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Process for Collections

Accounts Receivable

The departmentally-assigned post-award specialists shall regularly review all accounts receivable (A/R) balances older than 60 days.

If the A/R resulted from unallowable costs, the established process will be followed.

Over 60 days

For receivables up to and including 90 days old, the post-award specialist will

  1. pursue collection, and document accordingly with copies of fax and email requests, and notes of phone follow-up; AND
  2. alert the PI via email (copy to file) and request the PI make a collection inquiry as well.

Over 90 days

Sponsor payment issue

For receivables over 90 days, the post-award specialist will alert the PI, and ORSP's financial manager and director via email.  Additionally,  the post-award specialist shall:

  • draft an inquiry on letterhead over the signature of the ORSP financial manager that is cc'd to 1) the PI, 2) the departmental administrator, if appropriate, 3) the PI's chair/dean, and 4) the ORSP director.
  • the inquiry may be sent as an attachment via email or via hard copy.

Institutional responsibility issue

If the costs are allowable and the payment is delayed due to a late technical report submission or other resolvable situation, the post-award specialist shall:

  • send an email notice to the PI requesting resolution within two weeks. The email will contain language such as, "If not resolved within two weeks from the date of this email, ORSP will move any unpaid balance to your default or SPABA account."  The email will be copied to the PI’s 1) chair/dean, 2) departmental administrator, if applicable, 3) ORSP's finanical manager, and 4) the ORSP director. 
  • If the problem is not resolved at the end of the two week period, the post-award specialist will inform ORSP's financial manager and director. 
    • The financial manager will send a follow-up email to the PI with copies to the PI’s 1) chair/dean, 2) departmental administrator, if applicable, 3) the post-award specialst, and 4) the director of ORSP.
    • This second email will include all email correspondence regarding this situation, and will notify the PI that the A/R will be paid by the appropriate SPABA or default account. 
    • The financial manager will move the funds accordingly.  When the A/R is collected, the SPABA or default account will be reimbursed.

Over 120 days

For receivables over 120 days, the ORSP financial manager will alert the director of ORSP.  The director will work with UM  Legal Counsel to determine appropriate action, which may include escalating collection efforts, turning over to University collection services, or declaring as bad debt and written-off accordingly.