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.
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 days.
Procedure
If Costs Exceed the Sponsor's Funding at Project Completion
If costs exceed the sponsor's funding at project completion, Sponsored Projects Services (SPS) will take one or more of the following steps until all project costs are covered:
1) write a memo to the project director requesting an alternative unrestricted fund source to absorb the overrun.
2) contact the department chair, dean or other contact person at the college level for an unrestricted account to absorb the cost overruns
and/or
3) cover the cost overruns from the college, department, or center's facilities and administrative cost recovery funds.