45.16 - Sponsored Project Payment Management

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Last updated: February 13, 2024

A. Purpose. To define the general policy for submitting requests to sponsored for payments and the associated internal controls.

B. Scope. This policy applies to all sponsored projects where payments must be requested from the sponsor.

C. Definitions

C-1. Cost reimbursable. Any projects whereby the agreement specifies that payment will be made after costs have been incurred as outlined in the agreement’s terms and conditions.

C-2. Scheduled pay. Any projects where the agreement terms specify that the sponsor will be invoiced or make automatic payments based on scheduled amounts. Such projects may or may not be fixed price.

Unless otherwise specified in a grant or contract agreement, all payments are requested on a cost-reimbursable basis.

D. Policy

D-1. Individuals authorized to request sponsored project payment. The Authorized Organizational Representative (AOR), the supervisor of the OSP Financial Unit, and the employees of that unit are the only individuals authorized to request sponsored project payments on behalf of the university.

D-2. Timeliness of payment requests. The following schedule will be used for requesting payments on cost-reimbursable sponsored projects:

a. Letters of credit. Biweekly coinciding with the payroll cycle, and at the end of each calendar quarter.

b. Other cost reimbursable. Monthly or quarterly as per internal policies on minimum billing, or as otherwise delineated by the agreement terms.

c. Fixed-price scheduled billing. The Financial Unit staff will run the Financial Unit Due Date report by event code LS% for the following month and send invoices to the sponsor by the deadline listed in the report. At the end of each month the Financial Unit staff will run the Fixed-Price Setup report and audit for any missed billing. The Financial Unit supervisor will run this report periodically to check for completeness of the billing and inform staff of any missed billing.

E. Procedure. To ensure timeliness, accuracy, and allowability of payment requests, the following internal control procedures are to be used:

E-1. Report of unbilled charges and undistributed cash. Prior to issuing an invoice a report of unbilled charges and undistributed cash must be run to ensure that the amount of the payment request matches the total of the unbilled charges, net of any prior overpayments.

E-2. Letter-of-credit drawdowns. Each letter of credit payment request shall be done by different individuals on a rotating schedule and the draws will be reconciled periodically by the Financial Unit supervisor.

F. Contact information. For additional information please contact osp-billing@uidaho.edu, osp@uidaho.edu or 208-885-6651.

Version History

Updated Feb. 13, 2024