Revenue reconciliation

Revenue reconciliation is the process of ensuring that all revenues recorded in the project’s financial records match the actual amounts received and are consistent with other financial data sources. It’s a critical aspect of financial management, ensuring accuracy in financial reporting, identifying discrepancies, and maintaining financial integrity.

Industry Initiated clinical trials

The department, together with the clinical research team, maintains a Milestone Tracker. This tracker should be updated monthly by the clinical research team and includes patient enrollment and invoiceable activities that have been negotiated in the budget and are payable by sponsor, such as IRB renewals, IRB amendments or Training completed by the team just to name a few. The post-award Fund Manager invoices the sponsor for invoiceable cost monthly (if applicable) and allocates automated patient enrollment payments received from sponsor to the project number upon receipt of sponsor’s remittance summary.  

Investigator Initiated clinical trials

The department, together with the clinical research team, maintains a Milestone Tracker, if applicable.  The tracker should be updated monthly and the department post-award Fund Manager engages the Sponsored Projects Finance Accountant (SPF Accountant), to invoice the sponsor for payments due. If some/all payments are automatically issued upon completion of the milestone, the sponsor is asked to submit a remittance summary so the department can allocate payments to the project #. 

For cost-reimbursable projects, the monthly cost allocated to the project number will trigger SPF accountant to invoice the sponsor.  

At least quarterly, the post-award FM reviews all invoices submitted, payments received, and cost allocated to the project with the PI.  At the end of the project period, revenue and cost will go through final reconciliation. The sponsor is contacted to pay any unpaid invoices and unpaid cost will be paid for to the service provider (i.e. Rady Children’s Hospital).  

At time of close-out, Industry initiated clinical trial balances (negative or positive) are moved to the investigator’s discretionary fund.

Disposition of balances for investigator initiated projects need to be determined together with SPF and according to contract terms.