Accounts Receivable & Compliance

Accounts Receivable and Compliance assists internal and external partners in a variety of areas. In cooperation with our sponsors and department personnel, we coordinate audits, reviews, and site visits of the externally funded projects. Working closely with our campus partners, our staff processes journal voucher cost transfers, assists with cash transfers, collects unpaid funds on past due invoices, posts all cash receipts from sponsors, processes unreimbursed expense write offs, and guides the completion of bank information forms relating to the enrollment of electronic fund transfers. To enhance the University’s ability to provide oversight to subawardees, our staff collaborates with departments to financially monitor specific project subawards.

Staff

Cash and Collections

Subaward Monitoring

Cost Transfers

Cost Share Funding

Audit

John Maddy

Accounts Receivable & Compliance Supervisor

(859) 323-0687

Jeff Lyons

Accounting Coordinator

(859) 257-3662

Sandy Morgan

Accounts Receivable Specialist

(859) 257-7933

Sarah Rodrigues

Compliance Specialist

(859) 257-1748

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Cash and Collections

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For questions concerning cash receipts issues, please send an email to SPA.AR@email.uky.edu.

Forms

 Cash Transfer Request Form (PDF)

 Cash Transfer Request Form Instructions (DOC)

Procedures

Reduction of Expenditures

General Cash Receipts Questions

How can I learn about the general cash posting process for sponsored projects?

Where can I find more information on cash handling procedures?

If the sponsor wants to pay by electronic (ACH) payments, what should I do?

If the sponsor wants to pay by check, to whom should the checks be made payable?

How may I obtain blank cash or check transmittal forms?

If I need to find out if a payment is in the Research Financial Services Holding account, who do I contact?

If I am expecting a payment on a clinical project, who do I contact?

Why doesn't my deposit show up on my ledger sheet or payment record?

Who is responsible for keeping copies of cash receipts documentation in case of an audit?

How can I learn about the general cash posting process for sponsored projects?

The "Financial Management RATE VIII" class is a good source of information concerning the cash posting process in Research Financial Services. Individuals can register for the class through the Office of Sponsored Projects Administration course catalog on the myUK Employee Self-Service Training tab

 Where can I find more information on cash handling procedures?

You can find those procedures here.

 If the sponsor wants to pay by electronic (ACH) payments, what should I do?

Forward the sponsor's bank information form or contact information to SPA.AR@email.uky.edu. Research Financial Services and Treasury Services personnel will complete the bank form authorizing the electronic payments and will forward the documentation to the sponsor. This action will ensure that the payments are deposited correctly.

 If the sponsor wants to pay by check, to whom should the checks be made payable?

All checks should be made payable to: University of Kentucky Research Foundation.

 How may I obtain blank cash or check transmittal forms?

Forms may be printed from http://www.uky.edu/eForms/

 If I need to find out if a payment is in the Research Financial Services Holding account, who do I contact?

Contact the Research Financial Services Accounts Receivable staff at SPA.AR@email.uky.edu and include the sponsor's name, amount of the payment, and any other available information that might assist Research Financial Services in the payment inquiry.

If I am expecting a payment on a clinical project, who do I contact?

First, contact the sponsor to see if the payment has been sent.

If the payment has been remitted and cashed, contact the Research Financial Services Accounts Receivable staff at SPA.AR@email.uky.edu to see if the payment has been posted to the holding account or an incorrect project. Include the sponsor's name, date and amount of the payment, and any other available information that might assist Research Financial Services in the payment inquiry.

If the payment has not been remitted, work with the sponsor to collect the cash.

 Why doesn't my deposit show up on my ledger sheet or payment record? 

The project WBS element number may have been entered incorrectly or the transmittal information may not have been received by Research Financial Services. Contact Research Financial Services Accounts Receivable staff at SPA.AR@email.uky.edu and include the grant number, transmittal number, the amount of the deposit, and any other available information that could help Research Financial Services research the payment.

Who is responsible for keeping copies of cash receipts documentation in case of an audit?

Departmental cash receipts – the department should keep copies of the checks, transmittals, and all documentation submitted with the check for posting

Research Financial Services cash receipts – Research Financial Services keeps copies of the transmittals for checks that are received in Research Financial Services, ACH reports, lockbox files, and all supporting documentation related to these cash posting types

 

SAP System Questions

How do I determine the amount of revenue received on a sponsored project?

