Optimizing Sponsored Research Accounting and Accounts Receivable Management at the University of South Carolina

Project at-a-Glance

Overview of USC’s Sponsored Research Accounting Engagement

Two years after implementing PeopleSoft, the University of South Carolina (USC) identified that its aged research-related Accounts Receivable (A/R) balance had increased by more than $50 million. USC engaged Attain Partners to perform a high-level analysis and sample testing of the outstanding A/R population. Through this assessment, Attain Partners identified several operational and system-related challenges tied to the system conversion, including data conversion errors, historic cash misapplications, and inefficient billing and reconciliation processes.

Resolving Accounts Receivable and Research Reconciliation Challenges

USC’s Sponsored Research Accounting team faced several interconnected challenges affecting the accuracy and reliability of research-related A/R balances. Approximately half of the outstanding A/R balance stemmed from data conversion errors that overstated revenue and A/R balances. More than 500 awards required individual reconciliation to cash activity, along with adjustments to A/R and revenue balances before projects could be properly reconciled and closed.

In addition, approximately 20 percent of Letter of Credit (LOC) awards contained historic cash misapplications that created unreliable and uncollectible A/R balances. USC needed to reconcile these awards against sponsor payment systems to identify actual payments received and correct the associated accounting records.

The university also identified opportunities to improve operational processes through implementation of batch billing with pro forma invoicing, a formal final financial reporting process aligned to timely closeout activities, and a recurring LOC reconciliation process to strengthen payment application accuracy and A/R monitoring.

Objectives for Sponsored Research Accounting Improvement

USC partnered with Attain Partners to complete the reconciliation and cleanup activities necessary to resolve conversion-related A/R and revenue errors while improving operational processes for long-term sustainability. Together, the teams focused on collecting outstanding receivables and implementing process improvements, including batch billing, final financial reporting, timely closeout procedures, and recurring LOC reconciliation activities.

Embedded Operational Support for Sponsored Research Accounting

Attain Partners worked closely with leadership from USC’s Controller’s Office and Sponsored Research Accounting management team throughout the engagement, serving as an embedded extension of USC’s Sponsored Research Accounting office. The team prioritized understanding USC’s historical context, operational culture, institutional priorities, business processes, and system capabilities before developing recommendations and solutions.

Through this collaborative and immersive approach, Attain Partners designed remediation strategies, workflow improvements, and cleanup and reconciliation solutions that aligned with USC’s day-to-day operations while remaining technically sound and sustainable. Each component of the strategy was developed alongside university stakeholders, allowing both teams to validate assumptions early, refine approaches based on operational feedback, and integrate solutions directly into USC’s existing environment. Once acclimated, Attain Partners worked side by side with USC leadership and staff to improve operational workflows and execute much of the cleanup and reconciliation effort.

Implementing Sustainable Billing and Reconciliation Processes

Attain Partners implemented several operational and reconciliation processes to address both immediate cleanup needs and long-term process improvement goals.

Open Project Reconciliation and A/R Cleanup

First, Attain Partners established a reconciliation-to-cash and expenses process for all open projects to identify A/R and revenue conversion errors. Consultants reconciled the backlog of open projects, corrected revenue and cash discrepancies, and supported collection efforts where necessary.

Letter of Credit Award Reconciliation

For LOC awards, Attain Partners implemented a reconciliation-to-sponsor-cash process to identify misaligned cash applications. Consultants reconciled each LOC award against sponsor system records while continuing to draw corrected amounts regularly to maintain ongoing cash flow.

Monthly Billing and Cash Application Processes

To support long-term operational consistency, Attain Partners designed and trained USC staff on an ongoing monthly LOC billing and cash application process to improve payment application accuracy and A/R monitoring. The team also designed, tested, and supported implementation of a batch billing process for both LOC and non-LOC awards. This process streamlined monthly billing activities while maintaining regular expense review and oversight.

Outcomes and Operational Impact

The engagement delivered significant operational and financial improvements for USC’s Grants and Funds Management Office.

In addition, Attain Partners supported cleanup, reconciliation, and resolution of several complex programs, including INBRE and T32 awards. USC also reduced compliance risk through implementation of recurring LOC billing and cash application procedures, along with formalized final financial reporting and closeout processes. These improvements strengthened financial oversight, improved reporting reliability, and established more sustainable sponsored research accounting operations moving forward.

Attain Partners – Specialists in Sponsored Research Accounting and Grants Management Operations

Attain Partners collaborates with colleges and universities to strengthen sponsored research accounting, improve grants management operations, and support sustainable post-award administration practices. Our teams bring deep experience in research finance, reconciliations, billing operations, award closeout, compliance oversight, and operational process improvement tailored to the needs of higher education institutions.

About the Authors

Nadia Kikilo is an Associate Director with Attain Partners with over 20 years of experience serving Higher Education clients within various research administration areas. She has extensive experience in major post-award reconciliation and cleanup engagements. Nadia holds an MBA and an MS in Business Technologies.

Marie Baka is a Senior Leader in the Research Enterprise Services practice of Attain Partners. Ms. Baka has over 16 years of experience in grants management and research administration. Ms. Baka specializes in central post-award management and compliance, including financial reporting and policy development. She also has experience managing post-award shared services departments and managing centralized subaward compliance.

Nicole Cohee is a Leader with Attain Partners with more than 20 years of experience in research administration, grants accounting, and grants management across higher education and nonprofit organizations. She is a seasoned research administrator with extensive experience supporting large research institutions through complex post-award initiatives, with expertise in award reconciliation and closeout projects, federal reporting, award setup, accounts receivable research and collection, post-award staff management and training, and the development of policies and procedures. Nicole has also provided senior post-award leadership support, helping institutions strengthen post-award operations, resolve complex financial issues, and improve processes.

Mr. Ian Cashman is a Senior Associate in the Research Enterprise Services practice of Attain Partners. He has experience in central office post-award grants administration, including compliance, financial analysis, reporting, LOC management, reconciliation, and closeout. Mr. Cashman also has experience in post-conversion cleanup involving payroll accounting adjustments.