Cash Management

The Cash Management process involves researching payments to determine the correct award on which to apply payment for Emory sponsored project awards. It also includes managing payments that are expense credits to research awards, collecting delinquent accounts, and the processing of incoming and outgoing mail. Cash application varies based on contract type, which is outlined below.

Cash is applied to cost reimbursable awards based on invoices created in Compass. If the award number cannot be determined from the payment received, an investigation is required. Investigations involve working with the OGCA accountant, the department administrators, the Office of Sponsored Programs and the Sponsor. After the award number is determined, the Cash Management Organization works with the OGCA accountant to create an invoice in Compass. Any delays in the process will require the payment to be put in the Holding Account (On Account).

Awards on Auto Schedule payment are paid by the sponsor based on milestones. The milestones may be specific tasks to be completed or time-based. The sponsor does not require an invoice from Emory, but an invoice is created in Compass so that the cash can be applied.

Clinical Trial awards are invoiced by the Emory department in which the trial is taking place. When the check is received in OGCA, an invoice is created in Compass to allow the cash to be applied. The budget, billing limit and award limit are updated by the amount of cash received. The budgets are increased at the project level, allowing the department administrator to review the cash received by project.

Deposits to SmartKeys do not require an invoice as they are deposited directly to a SmartKey and account via the direct journal process. Cash Management direct journals deposits to a SmartKey in two situations, Program Income checks and Expense Credit Checks (credits to grant expenses). Program Income checks are deposited to a program income SmartKey. The SmartKey is in fund code 2282 rather than a grant fund code. The process for Expense Credit checks is documented below.

If a payment cannot be identified or if an invoice is not present in Compass, it will be placed in a Holding Account. The Cash Management Organization will research the award number and have an invoice created in Compass.

If cash is misapplied, the Cash Management Organization will move the cash to the correct award. The process is different for each contract type. Please contact your OGCA accountant or Cash management if you feel cash has been misapplied.

All checks received that represent credits to Research awards must be handled by the OGCA Cash Management Organization. Departments should complete the Check Deposit Form on the OGCA website and send the check to OGCA . Checks erroneously deposited by the departments will appear in the ledger, but will not be in the Grants module in Compass. When OGCA receives a check that represents a credit to expenses, the check will be correctly reflected on the award and the sponsor will be billed correctly.

The sponsor may be owed a refund from Emory due to an overpayment or from a late credit that was charged to the award. The OGCA accountant processes refunds to sponsors directly from the award where the cash has been applied to the award. If the cash is in the holding account, the Cash Management Accountant will process the refund from the holding account. The process involves submitting a check request via Emory Express and performing maintenance in Compass to properly reflect the accounting for the refund.

The Financial Analyst for Accounts Receivable reviews the Accounts Receivable aging report and works with sponsors regarding collection issues. The aging report is a tool to help improve Emory's cash flow.

The Accounts Receivable account is reconciled with the General ledger. A Dunning letter is sent to the sponsor when an account is delinquent for 90 days. A second letter is sent after 120 days. The Financial Assistant will work with the sponsor to determine the issues involved. The FA will work with the department administrator to provide any deliverables that are required. If the delinquent payment is due to other issues the FA will consult with OGCA management and take appropriate action. It is important that the PI and Departmental Administrator review their receivables and contact OGCA if they have a concern regarding a delay in payment.