OHSU

SPA Policy on Overdrafts

No. 04-40-005.100

Content

I. Reason

II. Type of Overdrafts and their resolution.

 

I. Reason

The reason for this policy is twofold: (1) Investors and sponsors need assurance that OHSU fully funds its expenditures and properly manages its assets.  (2) Prospectively, early identification of unreimbursable or unplanned expenditures allows the administration to assist departments in seeking reimbursement from sponsors and increases the likelihood that these expenditures will be reimbursed.  In resolving overdrafts, care must be taken to ensure transfer of expenses (cost transfers), or other actions taken, are in accordance with University and federal guidelines, i.e. are reasonable, timely, allocable and appropriate.  Sponsored Project Administration (SPA) personnel should be contacted for final disposition.

 

II. Types of Overdrafts and their resolution

Type

Cause

Action Required

Responsibility

Preaward Spending

This overdraft occurs when SPA sets up a preaward account in anticipation of award funding and departments incur expenditures before funding.

Refer to SPA Procedure No. 06-40-001.130, Pending Awards for Sponsored Accounts

· Post budget funds to the accounting system when OHSU receives official award notification from the sponsor or

· Transfer expenditures to an unrestricted account if award funding is not received in 90 days.

Refer to OMB Circular A-110 C.25.e.(1)

· SPA should post awarded budgets to the accounting system or

· The department should notify SPA of the appropriate transfer and submit appropriate documents to move expenses

Accelerated Spending

This results from a department performing project activity earlier than anticipated in excess of current year funding.

· Obtain written approval from the grant officer if accelerated spending is (will be) incurred 90 days prior to the continuation year begins.

· Establish continuation account and transfer appropriate expenses

Refer to OMB Circular A-110 C.a-e

· Department should obtain grant officer approval through SPA

· Department request continuation account and notify SPA of the appropriate transfer and submit payroll/journal documents to move expenses

· SPA should process the department request

Expenses posted to the prior year budget account

This overdraft occurs when current expenses are charged to an expired account instead of the appropriate continuation account.

(The assumption is that the continuation account has been established.)

· Post appropriate expenditures to the continuation account

· Disable/close expired account

· Update feeder systems and payroll for continuation account

· Department should notify SPA of the appropriate transfer and submit payroll/journal documents to move expenses

· Departments should use appropriate fund number/notify feeder systems of change and update payroll

Cost Overruns

Typically when a project has ended and/or incurred expenses most likely will not be reimbursed by the sponsor(s), a cost overrun results and must be absorbed by an unrestricted account.

· Evaluate if supplemental funding from sponsor is an option or

· Contact SPA to transfer the overrun to a designated nonsponsored department account using object code '589902' Grant Overspent Transfer. SPA will use revenue object code '489902' to move surplus funding for clinical trials.

Refer to OMB Circular A-21 C.4(b))

· PI contact awarding agency for supplemental funding availability

· Department should notify SPA of the appropriate transfer and submit payroll/journal documents to move expenses

· SPA should process the department request



 

 

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