Invoice Processing for Awards
A Notice to Establish Account (NEA) establishes a budget for an
award. However, cash is not automatically available from the sponsor.
Each award document specifies the type of billing required to initiate
payment from the sponsor. The Accounts Receivable (AR) section of Grant
and Contract Accounting (GCA) invoices sponsors based on the type of
billing specified in the award documentation. Grants that require
invoices generally fall into two main categories: Cost Reimbursable
Awards and Fixed Price Awards.
Fixed Price Awards
With a Fixed Price Award, the NEA should clearly state that, "the
University retains the expended balance of funds," and the University is
paid in one of three ways:
- payments are sent based on a predetermined schedule (Form of
Payment 08) - no invoice is required by the sponsor,
- payments are sent based on an invoice sent by GCA and upon
meeting a requirement of the award (completion of a deliverable,
task, or milestone), or
- payments that are received before a Notice to Establish
Account (NEA) is issued are paid in advance (Form of Payment 07).
Cost Reimbursable Awards
With a cost reimbursable award, the University is reimbursed for
actual, allowable expenditures that do not exceed the award amount.
(These reimbursements may be made by Letter of Credit (LOC), payment of
invoices for actual costs incurred, or Scheduled Automatic Payments (FOP
08).) In order to reimburse for expenditures, some sponsors require
invoices and/or reports. At award expiration, the total award amount is
reduced to reflect the actual expenditure level or amount of cash
received.
Cost reimbursable awards that are to be invoiced are flagged with Grant
Control Flag 29. This flag prompts GCA Accounts Receivable to prepare
invoices to the sponsor for payment. Cost reimbursable
invoices may be based on the following:
- Expenditures: Invoices are based on the actual
expenditures posted to FAS that are to be reimbursed by the
sponsor.
- Completion of a deliverable, task, or milestone: When a
deliverable, task, or milestone is complete, the P.I. or
department must notify GCA so they can prepare an invoice. If the
documentation does not specify the amount to invoice per
deliverable, task, or milestone, the amount to bill must be
indicated when GCA is notified.
- Scheduled Invoices: When the award document establishes
a schedule for invoicing a set dollar amount, GCA will
automatically send out invoices for payment and the P.I. or
department does not need to notify GCA. However, the sponsor may
require timely submittal of progress reports, technical reports,
financial reports, or others, before making payments.
- GCA New Accounts receives an NEA and routes the cost
reimbursable (CR) and fixed-price
(FP) awards requiring invoices and/or expenditure reports
(designated by Grant Control Flag 29 on FIN Screen 4) to AR.
- AR prepares interim invoices and/or expenditure reports
according to the sponsor's rules and regulations (deliverable,
schedules or actual expenditures) and with the information
received from the department.
- AR prepares the final invoice after receiving the NOE (Notice
of Expiration) from the responsible department.
- Once a final invoice and/or report is sent, the award is
closed. See Closing process
for more details.
- Check the award for information about documentation required by
the sponsor, such as:
- progress or technical reports
- travel documentation
- invoices from vendors for equipment that was purchased
- detailed personnel information
Send the required documentation either directly according to the
timeline and instructions in the award. Delays in
providing such documentation to A/R or the sponsor may have severe consequences:
such as late payments, deficits, and non-payment from the sponsor because terms
of the agreement were not met.
Department staff can refer to an online
contact list provided by GCA that lists contact information of staff
assigned to each budget. To use the online reference, enter the
budget number (without any dashes) for the grant in question and
press enter.
- If the award payments are contingent upon completion of a deliverable
or task, notify GCA upon completion so that an invoice can be prepared.
If the award documentation does not specify the amount to invoice for
the deliverable or task, the amount to bill must be indicated when GCA
is notified.
- Reconcile BARs / BSRs monthly to ensure expenditures are correct,
accurate, and allowable.
- Report cost
sharing information, as required in your agreement. Submit cost-share
information to the following offices:
- for Faculty Effort Certification (FEC), submit to Management
Accounting & Analysis, Box 351248
- for all other (contract services, travel supplies & materials,
equipment, etc), submit to GCA New Accounts, Box 351122
Failure to submit cost-share information will result in delayed
invoices and possible late and non-payments for invoices.
- Approximately fifteen days after the budget expires, AR sends the NOE to
the fiscal specialist in the department. The NOE must be returned by
the due date indicated (30 days after expiration). The NOE is used for
final invoicing, reporting, and closing the award, and provides the
information to request payment from the sponsor for allowed costs. The NOE
is prepared based upon the actual amount base on the Financial
Information System (FIN). Follow the detailed instructions in the Closing Process document.
Note: Failure to return the NOE by DATE DUE may result in late
submittal of the final invoice. Late submittal of the final invoice
resulting in sponsor refusal to pay could lead to a deficit for which the
PI is responsible. For more information regarding fiscal
responsibility, refer to GIM 2.
