Reminder

Compliance protocols MUST be approved and linked in SeRA to a SPO project record prior to award acceptance. 

See ORA's Award Acceptance Resources for additional information.
Stanford
Office of Research Administration

Clearing Sponsored Project Overdrafts

Before the Award End Date

If you incur an overdraft (OD) on a sponsored project PTA before the award end date, either:

  • Transfer the relevant cost(s) that overspent the award onto another research related non-sponsored PTA owned by the PI or sponsored project which also benefited from the cost and provide a detailed justification. OR
  • Treat the transfer in the same manner as cost sharing. 
Before The End Of The Project Period-Timely Expense Transfer

 

After the Award End Date

Errors

If you discover an error/any unallowable expenses after the award end date, transfer the expense(s) prior to closeout.

Overdrafts

An overdraft (OD) exists if after the end date of an award expenses exceed funding. Note, an overdraft typically prevents final billing to sponsors, so it is critically important that departments clear ODs on sponsored projects timely, ideally no later than one (1) General Ledger (GL) month after an award end date.  Expenses removed as a result of an overdraft should have been incurred during the last 6 months of the project.

An overdraft does not represent committed cost sharing, but it must be charged to a cost sharing account in order for it to be properly reflected in the calculation of the Indirect Cost (F&A) (Facilities & Administrative) cost rate.

  • If a sponsored award ends in overdraft less than $500 total costs [direct + indirect costs], the managing department in coordination with OSR Post award may process a one time ijournal to transfer the direct cost amount of the overdraft as a lump sum using Expenditure Type 56135 (which allows the Cost and Management Analysis group to segregate these costs for purposes of indirect cost calculation) to PI or department owned non-sponsored account. 
  • If a sponsored award ends in overdraft in excess of $500 total costs, the department is responsible for…
After The End Of The Project Period-Timely Expense Transfer