Policy Notes: Organization Suspense Accounts (OSA)
An Organization Suspense Account (OSA) is a PTA that is set up for each organization to hold payroll transactions that have been rejected by the Oracle Financials system.
An OSA audit review in 2011 concluded that OSA transactions are not consistently cleared in a timely manner. Delays in OSA clearing result in:
- Sponsor (and other party) invoice errors, as accounts are not charged in the appropriate time frame
- Year-end departmental overdrafts due to accounts being over/under budgeted
- Fraudulent activity that is not identified in a timely manner
- Delay in collecting money due to the University
- Uncollectable outstanding balances due to non-compliance
In January 2012, the University implemented a policy to expedite the clearing of OSAs. This policy includes a 'sweep' process that periodically moves suspense transactions to clearing accounts and imposes a $25 fee for each payroll line not cleared from an OSA by the published deadlines. OSA balances are transferred with the 51610 expenditure type which burdens at the highest burden rate available. For current rates, visit Stanford Rates on the DoResearch web site.
|Transactions posted to OSAs for pay periods between:||Deadline to Originate and Approve OSA LD Adjustments:||Action Description|
|09/01/2013 and 11/30/2013||01/31/2014 – 5:00 PM||
|12/01/2013 and 02/28/2014||03/31/2014 – 5:00 PM||
|03/01/2014 and 05/31/2014||06/30/2014 – 5:00 PM||
|06/01/2014 and 07/31/2014||08/15/2014 – 5:00 PM||
|08/01/2014 and 08/15/2014||*08/27/2014 – 5:00 PM||
|08/16/2014 and 08/31/2014||*09/04/2014 (tentative) – 5:00 PM||
* Year-End Close Deadlines
- The $25 fee will not be imposed for the 8/15/14 and 8/31/14 pay periods.
- Requests for fee waivers will be reviewed on a case-by-case basis