How To: Clear a Fund Overdraft at Year-End

Who does this?  Department Staff

When?  The balance of a Fund / Award is overdrawn. Fund overdrafts can and should be cleared throughout the year. All fund overdrafts in excess of $1,000 MUST be cleared by fiscal year-end.

How?  By identifying the source of overdraft, determining the appropriate course of action, and completing correcting journals. Fund transfers, as needed, are generally submitted to Fund Accounting.

 

 

Clear a Fund Overdraft (3 steps)

step 1

Identify Fund s/ Awards which are in overdraft and need to be cleared:

  1. Use the OBI Revenue and Fund Management Dashboard.
  2. Identify all Awards with a deficit balance of $1000, or more.
step 2

Determine the source of the overdraft:

  1. Examine the Award activity to determine what created the overdraft. This will assist in determining what corrective action is needed. Be attentive to the following possibilities:
    • Determine if overdraft was caused by an improper journal posting.
    • Examine the expenditures recorded on the Award to determine if those expenditures would be more appropriately recorded to another Award.
    • If all activity recorded to this Award is appropriate, determine if it would be appropriate to transfer funds into this Award to clear the overdraft.
step 3

Clear the Overdraft:

  1. If the overdraft was caused by an improper posting, initiate a correcting journal which would move the activity to the appropriate Award. Reference iJournals How To instructions.
  2. If the overdraft resulted from expenditures which should have been posted to another Award, prepare a journal to move the expenditures to the correct Award. Reference iJournals How To instructions.
  3. If the activity recorded to the Award is appropriate, identify another Award which would be the source for a fund transfer. Reference How To: Request a Fund Transfer.
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What Happens Next?

Questions?

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