Financial responsibility for sponsored projects resides with the Principal Investigator (PI), the department, and the college. If a PI is aware of potential non-payment for an award, he or she should contact their department chair and/or staff and OSP immediately.
If a sponsored agreement results in unrecoverable costs as a result of any of the following circumstances, it will be the responsibility of the PI, the department, and the college to cover those costs.
- Expenditures Exceeding Awarded Amount
- Cost Transfers
- Audit Disallowances
- Withholding of Final Payment
- Delinquent Payments from Sponsors caused by Dissatisfaction with the Deliverables or Delinquent Reporting
- Delinquent Payments caused by Sponsor Financial Difficulties, up to and including Bankruptcy
- Non-payment by Sponsor
- Advance Payments
- Funding Regarding Pre-Award Spending
- Subsequent/Supplemental Funding not Awarded
OSP Grants Accounting will invoice the sponsor as required by each agreement, and will make reasonable efforts to collect payment. The PI and department are expected to assist with collection efforts when OSP has provided notification that a payment issue exists.
- The PI, department contact, and department chair will be notified by OSP that a problem receivable exists within 60 days after the original billing date, at which time a past-due notice will be sent to the sponsor (unless contract terms with the sponsor indicate their payment cycle is more than 30 days).
- Past-due notices or correspondence will be documented by OSP on a monthly basis thereafter. At the department chair’s discretion, the project may be locked to prevent further posting of expenses.
Note: For federal or Nebraska state agency sponsors, this timeline may be adjusted in accordance with their customary billing timelines.
If a receivable on an active sponsored project remains unpaid for more than six months from the original billing date, the PI, department contact, and department chair will again be notified.
- OSP will lock the project at this time unless there are extenuating circumstances.
- If a final invoice or payment due remains unpaid nine months after the date when a sponsored project would normally be closed, the unpaid balance will be transferred to a departmental account.
- If the department does not provide an acceptable account, one will be chosen by OSP.