How do I find out the name and contact information for the individual who processed a document?
 

How do I determine the amount of revenue received on a sponsored project?

Go to transaction S_PLN_16000269 Grants Management: Line Item Display. Choose the variant named CASH RECEIPTS. Enter the WBS element number and click on the execute icon.

When the next screen is displayed, choose the layout RECEIPTS. The amount displayed as the total will be the total revenue (cash receipts and cash transfers) posted to this grant.

Double click on a document number (beginning with 96, 12, or 14) on the display screen to drill into the transaction to see the detailed entry on the FB03 transaction. This action can be especially useful to see if funds have been transferred to or from a different WBS element.

 How do I find out the name and contact information for the individual who processed a document?

Go to the transaction FB03. Enter the document number and press enter. Click on the TOP HAT icon next to the funnel to display the document header. Look for the UserID in the "Entered by" field.

Go to transaction ZSU01D and enter the UserID in the "User" field and click on the Glasses Icon to display the phone #, email address, and other information of the person responsible for processing the document.

 

Check Transmittal Questions

If a check is received in my department prior to the WBS element being set up, what should I do?

If a check for an IRB (Institutional Review Board) fee is received, do I complete the Check Transmittal and send to Treasury Services for Research Financial Services to post to a sponsored project?

Who should send a copy of the cash/check transmittal to the Research Administrator in OSPA so the budget can be increased for clinical trial or program income on a project?

How do I know which G/L account to use on the cash or check transmittal for a sponsored project?

What should I do if an error is discovered on a departmental cash or check transmittal after the transmittal has been posted to SAP?

Can checks going to different cost objects be entered on the same Check Transmittal?
 

If a check is received in my department prior to the WBS element being set up, what should I do?

When checks are received prior to the sponsored project being assigned a WBS element in SAP, the department should complete a manual Check Transmittal and deposit slip and deliver the funds to Treasury Services. Leave the GL column blank. In the ASSIGNMENT column of the transmittal, type Research Financial Services HOLDING. In the TEXT column, type NEW GRANT. A note should be attached or written across the front of the transmittal that says: Attn: Research Financial Services. By completing these steps, the money will be posted into the Research Financial Services Holding Account until the WBS element has been set up.

 If a check for an IRB (Institutional Review Board) fee is received, do I complete the Check Transmittal and send to Treasury Services for Research Financial Services to post to a sponsored project?

Checks for IRB fees are not posted to the sponsored project. Please contact the UK Office of Research Integrity located at 315 Kinkead Hall (phone: 257-2549) for instructions.

 Who should send a copy of the cash/check transmittal to the Research Administrator in OSPA so the budget can be increased for clinical trial or program income on a project?

Transmittals originating in the department – copies should be sent to OSPA from the department

Lockbox, EFT, or transmittals originating in Research Financial Services – copies should be sent to OSPA from Research Financial Services

 How do I know which G/L account to use on the cash or check transmittal for a sponsored project?

Reduction of Expenditure – use the same expense general ledger account on which the original charge was posted.

Clinical Trial Income – Non-federal projects use 426006; Federal projects use 415014

Program Income - Additive use 440118; Deductive use 440119

If unsure of the type of income to be posted to the sponsored project, contact your sector Business Officer for assistance.

 What should I do if an error is discovered on a departmental cash or check transmittal after the transmittal has been posted to SAP?

If the departmental transmittal had an error in the project number, go to the Cash Receipts tab on the Research Financial Services website. Follow the directions on the "Cash Transfer Request Form Instructions" to complete and submit the "Cash Transfer Request Form" to SPA.AR@email.uky.edu. Once the Cash Transfer Request Form and supporting documentation are received, Research Financial Services will post the cash transfer to the appropriate cost objects.

For any other errors, please contact Research Financial Services Accounts Receivable staff at SPA.AR@email.uky.edu and include an attachment of the original transmittal for documentation. Research Financial Services will post any necessary corrections.

 Can checks going to different cost objects be entered on the same Check Transmittal?

Checks for sponsored project WBS elements should not be entered on a transmittal which also contains checks for other cost objects. However, if a department has checks for multiple sponsored projects, a single check transmittal can be completed for all of the WBS elements.

