GAP NO. 200.185
Unfunded Expenditures on Sponsored Projects

I.	General
II.	Procedure
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I. GENERAL

The University must ensure that sponsored projects are not overspent and that they comply with sponsor and University restrictions.

When project expenditures exceed project funding, an unauthorized diversion of General Fund resources has been made, thereby hampering the ability of University Officers and the Board of Trustees to make informed decisions with regard to available discretionary funding in the Current Unrestricted-operating budget. Overexpenditures on Sponsored Projects must be transferred as quickly as possible to an appropriate cost center.

 

II. PROCEDURE

Each month the Office of Sponsored Programs will notify departmental administrators, and appropriate university officers of sponsored projects expenditures in excess of funds available. Departmental personnel must immediately remove the unfunded expenditures from the sponsored project or obtain additional funding.

After the third notification of a project overrun, the Office of Sponsored Programs will transfer the project overrun first to the departmental Current Allocated cost center (45x), or if that is not available, to the departmental Current Unrestricted operating cost center (15x).

If a department is obtaining additional funding to cover the overexpenditures, the sponsor must verify the amount and use of the funds. Future funding increments are not used to fund current budget overruns; such practices result in large overruns at the end of the project.

 

GAP History
Issued:	September 1994
Revised:	October 2001
Revised:	February 2003