On a monthly basis, Contracts and Grants Accounting (CGA) invoices agencies for amounts owed on the university's contracts and grants in accordance with the terms of the agreement. Many of the awards have different billing terms, hence the accounts receivable balance can vary throughout the year.
To effectively manage the resources of the university, CGA works with the agencies to assist with on time payments, ensuring the agencies are meeting their contractual obligations to the university. CGA accounts for all contracts and grants related receipts. In addition, CGA works with the Principal Investigators (PI), SPO, and the departments in coordinating collection activities to promote on-time payments for amounts due to the university.
Invoices are prepared based on the terms negotiated in the award agreement such as monthly cost reimbursable basis, fixed amounts, payment schedule, etc.
The monthly batch billing process runs around the 19th of each month as configured in BFS upon award setup. The Project Costing and AR modules’ functionality allows for automated billing according to award types, CRB (cost reimbursable), SCH (scheduled payments), FIX (fixed price), INT (intercampus) and LOC (line of credit).
If a fund or award is in overdraft, it will not be billed. However, when the overdraft is cleared, billing will resume. To enable the university to bill agencies on the basis defined by the agreement’s terms and conditions, departments need to clear overdrafts on a timely basis.
Final invoices are generally processed manually in the system, as a part of the closeout, and based on total unbilled expenses including accruals.
CGA Accounts Receivable staff actively pursue outstanding invoice payments on the largest unpaid sponsoring agency balances on a daily basis. Smaller outstanding balances are pursued using various methods including a monthly distribution of Dunning letters.
While CGA Accounts Receivable staff pursue daily collections of amounts owed by sponsoring agencies, the department may also be asked to follow up with the sponsor, since in many cases they respond better to a more familiar contact. If the PI or other departmental staff has information (for example: pertinent conversations or correspondence with key agency officials, contacts at the agency who may expedite payment, pending technical reports, etc.) relevant to the pursuit of payments, this should be shared with the CGA collections staff accordingly.
Payments are to be made payable to “The Regents of the University of California, Berkeley”. To ensure payments are properly applied, please include the invoice number, award reference number, UC Berkeley contract number, project title, or UC Berkeley PI name on the remittance advice.
Payments should not be sent directly to the department or Principal Investigators (PI). Checks and remittance advices, or backup of payment for sponsored projects received by the department, should be forwarded upon receipt to CGA for deposit.
The CGA AR team is onsite only Wednesday mornings at the Fourth St. location to accept checks dropped off and to process payments. This change became effective March 2020.
Sponsors should send checks directly to the following address:
The Regents of the University of California, Berkeley
Contracts and Grants Accounting
1608 Fourth Street, Suite 201, MC 1103
Berkeley, CA 94710-1794
Electronic Funds Transfers
For Electronic Funds Transfers via ACH or wire, the bank information can be found at Incoming Wire Transfers/ACH Instructions.
Collection of Contract and Grants accounts receivable (i.e., amounts billed to sponsoring agencies for which we have not been paid) is considered a shared responsibility between CGA and the departments.
Invoicing of awards is the primary responsibility of CGA. However, occasionally a sponsor’s desired invoice format requires departmental input, such as the PI’s signature or a summary of the work completed during the invoice period. In these cases, CGA will notify the department when an invoice is ready for their input.
The PI and Department Manager should advise the CGA collections staff of any pertinent collection information. It is important for CGA collections staff to be informed in a timely manner of agencies encountering financial difficulties which will affect their ability to pay the university. This will enable the university to take other courses of action in collection of the amounts due and the administration of the award.
The following details the accounting treatment of amounts identified as uncollectible:
- Uncollectible extramurally-funded awards arising from:
- Non-performance issues, including the failure of the Principal Investigator (PI) to prepare interim and final reports or overspending by the PI.
- Administrative issues and late ledger entries or adjustments resulting in late or inaccurate billing.
- Amounts will be charged to the department.
- Uncollectible extramurally funded awards arising from:
- The third party having insufficient funds to meet its commitment or for other reasons resulting in the university not being reimbursed for amounts due, not already stated above, where the university has met all its contractual requirements.
- Amounts will be recommended for write off.
AR Help Desk
Contracts and Grants Accounting (CGA)