An overdraft occurs when project expenses exceed the awarded budget or the funding received. Departments are responsible for covering any overdrafts on sponsored project accounts.
During the final reporting process, the Office for Research Administration (ORA) will transfer overdraft balances and unallowable expenses to the designated departmental continuation account in accordance with university policy Overdrafts, Bad Debts and Audit Disallowances on Sponsored Programs.
If you anticipate an overdraft and expect additional funding, contact ORA as early as possible. An advance account may be available when future funding is expected.