Sponsored Project Agency/Org Deficit
Purpose: To establish the responsibility for a
deficit on a sponsored project account.
Source:Policy Statement dated May 1990 and University
Policy: All financial transactions charged to a sponsored
project are originated by the project direct or designee at the unit or
department. Financial responsibility for project deficits therefore
resides at that level. The project director will be called upon to
identify alternate funding sources for any deficits that occur. If the
project director has insufficient resources to cover the deficit, the department
chair, and ultimately the dean, may be contacted to assist.
All deficits on sponsored projects must be cleared within 120
If Costs Exceed the Sponsor's Funding at Project Completion.
If costs exceed the sponsor's funding at project completion, Post Award Accounting Services and Fiscal Compliance (PAASFC) will take one or more of the following steps
until all project costs are covered:
- write a memo to the project director
requesting an alternative unrestricted fund source to absorb the overrun.
- contact the department chair, dean or
other contact person at the college level for an unrestricted account to absorb
the cost overruns
- cover the cost overruns from the college,
department, or center's facilities and administrative cost recovery funds.