Financial Services

OUHSC Campus

Grants & Contracts

Accounts Receivable Escalation Policy

1. Purpose

The purpose of this policy is to provide the institutional standard for escalating outstanding accounts receivable payments related to grants, contracts, and other sponsored agreements.

2. Covered Parties

This policy applies to any invoice generated by Grants and Contracts Accounting or invoices generated by the departments for a sponsored program at OUHSC.

3. University Policy

It is the responsibility of Grants and Contracts Accounting to monitor all outstanding accounts receivables for any invoice generated by the department and any outstanding sponsored program balances. In the case where Sponsors do not pay OUHSC in a timely manner, the following steps will be taken to recover the outstanding balance.

Invoice Outstanding Responsible Party Collection Resolution Steps
Greater than 60 Days (2 Months) Grants and Contracts Accountant Subsequent invoices include a past due statement of outstanding accounts receivable.
Greater than 90 Days
(3 Months)
Grants and Contracts Accountant Inquiry is sent via email to Sponsor with the Senior Staff Accountant copied.
Greater than 120 Days (4 Months) Senior Staff Accountant Phone call and/or email is sent to Sponsor. The PI and Manager of GCA is notified and/or copied.
Greater than 150 Days
(5 Months)
Manager, Grants and Contracts Accounting Manager calls and/or emails the Sponsor and copies the PI. Assistant Controller is notified. PI is followed up with separately to ask for assistance in collection.
Greater than 180 Days (6 Months) Assistant Controller of Grants and Contracts Accounting

The Assistant Controller will lead the following discussion:
 Involve Legal Counsel;
 Put account into hold status so future spending can occur;
 Temporarily suspend programmatic activities and deliverables to the Sponsor;
 Stop any and all payments to Sponsor if we have other sponsored agreements with them;
 Work with ORA to no longer accept awards from this Sponsor;
 Notify VP for Research.

Grants and Contracts Accounting will work collaboratively with the Sponsor, Department, Office of Research Administration, and Principal Investigator to resolve outstanding accounts receivable in a timely manner. Once an invoice remains uncollected for greater than 180 days and amiable collection procedures have been exhausted, the debt will be referred to collections. Once the debt has been submitted to collections, the department is responsible for covering the debt. Any funds collected by the collection agency, less the collections fee, will be returned to the department.