Post Award Financial Administration Guidelines 2008

Cost Overruns

How To Eliminate Deficit Balances (Cost Overrun)

It is the responsibility of the department head, fiscal administrator, principal investigator and/or responsible person to ensure that adequate funds are available for expenditure transactions, including payroll disbursements. Should any index greater than $500, be in a deficit position after the 15th of the month, the vice president will be notified. Exceptions to this policy will be granted only when special arrangements have been made in advance. Such arrangements must include a specific plan for eliminating the deficit on a permanent basis.

1. A deficit report will be available to fiscal administrators on Banner Reporting Center daily and updated each month. A summary copy may be printed by FA, PI, and major budget unit for each dean or administrative division head. When an index appears in a deficit balance, transactions to clear the index must be processed by the 15th of the month.
2. Any Index reflecting a deficit greater than $500 after the 15th of the month without special arrangements in place will be reported to the appropriate vice president. The vice president will be requested to ask the department to make a transfer to eliminate the deficit.