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.

OSA Clearing Process for Departments FY17
Transactions Posted to OSAs for Pay Periods between: Deadline to Originate OSA LD Adjustments Deadline to Approve OSA LD Adjustments Action Description
09/01/2016 and 11/30/2016 12/15/2016 – 5PM 12/15/2016 – 5PM

Remaining suspense balances will be swept to the designated Transfer PTA on file

A $25 per payroll line fee will be charged and posted to DEC-2016
12/01/2016 and 02/28/2017 03/15/2017 – 5PM 03/15/2017 – 5PM

Remaining suspense balances will be swept to the designated Transfer PTA on file

A $25 per payroll line fee will be charged and posted to MAR-2017
03/01/2017 and 05/31/2017 06/15/2017 – 5PM 06/15/2017 – 5PM

Remaining suspense balances will be swept to the designated Transfer PTA on file

A $25 per payroll line fee will be charged and posted to JUN-2017
06/01/2017 and 07/31/2017 *08/15/2017 – 5PM *08/15/2017 – 5PM

Remaining suspense balances will be swept to the designated Transfer PTA on file

A $25 per payroll line fee will be charged and posted to AUG-2017
08/01/2017 and 08/31/2017 *TBD *TBD

Remaining suspense balances will be swept to the designated Transfer PTA on file

Fees waived

*Year-End Close Deadlines:  To guarantee same night processing, suspense LDAs must be end-routed to OSR/Fund Accounting by 3pm. This will provide end-route approvers two hours to review and approve the transaction by the approval deadline as noted above.

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