Transcript Advanced Topics - Controller's Office

Invoicing, Financial Reporting,
& Cash Receipts
Date
Presenter Name
Presenter Phone Number
Presenter E-mail Address
Types of reporting
• Financial
– Normally prepared by campus / unit
business office
• Invoices
• Financial reports
• Technical
– Normally prepared by PI
2
Typical requirements
• Typical reporting requirements on a
Federal award:
– Monthly electronic drawdown of funds via
letter-of-credit
–
–
–
–
• Amount drawn is based on previous month’s
expenditures
Annual financial report
Annual technical report
Final financial report
Final technical report
• However, UT will send invoices and reports
in whatever manner the sponsor prescribes
in the award document
3
Types of invoices
• Invoicing Type
–
–
–
–
–
–
Resource-related
Schedule
Milestone
Item-based
Letter-of-credit
None – automatic
payments
– N/A – not applicable
Invoicing information is
shown on the cust.
enhancement tab of
CJ20N for the WBSE
4
Resource-related type
• Resource-related invoicing type
– Also called cost type or cost reimbursement
– The most common type of invoice that UT sends
– UT’s default invoicing method with a standard form
• UT invoices actual expenses that have posted to
the restricted WBS element in the previous
period
– Always a time lag and normally a deficit balance on the
account
– May be monthly, quarterly, semi-annual, or annual
frequency
• UT’s preference and default frequency is monthly
• Based on the calendar, for example, quarterly means 3/31,
6/30, 9/30 & 12/31
– May be interim or final invoice
5
Schedule type
• Schedule invoicing type
– Invoices are sent based on a prescribed
schedule of regular billing amounts at regular
intervals
• For example, the award document specifies that UT
must invoice $1,000 per month for 12 months
– Invoicing does not follow actual expenditures
• At any given point in time, UT may have invoiced for
either more or less than actual expenditures that
have posted to the WBSE
• By the end of the award, invoicing and expenditures
should be approximately equal
6
Milestone type
• Milestone invoicing type
– Invoices are sent based on prescribed dates
for irregular billing amounts and / or irregular
intervals
• For example, the award document specifies that UT
will invoice $20,000 on January 15th, $50,000 on
June 30th and $50,000 on July 15th
– Invoicing does not follow actual expenditures
• At any given point in time, UT may have invoiced for
either more or less than actual expenditures that
have posted to the WBSE
• At the end of the award, invoicing and expenditures
should be approximately equal
7
Item-based type
• Item-based invoicing type
– Invoices are sent as needed
• Example
– The award document specifies that UT will invoice
$2,000 per test case completed
– In August, the PI provides the campus / unit business
office with required information about 10 test cases
that have been completed
– An invoice is then prepared and sent for $20,000
– Invoicing does not follow actual expenditures
• At any given point in time, UT may have invoiced for
either more or less than actual expenditures that
have posted to the WBSE
8
Letter-of-credit type
• Letter-of-credit type
– LOC’s exist with most large Federal agencies
– UT requests funds electronically on at least a
monthly basis, usually right after month-end
closing
• Requests are for expenditures that have posted to
the WBSE since the previous funds request was made
– Cost reimbursement basis
• Requests may be for hundreds of accounts and may
total millions of dollars
• Funds are wired to UT within 48 hours
9
Automatic payments type
• Automatic payments invoicing type
– UT is not required by the award
document to send invoices to the sponsor
• For example, the sponsor may pay the entire
award amount up front
• For example, the sponsor may make periodic
payments – maybe upon receipt of technical
reports
10
Other situations
• Miscellaneous
requirements are
usually noted in PS
Text on CJ20N
– Backup documentation
required
– Multiple copies of
invoice sent to
different addresses
– Invoice sent to a
particular person at a
sponsor
– Task or milestone
information required to
be printed on invoice
– Special forms needed
PS Text is shown on the
WBSE on CJ20N
11
Invoice forms
• UT has standard invoice forms that are
used as the default forms if no other is
specified in the award document
– Resource-related form
– Schedule / milestone / item-based form
• Federal agencies use standard forms
– SF270, 1034, etc
– State agencies have various forms
– Private companies usually accept UT’s standard
12
Timeliness of invoicing
• Important because
– Sponsor expects it
• Private companies expect UT to act like a
business and bill promptly
– Protect UT’s reputation for fiscal
responsibility
• Late, incorrect and revised invoices and
financial reports are bad
– Speeds up UT’s cash flow
13
Timeliness of initial invoice
• Dependent upon
– Timely setup of WBSE
• Get Advance WBS Element, if necessary
– Timely charges
• For resource-related and LOC invoicing types because
actual expenditures for the previous period are
invoiced
– Doesn’t matter for schedule, milestone, etc.
