Monitor and pursue collections
Responsibility: Cash management
Prepared by: FOT
Work Instruction Number: WI-EP-40
This work instruction consists of the following sections:
Receiving and depositing payments
Prepare EFT transactions on a daily basis
Prepare check and cash deposits
Interest Earnings on Investment Program Income Accounts
Receiving and depositing payments
Payments are normally received in the form of EFT, Checks, Direct Deposit, sometimes Cash and Credit Card payments performed in an ASU Department. Fiscal Oversight’s Cash Management Team (CMT) manages these payments associated with sponsored projects.
Checks for a grant (except for program income) that are received initially by a department should be made out to Arizona State University, sent via campus mail to CMT to mail code MC 9908 with attention to Cash Management. Provide which grant number the payment is associated with. If the check is for an expense reimbursement/refund, also include the spend category and journal line/operational transaction number it is associated with.
In order to process EFT transactions, the CMT Grant and Contract Officer (GCO) needs permission to access the Bank of America’s Cash Pro website to pull down the EFT activity. This permission is granted by the Financial Services Business Services office. Upon approval, the CMT GCO will be given a User ID and password. A Bank Security Certificate will then need to be loaded onto the CMT GCO’s computer through coordination with the Financial Services Business Services office.
Prepare EFT transactions on a daily basis
A download is made daily from the Bank of America CashPro. Payments are identified and are applied to the correct awards/Workday invoices via PeopleSoft Cashiering. See the “Receivables – Wires Work Instructions” located at the FOT Sharepoint Site Documents > Work Instructions > Deposits for details.
For consortium membership fees, be sure to use a department reporting worktag to identify the member. If no worktag exists for the member, CMT must contact the consortium RA to request the worktag. Send notification to [email protected] and copy consortium RA when interim consortium membership fees have been deposited into the consortium manager account or stand-alone federal consortium revenue account so that a budget increase can be processed.
Prepare check and cash deposits
1. Research Operations Admin (ROA) receives all checks and cash through U.S mail or physical drop off by departmental employees. Checks from other ASU campuses will be deposited at that campus Cashier’s Office, and the receipt and all backup documentation regarding the deposit will be sent to [email protected].
2. ROA personnel deliver Checks and/or cash to the designated CMT personnel or any other CMT GCO if designated GCO is not present at the time of delivery – ONLY. (Checks/cash should never be given to a student worker).
AR collections
This work instruction describes the steps taken to monitor and pursue the collection of payments from sponsors, also known as Account Receivable (AR) collections.
After an invoice has been submitted to a sponsor, the Cash Management Team (CMT) will review the status of open receivables via Workday report Payment Monitoring – Sponsored Collections Activity and follow standardized procedures defined in the Sponsored Collections job aid for tracking and collecting outstanding sponsor payments. This document can be found in FOT’s SharePoint site under Documents > Work Instructions and Job Aids > Accounts Receivable.
When reviewing outstanding invoices, CMT will take appropriate follow-up action, escalating based on the risk of non-payment, which includes considering factors such as days outstanding, sponsor type, and dollar amount. As appropriate, the Principal Investigator (PI), department Research Administrator (RA) and fiscal reporting Award Management Team Grant and Contract Officer (AMT GCO) are contacted to ensure that deliverables are current for the project and for any additional information. CMT then uses a variety of techniques to secure payment from the sponsor, such as e-mails, phone calls, and meetings.
CMT documents collection activities via the customer invoice and sponsor records in Workday (WD). Since outstanding payments will always be due from sponsoring agencies, this is a cyclical process requiring constant monitoring throughout the year.
Interest earnings on investment program income accounts
ORSPA calculates interest earned on those sponsored accounts for which the sponsor has explicitly stated in the award document that any interest earned on their award should be used as additional funding for the project and/or returned to the sponsor. For these sponsored accounts, an Investment Program Income (IPI) account is created. In ERA, investment program income accounts are setup with sponsor code 002511. On a quarterly basis, interest is calculated and deposited into the program income accounts based on Posting Interest Earnings on Investment Program Income Accounts Job Aid.