Sponsored Award Invoicing & Financial Reporting Procedure

1. Overview

This document outlines the standard operating procedure (SOP) for handling invoicing and financial reporting of sponsored awards. It is intended for use by research administrators, finance staff, principal investigators (PIs), and project managers. The procedure ensures compliance with sponsor requirements, university policy, and applicable regulations.

2. Invoicing Process

2.1 Initiation

1. Review the award letter to identify invoicing frequency, deliverables, and allowable costs.
2. Enter the award into the financial system (e.g., Banner, PeopleSoft) and assign a unique award number.
3. Set up a dedicated chart of accounts (COA) code for the award.

2.2 Preparing the Invoice

• Collect supporting documentation: timesheets, purchase orders, expense receipts, and progress reports.
• Verify that costs are allowable, allocable, and reasonable per the sponsors terms.
• Use the approved invoice template (see Section5).
• Include the following mandatory fields:
  • Award number and title
  • Period covered (start and end dates)
  • Breakdown of costs by category (personnel, equipment, travel, etc.)
  • Total amount requested
  • Banking information (if required)
  • Signature of authorized signatory

2.3 Review & Approval

Before submission, the invoice must undergo two levels of review:

1. Technical Review PI or project manager confirms that the deliverables and costs align with the work performed.
2. Financial Review Finance office checks that the invoice complies with sponsor guidelines and internal policies.

2.4 Submission

Submit the approved invoice through the sponsors designated system (email, web portal, or electronic invoicing platform). Retain a PDF copy of the submitted invoice and any acknowledgment receipt.

2.5 PostSubmission

• Record the invoice in the awards financial ledger.
• Monitor payment status. Follow up with the sponsor if payment is not received within the agreed timeframe.
• Update the cash balance and forecast future invoicing dates.

3. Financial Reporting

3.1 Monthly & Quarterly Reports

Most sponsors require periodic financial statements. The reporting cycle includes:

1. Extracting transaction data from the financial system using the award COA.
2. Classifying expenses by the sponsors cost categories.
3. Preparing a narrative that explains variances from the budget.
4. Attaching supporting documentation (receipts, timesheets, subaward invoices).

3.2 Annual Financial Report

The annual report consolidates the entire fiscal years activity. It must contain:

• Summary of total expenditures vs. budget.
• Unspent balance and justification for any rollover.
• Audit trail of all transactions.
• Compliance statement confirming adherence to sponsor policies.

3.3 Closeout Report

When an award ends, a final closeout report is prepared. Steps include:

1. Reconcile all outstanding invoices and ensure receipt of final payment.
2. Terminate subawards and recover any unspent funds.
3. Submit the final financial report and any required technical deliverables.
4. Archive all records for the retention period specified by the sponsor (typically 37 years).

4. Roles & Responsibilities

5. Templates & Forms

The following templates are available on the university intranet:

• Invoice Template (Word) preformatted with required fields.
• Monthly Financial Report (Excel) includes budget vs. actual tables.
• Expense Certification Form (PDF) signed by PI for each cost category.
• Closeout Checklist (Word) stepbystep guide for final reporting.

6. Frequently Asked Questions

• Can I invoice for equipment that has not yet been shipped? Only if the sponsor allows shipto invoicing and the purchase order is in place.
• What if an expense exceeds the budgeted amount? Obtain written approval from the sponsor before incurring the cost and document the justification.
• How long should I retain supporting documents? Follow the sponsors retention policy; standard university policy is a minimum of three years after final closeout.