Policy for Escalation of Accounts Receivable on Sponsored Awards Responsible Office: Post Award Financial Operations 1. Purpose The purpose of this policy is to provide the institutional standard for escalating outstanding accounts receivable payments related to grants, contracts, and other sponsored agreements. 2. Covered Parties This policy applies to any invoice generated by Post Award Financial Operations at Boston University. 3. 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. 4. University Policy 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 Outstanding Responsible Party Collection Resolution Steps Greater than 60 Days Billing & Account Specialist Subsequent Invoices include a (2 Months) past due statement of outstanding accounts receivable Greater than 90 Days Billing & Account Specialist Inquiry is sent via email to (3 Months) Sponsor with a cc to BU Department Administrator and PAFO Billing Manager. Greater than 120 Days Billing Manager Phone Call and/or Email is sent (4 Months) to Sponsor; PI and Director, Cash Management is informed of non-­‐
payment. Greater than 150 Days Director, Cash Management Director Calls and/or Emails (5 Months) Sponsor with a cc to AVP, PAFO; follows up separately with PI for Page 1 of 2 Greater than 180 Days (6 Months) Assistant Vice President his/her assistance. AVP 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 with 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. 5. Responsible Parties Subject Contact Post Award Financial Operations • Process Invoices • Process Payments • Collection of Outstanding AR • Collection of Outstanding AR Collection Department 6. History This policy was adopted in November 2014 Page 2 of 2 Phone 617-­‐353-­‐4555 617-­‐353-­‐4100