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Effective Strategies for SFR Collections Management

Learn how a Sponsor Finance and Receivables (SFR) collector coordinates collection efforts, negotiates payment plans, and resolves non-payment issues in sponsored awards. Discover common payment issues, solutions, and unique situations that may impact payments.

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Effective Strategies for SFR Collections Management

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  1. Sponsored Accounts ReceivableCarly Prellwitz

  2. What is the role of the SFR Collector? • Coordinate collection on past due sponsored awards • Contact sponsors to follow up on payments • Research non payment issues • Negotiate and setup payment plans • Process refunds

  3. The Breakdown • The average monthly receivable for FY 2011 was $45,090,844.00 • 42% of this balance was paid within the first 30 days of invoice being generated. • The remaining 58% required additional collection efforts. • Only 14% of the receivables aged past 90 days.

  4. The Good SFR Invoices Sponsor Sponsor Approves Invoice Payment Received and Invoice is Closed

  5. The Bad • Invoice ages past 30 days • There are issues that need attention and once resolved, the Sponsor pays the invoice.

  6. The UGLY THE SPONSOR DOES NOT PAY • When the sponsor does not pay after all collection efforts have been exhausted, the Academic Department is responsible for absorbing all costs associated with the nonpayment.

  7. Stages of Collection • Statements are generated on the first day of every month for any invoice over 30+ days aging. (see sample statement) • SFR Collector contacts sponsors via email or phone. • Second Attempt via email/phone and notify PI and Department • Send demand letter and escalate to SFR Fiscal officer • Legal (if necessary)

  8. Common Payment Issues • Invoice not received by Sponsor • Sponsor waiting for a deliverable • Additional information requested for expenses • Payment sent to University Department or misapplied payment • Sponsor Delays • Money from prime source not received • Waiting for approval to pay • Contact person has left the organization

  9. Less Common, More Serious Collection Issues • Future Funding/Carry Forward Not Approved. • Performance Quantity/Quality Issues • Financial Difficulty or Bankruptcy

  10. Some Solutions • Payment Plans • Used when sponsor runs into cash flow issues or facing financial hardship. • Goal is to be paid in full for entire award amount. • Negotiate payment plans on a case by case basis and as per the financial situation of our sponsor. Flexible but firm. • No penalties or interest unless default.

  11. Settlement • In some very rare cases when a sponsor is having extreme financial difficulty or if there is a quality/quantity issue, negotiating a settlement is necessary. • PI and department are directly involved with this negotiation. • In some cases OGC is involved in the process.

  12. Unique Situations that Could Result in Payment Problems • PI leaving the University/Early Termination • Funds deobligated by sponsor before SFR has finalized invoicing • Clinical Trials • Discrepancy between study site reporting and departmental reporting. • International Funds • Discrepancy in amount received due to conversion rates.

  13. How do I look up my Sponsored Receivables? • UM Reports • PeopleSoft • Sponsored Award Overview • PeopleSoft • Accounts Receivable Item List

  14. Sponsored Award Overview

  15. Who is the assigned Collector?

  16. Need Help? CONTACT: Carly Prellwitz- Principal Collections Rep 612-625-8584 prell003@umn.edu Marjorie Nebo-Accounts Receivable Manager 612-624-6026 nebox001@umn.edu

  17. THANK YOU!!!

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