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From:   Research Administration Discussion =
Group[SMTP:xxxxxx@health.state.ny.us]
Sent:   Wednesday, January 29, 1997 9:16 AM
To:     Multiple recipients of list RESADM-L
Subject:        Receivables

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.

 Our receivable is automatically debited and revenue credited for each =
transaction that is posted in our accounting system.  We do this for all =
cost reimbursement grants.  Each grant has it's own trial balance, and =
we then use the balances in the receivable accounts as our basis of =
requesting reimbursement.

 For clinical studies, we set up the budget in the system for the amount =
of the check we receive from the drug company and record the check as =
deferred income.  For each subsequent transaction posted, revenue is =
recognized and deferred income is decreased.

Karen Anderson
Grants and Contracts Accountant
Creighton University
Omaha, Nebraska