Purdue University Account Management Guidelines & Account Management Process Guide .

Purdue University

Account Management Guidelines

&Account Management

Process Guide

http://www.purdue.edu/SPS/index.html

Account Management Basic Skills Presenters

Joma Roe 45378 Jenny Siemers 44856 Bonnie Taylor 41074 Matt Clawson 46947 Leslie Vogel 41053

Account Management Basic Skills

Introduce Yourself Department Position Length of time in position

One thing you would like to learn from this training

Contents/Agenda

Mission Statement Account Establishment Account Transaction and Document

Management Cash Management Closeout Management

Mission Statement

Account Management at Purdue University exists to provide timely and accurate financial information to principal investigators, department heads, administrators and external funding providers. This information is used by Business Services and other university staff in decision making, project planning, policy analysis, program planning and long range financial planning.

Mission Statement Cont...

Proper account management allows Business Services staff to be proactive rather than reactive and is increasingly important as we respond to diminishing resources. Proactive account management requires that each staff member integrate account management tools, techniques, and thought processes into their daily activities. This integration is a basic expectation for each Business Services staff member.

Summary

The Account Management Guidelines are expectations for Funds 500-699 (SPS Fund range), 700-750 (Dept. Gift Account Fund Range), and 840 (Endowments).

Account Establishment Proposal

Transmittal Checksheet Statement of Work Budgets

• Internal• External

Award Document

Account Establishment Factors in establishing a new account:

Source of Funding Size of award ($)/length (time involved) Sponsor reporting/billing requirements Use of existing account - contract support,

voluntary support

Account Establishment Proper classification Timely establishment and notification Award Documentation

Account Establishment

FOR SPS ACCOUNTS: Proper Classification

Research (RE) Instruction (IN) Other Sponsored Programs (OSP) Fellowship (FE)

Account Establishment Not fully executed document from agency

University Backed NTP Department Backed NTP

Fully executed award document from agency SPS New Account Set-Up Checklist Goal of 24 hour award establishment

• Electronic Notice of Award Email Major/Minor System – Budgets to be provided by

dept. Transfer of Single account Cost Sharing (1008/JV)

• Routing process

Account Transaction and Document Management

Correcting Documents

Account Transaction and Document Management Fiscal year 02-03

Approximately 18,039 correcting documents processed

Cost of single correcting document• It costs approximately $50 to process an

invoice voucher when the rewriting of a check or canceling a check is involved.


Departmental Actions Departmental New Account Set-up Checklist

Confirm Notice of Award with Award Document COEUS Budgets Cost Share Documentation

Signature Delegation


Maintain Allocability Supporting Documentation

Procurement process should include documented academic authorization for the purchase. The documentation serves as the

proof of allocability.


Verify Appropriate Signature Approval

If signature approval is delegated, an appropriate authorization form for each project account should be completed and maintained with the project account. The form must be completed by the PI and should verify who is authorized to purchase on the account.


The authorization form should include: PI name Project Account Title and account number Date form completed List of individuals authorized and any

restrictions

Each purchase request should be reviewed for the appropriate authorizing signature!

Account Transaction and Document Management Procurement and Account Management

Review for the following• Account number(s)• Object Code (Object Code Listing)• Available Funds (FIBS)• Allowability and Allocability (Costing Website and

Sponsor Guidelines)• Obtain prior approval if necessary

• Within the project period


Use DSS queries referenced in the Account Management Process Guide to monitor account expenditures and balances.

Key Word to remember PROACTIVE

Account Transaction and Document Management SPS Queries

acctbal4.bqy – 4 month history of o/d accounts swatcash.bqy – list of accounts with a cash deficit reptreq1.bqy – reports that are due / overdue to sponsor Swatxany.bqy – expired accts. with a management balance ntp3mo.bqy – accounts that have been on NTP > 3 months vcs.bqy - amount of VCS recorded for a particular project Swat011.bqy – reports 011 cost sharing fa_validate.bqy - provides list of newly established accts A/R Aging Detail Report Type C (Pagecenter) – lists aging

receivables

Account Transaction and Document Management Business Office Queries

acctbal.bqy - 4 month history of all acct. balances acctbal2.bqy – 4 month history of o/d accounts swatexp.bqy – accounts expiring in 120 days or less swatany.bqy – list of expired accounts with mgmt balances paysum.bqy – payroll information by account txnbyact.bqy – help to find transactions causing o/d


Maintain Appropriate Balances Gift and Award Funds:

Cash balances > $0 should be maintained on 700-701, 703-750, & 840 funds

Account balances should be reviewed and appropriate actions taken monthly

All overdrafts should be monitored on a continuous basis and the appropriate staff should be notified


Sponsored Program Funds (500-699) Balance for 500-699 funds should not be < $0.


