Sponsored Research Deficit Procedures

Managing Deficits for Sponsored Research Funds

Deficit Definition: The amount by which final cumulative expenditures exceed the budget amount after final reconciliation by SPF* (see link below for more info). This can be caused by: 1) expenditures beyond the authorized amount by the sponsor; 2) non-payment by the sponsor even if expenditures are within original authorized amount (see Cash Deficit below), or 3) untimely submission of FER in which case, SPF only bills or draws cash per ledger for final reports without final FER.

*Closeout Process

PROCESS:

Deficit is expected to be cleared by Departments within 120 days of the award end date.  

Transferring/clearing deficits 

Deficits must be cleared by expense cost transfers (non-salary and salary). For help with cost transfers, click here.
SPF can prepare a small write off for Departments if there are only personnel related expenses remaining and under the write off threshold. 
Departments may run the Award Closeout Report at the FinU or award level to determine deficits or balances at time of closeout.

Cash Deficits

On occasion, sponsor’s non-payment for 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 account receivable amount is deemed uncollectable, SPF will:

• Provide the finalized amount paid by the sponsor to the Department
• Do a budget de-allocation to match the amount of cash the sponsor has paid
• Department must process cost transfers to clear the deficit and match the paid amount.