VCU largely obviates the problem of slow-pay and no-pay for sponsored
programs funded by for-profit concerns by requiring payment up front
(quarterly in advance is most common), and if a payment is not received,
the project closes down when balance reaches $0.  Our finance people have
offered to perform the occasional credit review.  But frankly, when we have
gotten burned it has been by a large, well known company (for which we'd
have gotten a good credit review) declares bankruptcy.

I don't think credit reviews will pay for themselves on a regular basis; it
is better to structure the arrangement so that creditworthiness ceases to
be a concern.

Chuck

At 03:44 PM 3/26/2002 -0500, you wrote:
>Hello,
>
>I don't think my first e-mail went thru, so I am posting my
>question again.
>
>
>Do any universities perform a credit review of organizations
>you enter into a contract with? If so how do you determine
>credit worthiness? and Who performs the review?
>
>I would also like to know if your university does not
>perform a credit review.
>
>I appreciate any insight you can give.
>
>Heather S. Wilson
>Restricted Fund Accountant
>University of Detroit Mercy
>Phone: (313)993-1590
>Fax: (313)993-1011
>
>
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Herbert B. Chermside, CRA
Director, Sponsored Programs Administration
Virginia Commonwealth University
PO BOX 980568
Richmond, VA  23298-0568
Express Delivery Only:
 Sanger Hall, Rm. 1-032A
 11th & Marshall Streets
 Richmond, VA  23219
Voice:  804-828-6772
Fax     804-828-2521
OFFICE e-mail   xxxxxx@VCU.EDU
Personal e-mail xxxxxx@vcu.edu
http://views.vcu.edu/ospa/

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