Execute Project >
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

AR Collections

Possible Reasons for Past Due Invoices

Tracking and Collecting Outstanding Sponsor Payments

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.

In order to process EFT transactions, you will need permission to access the Bank of America’s Cash Pro website to pull down the EFT activity.  This permission is granted by Financial Services Business Services office.  Upon approval, you will be given a User ID and password.  You will then need to have a Bank Security Certificate loaded on your computer.  This too, is coordinated through the Financial Services Business Services office.

 

Prepare EFT Transactions on a Daily Basis

1. Pull down CashPro from Bank of America Cash Pro. See CashPro Job Aid.

2. Print report then Save report to PDF as yesterday’s date (i.e. 020411.pdf) to your Desktop and transfer to SharePoint in ORSPA, ACCTG, Cash Management, CashPro file.

3. Identify each dollar transaction as follows:

3.1. Check AR db for dollar amounts and input invoice number under the dollar amount on the report.

3.2. Search ERA  for information on amounts not identified 3.1

3.4. Exceptions:  Some amounts may belong to Financial Services.  If “ORIG: 9899" write F/S under the dollar amount; these belong to Financial Services and they will handle the crediting of the funds.

3.5. Send email to treasury@asu.edu for more information on ACH payment to help identify funds.

3.6. Send email to Richard.Maxwell@asu.edu and inquire if funds belong to Student Business Services, if yes, write F/S on report and send email to Scott Gardner to credit funds.

3.7. If needed, call originating sponsor and inquire on what the funds are paying.

3.8. Email PNT and AMT general email address and inquire if funds are expected from the originating sponsor.

3.9. For funds received from DCD or DFAS, details can be found at My Invoices regarding payment information. Refer to My Invoices Job Aid.

4. If the funds identified are for a TNS0006 (previously TNV9992) invoice, check Coeus and/or ERA to see if an account has been set up.

4.1. If an account has been set up, deposit the funds into the established account. For consortium membership fees, be sure to use a sub-org to identify the member. If no sub-org exists for the member, CMT must contact the consortium RA to request the sub-org and then CMT must set the sub-org up in Advantage. Refer to New Award Setup Process Instructions. Send notification to Notifications@asu.edu 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.

4.2. If there is no account set up (including the receipt of funds for the initial membership payment for a new consortium),  a copy of the check or wire needs to be sent to Notifications@asu.edu along with the proposal number notifying AMT that the funds have been deposited in the revenue holding account.  Ask Notifications to notify Cash Management when the account is set up.

5. When all credit amounts are identified, remove all but the last four numbers of the account number visible and save in current days wire folder.

6. If payment was received via wire transfer and Bank of America has charged a wire transfer fee, post the gross revenue amount as a credit to the sponsored account and post a corresponding debit in the amount of the wire transfer fee to the TNS0003 account using object/sub-object code 7310.99.

7. If interest was included in the wire deposit the interest into ET5 1005 revenue code 6215 00. If the interest is a complete separate entry on the CashPro Financial Services will receipt. Mark the CashPro as F/S to receipt.

8. Take the Original PDF Report to create a C1 document for each dollar amount.  This can also be given to the student employee to do.  See job aid How to Create a Cash Receipt (C1) Document.

9. Notify CMT member wires are ready for review. See Second Review Job Aid.

10. After the review has been completed email the PDF of report and C1's to receipts@asu.edu, CC to cashmanagement@asu.edu with the same Document Name in the Subject Line, i.e. Wires  1-01-11  $600,500.50.  Do not forget to attach the PDF documents.

11. CMT student will complete data entry into the AR database.  See CMT Data Entry Job Aid.

12. Financial Services Business Office will process the C1s and email cashmanagement@asu.edu a receipt for each C1.

12. After receipts are received from Financial Services CMT student will complete receipting process  See CMT Data Entry Job Aid.

 

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 using a Departmental Input Receipt at that campus Cashier’s Office, and the receipt and all backup documentation regarding the deposit will be sent to Cashmanagement@asu.edu. After verification of deposit, the CMT GCO will complete a revenue transfer moving the funds from the TNS0006 account to the account specified in the backup documentation from the department.  See Research Operations Administration Cash Receipt Job Aid.

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 employee).

