At 09:16 AM 1/29/97 -0600, you 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.
>
We book a receivable when we ask for cash, either by invoicing or PMS.  The
amount we book is equal to the amount of cash requested (either already
spent or to be spent within the next 3 days, per government guidelines).

At fiscal year end we book a receivable to bring the grant fund balance to
zero (revenue = expenditures).  We reverse this entry the first day of the
next fiscal year so that our receivable is always equal to the cash
requested.  The assumption is that the granting agency only owes us what we
have spent to date (+ the next 3 business days).

Elaine Gayman                                            ^---^
Grant Accountant                                         (o o)
University of Scranton                                     v
phone:  717-941-6263                                    (>   <)
Fax:  717-941-7976                                      (     )
email:  xxxxxx@lion.uofs.edu                            ^ ^