Overdrafts
PURPOSE
The purpose of this statement is to provide guidelines related to over expenditure of funds on a contract or grant fund.
GUIDELINES AND GENERAL POLICIES
Expenditures in excess of the funds awarded are unallowable. Also, federal, state and private awarding agencies do not allow the transferring of costs to other accounts to meet deficiencies caused by overruns, to avoid restrictions, or for other reasons of convenience. However, these transfers are allowable if the costs can be charged to an account which has the same technical goals and the costs have contributed to those goals.
PROCEDURES
It is the responsibility of the school's designated administrative personnel and the principal investigator to ensure that over expenditures do not occur or to transfer these costs if an account becomes over spent. Any account reflecting over expenditures must be reconciled and the excess costs transferred within 60 days after the date of occurrence. If this transfer is not made within 60 days, the Office of Contracts & Grants will transfer the costs to the department's operating budget or discretionary fund.
In cases where a continuation award or additional funding is in process, the Office of Contracts & Grants will allow an over expenditure if proof of additional funding is provided.
