Handbook of Business Procedures

5.3.2. SPONSORED RECEIVABLES

A. Receipt of Funds

Funds for Sponsored Receivables (SR) may be generated from a number of sources, including federal research awards, private research contracts, or research agreements with other universities. Funds are received in various forms, including the following:

1. Automated Clearing House (ACH) and Federal Reserve Wire Transfers (Wires)

Wires and electronic transactions sent via ACH are received and processed daily. They are then posted to the appropriate 26-accounts that have been set up by Sponsored Projects Award Administration (SPAA) in the Office of Sponsored Projects (OSP). See the Account Support by Account Number Web page for more information.

2. Checks

The Office of Accounting receives checks daily and deposits them to the appropriate account within 24 hours of receipt.

3. Line of Credit (LOC) Draws

LOC draws are performed every Monday. If Monday is a university or federal holiday, the draw will occur on the Tuesday after the holiday. If there is any deviation in the draw schedule, SR will notify SPAA prior to the day of the draw. If any issues or problems occur concerning the draws (insufficient funds for an award, closed awards, etc.), SR will notify the SPAA manager and the accountant responsible for that LOC group.

4. Clearing Account Balance Transfers

If the correct depository account cannot be determined when funds are received, or the 26-account has not yet been established by OSP, the funds are deposited into a clearing account until additional information is gathered and the appropriate depository account is determined or established. Once correct placement is determined, the funds are transferred from the clearing account to the appropriate 26-account.

B. Refunds

A refund is issued when a sponsored project closes or expires and excess funds remain in the account, or when SR is instructed by SPAA to issue a refund. Any refund request over $5,000 must be approved in writing by the associate director or assistant director of SPAA. Refunds of less than $5,000 can be approved by the associate director, assistant director, or financial manager of SPAA. Refund checks will be hand delivered to the designated administrative associate or the receptionist in SPAA.

Note: For refunds of $50,000 or more, an additional copy of the completed VP2 payment voucher with back-up documentation must be delivered to the Office of Accounting Administrative Services in Main 132, K5300.

C. Reconciliation

Automated Standard Application for Payments (ASAP) and Department of Education 26-accounts are reconciled quarterly to university accounting balances by Sponsored Receivables in order to maintain accuracy in the individual awards that are linked to the 26-accounts.

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