Procedure for Processing Deficits and Surpluses

Deficit / Write-Off

  1. GA identifies a deficit by checking the balance in BI after the project’s end date, or after allknown expenditures have posted.
  2. Run the Financial Summary Report with Revenue and Expenditures in the BI Tool. Save a copy.
  3. Review the Financial Summary Report to verify that:
  4. There are NO open commitments; if there are open commitments, send a request to Deanna Tam () to close the PO
  5. All Transactions (including Payroll) on the project have posted and are complete
  6. The most recent month’s IDC has hit project
  7. Confirm any project deficit with the PI
  8. Deficit Notification Process:
  9. IF the deficit is between $0 - $10,a write-off packet is not needed.Complete the Request to Inactivate ORSP Project form online at
  10. IF the deficit is between $10.01 - $100, the write-off will be charged centrally. Skip to step #7.Multiple projects with deficits under $100 can be bundled together on a single write-offrequest.
  11. IF the deficit is greater than $100, the write-off will usually be charged to the appropriateCollege Dean. Consult your Manager about the reasons for the deficit and to verify that the College should assume charges. Proceed to the next step.
  12. Prepare a Notification of Deficit letter and send via email to the PI; copy the following people:
  13. Your ORSP Sponsored Programs Manager (SPM)
  14. Dean (Enter Name and Email address) and/or any other administrator being asked to cover the deficit
  15. Richard Chen ()
  16. Alison Sanders ()
  17. Prepare aWrite-off Form for the project deficit
  18. Prepare Write-off packet in this order: Write-off Form, Revenue/Expenditure report, and any documentation (e.g. emails) that explains why the deficit occurred, if applicable.
  19. Obtain SPM and ORSP Director Signature for all write-off requests
  20. Obtain AVP of Research signature for all write-offs over $100; forward to Fiscal Affairs for approval from the appropriate administrator
  21. For write-offs over $1000, Fiscal Affairs will forward to the VP, Finance & Admin and/or Provost
  22. File copy of Write-off packet in Project Folder

Surplus

A surplus is defined as a cash balance (revenue is greater than expenditures) that remains at the end of the project, as distinct from a “budget surplus” (when a project is underspent). This procedure applies to returning cash to the sponsor (e.g. “cash balance”).

  1. Run Rev-Exp report in BI & save a copy. Unless otherwise specified by the terms and conditions of the award, surpluses in amounts greater than $100 will be returned to the funding agency.
  2. If the surplus is less than $100, completethe Request to Inactivate ORSP Projectonline form; if $100 or more, proceed to step 2
  3. On the Rev-Exp report, verify:
  4. NO open commitments
  5. If any open POs, email Deanna Tam () to request the PO(s) (include PO#) be closed
  6. All transactions on the project have posted and are complete
  7. The most recent month’s IDC has run
  8. There is a Surplus balance
  9. Discuss the surplus with your SPM to determine how to proceed
  10. Obtain funder contact information from project folder, or call to confirm the following: Contact Name, Mailing Address, Award/Contract #
  11. Call or email the Sponsor Contact to verify that the Surplus needs to be returned
  12. If the Surplus needs to be returned to the agency, proceed to step 6
  13. If the Surplus DOES NOT need to be sent back to the agency, treat as residual funds:
  14. Review the funding terms and conditions with your SPM to find information regarding cash surpluses
  15. For awards that are not cost reimbursed, the funding agency must provide written approval for surplus funds to be reverted back to the Universityotherwise they will be returned to the sponsor
  16. If the agency permits the funds to be reverted to the University, the Direct Cost balance of the residual funds will be typically be transferred to the PI’sCollege or Department fund
  17. The GA completes a Journal Entry form to transfer the funds to the specified fund. Inactivate the project once the transfer has been made and the project’s balance is $0.
  18. Using the Surplus Direct Pay (DP) Request template, prepare a DP Request form to send to AP
  19. Use the Revenue Account code for that project as the Chartfield Account code
  20. List the GA/GSC as the “Contact Person” to pick up the check
  21. Send DP Request toSPM for signature
  22. Run Rev-Exp report again to verify surplus, then send completed DP Request to AP to issue payment
  23. Run another Rev-Exp report after check is issued to verify a $0.00 balance; save a copy for the inactivation request
  24. Complete the Request to Inactivate ORSP Projectonline form
  25. Prepare a Surplus Cover letter to send to agency with the check (once it is ready for pick-up). Combine Surplus Packet in this order: Cover Letter, Surplus Check and original Rev-Exp report
  26. Make acopy for project folder, or scan originals into electronicfolder
  27. Send original surplus packet to agency
  28. Check in BI to verify that the project is Inactive, then update CSU,SP (in CFS) to reflect “Inactive” and “Closed” status

Revised 7/2/14Page 2 of 2