Sponsored Research Deficit Procedures
Learn how sponsored research deficits are identified and cleared, including department responsibilities, cost transfer requirements, and procedures when sponsor payments are uncollectible.
What Is a Sponsored Research Deficit?
A sponsored research deficit is the amount by which final cumulative expenditures exceed the budget amount after final reconciliation by Sponsored Projects Finance (SPF).
Deficits may be caused by:
| Cause | Description |
|---|---|
| Expenditures exceed the authorized amount | Expenditures exceed the amount authorized by the sponsor. |
| Sponsor non-payment | The sponsor does not pay the full amount billed, even when expenditures are within the original authorized amount. See Cash Deficits below. |
| Untimely FER submission | When a Financial Expense Report (FER) is not submitted on time, SPF bills or draws cash based on the ledger for the final report without the final FER. |
See the Sponsored Research Closeout Process for additional information.
Clearing Sponsored Research Deficits
Departments are expected to clear deficits within 120 days of the award end date.
| Action | What to do |
|---|---|
| Review the balance | Run the Award Closeout Report at the FinU or award level to determine deficits or remaining balances at the time of closeout. |
| Clear the deficit | Deficits must be cleared through expense cost transfers, including non-salary and salary cost transfers. For help with cost transfers go to Cost (Expense) Transfers Overview. |
| Review small personnel-related balances | SPF may prepare a small write-off for departments when only personnel-related expenses remain and the amount is below the write-off threshold. |
Cash Deficits
On occasion, sponsor non-payment for an amount billed may result in a deficit. Non-payment may occur for a variety of reasons.
When SPF has exhausted all attempts to collect payment and the outstanding accounts receivable amount is deemed uncollectible, SPF will:
- Provide the department with the finalized amount paid by the sponsor.
- Process a budget de-allocation to match the amount of cash paid by the sponsor.
The department must process cost transfers to clear the deficit and match the amount paid.