Sponsored Awards - Budget Overdrafts
REG 10.05.11
Authority:
Vice Chancellor for Finance and Business
History:
First Issued: July 1, 2002.
Contact Info:
Assistant Director, Systems and Compliance (919) 515-8018 Office of Contracts and Grants .
1. Introduction
This statement explains budget responsibilities for sponsored awards and
the criteria to be used by Colleges/Schools/Departments/Units when budget
overdrafts occur.
It is the responsibility of the Colleges and the Principal Investigator to
ensure that overexpenditures on sponsored awards do not occur. "Preaudit" reviews performed by the Colleges or the designated personnel should identify
transactions which, if processed, will result in overexpenditure.
2. Rule
2.1. Expenditures in excess of officially funded award amounts are unallowable.
2.2. It is the responsibility of the College to resolve overdrafts as quickly
as possible.
2.3. Federal, State and private sponsors do not permit the transfer of costs
to other sponsored awards for the purpose of:
2.3.1. Eliminating overdrafts caused by expenditure overruns,
2.3.2. Avoiding restrictions, OR
2.3.3. Other reasons of convenience
3. Guidelines for Correcting Budget Overdrafts
3.1. The Office of Contracts and Grants provides a monthly direct cost overdraft
report to College Business Officers. Projects reflecting direct cost expenditures
in excess of the approved budget must be reconciled to the budget and excess
costs transferred within 30 days after receipt of the overdraft report.
3.2. If a college fails to eliminate a budget overdraft within 60 days, the
Office of Contracts and Grants may elect to transfer the costs to the department's
operating budget or discretionary speed-type.
3.3. The College may request that a budget overdraft be allowed to continue
beyond the 30-day deadline if proof of additional funding is provided in
writing (from the Sponsor's administrative/financial authority) to the Office
of Contracts and Grants. In these cases, the College retains full responsibility
for all overexpenditures in the event funding is not received.
