Invoices and Collections

The OSP Analyst prepares and sends invoices to the sponsor based on the frequency stated in the award (usually monthly).   Invoices will be based on actual expenditures that have posted to the University’s general ledger account for the sponsored project. These invoices are generally issued the month following the invoice period to align with the prior month’s closeout and payroll distribution. Encumbrances will not be included.

• Departments are responsible for ensuring that cost is allowable, reasonable, and allocable to the project. (See Uniform Guidance – Costing Considerations for additional information).
• Departments are responsible for timely posting of expenditures to the appropriate account

The sponsor pays based on the completion of deliverables listed in the award agreement.  The OSP Analyst will prepare and issue the invoice to the sponsor.

• When a milestone has been met and is ready to be invoiced, the PI and/or the Department Administrator must notify the OSP Analyst that the deliverables/task/milestone has been met and provide the information that supports the completion of the task.  
• The PI or the Department Administrator must notify the Analyst if deliverables/milestone has been delayed and that the delay has been approved by the sponsor.
• If any unallowable cost is identified, the OSP Analyst will notify the Department.  Unallowable costs should be moved to an unrestricted funding source as soon as possible.

The sponsor sends payments based on a schedule stated in the award.  When required, the OSP Analyst submits a sponsor invoice to trigger the payment.  The award document typically states that the sponsor requires any unexpended balance to be returned at the end of the project.  These are considered “cost reimbursable” because after the balance is returned to the sponsor, the University will have been reimbursed only for the expenses charged to the grant.

The sponsor issues payments on a set schedule regardless of the department’s expenditure level or deliverables completed.  When required, the OSP Analyst submits a sponsor invoice to trigger the payment.

• Invoices are submitted based on a pre-determined schedule and dollar amount based on the award documentation.
• Submission of capitation information via the sponsor’s web portal by the PI or Research Study Coordinator may automatically generate a payment to the university. No invoice is required.
• Compensation is usually established based upon a fixed amount per test or deliverable, with the PI and department assuming responsibility for keeping costs within the amount earned based on actual performance.
• Unspent balances may be retained by the University.

Note: All cost overruns (deficits) accrued by the department are cleared prior to transferring any residual funds. Before residual funds are transferred to the department, the F&A rate is calculated on the total award amount and deducted from the residual funds. 

Similar to fixed price in which invoices are submitted based on a pre-determined schedule and dollar amount based on the award documentation and compensation is usually established based upon a fixed amount per test or deliverable.  The University may not retain an unspent balance.  Any residual funds that need to be returned must be clearly stated in the agreement. 

The majority of federal awards use a payment management system.  With a LOC, the sponsor allows OSP access to draw down funds directly via bank-to-bank transfer up to the awarded amount as expenditures are incurred.  This process is often referred to as a drawdown of funds.  Occasionally, the sponsor may have concerns that the award has not met their burn rate (percentage) of usage or a discrepancy between our withdrawals and the total expenditures shown under the federal financial report.  The Office of Sponsored Program will work with the department to clarify any discrepancies.

A final invoice is required which is typically due 30-60 days after the award period expires.  The final invoice includes any previous charges incurred during the award period that were posted to the grant within 30-60 days after its expiration date.  Please make every effort to post all charges to your grant before the expiration date.  

Our standard invoice must include current and cumulative costs (including cost sharing, breakdown by major cost category, sub-award or PO number, and certification, as required in 2.CFR 200.415(a). Occasionally a sponsor may require the University to use a special, non-standard invoice that requires the PI or department input or action, such as the PI’s signature or a summary of the work completed during the invoice period.  In these cases, the OSP Analyst will work with the department to obtain the required signature or information.

Invoice will not be generated or issued if:

• The award is not fully executed, i.e. final agreement is not signed
• The budget period has ended and an expected extension or renewal has not been received
• The total expenses for the billing period are zero or a net credit
• The cumulative expenditures exceed the budget