Sponsored Programs Delinquent Accounts Policy

Sponsored Programs Delinquent Accounts Policy

Sponsored Programs Delinquent Accounts Policy

I. Background/Purpose

This policy implements a process for managingdelinquent sponsored programs accounts. The primary objective of this policy is to facilitate communication between the Office of Sponsored Programs (OSP), the Principal Investigator (PI), and other interested parties when there is a payment problem with a sponsored programs account. In addition, the policy provides a collection process for aging and delinquent accounts.

An aging account is an account on which costs have been incurred and invoiced. After the invoice has been sent to the sponsor, the amount of time between sponsor receipt of the invoice and payment to the university is what is referred to as age.

A delinquent account is an account for which a sponsor has not provided payment in a timely manner. Typically, an account would be considered delinquent after ninety-one (91) days without payment of an invoice.

Delinquent accounts are problematic because, without payment, the university must utilize other revenue sources to maintain operations on the sponsored project. When invoiced costs are not paid, the costs must be reimbursed from an internal, unrestricted university revenue stream, which diverts these funds from other uses. Finally, without regular payment of invoiced costs on a sponsored project, the sponsored project will be terminated by the universitydue to lack of payment.

II. Responsibility for Delinquent Accounts

Debts arising from unpaid, delinquent sponsored activity accounts are the responsibility of the department and college of the principal investigator on the account, regardless of the party responsible for the debt. The university recognizes that delinquencies in accounts are often not the fault of the faculty member; however, departments and colleges receive facilities and administrative funds to cover such liabilities.

III. Review Procedure

OSP typically reviewssponsored project accounts on a monthly basis to invoice for incurred costs.

Sponsors are usually provided 30-60 days to pay invoices as outlined in the terms and conditions of sponsored awards.

When a payment has not been received by the end of the payment period outlined in the award agreement, OSP will forward collection notices requesting payment to the sponsor.

Additionally, OSP will contact PIs and/or sponsors to attempt to resolve the problem. Most sponsor payment problems are due to issues with deliverables such as technical reports.

If non-payment continues, PIs and other interested parties will typically be contacted as shown below:

Duration of payment problemParties to be included in email notification

60+ days past duePI, department contact, college business officer (as applicable)

The PI will be asked to respond with any relevant information to assist in collection.

90+ days past duePI, department contact, college business officer,Chair/Dept Head, Dean

The PI will be asked to respond with any relevant information to assist in collection.

120+ days past duePI, department contact, college business officer, Chair/Dept Head, Dean, VPR

The college will be asked to decide if work should be stopped or continued. If the college requests a work stoppage, OSP will “freeze” the account. Overruns and costs that have not been reimbursed will be transferred to the department and/or college facilities and administrative cost account if payment is not received by 180 days.

NOTE: If no response is made but spending continues, it will be assumed that all parties wish to proceed.

180+ days past dueTransfer of delinquent account(s) information to collection agency. Unreimbursed costs transferred to department and/or college F&A account.

Delinquent Account Process Roles and Responsibilities:

Sponsored Programs:

  • sends invoices and make deposits of payments in a timely manner
  • reviews late payments; resolves whenever possible
  • contacts PI,departmental contacts,and college business officer when it has been determined that a payment problems exists; requests information
  • notifies PI,departmental contacts, college business officer, chair, and dean when a payment problem persists; asks if work should continue
  • freezes accounts when appropriate for non-payment
  • develops list of delinquent accounts (submitted to VPR quarterly)

Principal Investigators:

  • provides overall project financial management
  • submits timely progress reports
  • keepsOSP SRA-Post Award informed of any relevant information
  • responds promptly to OSP emails or calls
  • considers work continuation question when necessary

Department Administrative Contactsand/or College Business Officers:

  • assist PIs with financial oversight of research accounts
  • assist OSP SRA-Post Award with collection process questions
  • assist PIs with responses to collection process email
  • stop charges when accounts have been frozen

Department Chairs/Unit Directors/Deans:

  • encourage timely submission of technical reports
  • assist with decisions regarding work stoppage due to non-payment
  • assist OSP SRA-Post Award with delinquent account process questions


  • reviewsquarterly report of delinquent accounts
  • authorizes transfers of unpaid costs to department and college F&A accounts

Version 1.0, 05/08