VIII-8.00(B)

UMB Policy on SPAC Collections of Sponsored Receivables

Financial Affairs   |   Approved September 7, 2023

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Responsible VP/AVP

Dawn M. Rhodes, DBA, MBA

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Revision History

January 1, 2009

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Purpose

To set forth the standards for University of Maryland, Baltimore (UMB) to promptly recover sponsored debt using collection procedures in accordance with Maryland’s State Central Collections Unit (SCCU) Standards for Administrative Collection of Claims.

Policy Statement

UMB bills external contracting and granting entities pursuant to State requirements and the terms contained in the award documents in a timely and accurate fashion. UMB has established methods for collecting outstanding sponsored receivables.

1. UMB schools and departments receive awards from various sponsors, including the federal government, state, local, and private entities. These sponsored awards between UMB and sponsors create legal debts to the State of Maryland.
2. It is UMB’s policy to take the necessary steps to promptly recover these debts. Using collection procedures in accordance with the Maryland’s Standards for Administrative Collection of Claims – COMAR 17.01.01.00.
3. Sponsored Projects Accounting and Compliance (SPAC) is the UMB department responsible for monitoring the collection of sponsored receivables and works with departments and sponsors to resolve collections issues.
4. Instructions and guidelines for collecting sponsored receivables are set forth in SPAC Procedure on Collections of Sponsored Receivables.
5. UMB does not budget funds to cover grant or contract deficits; therefore, uncollectible receivables will be funded by the appropriate department or sent to SCCU. The two methods for the write-off of uncollectible receivables:

• • The department and/or responsible center can fund the deficit after 180 days outstanding, and the receivable will not be referred to SCCU. If the sponsor subsequently pays the receivable, the funds will be remitted to the department per their instructions.

OR

• • SPAC will submit the receivable to SCCU. If the receivable is not collected by SCCU within two years, the department will be responsible for funding the debt plus fees and/or any additional fees incurred by SCCU.

6. On a monthly basis, delinquent receivable will have the collection procedures applied. All receivables over 180 days will be submitted to SCCU to begin the state collections process.

Exception:

If UMB is in negotiations with a sponsor concerning a specific receivable and there is a payment plan in place or under negotiation, the write-off steps will not be taken. If the payment plan terms are not followed, the debt will be referred to SCCU.

Definitions

Sponsor – An individual, organization, or governmental agency that agrees to fund, either in whole or in part, a UMB project or activity.

Sponsored Project – An externally funded activity that is separately budgeted and accounted for according to the terms of the sponsor. Sponsored projects include grants, contracts, and cooperative agreements for research, training, and other public service activities.

Sponsored Project Receivable – Any amount that has been invoiced and is due from a sponsor for allowable costs allocated to the sponsored project.

SCCU – State Central Collection Unit

Scope and Exceptions

This policy applies to sponsored award payments to UMB based on contracts and grants received from external agencies.

Exceptions to this policy must be approved in writing by the Chief Business and Finance Officer (CBFO). Exception requests should be submitted in the form of a memo to the CBFO. This memo must be signed by the Dean or the Dean’s designee (i.e., Associate Dean) prior to submitting them to the CBFO.

Roles and Responsibilities

Schools/Department Administrators – Responsible for working with SPAC team to facilitate additional collection efforts and to provide account code when write-off is initiated.

SPAC Team – Responsible for coordinating collection efforts with departments, SPA, and PI to resolve open receivables with sponsors.