Account Closure

Responsible Office:    Project Accounting Date Issued:    03/20/03 Contact:    project.accounting@iit.edu The Project Accounting Department will close project accounts for the following three reasons: Project end date expiration Project expenditures in excess of budget Sponsor unable to pay Procedure: Project end date expiration: Refer to the "Project Accounting Responsibilities" policy for the specific procedures performed for project closure related to the expiration of the project end date. Project expenditures in excess of budget: Contact Principal Investigator to determine the nature of the over expenditure. Write the necessary journal entries to bring the account into budget. Freeze the account in FRS. Sponsor unable to pay: Invoice the Sponsor, sending follow up invoices, as needed, if the account is not paid within thirty (30) days. If no response, place and document a collections call within forty-five (45) days of first invoice to negotiate a mutually acceptable payment plan. Notify Sponsored Research and the Principal Investigator of the situation. If unable to resolve, e-mail the Principal Investigator (PI), notifying the PI and Sponsored Research of the intent to suspend the account, due to the Sponsor's unwillingness or inability to pay. Freeze the account in FRS, if no resolution or contact within sixty (60) days of the original invoice. Notify the payroll department of the account closure, revising any payroll authorizations related to the suspended account. Cancel any outstanding purchase orders, and reverse any outstanding project encumbrances. Notify Sponsored Research of the account closure. Perform collections follow up, as needed.