Procedure: 8-30

Effective: June 1, 2004

Owner: Assistant Vice President for Research Administration in the Office of Sponsored Programs

Latest Revision: February 23, 2006

Sponsored Program Budget Deficits

Procedure Steps

Scope | System References | Policy | Responsibility | Distribution | Ownership

Scope

This procedure covers the handling of sponsored program award-projects that are in budget deficit.

System References [Top]

Policy [Top]

VIII.C.2

Responsibility [Top]

The Director of Award Management and Accounting in the Office of Sponsored Programs is responsible for day-to-day oversight of budget deficits as they pertain to sponsored program award-projects.

Distribution [Top]

University faculty and staff who submit proposals or process awards in connection with sponsored projects and awards.

Ownership [Top]

The Assistant Vice President for Research Administration in the Office of Sponsored Programs is responsible for ensuring that this procedure is necessary, reflects actual practice, and supports University policy.

Procedure Steps [Top]

This activity is performed whenever sponsored award-projects are in budget deficit. OSP will facilitate the management of budget deficits as follows:

1. During the first ten days of each month, OSP will identify sponsored program projects that are in budget deficit.

2. Having identified such projects, OSP will prepare a notification letter, the Sponsored Programs Budget Deficit Letter, by the 15th of each month. These letters will be distributed to the fiscal contact identified in the Integrated System for the sponsored project-owning organization (see Appendix A).

3. The fiscal contact in receipt of a Budget Deficit Letter (described in 2 above) should respond to OSP within 30 days, using osp-deficits@virginia.edu to provide any pertinent information about the deficit, including an action plan to rectify the situation.

4. If the fiscal contact does not respond to the first Budget Deficit Letter within 30 days, OSP will transfer the deficit to the sponsored project-owing organization’s F&A award without further notice.

5. If corrective action has not been taken in response to the first notice, OSP will prepare and distribute the Second Notice deficit Letter, 30 days after the first notice (see Appendix A and note Second Notice in Award Listing).

6. If, 30 days after the second notice, corrective action has not been taken on either the first or second notice to clear the deficit, OSP will prepare and distribute a FINAL Notice Deficit Letter to the fiscal contact. At this time, OSP will also send a memo to the department chair showing all final notice requests for projects under their purview (see Appendix B). If the deficit is not corrected within 10 days of the date of the FINAL Notice Deficit Letter, OSP will move the overages to departmental F&A awards in accordance with policy https://policy.itc.virginia.edu/policy/policydisplay?id=FIN-003 and with this procedure.

7. During the ten day period after the FINAL Notice Deficit Letter has been issued by OSP, proof must be provided to OSP that corrective action has been taken, in order to prevent OSP from moving the deficit. The proof may be an integrated system batch name or official sponsor documentation that additional funding is to arrive.

8. OSP will use standard comments in the expenditure batches for easy identification of deficit transactions, as follows: “Cost Sharing – to transfer project/award overrun to a non sponsored program account.”

9. Any deficit charges that are cleared via this process may not be moved back onto any sponsored program source without written approval from the Director of Award Management and Accounting in the Office of Sponsored Programs.

10. Deficits originating from any of the following ACTIVE accounts will NOT be moved to a departmental overhead award without direct contact from OSP: clinical trial accounts; preliminary accounts; program income accounts.

NOTE: For all communications, the department personnel should use the osp-deficits@virginia.edu email address.

End of Activity

 

 

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