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Award Acceptance & Administration

Account Closeout

Overdrafts

Tool Kit

Templates:

Institutional Audit Report:

Submit Underwrite Request:

What: An overdraft occurs when expenses booked to an account total more than the awarded budget or more than the income that has been received.

Why: In the quest to properly spend all available funds, overdrafts can inadvertently occur. Indiana University Institutional Policy # III -60 "Overdrafts and Audit Disallowances" states that overdrafts and audit disallowances on sponsored program accounts are the responsibility of the project director and fiscal officer.

How: When an overdraft occurs, the Office of Research Administration will send an "Overdraft Notice" to the fiscal officer detailing the amount of the overdraft and the requested action. If no action is taken within 30 days, the overdraft will be moved to the departmental continuation account as listed in the Financial Information System (FIS). The overdraft notice gives the following suggestions for resolution:

If the overdraft has been caused by expenses that have been charged to the account in error:

Remove salaries, wages, and benefits using the Salary Transfer (ST) or Benefits Transfer (BT) document. Remove all other charges using a General Error Correction (GEC).

If the overdraft has been caused by overspending within the scope of the project:

Send the Office of Research Administration staff member an account number to use to cover the overdraft. You may not use another account in the sponsored project fund group to cover the overdraft unless you have specific agency approval in writing for the account accepting the overdraft. If specific categories are reported in the final report the overdraft will be reflected as cost share within specific categories.

Realizing that overdrafts can occur within a project period and in advance of continued funding, please contact the Office of Research Administration to work through problems within 30 days of receiving your overdraft notice. Your are encouraged to underwrite overdrafted accounts that are expected to receive continuation funding.

References:

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