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Overview
Unreconciled Accounts
Policy:
Overspent Accounts
Procedures:
Overspent Accounts
Policy:
Underspent Accounts
Procedures:
Underspent Accounts
Extenuating Circumstances
Special Situation: Training Grants
All sponsored accounts must be reconciled promptly and no later than 6 months after the termination date. The intent of this policy is to:
- Streamline the process of closing out terminated accounts,
- Reduce University exposure to audit disallowance,
- Reduce delay or withholding of funding by sponsors to Principal Investigators (PIs).
Unreconciled Accounts back to top
Unreconciled sponsored accounts at 6 months past termination represent both overspent and underspent accounts. These accounts will be listed in the OSP Consolidated Report. Each category will be addressed as follows:
Policy: Overspent Accounts back to top
Overspent accounts are sponsored research accounts for which expenditures on the University's general ledger are greater than expenditures reported to the sponsoring agency.
- Expenses in excess of the final figure agreed upon by OSP and the local unit must be journaled to a non-sponsored account specified by the local unit.
Procedures: Overspent Accounts back to top
- OSP will make every effort to work with departments during the preparation of the Financial Status Report (usually 60-90 days after the budget end date) to ensure overspent accounts are fully reconciled in a timely manner.
- After 6 months from the termination date all overspent (overexpended) sponsored research accounts will be written off by OSP against an unrestricted account provided to OSP by the respective tub Financial Dean.
Policy: Underspent Accounts back to top
Underspent accounts are sponsored research accounts for which expenditures on the University's general ledger are less than expenditures reported to the sponsoring agency
- Frequent Financial Status Report revisions to federal sponsor can be interpreted as a weakness in financial controls and can lead to sanctions such as loss of expanded authorities, the Office for Sponsored Programs (OSP) will no longer report expenses that are not posted to the general ledger except in exceptional circumstances. Such circumstances need to be approved by the Associate Director of Financial Services, OSP.
Procedures: Underspent Accounts back to top
- For underspent sponsored research awards, the Financial Status Report to the sponsor will be revised by OSP to accurately reflect the expenditures on the University's general ledger.
- If award terms and conditions are not clear, sponsors will be consulted directly regarding disposition of any funds remaining after the revised final report and figures are submitted.
Extenuating Circumstances back to top
Exceptions to the policy on overspent and underspent accounts will be made only in extenuating circumstances and will require:
- Written justification from the Administrative/Financial Dean of the tub
(or the designated official for the department or affiliated institution)
and
- Approval by the Associate Director of Financial Services, Office for Sponsored Research, ext. 5-1253.
Special Situation: Training Grants back to top
- NIH training grants on which stipends and tuition have been obligated
past the account termination date must be reconciled within 15 months
of that date.
- If not reconciled within 15 months of the account termination date, overspent and underspent balances will be addressed in the same way as other sponsored accounts.
