Cost Overdraft Policy
Policy Statement
To establish responsibility regarding unresolved sponsored project overdrafts. Overdrafts are comprised of salary and/or other direct cost expenditures and commitments, which exceed the authorized total sponsored project award amount.
Roles and Responsibilities
Principal Investigator (PI) – Responsible for the fiscal management of a sponsored research project and required to review grant transactions monthly. PIs may initiate appropriate corrective action for overdraft that may include, but is not limited to:
- Notification and supporting documentation to SPA that additional funds are forthcoming.
See also: Advance Account Authorization Policy and Advanced Account Authorization Form - Correction of an error or reversal of a prior decision regarding where expense should be charged per the Cost Transfers Policy.
- Transfer of overdraft(s) to an appropriate unrestricted account.
The PI may delegate this responsibility to the departmental Grant Administrator or Business Manager.
See also: Grant Expenditure Review Policy and Signature Card Policy.
Departmental Grant Administrator or Business Manager – (with authority from the PI) Initiate appropriate corrective action for overdraft that may include, but is not limited to:
- Notification and supporting documentation to SPA that additional funds are forthcoming.
See also: Advance Account Authorization Policy and Advanced Account Authorization Form - Correction of an error or reversal of a prior decision regarding where expense should be charged per the Cost Transfers Policy.
- Transfer of overdraft(s) to an appropriate unrestricted account.
Sponsored Program Accounting (SPA) – SPA Grant Administrators routinely monitor grant overdraft and will notify the Principal Investigator, the departmental Grant Administrator and/or Business Manager as needed if there are accounting units requiring overdraft resolution.
Policy
SPA sends notifications when a sponsored program account is in overdraft and requests the department to rectify the overdraft within 45 days. Notification is sent by either monthly Reporting Services reports or SPA Grant Administrator outreach. The 45 day resolution window begins with the earlier(est) notification if more than one notification is sent.
- If the account is not rectified after 45 days, the SPA Grant Administrator may escalate to SPA management for further assistance.
- If resolution is not reached, SPA management will contact ORS for assistance.
- If after ORS involvement, resolution to the satisfaction of all parties is not achieved, further escalation including contacting the Dean/Chair and the Office of the Provost for assistance may be considered.
Cost Overdraft Policy: Posted 07/19/2024; Last Reviewed 07/19/2024
Policy Statement
To establish responsibility regarding unresolved sponsored project overdrafts. Overdrafts are comprised of salary and/or other direct cost expenditures and commitments, which exceed the authorized total sponsored project award amount.
Roles and Responsibilities
Principal Investigator (PI) – Responsible for the fiscal management of a sponsored research project and required to review grant transactions monthly. PIs may initiate appropriate corrective action for overdraft that may include, but is not limited to:
- Notification and supporting documentation to SPA that additional funds are forthcoming.
See also: Advance Account Authorization Policy and Advanced Account Authorization Form - Correction of an error or reversal of a prior decision regarding where expense should be charged per the Cost Transfers Policy.
- Transfer of overdraft(s) to an appropriate unrestricted account.
The PI may delegate this responsibility to the departmental Grant Administrator or Business Manager.
See also: Grant Expenditure Review Policy and Signature Card Policy.
Departmental Grant Administrator or Business Manager – (with authority from the PI) Initiate appropriate corrective action for overdraft that may include, but is not limited to:
- Notification and supporting documentation to SPA that additional funds are forthcoming.
See also: Advance Account Authorization Policy and Advanced Account Authorization Form - Correction of an error or reversal of a prior decision regarding where expense should be charged per the Cost Transfers Policy.
- Transfer of overdraft(s) to an appropriate unrestricted account.
Sponsored Program Accounting (SPA) – SPA Grant Administrators routinely monitor grant overdraft and will notify the Principal Investigator, the departmental Grant Administrator and/or Business Manager as needed if there are accounting units requiring overdraft resolution.
Policy
SPA sends notifications when a sponsored program account is in overdraft and requests the department to rectify the overdraft within 45 days. Notification is sent by either monthly Reporting Services reports or SPA Grant Administrator outreach. The 45 day resolution window begins with the earlier(est) notification if more than one notification is sent.
- If the account is not rectified after 45 days, the SPA Grant Administrator may escalate to SPA management for further assistance.
- If resolution is not reached, SPA management will contact ORS for assistance.
- If after ORS involvement, resolution to the satisfaction of all parties is not achieved, further escalation including contacting the Dean/Chair and the Office of the Provost for assistance may be considered.
Cost Overdraft Policy: Posted 07/19/2024; Last Reviewed 07/19/2024