Deficit Transfers on Grants/Contracts without Continuation Accounts

Included on this page:

Description/Definition

A grant or a contract is in deficit when total expenditures exceed the authorized award.

Possible reasons for deficits

Delay in continuation or supplemental award set-up
Unallowable costs
Over-expenditures in allowable costs
Expenditures exceeding cash receipts from sponsor - sponsor fails to reimburse UW for specific expenditures on budgets that require invoices
Unmet cost share - sponsor requires reduction of award when cost-sharing pledges are not met
Annual spending restrictions

Deficits must be transferred to an appropriate non-federal budget in order for the budget to be closed.

Department monitors individual grants/contracts for deficits (expenditures that exceed the award amount) by reviewing Budget Activity Reports (BARs) & Budget Status Reports (BSRs) on a regular basis.
Grant and Contract Accounting (GCA) assists departments in monitoring & reporting deficits by sending

Quarterly Deficit Report, list of all budgets which have deficits, to department chair
Notice of Expiration (NOE) letters to PI/fiscal specialists at expiration of each grant/contract
follow-up communications to PI/fiscal specialists via e-mail or memo during budget closing process

Department prepares Request to Transfer Expenditure/Deficit (RTED) form to transfer deficit to an appropriate non-federal budget:
GCA prepares deficit transfer Journal Voucher (JV) upon receipt of properly completed RTED form.

The department answers all the questions on the Notice of Expiration Letter (NOE)
After answering questions in step 1, department determines whether grant/contract will have a deficit
For budgets with:
- a deficit and continuation account, follow instructions on Deficit Continuation Budget section of the Closing Types page
- a deficit but no continuation account, prepare a Request to Transfer Expenditure/Deficit (RTED) form by taking the following steps:
  - Go to the RTED form
  - Fill out "Prepared By" section.
  - Budgets to which a deficit may be transfered
  - Select an appropriate non-federal budget to transfer the deficit to from the following list:
  - Fill out "Deficit Transfer" section of RTED form.
  - Obtain authorized signature from a person who has signature authority on the budget receiving the deficit.
  - Return the completed form to GCA box 351122.
  - Transfers to other types of accounts must be done with a benefit statement using the guidelines in Grants Information Memorandum 15