Calculating Drawdown Amounts for LOC Awards

Effective Date:	December 19, 2016
Function:	Treasury
Contact:	Jane O'Clair

Basis for Procedure

This document describes how Central Office Treasury calculates letter of credit payment requests.

Procedure Summary

Expenditures made against sponsored program accounts result in a deficit and open AR Invoices.
A payment is subsequently requested from the sponsor to cover the expenditures made against the award. The amount requested is based on open AR invoices which corresponds directly to expenditures on the award. Drawdown amounts are requested weekly for DHHS and NSF and biweekly for all other sponsors or as necessary

Awards funded through Division of Payment Management (DPM) and National Science Foundation (NSF) have a very high expenditure rate. A payment request file which contains active funded awards from each sponsor is downloaded from these websites, populated with Oracle data and uploaded back to the sponsor.

Procedure

Step	Role or Responsibility	References or Tips
All Letter of Credit open invoices in the Oracle AR module are retrieved by user utilizing Oracle AR Inquiry responsibility.	CO Treasury	RF Single Request titled "RF Past Due Invoice Export"
Export results report into Excel. Use pivot tables to consolidate open invoices and draw requests by sponsor and award ID number	CO Treasury
Hard copies are printed so Cash Receipts has a record of what was requested and what should be applied	CO Treasury
Input payment request into sponsor specific web based application or upload electronic files	CO Treasury	Web based systems are: G5, ASAP, DPM, ACM$ US Dept of Justice and HUD
Payments arrive as Fed wire or ACH electronic payments in Key Bank. Upon arrival and import into Oracle, the payment is posted to awards using Mass Apply function. User ensuring invoice posting matches invoice listings	CO Treasury

Definitions

DPM – Division of Payment Management web based system for financial management of awards with DHHS, US Agency for International Development, US Dept. of Labor, Corporation for National and Community Service, USDA Forest Service, USDA Agricultural Research, NASA, US Dept. of State

G5 – Web Based system for Financial Management of awards with US Dept of Education

ASAP – "Automated Standard Application for Payments". Web Based system for financial management of awards with US Dept. of Energy, National Oceanic and Atmospheric Admin (NOAA), US Fish and Wildlife, National Park Service, Environmental Protection Agency, US Geological Survey, National Institute of Standards and Technology, Economic Development Administration

ACM$ - "Award Cash Management Service" Web Based system for payment for National Science Foundation (NSF)

Related Information

Post Daily Cash

Forms

None.

Change History

Date	Summary of Change
December 19, 2016	Updated procedure summary, added definitions, and revised document to comply with new procedure format.
September 21, 2015	Updated with current information
March 10, 2004	Converted to HTML and updated with current information.

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