Policy: Management of Sponsored Program Awards in a Budget Deficit
|Date: 06/23/04||Policy ID: FIN-003||Status: Final|
|Contact Office:||Sponsored Programs|
|Oversight Executive:||Executive Vice President and Chief Operating Officer|
|Applies To:||University faculty and staff who submit proposals or process awards.|
|Table of Contents:|
|Reason for Policy:||To manage sponsored program award-projects that are in a budget deficit.|
|Definition of Terms in Statement:||
Deficit: For the purposes of this policy, a deficit is defined as a project where expenditures and outstanding commitments have exceeded the total amount budgeted.
Sponsored Program awards and projects are created as the result of an agreement with a funding agency. The budget is established at a high level according to sponsor requirements. The Office of Sponsored Programs (OSP) collects payment on actual expenditures, up to the limit of the budget. Sponsored Program awards and projects are unique, in that the State allows for the charging of expenditures before the collection of cash. However, the University must use other resources to fund Sponsored Program expenditures until the actual funds are received from the sponsor. Since overcharges/overruns cannot be billed to the sponsoring agency, deficit awards place additional constraints on already limited University resources.
OSP is charged with filing financial reports required by the sponsoring agencies. In general, federal reports are due 90 days after the completion date of the project. The reports cannot be filed when a deficit exists or the award contains outstanding commitments. Many sponsoring agencies may delay issuing awards or withhold scheduled payments because of delinquent financial, progress or technical reports. It is not possible for an award-project combination that is in deficit to be billed.
The principal investigator is responsible for ensuring that the Sponsored Program project does not exceed the budget.
|Procedures:||Sponsored Programs Procedure 8-30 provides more detailed information on the handling of budget deficits.|
|Major Category:||Finance and Business Operations|
|Category Cross Reference:||Research Administration|
|Next Scheduled Review:||06/23/12|
|Approved By, Date:||Policy Review Committee, 06/23/04|
|Revision History:||Updated 10/15/09. Previous version in effect from 6/23/04 to 10/14/09.|
|Supersedes (previous policy):||Budget Deficit VIII.C.2|