3. The CMT GCO will scan each check, delete second page (which is back of check) then redact the signature and account number information on check (Redaction option is under tools> protection of Adobe Acrobat Pro). CMT GCO will put invoice information on front of check using tool section of Adobe Acrobat Pro. To identify where funds belong search the A/R database for open invoice, search COEUS for an open account, search ERA for a pending proposal, or contact the payer for back-up.  Once redaction has been completed and invoice information has been added, save check PDF to ACCTG>CASHMGT-CMT>CMT Current>DEPOSITS>Checks>Current FY year>Current month>current day.

4. AMT GCO will scan any back up documentation that comes with check and place in folder with check PDF.

5. Place checks in secure place until ready to deposit.

6. Notify CMT student checks are ready for C1's. Note any discrepancies, as in partial payments, etc. need to be brought to the CMT GCOs attention.

7. When funds are identified as belonging to a new Sponsored Project (including the receipt of funds for the initial membership payment for a new consortium), deposit into the TNS0006 holding account until a new account is set up.  Write TNS0006 on the  PDF check copy and send an email with copy of check to Notifications@asu.edu along with the proposal number notifying AMT that the funds have been deposited in the revenue holding account.  Ask Notifications to notify Cash Management when the account is set up. If a check is for a PSERC award send an email along with a copy of the check to Laura DiPaolo notifying her that the check was received and what account the check was deposited into. If a check is for SenSIP or Connection One consortium send email along pdf of check to Joelina Peck.

8. Create a C1 document for each PDF check copy. For consortium membership fees, be sure to use a sub-org to identify the member. If no sub-org exists for the member, contact the consortium RA to request the sub-org and set the sub-org up in Advantage. Refer to New Award Setup Process Instructions. Send notification to Notifications@asu.edu and copy consortium RA, Laura DiPaolo or Joelina Peck  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. See job aid How to Create a Cash Receipt (C1) Document.

10. After C1 documents are completed notify CMT GCO (who did not identify the revenue) they are ready for review. See Second Review Job Aid.

11. The GCO now gets the checks and prepares for deposit by:

11.1 Review the check for current date, signature, dollar amount matches the written                          dollar amount and the check is endorsed with SPN endorsement into the SPN account number ending in ...739.

11.2 Access the Web Check Log at https://webapp3.asu.edu/cashmanagement/search.aspx and search  for the current day's check receipts.

11.3 Export report to Excel and format the report to show all the columns up to and including the Amount Column, delete the remaining columns. (Be sure to delete any checks that have NO in the Rev Flag Field).

11.4 Sum the Check Amount Column and identify the amount as the Total Amt for Deposit, include today’s date.

11.5 Fill out a deposit slip with the number of checks and the total amount for deposit.

12. Verify the total amount matches the amount on the Web Check Log. Investigate and correct any discrepancies.

13.  Print two copies of this report.  Attach one copy to the checks for deposit (banks’ copy) and keep the other until you receive the bank’s deposit receipts.

14. Upon receiving the bank’s deposit receipt, tape the receipts to the front of the Web Check Log Excel report, if possible, if not on the front tape to the back. Make a scanned PDF copy and save to ACCTG>CASHMGT-CMT>CMT Current>DEPOSITS>Checks>Current FY year>Current Month>Current Day (Be sure to cover any bank account or routing numbers showing on the receipts – this is FS requirement).

15. Email the PDF  copy of bank receipt and pdf copies of C1's to receipts@asu.edu, CC to cashmanagement@asu.edu with the same Document Name in the Subject Line, i.e. Checks 1-01-11 $ 600,500.50.  Do not forget to attach the PDF document.

16. Shred copy of bank receipt.

17.  Financial Services Business Office will process the C1s and email cashmanagement@asu.edu a receipt for each C1.

18. CMT student workers will receive receipts for check deposit and complete receipting process.

AR Collections

This process describes the steps taken to monitor and pursue the collection of payments from sponsoring agencies for which costs were incurred or services were performed on the funds.

After the billing process has completed for the accounting period, the Cash Management Team Grant & Contract Officer (CMT GCO) will review the status of open receivables, and follow standardized procedures defined in this document for tracking and collecting outstanding sponsor payments.

