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SPONSORED PROGRAMS OPERATIONS GUIDE

    
Cash Management Philosophy

The University follows the cash management principles outlined by the Council on Governmental Relations (COGR). The University has a cash management system which complies with federal, internal, and, if necessary, state regulations and which provides adequate control and necessary flexibility to make timely deposits and disbursements.

The Office of Grants and Contracts Administration insures that adequate policies and procedures exist to control and record the receipt of income, disburse cash, bill agencies for receivables, and report cash management activities

The following functions are also monitored:

• The management of program income is in accordance with all appropriate regulations.
• Signature authority for those authorized to disburse funds is identifiable to each sponsored project account.
• An accounts receivable system provides for the timely billing of accounts.
• Accounts receivable are reconciled on a periodic basis and appropriate follow-up procedures are performed as required.
• Letters of credit and electronic fund transfer procedures are established with most Federal agencies. Drawdowns are limited to minimal amounts as required by Federal regulations.
• In the absence of letters of credit, appropriate cash request forms are submitted to sponsoring agencies.

Funding methods and reimbursement requirements vary according to the terms and conditions of the grant or contract:

• For most Federal grants, funds are requested either by Letter of Credit or Cash Request Forms as dictated by the agency.
• For most Fixed Price projects, a payment schedule is negotiated with the sponsor. The sponsor may make automatic payments or require an invoice to, initiate payment.
• For Cost Reimbursable projects, monthly invoices are generated through the DEFINE System.

    
Accounting Information Input

After projects are set up as permanent or pending and entered into DEFINE, they are reviewed for invoicing, reporting, indirect cost charges, and other special requirements. Each project is coded, and data is input into DEFINE. This data instructs the computer to automatically charge indirect cost for a project, and initiates the automatic billing system for those projects for which invoices will be computer generated.

DEFINE includes a listing of sponsor names and addresses for all automated invoices. This list is expanded and updated as sponsor or project information changes.

Other data input into DEFINE includes:

1. Date of award, and amount;
2. Project number, agency, and sponsor code;
3. Project and funding period;
4. Special codes for invoices and reports;
5. Principal Investigator/Project Director;
6. Invoice frequency;
7. Special handling flags;
8. Funding method;
9. Receivable account information;
10. Cost sharing;
11. Indirect cost base; and
12. Indirect cost rate.

    
Invoice Processing

The automated billing job produces a voucher, a cost-incurred sheet and supporting documentation for each bill. The costs are checked against the accounting records. Any special billing instructions are checked, and any special forms or additional information that must be attached to the invoice are noted. Special forms are then prepared and the PI/PD contacted to supply any additional special information required.

If direct project costs are overspent, the PI/PD is contacted and instructed to make the necessary corrections. Invoices for these projects cannot be processed until corrections are made, therefore, corrections must be done immediately.

If indirect project costs are overspent, Grants and Contracts Administration processes a journal entry to correct the indirect cost calculation.

    
Payments

Payments may be made by electronic funds transfer or check. Authorization for electronic funds transfers is secured at project inception by Grants and Contracts Administration. All checks on UTSA projects should be made payable to UTSA.

Project payments received by individuals or departments should be processed through Grants and Contract Administration. call that office for assistance. Do not send checks through campus mail. All checks made payable to individuals should be endorsed by the individual to the University. Checks should be processed immediately and should not be held.

Delinquent Payments. Payments not received within 60 days of the invoice date will be reviewed by the office of Grants and Contract Administration. In order to expedite payment, dunning letters may be sent to the sponsor or the sponsor may be contacted by phone. If the sponsor refuses payment based upon a real or perceived problem with the project, the PI/PD will be contacted immediately.