2. Purdue University Account Management Guidelines & Account Management Process Guide http://www.purdue.edu/SPS/index.html

3. Account Management Basic Skills Presenters Joma Roe 45378 Jenny Siemers 44856 Bonnie Taylor 41074 Matt Clawson 46947 Leslie Vogel 41053

4. Account Management Basic Skills Introduce Yourself Department Position Length of time in position One thing you would like to learn from this training

5. Contents/Agenda Mission Statement Account Establishment Account Transaction and Document Management Cash Management Closeout Management

6. 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.

7. 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.

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

9. Account Establishment Proposal Transmittal Checksheet Statement of Work Budgets Internal External Award Document

10. 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

11. Account Establishment Proper classification Timely establishment and notification Award Documentation

12. Account Establishment FOR SPS ACCOUNTS: Proper Classification Research (RE) Instruction (IN) Other Sponsored Programs (OSP) Fellowship (FE)

13. 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

14. Account Transaction and Document Management Correcting Documents

15. 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.

16. 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

17. 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.

18. 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.

19. 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!

20. 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

21. 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

22. 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 > 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

23. 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

24. Account Transaction and Document Management Maintain Appropriate Balances Gift and Award Funds : Cash balances > $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

25. Account Transaction and Document Management Sponsored Program Funds (500-699) Balance for 500-699 funds should not be < $0.

26. Account Transaction and Document Management If < $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

27. 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?

28. 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 F&A Cost Sharing Encumbrances Subcontracts

29. 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/majorcool

30. 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

31. 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

32. Cash Management C. Academic Staff Reporting Requirements Payments tied to reports D. Grant/Contract Negotiation Payment terms are negotiated at the beginning by the University Contracting Group E. 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. F. 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.

33. 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

34. Close Out Management Accounts to be ZERO in 4 months after expiration, unless awaiting income Follow management expectations set for SPTS reporting requirements

35. 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

36. Close Out Management Scenarios and actions to be taken, of overdrafted accounts and that can’t be cleared within 90 days of expiration & have no approved plan Overdrafted accounts with only Salary and Wages expenditures > $100 academic department clears < or = $100 SPS clears

37. Close Out Management Overdrafted Accounts with S&E 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

38. 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

39. 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

40. 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

41. 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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