Cash Management

Principal investigators must constantly monitor expenditures for grants and contracts to ensure that all expenditures comply with the terms outlined in the approved agreements. Project cost management practices are dictated by the specific terms in the signed agreement. Grants and Contracts Administration expedites invoices to program sponsors for cost reimbursement and monitors the accounts receivable to facilitate prompt payment by sponsors. All invoices for sponsored programs must be processed through Grants and Contracts Administration unless the department has obtained approval and training.

        • Reimbursement Requests
          Most of Clemson University’s projects are performed on a cost reimbursable ("best effort") basis. Clemson University is generally liable to perform its "best effort" up to the cost level in the contract. The funds are not received at the beginning of the project. The projects are billed after the expenditures occur. If direct costs are overspent, the department is contacted and instructed to make necessary corrections. Invoices for these projects cannot be generated until corrections are processed and appear on the current Budget Status Report. Corrections should be processed immediately. Facilities and administrative costs are handled by Grants and Contracts Administration. Project payments received by individuals or departments should be processed through Grants and Contracts Administration. Do not mail checks in interoffice mail. Checks should be hand delivered to Grants and Contracts Administration. The individual should endorse all checks made payable to individuals. Checks should be processed immediately and should not be held.
        • Reimbursement Requirements
          Some sponsors require additional documentation to support invoices. When such supporting documentation is required, it should be submitted to Grants and Contracts Administration by the 15th of each month if it is to be included in the previous month’s invoice to the sponsor.

          Invoices are issued monthly, quarterly or at times designated in the agreement.

          Projects are separated into four major funding groups (designated by Field 5 of the chartfield string).
        • Subclasses 200-227 designate federal funding
          • 200 Air Force
          • 201 Army
          • 202 Navy
          • 203 Department of Defense (DLA)
          • 204 NASA
          • 205 Federal funds via non-university
          • 206 NSF (National Science Foundation)
          • 207 USDA (U.S. Department of Agriculture)
          • 208 U.S. Department of Commerce
          • 209 DHHS (Department of Health and Human Services)
          • 210 DOEd (U.S. Department of Education)
          • 211 U.S. Department of Transportation
          • 212 U.S. Department of Labor
          • 213 USDI (WRRI)
          • 214 Federal to CURF via SC state agency
          • 215 Federal Funds via Non-SC State Agencies
          • 216 U.S. Department of Interior
          • 217 SCUREF-Federal
          • 218 EPA (U.S. Environmental Protection Agency)
          • 219 DOE (Department of Energy)
          • 220 HUD (Housing and Urban Development)
          • 221 ARC (Appalachian Regulatory Commission)
          • 222 Coastal Plains Regulatory Commission
          • 223 Federal Funds via SC State Agencies
          • 224 Miscellaneous-Federal
          • 225 Federal Funds via CURF
          • 226 Federal Funds via CURF via Other Agencies
          • 227 Federal Funds via National Textile Center
        • Subclasses 230 - 237 designate South Carolina and other State Agencies funding
          • 230 SC Department of Education
          • 231 SC Experimental Program to Stimulate Competitive Research (EPSCoR)
          • 232 State ERDC
          • 233 State SCUREF
          • 234 State Comm and Board
          • 235 Miscellaneous SC State Agencies
          • 236 SC CURF
          • 237 State Agencies outside of South Carolina
          • 239 GHS d/b/a Upstate Affiliates Organization
        • Subclasses 239 - 240 designate local government funding
          • 239 GHS d/b/a Upstate Affiliates Organization
          • 240 Local Government
          • 241 Local Municipalities Outside SC
        • Subclasses 244 - 249 designate private funding
          • 244 International to CURF
          • 245 Corporations/Firms
          • 246 Private CURF
          • 247 Foundations and Other Organizations-Associations-Societies
          • 248 International Sponsors
          • 249 Miscellaneous Revenue/Program Income
        • Collection Process

          Grants and Contracts Administration (GCA) determines the course of action for collections for past due Grants and Contracts Administration invoices. Collection actions are conducted in accordance with the project agreement and are dependent on the sponsor and previous payment history. In general, collection efforts are conducted as follows:

          • Grants and Contracts Administration reviews all outstanding unpaid invoices after 30 days. University Accounts Receivable sends a 30-day past-due letter for non-federal sponsors.
          • After 60 days, the sponsor is contacted by telephone and/or past-due email reminder. Grants Administrators will update the Peoplesoft invoice payment panel with conversations. This aids in the documentation of collection efforts and assists with follow up escalation. University Accounts Receivable sends a 60-day past-due letter for federal flow-through and non-federal sponsors.
          • After 90 days, GCA will then alert the department/College Post-Award Contact (CPAC) of the past-due letter on unpaid invoices and will advise the principal investigator (PI) of non-payment. GCA may also advise the PI to stop work on the project in cases where it is known that the sponsor may have difficulties making payment. GCA will continue to coordinate with the department, PI and the sponsor for past-due payments. University Accounts Receivable sends a 90-day past-due letter for federal flow-through and non-federal sponsors.
          • After 120 days, depending on the reason for payment delay, the Accounting Manager in GCA may call or email the sponsor about the past due invoice and/or work with the CPAC, PI and college to get the invoice paid. University Accounts Receivable sends a 120-day past-due letter for federal flow-through sponsors.
          • After 180 days, GCA Grants Administrators will notify the Director of GCA. The Director may:
                • Communicate with the sponsor a final attempt for payment
                • Request the GCA Grants Administrator to continue routine follow-up when the sponsor is in earnest attempting to pay.
                • Turn the claim over to collections (after consultation with Principal Investigator, Department Chair and Associate Dean for Research) and notify CPAC.

          NOTE: When collections are delayed as a result of an unsubmitted or untimely submission of a technical/progress report, the director will confer with the Vice President of Research (VPR), Department Chair and in some cases the Associate Dean for Research in the effected college to determine appropriate steps.  Typically, unsubmitted reports will result in unpaid balances to be written off to the Investigator/Department or College.

          Payments determined to be uncollectible (after submission through Clemson’s collection agency) will follow the University’s policy for the management of sponsored project bad debt.  The GCA Grants Administrator will coordinate the write-off and transfer journals with the office of the VPR, College and department.