Research and Sponsored Projects Manual (RSP)

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Effective: 7/1/1987

Revised: 11/1/2008

RSP 509–04: Sponsored Project Agency/Org Deficit

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Purpose

To establish the responsibility for a deficit on a sponsored project account

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Source

Office of the Vice President for Research and Economic Affairs (OVPREA)

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Policy

All financial transactions charged to a sponsored project are originated by the principal investigator (PI) or designee at the unit or department. Financial responsibility for project deficits therefore resides at that level. The principal investigator will be called upon to identify alternate funding sources for any deficits that occur. If the principal investigator has insufficient resources to cover the deficit, the department chair will be contacted for resolution. The college dean or center/institute director will be included as circumstances require. The responsible agency/org as identified in the unit hierarchy will be responsible to cover the deficit.

All deficits on sponsored projects must be cleared within 90 days of the award end date or 60 days after notification to principal investigator, whichever is later.

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ProcedureD

Responsibility	Action
Grant & Contract Accountant (GCA)	Notify the principal investigator and department administrator of the deficit via e-mail as soon as it is identified.
Principal investigator	Work with Grant and Contract Accounting (GCA), the department chair or center/institute director, and/or the college dean to identify alternate source of funds. Have an authorized signer on the identified alternate funding source agency/org authorize GCA via e-mail to transfer deficit in accordance with applicable cost accounting regulations.
GCA	Transfer deficit from the sponsored project deficit agency/org to the identified alternate funding source agency/org. If an alternate source of funds is not identified by the principal investigator within required time frame: Transfer deficit to the principal investigator’s Investigator Incentive Award account and/or contact the department chair, center/institute director, or college dean for an unrestricted account for transfer of the deficit balance and/or transfer the deficit balance to the center/institute/college Research Incentive Distribution account.

Responsibility

Action

Grant & Contract Accountant (GCA)

Notify the principal investigator and department administrator of the deficit via e-mail as soon as it is identified.

Principal investigator

Work with Grant and Contract Accounting (GCA), the department chair or center/institute director, and/or the college dean to identify alternate source of funds.
Have an authorized signer on the identified alternate funding source agency/org authorize GCA via e-mail to transfer deficit in accordance with applicable cost accounting regulations.

GCA

Transfer deficit from the sponsored project deficit agency/org to the identified alternate funding source agency/org.
If an alternate source of funds is not identified by the principal investigator within required time frame:

Transfer deficit to the principal investigator’s Investigator Incentive Award account
and/or
contact the department chair, center/institute director, or college dean for an unrestricted account for transfer of the deficit balance
and/or
transfer the deficit balance to the center/institute/college Research Incentive Distribution account.

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