Current Procedure: Many of SFR’s current procedures related to Billing and Accounts Receivable (AR) will become official University Policies and Procedures. Below is a list of those SFR policies or procedures which will now be University wide polices or procedures. These result in minimal change for sponsored Billing & AR.
- Billings distributed from a central service center
- Standard payment terms are net 30 days
- All billings generated in US dollars
- Customer (sponsor) Maintenance, including setup is centralized
- Collections of outstanding receivables handled centrally
- Oversight of outstanding receivables is a shared responsibility between the initiating unit and the central unit
- Processing of payments is handled in SFR (from Bank Lock Box and Electronic Funds Transfers)
Procedure Change: Below is a list of polices or procedures that are new or revised:
- Shared customer (sponsor) file
- All payments are expected in US dollars
- Credit worthiness will be a factor to be considered when accepting awards
- Collections will be handled by customer (sponsor) and not by single invoice
- Checks will be processed through a bank lockbox
- SFR will accept credit cards as a method of payment
- Oversight of outstanding receivables will be shared responsibility between the initiating unit and the central unit
What does this really mean for academic departments?
- Shared customer (sponsor) file – non sponsored and sponsored will share the same customer file. Non sponsored addresses/contacts may be seen on the sponsor/customer record.
- All payments are expected in US dollars – if a sponsor pays in funds other than but US dollars the payment maybe send back and ask the sponsor requested to submit payment in US dollars. SPA will include this as a requirement in all agreements.
- Credit worthiness will be a factor to be considered when accepting awards – Final details surrounding this issue are still being developed and are expected to be finalized within the first few months of the new system. The underlying concept is that for a sponsor new to the University a Dun & Bradstreet report will be requested and reviewed. Based on the sponsor’s credit rating, billing and payment terms would be negotiated to mitigate non payment risk to the University. Collection activity and monitoring would be conducted at more frequent intervals. Academic departments may be advised that it is unwise for the University to accept the award from the sponsor if the sponsor doesn’t agree to the billing and/or payments terms the University believes necessary. Existing sponsors that fall into delinquency, may be subject to, future billing and payment terms negotiated to mitigate continued non payment to the University. In these instances collection activity and monitoring would also be conducted at more frequent intervals. In specific situations, academic departments may be asked to slow down or cease spending on existing awards.
- Collections handled by customer (sponsor) and not by single invoice – SFR will collect and review receivables by sponsor, however, academic departments can view receivables by college, DeptID or contract (award). It is anticipated that this change will result in improved collection impact and collector time management.
- Checks will be processed through a bank lockbox – the remit to address on all award documents and sponsored invoices will change to a PO box address. This PO box is at the bank. The bank will process the checks and then electronically feed the payment information to PS and Imaging. This will result in payments being applied to awards more rapidly, assists with internal controls, and helps avoid checks being inadvertently misplaced or misrouted.
- SFR will accept credit cards as a method of payment – Sponsors have requested this previously. This service can now be offered. Central will cover the credit card fees.
- Oversight of outstanding receivables is a shared responsibility between the initiating unit and the central unit – this was purposefully left on both the current procedure and procedure change itemizations as a means of improving procedures to enable more rapid and proactive response and involvement of academic departments when collection issues arise.
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