Funds Deposit for 4-2XXXX Accounts

1. Funds Deposit for 4-2XXXX Accounts Ray Garvey, Accounting Specialist NEWARK GRANTS OFFICE E-mail: rgarvey@andromeda.rutgers.edu Phone Number : (973) 353-1533 Fax Number : (973) 353-1536 Date: 12/08/2005 Time: 8:45AM

2. Funds Deposit • Funds Receipts – Funds receipts consist of two types: Checks received when agreements are signed and checks received through the mail as payment on accounts receivable. • The Departments/Units should notify the Newark Grants Office of all funds received for 4-2 accounts.

3. Funds Deposit • Newark Grants Office prepares invoices based on the signed agreement between the sponsor and Rutgers University; • Upon receipt of funds, we update accounting records; • Make copies of check and supporting documents; • Offset accounts receivable by depositing funds

4. Funds Deposit Example: XYZ Co. awards $30,000.00 for Hanover project, Account # 4-2AAAA, XYZ Co. billing agreement states Monthly cost reimbursement. 1st month activities incur expenses of $1,500.00 Accounting Specialist prepares the invoice # 001for $1,500.00 and mails it to sponsor. The following updating of accounting records are done at the Grants Office: (1) Adds 4-2AAAA-001 invoice, & amt. to Access Database; (2) Assigns sub-code 4280 in Access Database (3) reviews, accepts, & approves these updates.

5. Funds Deposit (4) Transfer of this data occurs when Access Database interfaces with Online Financial Information System (OFIS); (5) OFIS accepts the data and updates the General Ledger showing a debit to account 0-2AAAA-1450 $1,500.00

6. FUNDS DEPOSIT (6) When the funds are received from XYZ Co. for invoice #001, the Accounting Specialist offsets the invoice in Access Database, reviews, accepts, and approves the entry, makes copy of the check and supporting documents then prepares cash transmittal sheet to deposit the funds.

7. Funds Deposit (6) Access Database uploads OFIS with this information posting it to the General Ledger as a credit entry (7) If the Newark Grants Office does not know that funds have been received at the Department, Unit, PIs, or Foundation, there is no way for us to indicate this on the system which causes the monthly reports to be wrong. (overstates accounts receivable)

8. Funds Deposit Remember, adequate documentation leaves a good audit trail and also ensures awards are used for intended purpose.