DEPARTMENTAL ACCOUNT DEFICITS

eficits in university accounts are not permitted. In all cases, account sponsors are ultimately responsible for the financial managment of their accounts and should take immediate action to prevent or correct any deficit problem.

Certain circumstances may require written pre-authorization of a temporary deficit for a special purpose. The authorization should include an explanation of why the deficit is planned. This request and approval process must be fully documented through the appropriate provost/vice president office. (For a more detailed explanation refer to Controller's Section.)

Requisitions and purchase orders that will place an account in deficit will not be processed by the Purchasing Department but will be returned to the account sponsor. Invoices presented to Financial Support Services that will result in an account deficit, if paid, will also be returned to the account sponsor. Purchases of products or services from internal University departments (such as the Printing Services, Physical Plant, Motor Pool, etc.) will not be allowed from accounts with deficit balances.

If an account balance indicates a deficit without proper authorization, the account sponsor and the appropriate provost/vice president will immediately be notified. Unless the deficit is cleared or written approval for a temporary deficit is provided within 30 days of notification, all financial activities within the account will be suspended. This will include payroll and all internal billings.

If a deficit of any kind appears on June 30 financial reports, the appropriation for the succeeding fiscal year will immediately be reduced.

Procedure for Requesting Authorization for Temporary Deficits

1. Department prepares a memo to the appropriate provost/vice president requesting an authorization for a temporary deficit.

 
2. The following information should be included in the memo:

 
1. Date of deficit,

 
2. Amount of deficit authorization requested,

 
3. Reason for deficit,

 
4. Date deficit will be cleared, and

 
5. Source of funding to clear deficit.

 
3. When the request is approved, the provost/vice president will prepare a deficit authorization and send it to the controller with copies to the department and other appropriate offices.

FRINGE BENEFITS

The monthly position control detail indicates each account's salary and wage balance by object code. If one or more positions within an object code are in deficit, but the same object code funding for the account is a positive balance, there is no need to transfer funds to clear the individual position deficit and to support the associated fringe benefits costs. The following object codes require fringe benefit funding:

SALARY RECAPTURE

The Budget Office no longer recaptures unused salary funds into central University accounts. Each provost/vice president is responsible for determining how unused salary funds will be reported and used in his/her area.

TELEPHONE USAGE

No employee of the University shall use the University telephone system for personal long-distance calls, even though intending to reimburse the University for the cost.



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