Operating Policy and Procedure
HSC OP: 50.05, Grant, Award, and Contract Billings
PURPOSE: The purpose of this Health Sciences Center Operating Policy and Procedure (HSC OP) is to establish guidelines for revenue billings on grants, awards, and contracts.
REVIEW: This HSC OP will be reviewed on April 1 of each year (EY) by the Director of Accounting Services, with the recommendations for revisions forwarded to the Executive Vice President of Finance and Operations.
POLICY/PROCEDURE:
1. Billing. Fund Managers and designated departmental personnel are generally responsible for completing revenue billings for grants, awards, and contracts within their funds. Billings should be entered into the Contract AR/Billing System accessible on the Webraider portal, F&A Work Tools tab, Procurement section, under Contracting. Refer to HSC OP 50.06 for more specific information on accounts receivable maintenance for the Contract AR/Billing System.
Exceptions to this rule are made for Federal pass-through cost reimbursement grants, State cost reimbursement grants, including CPRIT grants, and Private cost reimbursement grants, for which Accounting Services completes the billing. Additionally, reimbursements of expenditures for Federal grants with letter-of-credit authority are drawn by Accounting Services and do not require departmental billing.
2. Collections. Per HSC OP 50.03, all Fund Managers have a responsibility to maximize cash flow through timely billing, collection and depositing of revenue. Thus, Fund Managers and designated departmental personnel are responsible for ensuring that revenue billings are collected.
3. Monitoring. Fund Managers and designated departmental personnel must monitor recognized revenue and accounts receivable to ensure timely and accurate receipt of payment. Cognos reports for the Contracting System are available within the HSC Finance Cognos directory folder. These reports are designed to assist departments with the management of contract revenue.
4. Identification and Tracking. Departments can track contract billing and receipts by utilizing the Contracting AR/Billing System accessible on the Webraider portal, F&A Work Tools tab, Procurement section, under Contracting and the Cash Receipts System accessible on the Webraider portal, F&A Work Tools Tab, Business Affairs section under Student Business Services. Each website contains links to online s tools designed to assist departments with the management of contract revenue. Refer to HSC OP 50.26 for specific instructions on depositing cash receipts.
5. Timely Accruals of Accounts Receivable. Accounting Services does not currently require intra-year accruals, but does require that revenue and related receivables be accrued at year-end. Receipts that will be collected and deposited after August 31st for goods or services provided prior to August 31st must be accrued. Refer to HSC OP 50.30 for more information related to year-end processes and deadlines.
6. Sponsored Programs Accounts. Refer to the TTUHSC Operating Policies & Procedures Section 65 – Grants and Contracts Accounting for detailed policies regarding all Sponsored Programs funds.