Purdue University
Account Management
Guidelines
&
Account Management
Process Guide
http://www.purdue.edu/SPS/index.html
Account Management Basic
Skills Presenters
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Joma Roe
Jenny Siemers
Bonnie Taylor
Matt Clawson
Leslie Vogel
45378
44856
41074
46947
41053
Account Management Basic
Skills
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Introduce Yourself
 Department
 Position
 Length of time in position
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One thing you would like to learn from this
training
Contents/Agenda
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Mission Statement
Account Establishment
Account Transaction and Document
Management
Cash Management
Closeout Management
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.
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.
Summary
The Account Management Guidelines are
expectations for Funds 500-699 (SPS Fund
range), 700-750 (Dept. Gift Account Fund
Range), and 840 (Endowments).
Account Establishment
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Proposal
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Transmittal Checksheet
Statement of Work
Budgets
• Internal
• External
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Award Document
Account Establishment
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Factors in establishing a new account:
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Source of Funding
Size of award ($)/length (time involved)
Sponsor reporting/billing requirements
Use of existing account - contract support,
voluntary support
Account Establishment
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Proper classification
Timely establishment and notification
Award Documentation
Account Establishment
FOR SPS ACCOUNTS:
 Proper Classification
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Research (RE)
Instruction (IN)
Other Sponsored Programs (OSP)
Fellowship (FE)
Account Establishment
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Not fully executed document from agency
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University Backed NTP
Department Backed NTP
Fully executed award document from agency
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SPS New Account Set-Up Checklist
Goal of 24 hour award establishment
• Electronic Notice of Award Email
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Major/Minor System – Budgets to be provided by
dept.
Transfer of Single account Cost Sharing (1008/JV)
• Routing process
Account Transaction and
Document Management
Correcting
Documents
Account Transaction and
Document Management
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Fiscal year 02-03
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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.
Account Transaction and
Document Management
Departmental Actions
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Departmental New Account Set-up Checklist
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Confirm Notice of Award with
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Award Document
COEUS Budgets
Cost Share Documentation
Signature Delegation
Account Transaction and
Document Management
Maintain Allocability Supporting Documentation
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Procurement process should include documented
academic authorization for the purchase. The
documentation serves as the
proof of allocability.
Account Transaction and
Document Management
Verify Appropriate Signature Approval
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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.
Account Transaction and
Document Management
The authorization form should include:
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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!
Account Transaction and
Document Management
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Procurement and Account Management
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Review for the following
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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
Account Transaction and
Document Management
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Use DSS queries referenced in the Account
Management Process Guide to monitor
account expenditures and balances.
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Key Word to remember
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PROACTIVE
Account Transaction and
Document Management
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SPS Queries
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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
Account Transaction and
Document Management
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Business Office Queries
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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
Account Transaction and
Document Management
Maintain Appropriate Balances
 Gift and Award Funds:
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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
Account Transaction and
Document Management
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Sponsored Program Funds (500-699)
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Balance for 500-699 funds should not be < $0.
Account Transaction and
Document Management
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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
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?
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
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Examples
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F&A
Cost Sharing
Encumbrances
Subcontracts
Account Transaction and
Document Management
SPS Suspense/Dept. Default Account
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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
Account Transaction and
Document Management
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Account Expiration Procedures
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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
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
Cash Management
C.
Academic Staff Reporting Requirements
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D.
Grant/Contract Negotiation
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E.
Payment terms are negotiated at the beginning by
the University Contracting Group
Billings
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F.
Payments tied to reports
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.
Collection
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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.
Close Out Management
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Sponsored Program Funds
• Ready for closing 60 days after expiration
(accounts automatically lock 50 days after
expiration--MARK BYPASS)
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Subcontracts
• Need to be ready to close within 30 days
after expiration so the prime can be
closed in a timely manner
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Fiscal reports and final billings
• Will be submitted in accordance with
sponsor guidelines
Close Out Management
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Accounts to be ZERO in 4 months after
expiration, unless awaiting income
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Follow management expectations set for
SPTS reporting requirements
Close Out Management
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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
Close Out Management
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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
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
Close Out Management
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Accounts with Positive Balances
• Fixed Price (University entitled to retain
funds)
• balance transferred to 100 fund, in accordance
with Instruction No. 4
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Balance less than $5.00
• SPS will follow guidelines and clear if
appropriate
Close Out Management
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Overdrafts and balances that do not fit the
scenarios described above should be
discussed with appropriate staff in order
to achieve resolution
Close Out Management
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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
Close Out Management
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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
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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
Questions/Comments
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sheet!