Responsibility for Overexpenditures


Principal Investigators and their respective Department have first line responsibility for managing expenditures within the fiscal regulations and amounts specified by the sponsor in the award document. Sponsored projects are established in the following DSP Funds;

  • Fund 201 federal sponsored program
  • Fund 209 non-federal sponsored programs
  • Fund 214 industry funded clinical trials

In addition to sponsored projects, Principal Investigators and their respective Department have the first line responsibility for managing expenditures within the fiscal limitations established in the non-sponsored projects. Non-sponsored projects are established in the following DSP Funds;

  • Fund 211 returned overhead
  • Fund 212 misc donors and residual
  • Fund 213 UFRF allocations

Principal Investigators and their respective Department will be responsible for all expenditures that exceed the authorized spending authority or exceed the amount of revenue collected in any project established (overexpenditures) in the funds listed above. For sponsored projects the normal remedy is to cost transfer the overexpenditures off the sponsored project and on to an unrestricted project at the time of project close and prior to the issuance of the final financial report being submitted to the sponsor.

In cases where the Principal Investigators and/or the Department cannot cover the overexpenditure, it becomes the responsibility of the College in consultation with the Division of Sponsored Programs to resolve the overexpenditure.

If the overexpenditure is a result an audit disallowance, corrective action will be determined on a case by case basis by Office of Research with the help, knowledge, and assistance of the principal investigator, department, college, contracts and grants accounting, and other appropriate parties.

The Division of Sponsored Programs whether it be by audit disallowance, unrealized cash collected, or otherwise, can decide to cover any overexpenditure by using current or future returned overhead funds or other unrestricted funds (i.e.: residual balances) of the Principal Investigator, the Department and the College.