Purdue University

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Purdue University

• Account Management Guidelines
• Account Management Process Guide
• http//www.purdue.edu/SPS/index.html

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Account Management Basic Skills Presenters

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

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Account Management Basic Skills

• Introduce Yourself
• Department
• Position
• Length of time in position
• One thing you would like to learn from this
  training

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Contents/Agenda

• Mission Statement
• Account Establishment
• Account Transaction and Document Management
• Cash Management
• Closeout Management

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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.

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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.

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Summary

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

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Account Establishment

• Proposal
• Transmittal Checksheet
• Statement of Work
• Budgets
• Internal
• External
• Award Document

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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

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Account Establishment

• Proper classification
• Timely establishment and notification
• Award Documentation

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Account Establishment

• FOR SPS ACCOUNTS
• Proper Classification
• Research (RE)
• Instruction (IN)
• Other Sponsored Programs (OSP)
• Fellowship (FE)

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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

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Account Transaction and Document Management

• Correcting
• Documents

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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.

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Account Transaction and Document Management

• Departmental Actions
• Departmental New Account Set-up Checklist
• Confirm Notice of Award with
• Award Document
• COEUS Budgets
• Cost Share Documentation
• Signature Delegation

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Account Transaction and Document Management

• Maintain Allocability Supporting Documentation
• Procurement process should include documented
  academic authorization for the purchase. The
  documentation serves as the
• proof of allocability.

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Account Transaction and Document Management

• 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.

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Account Transaction and Document Management

• 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!

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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

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Account Transaction and Document Management

• Use DSS queries referenced in the Account
  Management Process Guide to monitor account
  expenditures and balances.
• Key Word to remember
• PROACTIVE

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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 gt 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

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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

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Account Transaction and Document Management

• Maintain Appropriate Balances
• Gift and Award Funds
• Cash balances gt 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

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Account Transaction and Document Management

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

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Account Transaction and Document Management

• If lt 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

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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?

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Account Transaction and Document Management

• Departmental Business Office Staff is to
  confirm charges are being posted appropriately to
  the FSSR at various stages of the project
• Examples
• FA
• Cost Sharing
• Encumbrances
• Subcontracts

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Account Transaction and Document Management

• 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/majorcoo
  l

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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

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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

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Cash Management

• Academic Staff Reporting Requirements
• Payments tied to reports
• Grant/Contract Negotiation
• Payment terms are negotiated at the beginning by
  the University Contracting Group
• 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.
• 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.

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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

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Close Out Management

• Accounts to be ZERO in 4 months after expiration,
  unless awaiting income
• Follow management expectations set for SPTS
  reporting requirements

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Close Out Management

• 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

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Close Out Management

• Scenarios and actions to be taken, of overdrafted
  accounts and that cant be cleared within 90 days
  of expiration have no approved plan
• Overdrafted accounts with only Salary and Wages
  expenditures
• gt 100 academic department clears
• lt or 100 SPS clears

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Close Out Management

• Overdrafted Accounts with SE 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

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Close Out Management

• 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

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Close Out Management

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

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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

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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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• Questions/Comments
• Please fill out comment sheet!