Grant Accounting is responsible for requesting and collecting funds related to externally sponsored grants and contracts. Ensuring timely receipt of these funds is an important function of Grant Accounting (GAO) and requires a combined effort with the PI and research administrator (Department) and sponsor.
Policy & Procedures
When new awards are received by the University, GAO will review the award documentation and identify how funds will be received. Sponsors may refer to payment requests as financial reports, rather than invoices; if the financial report triggers payment then it will be considered an invoice-required award. Invoicing information, including Responsible Party and Frequency, is identified on the Award Information tab of the EFR-Grant Reports.
The GAO Billing Team manages invoicing for awards identified as Payment Method “Invoicing” and Responsible Party “GAO.” The Billing Team manages monthly invoicing status lists to identify and meet upcoming invoicing deadlines. The Billing Team will follow these general invoicing guidelines:
- For cost reimbursement invoicing, invoices will be based on transactions that have posted to the University general ledger account for the sponsored project for the applicable invoicing period as of the most recent closed accounting month. Encumbrances will not be included.
- Departments are responsible for ensuring that costs are allowable, reasonable and allocable to the project (see Costing Considerations for additional information).
- Departments are responsible for timely posting of expenditures to the appropriate account.
- For milestone, fixed price, fee-for-service and capitation awards, the Billing Team may work with the PI and/or Department to determine when invoicing can occur.
- If any unallowable transactions are identified, GAO will notify the Department. Unallowable costs should be moved to an unrestricted funding source as soon as possible.
GAO will not invoice, if:
- the award is not fully executed, i.e. final agreement is not signed (unless the sponsor documents a specific request);
- the budget period has ended and an expected extension or renewal has not been received (unless the sponsor documents a specific request);
- the total expenses for the billing period are zero or a net credit (unless the sponsor documents a specific request), or;
- the cumulative expenditures exceed the budget (unless the sponsor documents a specific request).
GAO will usually be responsible for invoicing, but Departments may be allowed to handle industry-sponsored clinical trials or other similar capitation-type awards. When processing new awards, the GAO Contact will identify who is responsible and include the invoicing responsibility in the comment section of the AAAN. Assignment of Invoicing Responsible Party will also be identified on the Award Information tab of the EFR-Grant Reports.
When Department is identified as the Responsible Party, the Department is responsible for the following:
- Submitting invoices/requests for payments to the sponsor as defined in the award agreement and as often as allowed.
- Providing copies of invoices to GAO on the same day the invoice/request for payment is sent. If request for payment is submitted through an electronic system, copies of the confirmation in an email indicating Amount, Grant #, and Sponsor Name can be provided instead. Send invoice copies to email@example.com and document the Grant # and BR in the subject line of the email.
- Tracking of outstanding balances and timely follow-up, if necessary, with the sponsor for non-payment.
Payment(s)/checks/remittance advice must be directed to:
The University of Iowa
Grant Accounting Office
201 S. Clinton Street
Iowa City, IA 52242-4034
Overnight mail/packages should be sent to Campus Mail at:
The University of Iowa
Grant Accounting Office (2410 UCC)
2222 Old Hwy. 218 S
Iowa City, IA 52242
ACH/EFT Remittance Advice to: firstname.lastname@example.org
Monitoring for Payment & Collection
If the Invoicing Responsible Party is Grant Accounting, the Billing Team will monitor to ensure timely collection of funding and follow up as appropriate. The GAO guidelines to manage timely accounts receivable are as follows for grant agreements with a standard sponsor payment terms with 30-day payment terms:
- At 40 to 50 days after the invoice date, a second request is sent to the sponsor.
- At more than 60 days after the invoice date and a second request has been sent, the Billing Team may alert the Grant Accountant and the PI/Department and ask if they are aware of a reason for delay in payment. The Billing Team will contact the sponsor again via email or phone.
- After 90 days, the GAO Billing Team will alert the PI and/or Department, regarding the delay in payment. As needed, Grant Accounting will work with the PI/Department to continue to follow up with the sponsor or take additional action as needed.
- If payment terms are different than 30 days, contact GAO: email@example.com.
The Department is responsible for covering any uncollectible balances due to unallowable costs, dispute with the sponsor, sponsor bankruptcy or any other reason.
If the award is invoiced by the Department, the Department is responsible for timely invoicing, timely accounts receivable follow-up with documentation, and notifying Grant Accounting if there are issues affecting funding or timely collection of funds. The GAO accountant will monitor these awards as part of regular review. If the accountant determines that invoices are not being sent to GAO, invoices are not being sent to the sponsor timely, or funds have not been received, the accountant will contact the Department to resolve the issues.
Receipt of Payment
UI policy requires that all payments for externally sponsored grants and contracts must be sent to Grant Accounting for processing, refer to UI Policy Manual, Part V, Ch.5.6(c) and Ch.5.3(f). If the Department receives a check for a grant or contract, it must be forwarded directly to Grant Accounting.
Last updated: 11/07/2023