AGENDA Administration and Finance Policy No. 3701 Contract and Grant Billing and Collections

1. AGENDAAdministration and Finance Policy No. 3701Contract and Grant Billing and Collections 1

2. POLICY STATEMENT The University of Maryland, Baltimore (UMB) will invoice to and collect from external contracting and granting agencies in a timely and accurate fashion using the UMB financial system. 2

3. PURPOSE OF THE POLICY Identify the procedures Define the responsibilities 3

4. SCOPE This policy pertains to all contracts and grants received from external agencies where payments are due to UMB based on: • costs incurred • payment schedule • services provided • milestones met 4

5. EXCLUSION This policy does not pertain to Federal and State Student Financial Aid. 5

6. CONTRACT AND GRANT BILLING(Departments) Each department should perform a monthly review of all activity for each project A Senior Administrator (or designee) is to perform a sample quality review, as determined by that department, and will retain a sign-off within the department Departments are expected to adhere to the Administration and Finance Cost Transfer Policy #3311 Departments are to notify Restricted Funds once a deliverable or milestone has been met 6

7. CONTRACT AND GRANT BILLING (Restricted Funds) • Restricted Funds is responsible for: • Creating and submitting (on a monthly or quarterly basis) invoices which are based on actual expenditures or fixed amounts • Compiling expenditures and requesting payments via the web or phone. • Creating receivables within eUMB when payments are received automatically or without notification of a deliverable or milestone being met • Working with departments to ensure that final invoices are accurate and submitted timely 7

8. STANDARD BILLINGS • As Incurred Invoices Weekly, Monthly or Quarterly based on actual expenditures • Fixed Amount Invoices Monthly or Quarterly based on the agreement • Final Invoices At term based on actual expenditures with department input 8

9. AS INCURRED – WEEKLYLETTER OF CREDIT (LOC) Billing process is run weekly by Restricted Funds The report generated determines the amount to be requested The request or “drawdown” is done via the web or phone 9

10. AS INCURRED – MONTHLY/QUARTERLY Billing process is run monthly The process is run for the specific month and quarter An invoice is generated in eUMB for each appropriate contract or grant The invoice is signed by the Restricted Funds Manager and sent to the granting agency 10

11. FIXED AMOUNT INVOICES A “prepaid” invoice is generated in eUMB based on the amount and due date in the agreement The invoice is signed by the Restricted Funds Manager and sent to the granting agency 11

12. FINAL INVOICES The Final Invoice Expenditure Report, based on eUMB, is sent to the department within 30 calendar days after the end of the project period The department is expected to: Review the report for completeness and accuracy Process any adjustments/corrections within eUMB Update the report to reflect these adjustments/corrections and forthcoming charges Have the PI sign the corrected report, and return it (along with the appropriate documentation for adjustments) to Restricted Funds within 14 calendar days 12

13. FINAL INVOICES • If no response from the department, Restricted Funds will email a “Second Request” to the department and cc the PI • The department is expected to: • Review the report for completeness and accuracy • Process any adjustments/corrections within eUMB • Update the report to reflect these adjustments/corrections and forthcoming charges • Have the PI sign the corrected report, and return it (along with the appropriate documentation for adjustments) to Restricted Funds within 7 calendar days

14. FINAL INVOICES • If no response from the department, Restricted Funds will email a “FINAL REQUEST” to the department and cc the PI, Chair, Dean’s Office and Restricted Funds Manager • The department is expected to: • Review the report for completeness and accuracy • Process any adjustments/corrections within eUMB • Update the report to reflect these adjustments/corrections and forthcoming charges • Have the PI sign the corrected report, and return it (along with the appropriate documentation for adjustments) to Restricted Funds within 7 calendar days

15. FINAL INVOICES Still no response? The final invoice will be sent without department/PI signature based on the current balances in eUMB (not to exceed the budget)

16. FINAL INVOICES DUE IN LESS THAN 60 DAYS All processes are contracted to meet agency requirement 16

17. Monitoring Standard Reports Fund 000 – All expenditures Fund 146 – Cost share expenditures Fund 147 – Over the salary cap expenditures Fund 182 – Expenditures reported to Sponsor on cost reimbursable invoices and financial reports Fund 184 – Expenditures related to stimulus funding (standard) 17

18. DELIVERABLE BILLINGS Complete the Deliverable Invoice/Receivable Request Form and submit to Restricted Funds once a deliverable or milestone has been met and BEFORE the payment is received The form is processed by Restricted Funds within 7 calendar days and revenue is recognized in Raven Should an invoice be mailed? YES – the invoice will be signed by the Restricted Funds Manager and mailed NO – the invoice will be filed 18

