Research Administration Discussion Group wrote:
>
> This is a question for the post award people:
>
> Currently, a receivable is recorded in the amount a project has been
> awarded at the beginning of the project year.  An administrator is
> questioning this practice because of the large receivable amount
> shown on our yearly financial statements.
>
> What is the practice of the other institutions out there regarding
> receivables?  Any help would be appreciated.

As far as I know a grant should be recorded as a receivable using the accrual
 method of
accounting.  Even if you accrue receivables you don't effect the bottom line.

The only confusion that can take place is the interpretation of when you should
 book the
receivable.  I was under the impression that it gets booked when it is
 guaranteed to be
received.  In many cases it is virtually guaranteed, but yet some cases its not.

I feel pretty sure that there are instutitions who book the receivable and those
 who
do not.  We perform mostly pharmaceutical studies at our hospital which we do
 not book
the receivable.  When revenue and expenses are based on a per patient
 environment how do
you book that receivable?

Interpretation????

*********************************************************************
Ronald F. Polizzi, CRA                       Email: xxxxxx@umdnj.edu
Director, Grants Management                  Voice: (609) 342-3130
The Cooper Health System                       Fax: (609) 541-4762
One Cooper Plaza
Camden, NJ 08103
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