When reviewing outstanding invoices, the CMT GCO will take appropriate follow-up action, which will escalate based on the number of days the outstanding payment has aged. As deemed necessary, PI and the AMT GCO are contacted to ensure that deliverables are current for the project. Some exceptions may occur with certain agencies due to their complicated payment approval processes outside of ASU’s control; such as Federal Government Agencies, larger corporations, research institutions, or companies in foreign countries. Examples of possible follow-up action are: invoice inquiry letters, emails, phone calls, and escalation first to the PI and the AMT Grant & Contract Officer (AMT GCO),Business Manager and/or Associate Director, Director of RA and next to the AVP of Research and Executive Director of Finance, who may warn of possible collection agency involvement.

After a past-due receivable has reached 120+ days in aging, the Associate Director will work with the CMT GCO to create an action plan for following-up with sponsors to get payment.

The CMT GCO must document all actions taken to resolve outstanding invoices and file copies of invoices and correspondences in the SharePoint award folder.  Since outstanding payments will always be due from sponsoring agencies, this is considered a cyclical process needing constant monitoring throughout the year.

 

Possible Reasons for Past Due Invoices

There may be several reasons for a sponsor to have withheld payment of ASU’s invoices. As part of the AR follow-up, the CMT GCO must identify and report these problems to the Associate Director, AMT Accountant, Business Manager and PI. Possible explanations for the non-payment are listed below:

  • The sponsor may have moved to a new location. Mail may not be getting forwarded appropriately.
  • The sponsor could be insolvent or bankrupt. If this is determined to be the case, spending should halt to avoid a further loss to ASU and the PI, Business Manager, and Department Chair notified.
  • The sponsor could have disencumbered the funds prematurely.
  • The sponsor returned the invoice to ASU, but sent to the incorrect address, not AMT’s.
  • The invoice was rejected by the sponsor because ASU:
    • issued the invoice in the wrong format, and/or had the wrong dates of service or contract dates,
    • ASU sent invoice after the due date,
    • incurred expenses that were not according to budget, were unapproved, inappropriate, or not sufficiently described,
    • failed to provide financial backup data, and/or
    • billed expense exceeded the authorized budget.
  • The Business Manager or PI’s concurrence was not received in a timely manner, thus causing the final invoice to be issued late.
  • The PI did not submit the required deliverables to the department, or provided incomplete deliverables (such as missing technical reports), with or without a valid reason.
  • The payment was made by the sponsor, but misapplied by ASU. Proof of payment should be obtained, which may include the check or ACH date, amount, check copy (front and back), and/or ACH copy (from the bank statement).
  • A sponsor may remit partial payment, leaving an open AR balance. If the invoice is confirmed to be accurate and there was no error made by ASU, the remaining balance should continue to be tracked as a partially paid item until it is resolved by a cost transfer or payment from the sponsor. This typically occurs when a sponsor has a question regarding a particular charge on the invoice, but has approved the remainder of the invoice for payment.  This is generally resolved by the Business Manager or AMT Accountant forwarding additional backup documentation to the sponsor to satisfy their concern and allow for the remainder of the payment to be issued.

 

Tracking and Collecting Outstanding Sponsor Payments

At the beginning of each week, the Cash Management Team (CMT) Lead will review the Accounts Receivable Database Aging Report and assign outstanding items the are over 45 days past due to the respective CMT GCO based on the sponsor. Depending on the age of the item, certain follow-up steps will need to be taken, as documented below.

To ensure the appropriate steps are taken each month, the CMT GCO will meet with the Associate Director on as needed basis to discuss all past-due invoices, prior follow-up attempts, and/or any pending action item that ASU is responsible for completing, such as a deliverable report from the PI.  Details of the process followed by the CMT GCO are as follows:

It is critical to keep a thorough record of the follow-up attempts and conversations so that they can be provided to the collection agency, if the item continues to be outstanding. Therefore, any communication in regards to receivables should be recorded in the AR Database and saved in the SharePoint Award File. AR Database comments should include:

  • Date and time of the conversation/email/letter,
  • The name of the individual you spoke,
  • The individual’s contact information (full name, phone number, email),
  • Reasons for the non-pay,
  • Anticipated pay date, assuming the sponsor is not waiting for information from ASU, and the agreed upon date for any action items.

Invoices Less than 44 Days Outstanding

No action required at this time.

