To establish responsibility regarding unresolved sponsored project overdrafts and disallowances.
May 2020Responsible Office
Overdrafts are comprised of salary and/or other direct cost expenditures which exceed the authorized total award amount. In certain instances, the overdraft may consist of the amount of the expenditure which exceeds an approved, but restricted, individual line item award amount. Disallowances are salary or other costs charged to a project fund that is deemed to be unallowable by either:
Cost overdrafts must be transferred via a journal utilizing Object Code 7 to a funding source other than a sponsored program. If the overdraft is intended to fulfill cost sharing or matching requirements, these costs should be accounted for as specified in Policy No. 2119.
Disallowances that are specifically deemed not reimbursable by the sponsor, or specifically deemed to be unallowable by the provisions of OMB Uniform Guidance, shall not be charged toa sponsored program fund.
Overdrafts and/or disallowances must be resolved before the submission of the final report to the sponsor. Failure to resolve direct cost overdrafts and/or disallowances by this time will result in an entry by Research Services to transfer the revenue from the unrestricted operating budget of the responsible center to the fund account.
Office of Research Services
The source of this document is Research Services