19. DELIVERABLE BILLINGS • If a Deliverable Invoice/Receivable Request Form is not received or received after the payment arrives…… • The payment will be placed “on-account” • A receivable is created within 7 calendar days • The Center for Clinical Trials submits their own form to Restricted Funds for start-up payments ONLY • Departments take over from there

20. RESTRICTED FUNDS FORMS PAGE 20

21. DELIVERABLE INVOICE/RECEIVABLE REQUEST FORM 21

22. Monitoring Deliverable Reports 22

23. Monitoring Deliverable Reports 23

24. STANDARD COLLECTION PROCEDURES Restricted Funds runs an open item detail report Verification by project that collection procedures are to begin “Second request” – 30 calendar days “Third request” – 30 calendar days – notification to the department “Fourth request” – 30 calendar days – notification to the department and PI 24

25. Still nothing from the sponsor? Restricted Funds attempts to contact the sponsor via phone or email Follow-up phone call or email – 7 calendar days “Fifth request” – 30 calendar days – notification to the department, PI, Chair and Dean’s Office “Final request” – 30 calendar days – notification to the department, PI, Chair, Dean’s Office and ORD 25

26. STATE CENTRALCOLLECTIONS UNIT (SCCU) 30 calendar days after the Final Request Sponsor incurs a 17% collection fee from SCCU Notifications of non-payment and bankruptcies are sent to ORD 26

27. SPECIALCOLLECTIONS PROCEDURES Agency does not want to be sent to SCCU but can’t afford to pay ? 27

28. SPECIALCOLLECTIONS PROCEDURES In order to prevent being sent to SCCU, the agency may request a payment plan A payment plan to cover past due invoices and possible future obligations Terms will be negotiated between the agency and the Restricted Funds Manager The signed agreement must be accompanied with an upfront payment agreed upon by both parties If any payment is not received on time, the remaining amount due will be sent to SCCU without any notification to the sponsor Notifications of default are sent to the ORD 28

29. RECAP Restricted Funds Will….. Submit all standard invoices to granting agencies on a timely basis. Submit final billings to the department for review. Work with the department to ensure that final billings are accurate and match the balances appearing in Raven. Collect funds from granting agencies. 29

30. RECAP Departments Will…. Perform monthly reviews of all project IDs to ensure the accuracy and validity of the balances in Raven. Assign a Senior Administrator and/or designee to perform a sample quality review to ensure that monthly reviews are being performed. Adhere to the Administration and Finance Cost Transfer policy #3311. Respond to Restricted Funds in a timely fashion as stipulated in the above procedures. Assist in the collection of funds from granting agencies, if necessary. 30

31. Information – Tools to help You Manage Individual Project IDs 31

32. REPORTS RAVEN Restricted Funds Payment Report UMB AR Aging Report A/R Item Activity View 32

33. RESTRICTED FUNDS PAYMENT REPORT Navigation to the Restricted Funds Payment Report 33

34. RESTRICTED FUNDS PAYMENT REPORT 34

35. UMB AR AGING REPORT Navigation to the UMB AR Aging Report 35

36. UMB AR AGING REPORT 36

37. A/R ITEM ACTIVITY VIEW Navigation to the A/R Item Activity View 37

38. A/R ITEM ACTIVITY VIEW 38

39. IMPORTANT Be cognizant of month-end deadlines Submitting Journals Clearing Budget Checking Items Requisitions Purchase Orders Vouchers Journals Procurement Card 39

40. PORTAL 40

41. eUMB FINANCIAL CALENDAR 41

42. Do you have access to? eUMB – HRMS and Financials http://www.umaryland.edu/cits/forms/index.html • Raven • http://www.fincsvc.umaryland.edu/images/ravenaccess.pdf • Filling out the forms does not give you access. You need… 42

43. TRAINING!!! eUMB HRMS, eUMB Financials and Raven http://www.umaryland.edu/eumb/training/training_info_page • And access to… • FAS • http://www.fincsvc.umaryland.edu/images/reqfaswebaccess.pdf 43

44. Additional Guidance Office of Management and Budget (OMB) http://www.whitehouse.gov/omb/circulars_index-education/ Circulars A-21, A-110, and A-133 NIH Policy Guide Terms & Conditions in COEUS 44

45. POLICIES – Where can they be found? • Contract and Grant Billing and Collections http://www.fincsvc.umaryland.edu/images/ContractGrantBilling.pdf • Cost Transfer Policy http://www.fincsvc.umaryland.edu/images/CostTransfers.pdf 45

46. THANK YOU! 46