If you have a check that is split between a sponsored project and a departmental cost center or fund, please contact Research Financial Services Accounts Receivable staff at SPA.AR@email.uky.edu for further instructions.

 

Specific Reduction of Expenditure Questions

What is considered a reduction of expenditure on a sponsored project?

If an employee travels to a sponsored project-related conference with their spouse, can the charges for the spouse's travel be posted to the sponsored project and then reimbursed by the employee as a reduction of expenditure to the project?

How do I process a reduction of expense for a 'personal' expense or non-sponsored project related expense if the expense initially posted to the WBS element?

How do I complete the check transmittal if I receive a check from the sponsor of a clinical trial reimbursing the project for specific expenses incurred?

How do I complete the check transmittal form for a reduction of expenditure on a sponsored project?

What backup documentation needs to be included with the check transmittal for a reduction of expenditure on a sponsored project?

What should I do if the reduction of expenditure is for an expense posted to the project in a previous fiscal year, but the WBS element is still open?

What should I do if the reduction of expenditure is for an expense posted to a closed project?

What should I do if an employee (or student) receives a partial reimbursement from the organizer of a conference because the individual presented research results related to the sponsored project which was originally charged for the travel expenses?

 

What is considered a reduction of expenditure on a sponsored project?

A reduction of expenditure on a sponsored project occurs when a payment is received from a third party (not the sponsor) reimbursing an expense that had previously posted to the project. Examples include but are not limited to:

An unexpected reimbursement of travel expenses by a conference host or a third party after the trip has been taken.

A vendor refund for an overpayment or duplicate payment due to a vendor error.

A refund is received from a sponsored project's subcontractor.

A refund is received from a vendor for items purchased on the sponsored project that were returned to the vendor.

 

If an employee travels to a sponsored project-related conference with their spouse, can the charges for the spouse's travel be posted to the sponsored project and then reimbursed by the employee as a reduction of expenditure to the project?

Expenses that do not directly benefit the project (whether personal or university related) should never be charged to a sponsored project because the WBS element is to be utilized only for expenses that are appropriate for completing the scope of work of the project. The WBS element should never be used as a "holding account" to charge expenses that are later reimbursed. Instead, the employee should pay for the expenses directly or a departmental cost center should be used for any expense that is not related to the sponsored project.

 

How do I process a reduction of expense for a 'personal' expense or non-sponsored project related expense if the expense initially posted to the WBS element?

If the original expense does not benefit the project in any way, the expense must be moved to a departmental cost center prior to the posting of the reduction of expense. After the expenditure has been transferred to the cost center, complete the transmittal with the cost center and applicable G/L account. The transmittal will then be posted by Treasury Services. Questions concerning the journal voucher and its supporting documentation should be addressed to the Compliance Specialist found on the Account Receivable and Compliance section of the Research Financial Services website.

How do I complete the check transmittal if I receive a check from the sponsor of a clinical trial reimbursing the project for specific expenses incurred?

Complete the check transmittal using the G/L 426006 (nonfederal clinical) or 415014 (federal clinical) and the WBS element. This check must be included as income on the WBS element and is not a "reduction of expenditure."

 How do I complete the check transmittal form for a reduction of expenditure on a sponsored project?

Follow the normal check transmittal procedure to complete the check transmittal but be sure to use the expense G/L account and WBS element on which the original charge was posted.  Additionally, the online transmittal will use the ZX document type for a reduction of expenditure on a sponsored project.

 What backup documentation needs to be included with the check transmittal for a reduction of expenditure on a sponsored project?

Provide all of the following:

A copy of the check being deposited to UK

Copies of all original payment documentation related to the reduction of expenditure such as DAV's, PRD's, travel vouchers, or Purchase Order invoice transmittals

A complete explanation of the reason the project is receiving this money

Any other documentation that will help to explain the reason for the reduction of expenditure

 What should I do if the reduction of expenditure is for an expense posted to the project in a previous fiscal year, but the WBS element is still open?

Complete the check transmittal as a normal reduction of expenditure. Sponsored projects are not subject to the same fiscal year restrictions as other cost objects. Therefore, questions concerning reductions of expenditures related to prior fiscal year activities should be direct to the Research Financial Services Accounts Receivable staff at SPA.AR@email.uky.edu for further instructions.

 What should I do if the reduction of expenditure is for an expense posted to a closed project?

