uncollectable balances will be classified in one of three categories:

1. Administrative Write-offs - Failures to Perform, Administrative Error and Failures to Bill will all represent administrative write-offs. Administrative write-offs do not cover cases of failure to perform or failure to provide deliverables on a timely basis. (see Administrative Write-off’s Process Doc)

   • Failure to Perform – In situations where the PI fails to provide required deliverables on a timely basis responsibility of the debt lies with the Academic Department.
   • Administrative Error – When inaccurate budgeting or system derived issues results in the debt, the debt will be evaluated on a case by case basis to determine if responsibility lies with Central Administration, the Department, or should be shared between both parties.
   • Failure to Bill - In the event that Sponsored Program Services fails to bill a sponsor, or fails to bill in a timely manner, Central Administration will cover the unfunded costs.

     Administrative errors are typically funded through Central Administration resources, Departmental resources, or a combination of Central Administration and Departmental resources. Regardless of the source of funds used, treatment of these unfunded costs will be recorded as cost sharing . There will not be an entry recording bad debt expense.

     Administrative Write-Offs will be identified by Post Award Staff (including the Ag Field Office) and forwarded to the Director of Post Award. While identification of these errors should be brought forward as they are identified, the Director of Post Award will request them twice annually for submission to the Senior Director of SPS. Administrative Write-Offs are then forwarded to the Senior Vice President and Assistant Treasurer for approval.

2. Bad Debt Write-Offs - Insolvency of Sponsor and Failure to Pay will typically be treated as bad debt through generally accepted accounting principles. If a sponsor fails to pay for completed work that was properly invoiced, legal action will be considered. Unrecovered costs associated with bad debt will be funded centrally. (see Administrative Write-off’s Process Doc

   In order for a receivable to be considered as a bad debt write-off, the account must be sent to University Collections and the account must have been expired for two years. Monthly, the SPS Senior Operations Manager will report potential bad debt write-offs to University Collections and SPS Director of Support Services. Bad Debt Write-Offs are solicited annually from the Comptroller’s office in June. Sponsored program accounts that have been expired for 2 years as of 07/01/xx (current year) will be identified by the SPS Director of Post Award, reviewed with the Senior Director of SPS, and submitted to the Senior Vice President and Assistant Treasurer for approval.

3. Other Circumstances - In the event of circumstances not previously described, a decision regarding any uncollected costs will be made by the Senior Director of Sponsored Program Services and Senior Vice President and Treasurer, with input from the Comptroller and Department Head as appropriate.