| VOLUME: III |
POLICIES RELATED TO CONTRACT AND GRANT ADMINISTRATION |
| SUBJECT: |
Overdrafts and Audit Disallowances |
| SOURCE: |
Financial Management Services |
| DATE ISSUED: |
October 1990, Revised January 1996 |
| POLICY NO.: |
III-60 |
| RATIONALE: |
To establish responsibility for cost overruns and audit disallowances on restricted grants and contracts due to the fact that these overdrafts have to be covered by non-restricted funds. |
| POLICY: |
Overdrafts on sponsored programs and audit disallowances are the responsibility of the project director and the fiscal officer. The fiscal officer is responsible for finding a suitable source of funding to cover the overdraft whether it is from other funds available to the project director, or from the department, school/responsibility center or campus. |
| DEFINITIONS: |
Overdrafts are defined for this policy as the overspending of the budget.
Audit disallowances are those expenditures which have occurred in a contract and grant account which an auditor has determined were not allowable under the guidelines established by the agency, or the terms of the contract or grant. |
| CROSS REFERENCE: |
See Accounting Administration Policy I-1, Role of Fiscal Officer, Account Manager and Account Supervisor |
| RESPONSIBLE ORGANIZATION: |
Financial Management Services |
