UMB Procedure on SPAC Collection Sponsored Receivables

Financial Affairs, Office of the Controller   |   Approved September 7, 2023

Purpose

To document the process for the collection process for Sponsored Projects Accounting and Compliance (SPAC).

Applicability

The applies to the Collections/Accounts Receivable Unit (CAR) and those departments associated with delinquent accounts

Instructions

Instruction

A.  SPAC runs an open item detail report from the UMB financial system to determine outstanding unpaid invoices. The Dunning Letter process should be initiated.

B.  1^st request (30 days outstanding)- forty-five (45) calendar days after the invoice date the first Dunning Letter is sent to the accounts payable address that is noted in the award. (Email or mail)

C.  2^nd request (60 days outstanding) - within thirty (30) calendar days after the first dunning letter, a second dunning letter is forwarded to the sponsor and the department that is awaiting the collection of these funds.

D.  3^rd request (90 days outstanding) - within thirty (30) calendar days after the second dunning letter, a third dunning letter is forwarded to the sponsor and the department that is awaiting the collection of these funds.

E.  If the invoice(s) remain unpaid after 90 days other means of contacting the sponsor are invoked – phone calling, emailing, and web searching to verify the correct mailing information. The Collection Accounts Receivable (CAR) unit should engage the department waiting for these funds for additional contact information.

F.  Within seven (7) calendar days after the additional means of contacting the sponsor, a follow-up to the phone call or email is initiated.

G.  4^th request (120 days outstanding) - within thirty (30) calendar days after the third dunning letter, a fourth dunning letter is generated to the sponsor, the department that is awaiting collection of these funds and the associated PI. These items are referred to the SPAC Director for discussion on appropriate follow-up.

H.  5^th request (150 days outstanding) - within thirty (30) calendar days after the fourth request, a fifth dunning letter is generated to the sponsor, the department, and the PI. These items are referred to the SPAC AVP for discussion of appropriate follow up.

I.  6^th request (180 days outstanding) - within thirty (30) calendar days after the fifth request, a sixth dunning letter is generated to the sponsor, the department, and the PI.

J.  All items with a dunning letter at 180 days will require the following:

a. Review of those items over 180 with the SPAC? Supervisor, Director, AVP and the Department

b. Decision by this group to send to collections, create a payment plan, or initiate a delay in collections

c. Documentation of what plan of action that was taken

Special Collections Procedures

To prevent being sent to SCCU:

A. The sponsoring entity may request a payment plan to cover past due invoices and potential future obligations.

• • The terms of the payment plan will be negotiated between the sponsor and the Sponsored Projects Accounting and Compliance (SPAC) Director.

• • The Director should engage the AVP of Sponsored Programs Administration or Corporate Clinical Trails (CCT) depending on the sponsor. This will allow those departments to review any grant or contract proposals currently in process.
  • A letter detailing the agreed upon payment plan must be signed by both the SPAC Director (or designee) and the authorized official of the delinquent sponsor.
  • If a future payment is not received timely, as outlined in the payment plan agreement, the remaining amount due will be sent to SCCU with notice to the sponsor (as outlined in the payment plan agreement).

B. A delay in sending to SCCU

• • This requires a SPAC Action Form with details
  • These delays are followed up in 30-day increments
  • After 90 days, these are referred to Sr. Associate VP Finance/Deputy CFO

Responsibilities:

Sponsored Projects Accounting and Compliance (SPAC):

1. Collects funds from granting agencies
2. Refers accounts to SCCU
3. Tracks payment plans
4. Tracks delays to SCCCU
5. Reviews SCCU for accounts outstanding over 2 years

Departments:

1. Assists in the collection of funds from granting agencies, if necessary.