Mailing Address for Payments
Federal Draw-down (Letter of Credit)
Accounts Receivable / Budget Updates
Justification & Documentation
Create online Requisitions / Purchase Orders
Get Reimbursed / Create Expense Reports
Create Payment Vouchers
Complete Rate Slips for Labor
Obtain Approval Signatures
Research Affairs - Financial Management Approves/Disapproves Above Expenditure Requests
Research Affairs Financial Management Routes to Appropriate Department for Processing
All sponsor payments in the form of a check should be made payable and mailed to:
Loma Linda University
Research Affairs - Financial Management
24887 Taylor Street, Suite #202
Loma Linda, CA 92354
Occasionally, sponsor checks are erroneously addressed to PIs or departments. These checks should immediately be forwarded to Financial Management for deposit, accompanied by a memo indicating the sponsor, check number, sponsored project account number, project title, and the PI's name.
Some non-federal sponsors may enclose a check with the award document or make advance payments based on a payment schedule in the award document.
Advance payment is a process sponsors sometimes use to provide funds for a particular sponsored project. For these advance pay accounts, sponsors will automatically send funds in advance of expenditures based on a set schedule according to the notice of award.
Letter of credit is a process used to request money from the government for a group of accounts. At least once a month, Research Affairs - Financial Management will "draw down" funds to cover the expenses incurred for projects sponsored by specific agencies.
When a sponsor requires an invoice to initiate payment:
For most awards/agreements: Research Affairs - Financial Management will monitor the payments due and, assisted by the PI, prepare an invoice according to the schedule set in the award notice agreement. If requested, Financial Management will also send the invoice to the PI or department administrator for review. Financial Management will then send the approved invoice to the sponsor for payment.
For clinical trials: When a benchmark, milestone, or other form of expense claim has been met, the PI or coordinator must complete and submit either a Procedure-Based CT Invoice or an Installment-Based CT Invoice to Financial Management with details of the costs to be reimbursed. Financial Management will then send the approved invoice to the sponsor for payment.
Payment benchmarks and milestones vary greatly across clinical sponsors. In many cases, the completion and submission of Case Report Forms (CRFs) is necessary to receive payment. Invoices should be prepared every month or as outlined in the clinical trial agreement.
When a sponsor payment check is received for the corresponding invoice, Research Affairs - Financial Management will write the account number on the check, update the budget if necessary, and send it to University Accounting where it will be deposited and credited to the appropriate sponsored project account. If a payment is erroneously sent to the PI, it should be forwarded to Financial Management.
Sponsors may pay invoices via wire transfer. A journal entry to transfer the income into the appropriate sponsored project is completed by LLU Accounting and reviewed and approved by Financial Management.
Research Affairs - Financial Management will notify the PI if there are irregularities in sponsor payments. The PI/department administrator in turn should also contact Financial Management if an invoice is questionable or if a payment is late.
When a payment is expected but has not yet been received, the problem may be as simple as the sponsor misplacing the invoice. However, payment may also be withheld if the sponsor is concerned with project progress, or if the PI has not submitted the required reports. Notifying Financial Management of invoicing or payment concerns in a timely manner is important. Financial Management can assist in resolving open issues.
Cost sharing is the portion of sponsored project costs not borne by the sponsor, i.e. costs paid for by the institution. Occasionally a sponsor requires cost sharing as a condition of the award. Cost sharing also occurs when the institution commits funds beyond those awarded by a sponsor to support a particular grant or contract.
Every dollar of cost sharing results in the institution forfeiting the recovery of the direct costs and associated F&A costs that support LLU research in general. Therefore, cost sharing or matching/in-kind contributions (terms may be used interchangeably) should be considered only when required by the sponsor.
Cost sharing expenses must conform to institutional and federal policies regarding allowability, allocability, reasonableness, and consistency. Cost sharing commitments must be included in the proposed budget and justification. Cost sharing will be subject to the same policies as other costs under the approved budget unless specifically authorized by the sponsor.
Cost sharing contributions are subject to audit. The PI and/or department administrator are responsible for tracking cost sharing contributions and may be asked to provide auditors with documents demonstrating that the cost sharing contributions have been made as represented to the sponsor. Effort contributed by project personnel should be recorded and certified on a Personnel Activity Report (PAR). See LLU's Primer on Effort Reporting for more information.