• Automated charges post to correct cost object
– Notify Payroll via PIF and service centers of new WBSE
# to charge
– Timely invoice preparation by CBO
14
Timeliness of
interim invoices
• Dependent upon
– Timely charges
• For resource-related and LOC invoicing types because
actual expenditures for the previous period are
invoiced
– Doesn’t matter for schedule, milestone, etc.
– Avoiding overexpenditures or removing them
promptly
• For resource-related invoicing type where UT sends a
line-item invoice form
• CBO may not be able to invoice because they don’t
know from which cost elements the overexpenditures
will be removed
– Timely invoice preparation by CBO
15
Timeliness of final invoices
• Dependent upon
– Timely charges
• For resource-related and LOC invoicing types because
actual expenditures are invoiced
– Doesn’t matter for schedule, milestone, etc.
– Due date in the award document
• Research office tries to avoid unreasonable terms,
such as final invoice due 10 days after ending date
– Timely cost transfers, if they are needed
• All cost transfers must be posted by 60 days after
the end date or 30 days before the final invoice is
due (whichever comes first)
– Timely invoice preparation by CBO
16
Financial reports
• Financial reports are due
– As specified in the award document
– As specified by the Federal agency in their
grant policy manual
– On an interim and / or final basis
• Interim financial reports are often due at the end of
each grant year
• Final financial reports are usually due by 90 days
after the ending date of the award
– Federal reports are usually on a standard
Federal form and some are submitted
electronically
17
Timeliness of
financial reporting
• Deadlines that UT must meet
– Final invoice and / or financial report is
normally due by 90 days after the end date of
the project
– All charges must have posted to the WBSE by
60 days after the end date of the project (or
30 days before due date)
• Important for good sponsor relations
– Incorrect / revised financial reports cause UT
employees more work and makes us look bad to
the sponsor
18
Monitoring invoicing
• Academic departments / PI’s should
monitor invoicing and collection
activity on a regular basis
– Invoicing information is shown on several
IRIS reports
• ZDEPT_LEDGER (ledger)
• ZFM_WBS_SUMMARY (one-page summary)
• Others such as CJI3 (line item report),
Y_DEV_17000002 (available budget report),
and FMRP_RFFMEP1AX (line item report)
19
ZDEPT_LEDGER (ledger)
• Total sources of
funds =
$455,651.36
project-to-date
20
ZFM_WBS_SUMMARY
• Letter of credit
invoicing type
• Net revenue =
$455,651.36
project-to-date
21
Other reports
• Invoicing normally
appears in cost
elements 700800
and 700300
• Total invoicing
project-to-date =
$455,651.36
22
Cash receipts
• UT’s sponsors normally pay promptly
– Most are government agencies
• Delays sometimes occur
– Incorrect invoicing address or form
– Waiting on technical report from PI
• Non-collection sometimes occurs
– Private, start-up companies
– Cash-flow problems, bankruptcy
– Write-off to departmental funds
23
Collection procedures
• CBO’s send late letters to sponsors after
an invoice has been outstanding for more
than 60 days
• CBO’s telephone sponsor financial contacts
• CBO’s should notify academic department
and PI if there are payment problems
– PI may be asked to telephone sponsor technical
contacts
• CBO’s ask UT’s legal counsel for assistance
as a last resort
• Bad debt is written off to academic
departmental funds
24
Monitoring collection
• CBO’s are primarily responsible for
monitoring collection from sponsors;
however, academic departments should also
monitor
– Since it is their funds at risk
– Dept should call CBO with questions / concerns
• Use IRIS transactions to find the
outstanding invoices for a particular WBS
Element
– ZAR_AGING
– Z_AR_STMT_ACCT
25
ZAR_AGING
• The report lists
all unpaid
invoices for the
WBS Element
selected
– Invoice date
– Invoice amount
– # of days
unpaid
Invoices greater than
60 days old are
considered past due
26
Training classes
•
•
•
•
•
•
•
•
•
•
1 Overview of Accounting for Sponsored Projects
2 OMB Circulars & Cost Accounting Standards
3 Understanding F&A Costs
4 Direct Costing
5 Cost Transfers & Closeout
6 Cost Sharing
7 Subcontract Monitoring
8 Advanced Topics
9 Invoicing, Reporting & Cash Receipts
10 Sponsored Projects Reports in IRIS
• Other – IRIS reporting for sponsored projects
27