Contracts and Grants Accounting
- Soliciting members and pre-Award Process
- Master fund set up
- Individual sponsor (member's) fund set up
- Member's award modifications
- Award termination
- Invoicing members
- Accounts receivable / collections
The University enters into multi-sponsor agreements where participating members sponsor a research program. These members share in the results of the research performed by the University under the terms of the program. Such programs include BSAC and CBE. The members often "subscribe" on an annual basis and their membership is based on continuing to be in "good standing", having paid all dues owed. CGA will set up a Master Award/Project and a Master Fund in BFS for the research membership program.
The department administering the program can only charge expenses to the master fund of the Award/Project. Due to the number of members involved and the risk associated with non-payment, budgeted funds available in the master fund are only appropriated on a cash basis, i.e. funds will only be appropriated to the master fund when payments are received from individual members.
a. PI / Program Director will solicit members to join the program.
b. PI and SPO will negotiate terms of contract with potential members.
c. SPO approved contract will be forwarded to the Department.
d. Department request first installment of membership payment upfront
e. Participating members (Sponsors) will sign the contract, enclose payment, and submit to the Department.
f. The Department will forward all documents and payment to SPO.
On receipt of an award document from SPO, CGA sets up a Master Award/Project with a Master fund to record expenditures for the program.
Budget appropriations will only be made to the master fund when payments are received from a sponsor. All research expenses will be recorded in the Master fund. The Master Award/Project will remain open for the life of the program.
a. When a Phoebe Award Summary for an individual membership is received from SPO, CGA will set up an individual sponsor (member's) contract.
b. Individual sponsors will be linked to the Master Award by the Project ID.
c. Each member's Project will be set up for the full period of the award as defined by SPO.
d. The individual sponsor funds will be closed as the sponsors retire from membership.
Sponsors may need to amend their contract, and usually, this information is received by the department. Sponsors may want to change the terms of the membership (e.g.: membership cancellation, changes in contract period, and changes in invoicing terms).
Any changes of this nature, if received by the department, should be forwarded to SPO to create an Award Modification (Mod). This approved Mod will then be forwarded to CGA to make necessary changes in BFS.
Membership will terminate normally upon the final expiration date of the award.It can also be extended for additional years if the sponsor pays for another year, and executes a document that contractually binds the parties for another year.Department forwards the request of extension to SPO and CGA. CGA will hold off closing the contract while waiting for an amendment from SPO.This pertains only to the individual center contracts or memberships, not the Master Award/Project.
In accordance with the invoicing and payment terms of the signed contract, CGA will prepare invoices for each sponsor. For contracts with scheduled payments, CGA will submit an invoice as a "reminder" that a payment is due.
CGA will provide department with a detailed report on outstanding invoices.
For departments administering the collections process themselves, an accounts receivable (AR) file with outstanding receivables will be sent to department MSO monthly. Department will make annotations of their collection activities, and return to CGA.
If a sponsor defaults on a payment, CGA notifies PI, Department, and SPO.Invoice cancellations and write-offs are made in the sponsor contract if appropriate.