Billing Responsibilities
Overview
Fee-for-Service Educational Activity (FSEA) billing for goods/services must:
- Develop guidelines in the management of receivables to ensure that processes are in place to support timely billing for the goods/services provided
- Establish sufficient internal controls to ensure that charges are accurate and supported by appropriate documentation
- Set up proper segregation of duties between preparation, review/approval of internal billing transactions and collections
FSEA Management must ensure that:
- Source documents and/or supporting documentation show evidence of review and approval (which can be physical or electronic) and identify the date of service
- Those responsible for review/approval of internal billing transactions have first-hand knowledge of the transaction being approved, or by review of supporting documentation have adequate understanding of the transaction to verify the validity and appropriateness of the transactions
- Supporting documentation provides sufficient and appropriate audit evidence to validate that billing charges are posted in the correct period, for the correct amount, and using the appropriate coding. Examples of evidence that support transactions:
- Published rate schedules in effect during time of service
- Logs/schedules identifying services provided and the date of service
- Staff processing internal billings receive training on the correct way to process E2R entries, including recording internal billing debits and credits in the appropriate accounts
- Staff must complete E2R Training in order to obtain an E2R Role
- Staff processing billing transactions
- Understand University directives on correct billing procedures and
- Understand the necessity to bill other departments/units or external customers in a timely manner
- A valid budget number from the internal customer is immediately requested when a budget number is rejected by the PeopleSoft accounting system
- Staff understands collection processes of the FSEA and write off procedures if billing exceeds allowed terms with an external customer
Internal Customers must:
- Provide a valid budget number to charge for goods/services prior to any good/service commencing. Internal billing charges to sponsored awards must always be allocable to the charged award
- Maintain documentation regarding the allocability and allowability of charges to sponsored awards as well as for any other budget numbers provided to the billing unit. Also maintains documentation on who requested and approved services
- Immediately provide a valid budget number to the Fee-for-Service Educational Activity Billing Unit when a budget number is rejected by the financial system
General Accounting/Financial Reporting and Auxiliary Accounting Office Responsibilities:
- Provide guidance on appropriate coding
- Conduct periodic, ongoing review of large and/or unusual transactions
Last Reviewed
Last reviewed on 03/20/2024
Training
FSA100 Internal Sales and Billing (E2R)
Contacts
Auxiliary Accounting: (352) 294-7236