Collections Management

SPA sends out collection notifications on outstanding Accounts Receivables on a monthly basis. SPA may seek assistance from the department to help reach out to the agency concerning payment. Below is a timeline of the collections process based on NMSU’s Collection Policy.

  • 1 to 30 Days – Receipt of invoice is verified with agency
  • 31 to 60 Days – Agency contacted for payment status
  • 61 to 90 Days – Agency contacted for payment status
  • 91 to 120 Days – Agency contacted for payment status, Research Center notified
  • Over 120 Days – The Sr. VP for Admin and Finance is notified along with Research Center
  • Over 180 Days – Possible referral to General Council for legal recourse
  • After 270 Days – Unrestricted index is requested from Research Center and PI for write-off when/if the receivable reaches 365 days outstanding

Further information can be found in the Business Procedures Manual (BPM) Section 3.30.05 Collections Policy for Grants and Contracts.

SPA also utilizes COGNOS to report outstanding A/R balances for restricted funding and adheres to the following schedule for review and collection.

1st of each month: COGNOS report RA-209 Grant AR Report provides invoice aging details and collection efforts are applied to this report.

1st day after month-end close: COGNOS report RA-SPA-AR Aging Report by Org is emailed to department contacts. SPA welcomes assistance from the PI/department on any invoice outstanding beyond 90 days on the report.

12th of each month: Collection efforts are completed for all outstanding A/R’s over 120 days.

15th of each month: The A/R’s Over 120-Days report is prepared and submitted to the Director of SPA and the University Controller.

End of Month: Collection efforts are completed on all remaining outstanding A/R’s.

Departments may use the Grant Billing Collections form FRACOLL to view collection efforts made by SPA. This form includes:

  • Contact Date – Date contact was made with the agency regarding unpaid invoice
  • Bill Invoice Number – Relates to unpaid invoice
  • Amount – Amount of invoice
  • Collection – A collection code is entered to give a current status description of where the collection effort stands
  • Detail – A brief description may be entered to provide more detail of the current collection status such as type of contact made – phone call or email

Below is an example of FRACOLL:

FRACOLL example

When collection efforts are unsuccessful, the outstanding A/R balance on the award is reviewed for the possibility of a Write-off JV. A Write-off JV will satisfy the receivable through use of a PI/Department index for the balance not collected.

  • A Write-off is determined on a case-by-case basis
  • SPA will evaluate the possibility of processing a Write-off on all awards once an A/R goes beyond 365 days outstanding
  • SPA may prepare a Write-off at any time if we determine there is no possibility of collecting the outstanding A/R regardless of aging date
  • Once an award balance is written off, SPA will continue collection efforts unless a bankruptcy notice on the agency has been received

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