Accounts Receivable. Extramural Fund Management

Transcription

1 Accounts Receivable 1 Extramural Fund Management

2 What is Accounts Receivable? 2 Any outstanding payment on a sponsored project constitutes a receivable on that award In other words, an award is awaiting receipt of payment The University has $868 million in award dollars 60% is paid through the Letter of Credit Letter of Credit is essentially a line of credit between the University and the federal government. EFM draws-down funds several times a month in accordance with a complicated formula 40% is potential for accounts receivable

3 Accounts Receivable 3 During the cycle of an award expenditures are made and payments are received from the various sponsors EFM is responsible for the billing and payment follow-up to ensure payment is received for all costs incurred

4 Accounts Receivable 4 EFM needs: Departments to read the terms and conditions of the award! Departments to manage the award through-out the entire life cycle. reconcile ledgers monthly Ensure that technical, progress and other deliverables are met

5 Accounts Receivable 5 Payments received are either recorded to Revenue or Accounts Receivable Non-invoiced payments are recorded directly to revenue Invoiced payments are recorded to accounts receivable

6 Here is the list of Revenue and Receivable Accounts by Sponsor and Award Type 6 Sponsor State Federal Contracts Federal Grants Local governments Private Contracts and Grants Private Contracts and Grants Revenue Account Receivable Account

7 Financial System Applications Menu 7

8 What the financial revenue column for a new award looks like in the Financial System Nothing Nothing shows shows in in the the Financial Financial (revenue) (revenue) column column because because there there has has been been no no billing billing yet. yet. 8

9 What the Financial System looks like when EFM submits a request for payment. 9

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11 Invoice Sample 11

12 12 Click here While the amount of invoice shows in the Financial (revenue) column, it doesn t mean UCLA has received payment. We must go to the general ledger and look at the details under the A/R account the account that begins with a 1. To access the General Ledger, we can click account

13 Change the Account number to the A/R account, which is for the State, and click Get Report button 13

14 14 Now click the Click here to go to Detail General Ledger for account transactions link

15 Adjust your dates to the invoice date. In this case it is January 2009 to May 2009 and click the Get Report button. 15

16 Here is the invoiced amount, for which payment has not been received (payments show in brackets). Balance column shows pending payment from sponsor. 16

17 17 What the Financial System looks like when EFM submits requests for payment on an award and there remains a balance

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19 19 Here we see the total amount of award is 191,000, and we have invoiced so far for a total $50, We need to check the A/R account to see what payments have been received. We first access the general ledger by clicking on account Click here

20 Change the Account number to the A/R account, which is for the State, and click Get Report button 20

21 Now click the Click here to go to Detail General Ledger for account transactions link 21

22 Adjust your dates. In this case we are going to change the dates to May 2008 to May 2009 and click the Get Report button. 22

23 Here we see several invoices have been submitted ( PVTINV ) in Description column) and several payments received (indicated in brackets in the amount column.) The balance the sponsor owes us is $24, Non-bracket items are A/R Set-ups *$50, A/R Balance

24 What Money received without a request from EFM looks like in the Financial System 24 If the sponsor submits a payment without an invoice, it is credited directly to the revenue account of the fund (financial column) In this case, the amount is the Financial column DOES represent cash received

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26 26 $ shows in the Financial (revenue) column because we ve received payment. Let s click this revenue account to gain access to the Detailed General Ledger

27 Now click the Click here to go to Detail General Ledger for account transactions link 27

28 Adjust your dates. In this case we are going to change the dates to September 2008 to May 2009 and click the Get Report button. 28

29 29 We see that two payments for $30,000 each have been received.

30 Like the fund summary report, you can only view one month at a time in the Contracts and Grants Accounts Receivable report. If you want to view more than one month, you must go through the Detail General Ledger and type in the account number that begins with 1 30

31 How do I Search A/R By Sponsor? 31 From the A/R report under CG Reports tab, select Sponsor Code

32 Type in Sponsor code. If you do not know the code, you can search by typing Sponsor name the find box. Here we want to know the receivables for Jet Propulsion Laboratory as of May, Click the Get Report button 32

33 Results were two printed pages 33

34 How do I Search A/R By PI? 34 From the A/R report under CG Reports tab, select PI

35 Type in PI code. If you do not know the code, you can search by typing PI s last name, and selecting result from the drop down menu. Here we want to know the receivables for Dr. Michael Lu as of May, Choose a time period. Click the Get Report button 35

36 Dr. Lu has $91, outstanding in receivables. 36

37 How do I Search A/R by Department Code? 37 From the A/R report under CG Reports tab, select Department

38 Type in Department code. Here we want to know the receivables for NPI, which is department code Choose a time period. Click the Get Report button 38

39 Results were five printed pages 39

40 How do I search the A/R by an Account Number? 40 From the Account Summary report under the SUMMARY tab, select Account

41 Type in the code. Here we type in the Receivable account for the State. Click the Get Report button 41

42 Results were seven printed pages 42

43 How do I Search the A/R for a particular fund for more than one month? 43 We go to the Detail tab, and look through the Detail General Ledger

44 44 Fund Time Period Type in the fund number and the A/R account, which is Private Grants and the time period. Click the Get Report button

45 Results were five printed pages 45

46 Accounts Receivable Report by Department is also available from the Summary Tab 46

47 What Happens When A Sponsor Doesn t t Pay? 47 In some instances, a sponsor reneges on their contractual agreement and defaults on payment even though payment requests were timely and deliverables were met; the department is liable for these expenses The The DEPARTMENT is is responsible?

48 Reasons For Sponsor Default 48 Out of business Sponsor did not include UCLA expenses on report to prime (in cases when UCLA is the subrecipient) Carry-forward issues Cash flow issues

49 Accounts Receivable Team 49 Maurice Taylor Supervisor, ext Olga Sanders Prin. Analyst, ext Kaaren Davis Senior Analyst, ext Shelia Oatis Admin Analyst, ext