Deficit Monitoring

All deficits, defined at the fund and Level 2 Department ID level, in current, loan, and plant funds for non -sponsored activities should be addressed throughout the year and must be resolved by the close of the fiscal year. Administrative officials remain accountable for the funds entrusted to them even if they have delegated budget and accounting r esponsibilities to another individual. All units have a responsibility to maintain a positive net position and deficits. Deficits that occur must be resolved.

Deficits may be carried forward to the next fiscal year for non-sponsored project funds only in the following circumstances:

  • An authorized deficit resolution business plan is in place and the unit is in compliance with the plan.
  • If the deficit occurs on a non -restricted fund in the fund range 500C Sales & Services, it is not an approved recharge and the aggregate balance of the fund at the Level 2 Department ID is not in deficit, then a written deficit resolution business plan may be waived by the control point.
  • If the deficit occurs on a recharge fund and the unit is in compliance with campus recharge policy.