Banner Finance is the accounting system used for sponsored projects. The operating ledger contains transaction data including revenues, expenditures, and transfers for departmental operating accounts.
Two types of transactions can impact project account balances:
- Originating transactions that are initiated by purchase orders, check requests, expense reports, internal requisitions, service charges, etc.
- Adjusting or correcting transactions that are initiated by journal vouchers for expense or labor transfers, revenue adjustments, etc.
PIs can use Banner Self Service to order materials, supplies and standard services. To log into Self Service, visit http://myllu.llu.edu and click on the Business/Finance menu at the top, then select Purchasing.
The PI is responsible for initiating and approving purchases of goods and services, while Research Affairs - Financial Management provides fiscal and award oversight. Charges should be incurred directly against the appropriate sponsored project whenever possible. Supplies and services must be charged to projects at actual cost and must have full documentation regarding quantities purchased and rates charged.
The institution is subject to certain administrative and documentation standards for sponsored projects. All faculty and staff initiating, preparing, completing, or approving sponsored financial transactions must comply with these standards. Justification and documentation for financial transactions must answer the following questions:
- WHY is the transaction being completed and HOW does it relate to the project affected or charged (if the relationship is unclear)?
- WHAT is the transaction for?
- WHO initiated the transaction? And WHO are the affected individuals or units?
- WHERE and WHEN did (or will) the activity take place?
The justification should NOT repeat information provided by the account string or re-state the account code in the description. It should provide additional information. The transaction justification and any other required documentation (receipts, invoices, confirmations of payment, etc.) should be sufficient to clearly explain to someone inquiring about it at a later date, such as an auditor.
Account codes, sometimes called object codes, are the six-digit codes used in Banner to classify costs. To ensure proper financial and management reporting, departments should utilize account codes in a consistent manner and exercise care that expenses are recorded to the code which most accurately describes the charge.
Account codes should be referenced on purchase orders, journal vouchers, rate slips, internal requisitions, travel applications, etc. Since the list of account codes is lengthy, Research Affairs - Financial Management has developed a list of the most commonly used account codes for grant and contract accounting. The full chart of account codes can be found by logging on to http://myllu.llu.edu under Business/Finance, choose Forms & Docs, and then click on the Documentation folder.
The first step to initiate a purchase order is to make sure access to Banner Self Service has been set up for the sponsored project account. A Request for Sponsored Project Access form is sent to the PI when the account is first opened. However, the form is available at any time. Instructions on how to create a requisition/purchase order on Banner Self Services is found at: http://myllu.llu.edu/ under Business/Finance, choose Forms & Docs, and then click on the Documentation folder.
For an employee to get reimbursed for out-of-pocket or operating expenses, complete and submit an Expense Report with itemized receipts to Research Affairs - Financial Management for approval. Charge card sales slips (e.g. MasterCard, VISA, or Diners Club) that are not itemized are unacceptable as documentation. Financial Management will then forward the report to University Accounting for check processing.
Expense Reports can be downloaded at: http://myllu.llu.edu under Business/Finance, choose Forms & Docs, and then click on the Forms folder.
Payment Vouchers should be used to pay invoices when using a purchase order is not applicable, for consultant payments (up to $5,000), and for other miscellaneous expenses such as memberships, delivery charges, etc.
LLU Accounting will send payment to the payee upon approval. If the requester would like to pick up the check when it's ready, attach a pink envelope with instructions.
LLU Rate Slips must be completed by the PI to add personnel expenses to the project. LLU rate slips must also be completed when a project is ending and personnel information changes such as percent of effort, status, pay grades, etc. In addition, rate slips must be processed through Research Affairs - Financial Management as soon as there is a change in personnel paid on sponsored project accounts.
Rate slips can be downloaded from the Human Resource Management page on VIP.
All requisitions using sponsored project funds, including campus requisitions,expense reports, and check requests, must have applicable authorizing signatures of approval in accordance with the respective LLU entity.
Before approving expenditures on sponsored projects, Financial Management reviews the request for the following:
- Allowable expense on award, in accordance with institutional, sponsor, and other applicable policy and regulations;
- Project funds are available;
- Compliance approvals are in active status, if applicable.
Many times, Financial Management is the second to last approving body in the process. Therefore, after Financial Management approves a document, it will be routed to the next/last approving body. For example, rate slips are routed to Human Resources Management and expense reports are routed to LLU Accounting, unless otherwise noted.