If < $0, the following will occur:• Business Manager will be notified. Business

Office has three days to notify SPS of their intended action --

• Request SPS to lock the account• Request account remain open by preparing

correcting documents to return the account to a positive balance and notifying SPS

• Request a Continuation NTP if additional funds are expected

• SPS will lock the account if no response is received within three days

Account transaction and Document Management

Steps to Clear Overdrafted Accounts • Move charges to an appropriate account.

Remember monthly cut off dates.• If allowable, record expenses as Voluntary

Cost Sharing (VCS).• Change demurrage, MERS numbers, etc. to

prevent additional overdrafts.• Major/minor accounts-- is a budget

reallocation appropriate?


Departmental Business Office Staff is to confirm charges are being posted appropriately to the FSSR at various stages of the project

Examples• F&A• Cost Sharing• Encumbrances• Subcontracts


SPS Suspense/Dept. Default Account Business Office staff responsible for clearing the

departmental default suspense account must be on the e-mail list server

You will be notified by email when default suspense entries post.

Website to subscribe to suspense: http://directory.purdue.edu/directory-bin/majorcool

Account Transaction and Document Management Account Expiration Procedures

Remember, it is important to be timely. Refer to the Account Management Guidelines for the appropriate actions.

• Process Guide Decision Chart• Review of all cost share commitments

• Memo Match email

• Review account for potential problems

Cash Management

A. Cash Handling• University Cash handling manual• Separation of Duties• Keep investments informed for large dollar

transactions

B. Management Reports• Daily Cash Balance Report• Cash Deficit Report• Account Receivable Aging Report

Cash Management C. Academic Staff Reporting Requirements

• Payments tied to reports

D. Grant/Contract Negotiation• Payment terms are negotiated at the beginning by the

University Contracting Group

E. Billings• Billings are scheduled to be printed the second

Tuesday of each month. The accounts receivable area is in charge of getting those invoices out within 5 working days.

F. Collection• Collection effort begins after an invoice has aged 45

days. As the invoice continues to age, it becomes the responsibility of all parties (SPS, Department Business Office, and PI) to try and collect the outstanding income.

Close Out Management

Sponsored Program Funds• Ready for closing 60 days after expiration

(accounts automatically lock 50 days after expiration--MARK BYPASS)

Subcontracts • Need to be ready to close within 30 days

after expiration so the prime can be closed in a timely manner

Fiscal reports and final billings • Will be submitted in accordance with

sponsor guidelines


Accounts to be ZERO in 4 months after expiration, unless awaiting income

Follow management expectations set for SPTS reporting requirements


Tools• Closing Checklist for Department Business Offices• Closing Checklist for SPS• Account Management Process Guide closing

queries

http://www.adpc.purdue.edu/SPS/index.html


Scenarios and actions to be taken, of overdrafted accounts and that can’t be cleared within 90 days of expiration & have no approved plan

• Overdrafted accounts with only Salary and Wages expenditures

• > $100 academic department clears• < or = $100 SPS clears


• Overdrafted Accounts with S&E are to be cleared by the academic department

• Overdrafts of $25.00 or less, (not fitting the above two scenarios) where the department has attempted to clear, will be cleared by SPS


Accounts with Positive Balances• Fixed Price (University entitled to retain

funds)• balance transferred to 100 fund, in

accordance with Instruction No. 4

Balance less than $5.00• SPS will follow guidelines and clear if

appropriate


Overdrafts and balances that do not fit the scenarios described above should be discussed with appropriate staff in order to achieve resolution

Close Out Management Non SPS Funds (700-750 and 840 Funds)

• Accounting Services requests a once a year review to delete accounts

• Utilize management reports to review those accounts with no activity

• Does the activity still require a separate account?

• Consider the purpose and the expense to maintain

Close Out Management If account is no longer useful—

• Ensure that the cash balance is zero• Clear balance to a residual• Send a 1209 or email to the appropriate

accountant for the fund and ask the the fund be inactivated

http://www.adpc.purdue.edu/Account/staff.htm

The account will stay open for one complete fiscal year after the inactive date

Completion of this annual review will realize university savings in materials, time, and staff resources

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Purdue University Account Management Guidelines & Account Management Process Guide .

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