Complete a manual check transmittal and put a note on the transmittal that the project is closed. Research Financial Services will research the reduction of expenditure and the project to determine the best way to handle the issue.

 What should I do if an employee (or student) receives a partial reimbursement from the organizer of a conference because the individual presented research results related to the sponsored project which was originally charged for the travel expenses? 

If the check was made payable to the University of Kentucky, the department should utilize a check transmittal to deposit the funds into the WBS element as a reduction of expenditure allocated across the same travel G/ Ls where the expenses were originally posted. Documentation should be provided that shows the original expense and the reason for the reduction of expenditure. If possible, please provide a letter or other documentation from the organizer of the event which shows the reason for the reduction of expenditure.

If the check from the conference organizer was made payable to the individual who presented the research, the employee (or student) should write a check to the University of Kentucky Research Foundation for the amount of the reimbursement. The department will then complete the check transmittal to deposit the check into the WBS element allocating across the same travel G/ Ls where the expenses were originally posted. Documentation showing the original expense and the reason for the reduction of expenditure (preferably a letter or other documentation from the organizer of the event) should be included as backup for the transmittal.

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Subaward Monitoring

Subaward Online Invoice Review and Approval Process

Online Subaward Invoice Frequently Asked Questions

Presentations

Subaward Online Invoice Review Pilot Presentation

Subaward Online Invoice Review UBO Presentation

Quick Reference Cards

QRC - PI Approval Process

QRC - PI Hold Process

QRC - SIR Approval Process

QRC - SIR Hold Process

QRC - Supplemental Invoice Information

Subaward Monitoring Frequently Asked Questions

What is a subaward?

Who is responsible for monitoring a subrecipient?

Should the department hold payment on the subawardee’s invoices reviewed in the monitoring process until after the evaluation is completed by Research Financial Services?

How long does the university have to process a subawardee’s invoice?

If I have questions regarding subrecipient monitoring, who should I contact?

What is a subaward?

A subaward is an agreement with another entity to perform a portion of the scope of work on a UKRF research project. This third party entity is referred to as a subrecipient or subawardee.

Who is responsible for monitoring a subrecipient?

The monitoring of a subrecipient falls to several areas. General duties include:

  • Office of Sponsored Projects Administration – Reviews and approves the subaward contracts and evaluates the risk of awarding the agreement based on the subrecipients past financial and audit history as well as other factors.
  • Principal Investigator/Department – Reviews subrecipient financial and technical reports for accuracy, timeliness, and other aspects as they relate to the scope of work and progress of the project. Approves all invoices prior to releasing payments.
  • Research Financial Services – Randomly tests invoices and documentation to assure expenses are reasonable, allocable, verifiable, and allowable and that the subrecipient adheres to reporting and invoicing requirements.

Should the department hold payment on the subawardee’s invoices reviewed in the monitoring process until after the evaluation is completed by Research Financial Services?

Do not hold payment on invoices while the subrecipient monitoring is being completed by Research Financial Services. If expenses are later deemed unallowable based on the review, the subawardee will remove the expenses from their subaward and issue a refund to UKRF.

However, if the Principal Investigator has issues with the invoice due to deliverables or other progress measurements and feels that the invoice should be held for further review, the PI should not approve the invoice for payment until the issues are resolved.

How long does the university have to process a subawardee’s invoice?

Per Uniform Guidance regulation 200.305, the university must make payment to the subrecipient within 30 days of receipt of the invoice unless the Principal Investigator believes that the payment request is improper due to issues with deliverables, award conditions, or other concerns.

If I have questions regarding subrecipient monitoring, who should I contact?

Please contact subawards@uky.edu for questions.

Cost Transfers

Cost Transfer Policy (PDF)

Journal Voucher (JV) Explanation Form (DOC)

JV Tips and Hints (PDF)

JV Decision Tree (XLSX)

Research Financial Services Year End Reminders

 

Is there a written policy and procedure for completing JVs?

What Kind of documentation is necessary for a JV involving a grant account?

What type of signature authority is required on a JV involving a grant account?

What kind of explanation is necessary for JVs involving grant accounts?

Can a JV be processed to remove the waste disposal charge?

How can a copy of a JV involving a grant account be obtained?

Is there a written policy and procedure for completing JVs?

Business Procedure Section contains University policies and procedures concerning JVs.

