Overdrafts on Sponsored Grants
- PIs and departmental/center staff are expected to monitor expenditures on sponsored projects to ensure that they stay within the project budget. This includes not only spending, but tracking encumbrances, budget changes and anticipated billing.
- Departments/centers are responsible for resolving overdrafts.
- Awards cannot be closed or final statements issued while a significant overdraft exists.
- Overdraft status is especially important at project closeout, but an overdraft can occur at any point the project life.
A project may be in overdraft because:
- Additional funds are expected. In this case the project can remain in that status for a short period of time.
- Budget information has not been entered into UW data systems. This may occur if 1) the project is in advance award status or 2) the award has not been fully finalized with the sponsor. Once the award is fully negotiated, the budget will appear in WISDM.
- Problems such as overspending, budget shortfalls, late receipt of vendor invoices and/or incorrect encumbrances have ocurred.
- Uncollectible sponsor payments
- Overdrafts can be resolved by transferring charges to unrestricted funding.
- If alternative funding sources are not available, contact CALS Business Services to discuss remedies.
- Budget may not have been entered correctly against sponsor’s notice of awards for differences. Renew WISDM Budget funding actions.