Clear fund overdrafts throughout the year. All fund overdrafts in excess of $1,000 must be cleared by fiscal year-end (YEC) 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 at Year-End
Before You Start
You must have access to OBI Financial Reporting and be able to run the Fund Statement report found under the OBI Revenue and Fund Management Dashboard>Fund Statement Tab.
- Run the OBI Revenue and Fund Management Dashboard Fund Statement Report for all funds within your scope of responsibility.
- Identify all awards with a deficit balance of $1,000 or more.
- Examine the award activity to determine what created the overdraft and what corrective action is required. Be attentive to the following possibilities:
- Determine if the overdraft was caused by an improper journal posting.
- Examine the expenditures recorded on the award to determine if those expenditures are more appropriately recorded to another award.
- If all activity recorded to this award is appropriate, determine if funds can transfer into this award to clear the overdraft.
- If the overdraft was caused by an improper posting, initiate a correcting journal to move the activity to the appropriate award. Refer to iJournals How To instructions for more information.
- 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. Refer to iJournals How To instructions for more information.
- If the activity recorded to the award is appropriate, identify another award which would be the source for a fund transfer. Refer to How to: Request a Fund Transfer for more information.
What Happens Next?
- Fund transfer requests are processed throughout the month.
- To make sure all deficits are cleared, departments can use the OBI Revenue and Fund Management Dashboard>Fund Statement Tab to verify current balances.
- For questions about fund accounting for non-sponsored funding, find your designated school/department contact.
