Purpose

The purpose of this procedure is to provide the institutional standard for escalating outstanding accounts receivable payments related to grants, contracts, and other sponsored agreements.

Covered Parties

This procedure applies to any invoice generated by Post Award Financial Operations at Boston University.

Definitions

Invoice: A document that shows a list of goods and services and the prices to be paid for them.

Outstanding Accounts Receivable: A balance due on an invoice to Boston University.

University Procedure

It is the responsibility of Post Award Financial Operations to follow up on all outstanding accounts receivables for any invoice generated by the Cash Management team. In the case where Sponsors do not pay BU in a timely manner, the following steps will be taken to relieve the accounts receivable balance.

Invoice OutstandingResponsible PartyCollection Resolution Steps
Greater than 60 Days (2 Months)Billing & Account SpecialistSubsequent Invoices include a past due statement of outstanding accounts receivable
Greater than 90 Days (3 Months)Billing & Account SpecialistInquiry is sent via email to Sponsor with a cc to BU Department Administrator and PAFOPost Award Financial Operations PAFO assists faculty and ... Billing Manager.
Greater than 120 Days (4 Months)Billing ManagerPhone Call and/or Email is sent to Sponsor; PIPrincipal Investigator View Boston University's policy on... and Director, Cash Management is informed of nonpayment.
Greater than 150 Days (5 Months)Director, Cash ManagementDirector Calls and/or Emails Sponsor with a cc to AVP, PAFO; follows up separately with PI for his/her assistance.
Greater than 180 Days (6 Months)Assistant Vice PresidentAVP will lead the following discussions:

  • Involve Collection Department
  • Put account into PAFO/OSP status so that no future charging can occur (if still active)
  • Temporarily suspend programmatic activities and deliverables to Sponsor
  • Stop any and all payments to Sponsor if we have under other sponsored agreements
  • Work with Sponsored Programs Office to no longer accept awards from this Sponsor
  • Inform Vice President for Research Finance & Operations and/or Chief Financial Officer

Post Award Financial Operations will work collaboratively with the Sponsor, Department, and Principal Investigator involved to resolve outstanding accounts receivable in a timely manner. Once an invoice remains uncollected for Greater than 270 Days (9 Months), it is the responsibility of the Department and Principal Investigator to remove all unpaid expenditures from the Sponsored Account.

Responsible Parties

617-353-4100

SubjectContactPhone
  • Process Invoices
  • Process Payments
  • Collection of Outstanding ARAccounts Receivable
Post Award Financial Operations617-353-4555
  • Collection of Outstanding AR
Collection Department617-353-4100

History

This procedure was adopted in November 2014

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