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Account Overdrafts

All overdrafts are the responsibility of the PI. Overdrafts on an account will result in a negative cash position until they are resolved. Overdrafts result from expenditures made to the account in error, project expenditures that were greater than the awarded budget, or expenditures that are charged after the project end date.

If expenditures were made to the account in error, after the end date, or in excess of the approved budget, a cost transfer should be initiated by the PI to move the expenditures to the appropriate account(s). All cost transfers must be fully documented and processed in a timely manner (See the Policy and Procedures on Cost Transfers). All deficits should be cleared within the fiscal year that they occur, especially those charges that are to be transferred to a departmental account. The PI is responsible for reviewing sponsored accounts for overdrafts periodically during each fiscal year. Sponsored Programs Services will mail notices of overdrafts to each PI on a monthly basis.

It is the responsibility of the PI and his/her department to clear any remaining deficits within 60 days of account expiration. This will allow the sponsored account to be closed within the time specified in the agreement and to be removed from the University’s KFS system in a timely fashion. Failure by the Investigator and his/her Department Head or Chair to identify an appropriate account to which to allocate the over draft will cause the SPS to shift the deficit to an unrestricted departmental account or to any of the PI’s discretionary accounts, including the indirect return accounts and/or salary savings accounts.