Current Procedure: Revenue is recognized as expenses are incurred for all types of awards. For DHHS, NSF and USDE revenue is recognized weekly through the CUFS revenue recognition process. For all other awards, revenue is recognized monthly through the JDE revenue recognition process (interfaces to CUFS).
Procedure Change: For rate based awards (sponsor requires the U to bill/draw actual expenses) revenue will recognize daily as expenses are incurred. For amount based awards (sponsor requires the U to bill in fixed amounts not related to actual expenses) revenue will recognize at the time an invoice is created. Amount based invoices are created based on the sponsor time or deliverable schedule.
What does this really mean for academic departments? For rate based awards not much changes; one recognition program and revenue recognition will process daily. The larger impact is on amount based awards. For these revenue will recognize at the time of invoicing rather than as expenses are incurred. If SFR invoices quarterly, revenue will recognize quarterly. If SFR invoices based on a deliverable schedule, revenue will recognize once upon invoice generation which is dependant on deliverable completion.
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EFS: SP Forum