Invoices between 45 – 59 Days Outstanding

1. Prepare and send email with a copy of invoice attached. For all invoices addressed to an ASU-related sponsor (e.g. ASU Foundation, Skysong Innovations, LLC or ABOR), ask the assigned AMT GCO for the preferred method and point-of-contact for collections activity. This preference should be noted in the A/R Log in the A/R database.  CC the PI, BOM and Cash Management.

3. If no email address is available, use standard mail to contact the sponsor. Provide a copy of the signed inquiry letter, along with the invoice in question to the applicable PI, Business Manager and Cash Management. See Exhibit 2: 45 Day Collection Email Template. When aging receivables have been determined to be outstanding due to unsatisfactory performance. notify the Dean/Director and Chair of the Lead Unit with copies to the PI and RA using Exhibit 5: Overdue Accounts Receivable due to Delinquent Deliverables.

Invoices between 60-74 Days Outstanding

1. Prepare and send email with a copy of invoice attached. For all invoices addressed to an ASU-related sponsor (e.g. ASU Foundation, Skysong Innovations, LLC or ABOR), ask the assigned AMT GCO for the preferred method and point-of-contact for collections activity. This preference should be noted in the A/R Log in the A/R database.  CC the PI, BOM and Cash Management.  See Exhibit 3: 60 Day Collection Email Template. When aging receivables have been determined to be outstanding due to unsatisfactory performance. notify the Dean/Director and Chair of the Lead Unit with copies to the PI and RA using Exhibit 5: Overdue Accounts Receivable due to Delinquent Deliverables.

Invoices between 75-90 Days Outstanding

1. Prepare and send email with a copy of invoice attached. For all invoices addressed to an ASU-related sponsor (e.g. ASU Foundation, Skysong Innovations, LLC or ABOR), ask the assigned AMT GCO for the preferred method and point-of-contact for collections activity. This preference should be noted in the A/R Log in the A/R database.  CC the PI, BOM and Cash Management.

2. Contact the sponsor  by telephone to inquire about the outstanding invoice and, once again, document this conversation. At this point, it is appropriate to inquire if there is another party who should become involved at the sponsor. Escalation should not only occur at ASU, but the sponsor as well.Use Exhibit 4: 75 Day Collection Email Template. When aging receivables have been determined to be outstanding due to unsatisfactory performance. notify the Dean/Director and Chair of the Lead Unit with copies to the PI and RA using Exhibit 5: Overdue Accounts Receivable due to Delinquent Deliverables.

Invoices 91-120 Days Outstanding

1. Prepare and send email with a copy of invoice attached. For all invoices addressed to an ASU-related sponsor (e.g. ASU Foundation, Skysong Innovations, LLC or ABOR), ask the assigned AMT GCO for the preferred method and point-of-contact for collections activity. This preference should be noted in the A/R Log in the A/R database. CC the PI, BOM and Cash Management. When aging receivables have been determined to be outstanding due to unsatisfactory performance. notify the Dean/Director and Chair of the Lead Unit with copies to the PI and RA using Exhibit 5: Overdue Accounts Receivable due to Delinquent Deliverables.

Invoices 121+ Days Outstanding

1. Prepare report for Associate Director of invoices that are 121+ days past due. Meet with AD to review action plan. A Stop Work Order may be neccessary. Notify the PI and RA with copies to the Dean/Director and Chair of the Lead Unit using Exhibit 6: Recommended Work Stoppage Due to Overdue Accounts Receivable.   

When aging receivables have been determined to be outstanding due to unsatisfactory performance. notify the Dean/Director and Chair of the Lead Unit with copies to the PI and RA using Exhibit 5: Overdue Accounts Receivable due to Delinquent Deliverables

 

AVP of Research will determine if the matter needs to be referred to the collection agency.

If referred to the collection agency, provide copies of all Invoice Inquiry letters, emails, and conversation notes.

Bad Debt

OKED will cover any bad debt if the following conditions exist:

  • Invoice has gone completely through our internal collection process AND
  • Has also been through external collection process AND
  • Was sent back from external collections as uncollectible due to sponsor going out of business or claiming bankruptcy.

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 Coeus, 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.

For completing Interest Calc JV’s, please see Posting Interest Earnings on JV Job Aid.

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