Billing & Payments

The Office of Sponsored Programs (OSP) – Post-Award is responsible for billing most sponsored awards, tracking the related receivables, and collecting money. Billing is based on actual expenditures posted to Banner, the University’s system of record.

There are exceptions where billing is best prepared by the department. Examples include clinical trial agreements or when the terms of an award call for specific information or deliverables. In those cases, the department will issue a departmental bill. Departments are expected to send their departmental bills to OSP to review and record in Banner. This will allow for timely follow-up on unpaid invoices if necessary.

Billing Terms

The contract/award document describes the payment terms for the award. On a cost reimbursable type of award, the sponsor agrees to reimburse for all allowable expenses incurred by the project after receiving an invoice from the University. On a fixed-price contract, the University receives a fixed sum of payments based on a pre-determined schedule, project milestones, tasks or other deliverables.

For many Federal awards, cash is "drawn" from the U.S. Treasury based on the expenditures recorded in Banner.

Final Invoice

Many award documents set a date for receiving the final invoice. If the invoice is submitted late or if there are expenditures not reflected on the final invoice, the sponsor may refuse to pay for those expenses. If this happens, the department may be responsible for the unpaid expenditures. It is therefore extremely important that expenditures be reflected accurately and timely in Banner. See the Closeout Award Section for more information on Final Invoices.

OSP-Post-Award Responsibilities Heading link

OSP – Post-Award will complete the billing task, including letter of credit draws, in accordance with the terms and conditions of the award, except for Clinical Trials and Fee-For-Service Agreements.

OSP – Post-Award billing methods are as follows:

  • Cost Reimbursable: Expenditures are billed or “drawn” based on the actual expenditures posted in Banner.
  • Fixed: Fixed amounts are billed which are tied to a specified date or deliverable.

OSP – Post-Award monitors aged receivables and performs collection activities when invoices are over 60 days past due. In addition to reaching out to the sponsor for payment of unpaid invoices, OSP – Post-Award may involve the department when payment issues relate to technical aspects of the award.

Departments should read and understand the billing terms and due dates for submitting invoices, including the final invoice requirements for their awards.

When departments post expenditures to the grant in Banner, they are essentially certifying that the expenses are reasonable, allocable, allowable, and within the award budget and project period.  Expenditures should post to the grant in a timely manner and cost transfers after 90 days are discouraged.

In cases where billing is best handled by the department, a copy of the invoice should be sent to the specialist who manages your grant, to review and to record in Banner.  This will ensure Banner ledgers are accurate, receivables are aged properly and outstanding receivables are follow-up in a timely manner.

The OSP – Post-Award cash management team post payments and maintains records of all payments received for sponsored awards. Sponsors may send payment electrically or by check to the UIC’s secured post office box (i.e. the “lockbox”):

University of Illinois at Chicago – Grants and Contracts
28395 Network Place
Chicago, IL 60673-1283

If a sponsor wants to submit payment electronically, the department should contact the specialist who manages your grant for banking information.