What Kind of documentation is necessary for a JV involving a grant account?

Cost allocations - provide copies of invoices or receipts for the original expense and a spreadsheet or other document that shows the basis of allocation (units used, payroll effort, square footage, etc.) and the calculations for the allocations.

Payroll cost transfer - contact the Payroll office to confirm whether or not a JV is necessary. If Payroll confirms the need for a correction via JV, please provide copies of the applicable employee labor distribution sheets and SAP reports showing person and time frame being transferred or STEPS employee invoices. Also, please include any correspondence with Payroll where they confirmed the need for correction via JV.

Travel cost transfers - provide a copy of the Travel Voucher showing the original travel charges and its supporting receipts or invoices.

Other cost transfers - provide a copy of the PRD, JV, Purchase Order, or Procard screens and the supporting receipts or invoices. Note: Documentation is needed even when removing expenses from a project.

What type of signature authority is required on a JV involving a grant account?

The signatures on the JV are dependent upon the age of the transactions on the documentation that supports the cost transfer. The following signatures are required:

  • Original charges between 0 to 90 days - the signature of the billing department or approving official for the department charged is necessary.
  • Original charges between 91 and 120 days - the Principal Investigator of the project and Chair/Director of the department in which the grant resides must sign the JV.
  • Original charges over 120 days old - the Principal Investigator of the project and the Chair/Director and Dean of the department in which the grant resides must sign the JV.

What kind of explanation is necessary for JVs involving grant accounts?

Corrections of typical errors - explanations should include the answers to the following questions:

  • a. What was the error?
  • b. When did the error occur?
  • c. How did the error occur?
  • d. What steps have been put in place to prevent this error from occurring again?
  • e. If charging a grant, how does the expense benefit the project?

Note: Please complete the questions above with the Journal Voucher (JV) Explanation Form(PDF) and submit with your JV along with appropriate signatures and backup documentation.)

Corrections being made on original charges that are over 90 days old - provide an explanation of the extenuating circumstances which prevented the errors or charges from posting to the correct account within the first 90 days after the original transaction posting. Be sure to include the answers to the questions found in this section under a typical correction of an error.

Charges from Service Centers, recharges, or allocations of costs - describe the reason for the allocation or charge, the time period covered for the charges, and a brief explanation of how the charges were determined.

Payroll Distributions - describe the reason for the distributions, the payroll periods covered, the names of the employees requiring payroll modifications, and the percentage of effort breakdown for any amounts that are different from the labor distribution sheets. If the calculations are rather complicated, please provide a spreadsheets showing the percentages and distributions for the salary and benefits.

Can a JV be processed to remove the waste disposal charge?

The waste disposal charge is generated automatically on accounts and is based on specific expenditure object codes. Any adjustments to one of these expenditure codes will consequently adjust the waste disposal charge as well. The correction to the waste disposal charge will be seen at the end of the month in which the correction to the expenditure code was posted.

How can a copy of a JV involving a grant account be obtained?

You may contact Research Financial Services at 257-3662. Please have the reference document number from SAP available.

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Cost Share Funding

How do I find expenses posted to the cost share fund for my grant in SAP?

How do I prepare a journal voucher (JV) to fund my cost sharing expenses?

How do I find expenses posted to the cost share fund for my grant in SAP?

Use transaction S_ALN_01000003 with variant EXP ONLY CS and the grant number to find the expenses posted to the grant’s cost share fund.

How do I prepare a journal voucher (JV) to fund my cost sharing expenses?

Several general ledger (g/l) accounts can be used for funding cost sharing, depending on the type of expenses that have been incurred. Each is classified as a “transfer” g/l as the journal voucher is transferring budget from the cost center to the grant’s cost share fund. See below:

Salary Only:

740510 transfer from cost share

750510 transfer to cost share

Benefits Only:

740515 transfer from cost share

750515 transfer to cost share

Operating Exp.:

740520 transfer from cost share

750520 transfer to cost share

The debit entry will be to the cost center from which you are moving the funds and will use the 750XXX g/l account. The credit entry will be to the grant & cost share fund and will use the 740XXX g/l account. Be certain to manually update the fund associated with the grant to the appropriate cost share fund (001189XXXX….) as it will default to the external (sponsor) fund.

Audit

Audit Roles and Helpful Hints

How to Find Back Up Documentation for PO Documents

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