This document explains how operating locations should request formal collection action and provides an overview of the Research Foundation (RF) central office formal collection action process.
For decentralized operating locations, the campus is expected to make all necessary and reasonable efforts to collect funds owed by sponsors.
For centralized operating locations, the Office of Sponsored Programs, performs this function on their behalf.
If these attempts to obtain expected payments from a sponsor through the standard steps are not successful, a decision should be made to either write-off the balance (See "Responsibility for Losses Policy" and "Write-Offs" procedure) or to pursue formal collection action.
If it is determined that formal collection action is required, the operating location should send a request to the Accounts Receivable Administrator in the Office of Sponsored Programs/University-wide Support requesting further action, which could include the involvement of the Research Foundation's Office of the General Counsel and Secretary and/or the corporate collection agency.
The request should be accompanied by appropriate documentation, including:
After receiving a request from an operating location for formal action, the Accounts Receivable Administrator:
Action could include the following:
The central office Accounts Receivable Administrator confers with the Office of the General Counsel and Secretary and contacts the appropriate operating location official for approval to refer the matter to the corporate collection agency.
If payment is not received or a payment arrangement is not negotiated, the Accounts Receivable Administrator sends a letter to the corporate collection agency requesting that formal collection action be initiated.
When the corporate collection agency receives a request from the central office Accounts Receivable Administrator for collection action on an account, the agency loads the account to the agency's computer system and assigns the account an identification number for the agency's tracking purposes. The agency produces monthly status reports and sends them to the central office Accounts Receivable Administrator, Office of Sponsored Programs/University-wide Support. The Accounts Receivable Administrator will update the campus on activity.
Collection action that may be taken by the agency includes the following:
If the collection agency obtains payment from the debtor, the agency forwards the Research Foundation's share with a monthly collection statement to the central office Accounts Receivable Administrator. This statement displays any fees charged. The net payment will be posted to the award. The collection fees are the responsibility of the campus.
Action taken on accounts in formal collection status with The Research Foundation of SUNY at central office will be documented by central office in the AR module of the Oracle applications via a "Customer Contact Record" attached to an outstanding AR invoice. Refer to the AR procedure "Entering Follow-up on Outstanding AR Invoices."
Operating locations can monitor this activity by using the AR Oracle report RF Accounts Receivable Invoices in Formal Collection. Direct communication with the operating locations will be done as necessary based on specific activity.
Operating locations may request a status report on these accounts by contacting the Accounts Receivable Administrator or designee in the Office of Sponsored Programs at central office.
When final payment is received based on debt owed or negotiated settlement, any remaining balance should be written-off in accordance with the "Responsibility for Losses Policy" and "Write-Offs" procedure.
For decentralized operating locations, the central office Accounts Receivable Administrator notifies the appropriate operating location for closing. For centralized locations, the central office Accounts Receivable Administrator forwards the account to the central office Accounts Receivable unit for closing.
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