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Salary Deficits on Terminated Funds

Salary Deficits on Terminated Funds

Salaries will be encumbered for sponsored projects that are within the active project period specified in the grant or contract and have accounts receivable or cash to support the charges.

On a monthly basis, the principal investigator and the department administrator will receive a list of sponsored project funds that are scheduled to terminate within 90 days in the University accounting system. It is the responsibility of the investigator and the academic department administrator to notify the appropriate Office of Research Administration (“ORA”) program administrator (“PA”) if a project on the termination list is expected to receive another year of funding, or if there is an extenuating circumstance for which a temporary exception to the above policy may be requested. Exceptions may be granted on a case-by-case basis at the sole discretion of the ORA. If an extension notification is not given to the ORA PA, the department will initiate the following procedure.

At least 4 weeks prior to the project termination date, the department will initiate and forward to the ORA PA a PAF and budget transfer form, if appropriate, to transfer the salary encumbrance to another active fund. The department will send a PAF if the encumbrance is being transferred to another sponsored project fund. The department will send a PAF and Budget Transfer Form if the encumbrance is being transferred to a University budgeted department fund.

Should a salary encumbrance remain on a sponsored project that is no longer active (i.e. has passed the termination date specified in the grant or contract), the ORA PA will notify the investigator of this in writing, with a copy to the department administrator. The PI will initiate the above noted action to transfer the salary encumbrance and any salary charges that have occurred after the project termination date. Should the investigator fail to respond to the written notice within two (2) weeks of the date of the written notice, the ORA PA will send a second written notice to the department chair, with a copy to the department administrator. Should this notice fail to cure the problem within two (2) weeks of the date of the written notice, the ORA will transfer the salary encumbrance and any salary charges incurred after the termination date to the department fund.