Policy Statement
Deficits in University accounts are not permitted. Accounts should be reviewed each month by Account Sponsors to insure that deficits do not occur. Deficits arise from overspending budgeted amounts in 02, 11, 12, 13, 14, 40, 43, 44, 45, 46, 47 and 48 accounts and overspending cash balances in 03, 05, 06, 07 and 90 accounts. In all cases, Account Sponsors are ultimately responsible for the financial management of their accounts. If a deficit is projected or indicated, immediate action should be taken to prevent or correct the problem.
Note: Budget transfers between accounts must be made by March 31 of the current fiscal year. See Budget Management concerning year-end account balances in E & G accounts. (90 percent of the balance, p to 25 percent of the original budget. Any surplus (unencumbered balance) is restored to the subsequent years budget during the second quarter of the year; deficits in account(s) at June 30 are charged against the next year's budget.)
Requisitions and purchase orders that place an account in a deficit position are not processed by the Purchasing System. Invoices presented to the Office of Business Affairs that result in a deficit, if paid, are also returned to the Account Sponsor. Purchases of products or services from internal University departments (such as Copy Zone, Riverhawk Shoppe, Motor Pool, etc.) are not allowed from accounts with deficit balances.
If any account reflects a deficit without proper documentation, the Account Sponsor and the respective Vice President will immediately be notified. Unless the deficit is cleared or written approval for a temporary deficit is provided within 30 days of notification, all financial activities within the account will be suspended. This will include wage payrolls and all internal billings.
Documentation
A written request with documentation for authorization of an account deficit must be provided to the Director of Budgets. Verbal requests are not accepted.