How to eliminate deficit balances
Purpose of policy
This policy has been developed to provide guidelines for the management of Sponsored Program indexes.
It is the responsibility of the department head, fiscal administrator, principal investigator and/or responsible person to ensure that adequate funds are available for expenditure transactions, including payroll disbursements. Should any index be in a deficit position for two consecutive months, no further transactions will be processed against the index until the deficit is eliminated. Exceptions to this policy will be granted only when special arrangements have been made in advance. Such arrangements must include a specific plan for eliminating the deficit on a permanent basis.
A deficit report will be available to fiscal administrators on the SAS Web Portal through the VCU Reporting Center daily and updated each month. A summary copy may be printed by PI and major budget unit for each dean or administrative division head. When an index appears in a deficit balance, transactions to clear the index must be processed by the 15th of the month.
Should an index be in a deficit position greater than $500 for two consecutive months, no expenditures, including payroll disbursements, will be processed against the index until the deficit is eliminated.
Transactions which cannot be processed against a terminated index will be processed against the department or dean's overhead index. The given index will continue to be used until the deficit in the original index is eliminated. In the case of payroll expenditures, the originating department must also initiate the necessary Personnel Action Form (PAF) for each employee to charge funding back to the proper index. For non-payroll related expenditures, the department must initiate the necessary adjustments to transfer all non-payroll expenditures back to the proper index.
Any index reflecting a deficit balance for three consecutive months without a special arrangement in place will be reported to the dean or administrative division head and budget will be requested from that office to cover their current and projected deficit.
Any index reflecting a deficit balance for four consecutive months without special arrangements in place will be reported to the appropriate vice president. The vice president will be requested to approve a transfer to eliminate the deficit.