Research Topic

Billing, Invoicing, and Financial Reporting

Description

SPA supports university principal investigators and departments in the billing, invoicing, and financial reporting for sponsored projects by helping to manage the financial interactions with sponsors and assuring compliance with all university and sponsor policies. Below are the respective responsibilities related to billing, invoicing, and financial reporting.

For guidance specific to incoming subrecipient invoices, please see the Subawards research topic.

SPA Responsibilities

SPA’s responsibilities include:

  • Negotiate billing, payment, and reporting terms and conditions
  • Review project expenditures to ensure costs are reasonable, necessary, allocable, allowable, and consistent with the terms of the agreement
  • Identify and record cost share commitments in the University's web-based Cost Share application and generate cost share reports
  • Prepare and submit billings (including letter of credit draws and invoices) and financial reports, per the award terms and conditions
  • Respond to sponsor requests for invoice backup documentation and other expense detail
  • Identify and apply sponsored project payments
  • Monitor and conduct follow-up on delinquent payments; involve the department and PI in elevated follow-up attempts
  • Process refunds of any unexpended balance of payment per the award terms and conditions

Department Responsibilities

Department responsibilities include:

  • Manage and review project expenditures to ensure project costs are reasonable, necessary, allocable, allowable, and consistent with the terms of the agreement; process necessary cost transfers in a timely manner
  • Provide periodic statements of project costs, including cost share if applicable, for PI review
  • Provide required items for tracking cost share to SPA and monitor and notify SPA of any updates
  • Work with SPA to provide invoice backup documentation and other billing and financial reporting detail, as needed; departmental assistance may be required when the sponsor requires extensive documentation or information unavailable to SPA
  • Review overdraft reports and work with the PI to remove any outstanding overdrafts; cost reimbursement billings cannot be generated for awards in overdraft
  • Review accounts receivable reports and notify SPA Award Management of any technical issues or delays that may impact payment
  • Assist SPA with elevated accounts receivable issues and when payment issues relate to technical aspects of a project
  • Work with the PI to finalize project costs in Banner to meet final invoice and other closeout deadlines
  • Assume responsibility for all expenses not reimbursed by the sponsor and move any unallowable and/or unpaid costs to an unrestricted department funding source

PI Responsibilities

PI responsibilities include:

  • Submit technical reports, progress reports, and other deliverables in accordance with award terms and conditions
  • Provide confirmation to SPA of any milestone or progress status tied to payment
  • Review periodic statements of project costs provided by department, including cost share, to ensure costs are reasonable, necessary, allocable, appropriate, and consistent with the terms of the agreement
  • Timely review and certification of semi-annual confirmation reports
  • Assist SPA with elevated accounts receivable issues and when payment issues relate to technical aspects of a project
  • Work with department staff to assist them in finalizing project costs in Banner to meet final invoice and closeout deadlines

Terms and Payment Issues

The award document describes the billing and financial reporting terms for the award. Expenditures-to-date, periodic payments, project milestones, or other terms may serve as the basis for billing and payments.

SPA manages the following payment terms:

  • Cost Reimbursement Payment Schedule—Periodic billings for costs incurred. Cost reimbursement billings are based on actual costs posted to the Banner grant fund(s) for the specified billing period.
  • Fixed Payment Schedule—Set payment amounts which may be tied to deliverables or milestones or specified dates.

Expenditures must be timely and accurately reflected in Banner to support appropriate sponsor billings and financial reports. Billing for most awards happens monthly based on expenditures posted to date in Banner on the sponsored project fund(s). For many federal awards, cash is "drawn" from the U.S. Treasury. Billings and financial reports may also include data from the cost sharing commitment recorded in the University's web-based Cost Share application. Additionally, cost reimbursement billings cannot be generated for awards in overdraft.

Award terms and conditions may specify a due date for the final invoice and/or financial report. Sponsors may refuse to pay costs for late submissions or expenses not included on the final invoice or financial report. The department will be responsible for unpaid costs due to lateness in finalizing project expenses on the Banner grant fund(s) and any other unpaid costs, including but not limited to costs deemed unallowable by the sponsor.

SPA is responsible for submitting billings and financial reports and following-up on delinquent payments. All sponsor requests for financial detail or documents and all payment follow-up should be managed through SPA. SPA will advise departments and PIs and initiate any elevated action related to payment issues, such as stop work orders or formal collection activity.

 

Interest on Excess Federal Cash on Hand

It is SPA's responsibility to calculate interest due on balances of excess federal cash on hand. Federal sponsored projects will have excess cash on hand when cash collected from the federal government is greater than the amount of expenditures incurred for the project. Interest is calculated on excess cash balances at the project level for each business day.

Interest due to the federal government on excess cash balances is remitted on an annual basis, in accordance with federal requirements and SPA internal procedures. The University may retain up to $500 of interest earned per year for administrative expenses.

For guidance specific to investment income earned on non-federal sponsored awards, please see the Award Setup research topic.

Related Research Topics