Understanding the Deficit Reports

Two reports, one for Current and Recharge funds and another for Contract and Grant funds, were designed to highlight funds with deficits that will be cleared following the central campus deficit clearing process unless the department takes action to clear the deficit by the established deadline. The deadline for clearing a fund deficit for Current, Recharge, and Open Contract and Grant funds is fiscal year end. The deadline for clearing a fund deficit for Closed Contract and Grant funds is 120 days after the termination date of the award.

Please be familiar with the Deficit Policy before you run and review these reports. A brief tutorial on understanding the reports is provided below:

A. Deficit Report for Current and Recharge Funds
B. Deficit Report for Open Contract & Grant Funds


A. Deficit Report for Current and Recharge Funds

Deficits of Current and Recharge Funds are covered in the GL Sum Department Fund Deficits Report – Current Funds Report. As stated in the Deficit Policy, deficits in Current and Recharge Funds will be cleared at the Department (Level 4 Org Node) and Fund Code level. We suggest using the GL Sum by Five ChartFields to identify the more complete chartstrings for the correcting journal and perhaps using account 58000 (Unallocated) for clearing the deficit in the chartstring. For deficits where there are no resources in the fund, more research is required to determine if there is an alternative fund source to which expenses can be transferred.

An illustrative example of the relationship between the deficit report and the GL Sum by Five ChartFields (a common resource management tool) is provided below. In addition, please keep the following notes in mind when using the deficit report:

For the GL Sum by Five ChartFields example below, even though the Actuals Encumbrances and Pre-encumbrances amounts are displayed, please remember that Encumbrances and Pre-encumbrances are not included in either the deficit report or the deficit clearing policy.

An example of a deficit in Non-C&G fund

The GL Sum by Five ChartFields (run for L4 Dept revenue and all expense accounts):

Example of deficit in Non-C&G fund

The deficit report:

Example deficit report

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B. Deficit Report for Open Contract and Grant Funds

Deficits of Open Contract and Grant Funds are cleared at year-end/fiscal close and are covered in the report titled GL Sum Department Fund Deficits Report – C&G Funds only. As stated in the Deficit Policy, deficits in C&G Funds will be cleared at the Department (Level 4 Org Node) and Fund level. Deficits are calculated by subtracting Expenses (Actuals) [please note that ONLY EXPENSE ACCOUNTS are used for the C&G deficit report] from Anticipated Funding, where Anticipated Funding is Budgeted Amount as of run date (usually once a month, a few days after the end of a calendar month, when the ledgers are closed) plus future funding. This concession is necessary as funding for multi-year awards are received at intervals that do not correlate with spending patterns.

Exempt from the deficit clearing process are awards/funds that:

    1. are sub-awards where UC Berkeley is the recipient campus (includes Federal Flow-Through)
    2. have termination dates which are less than 120 days prior to fiscal year end (however, a view of these funds is also provided in the report for informational purposes)
    3. have been granted waivers in accordance with the Deficit Resolution Policy

Definitions:

    1. Anticipated Funding = Award Amount (Budgeted Amount plus future funding)
    2. Distributed Award Amount =
      • For Primary Department, Anticipated Funding less Budgeted Amount distributed to other departments
      • For Non-Primary Department, Budgeted Amount
    3. Distributed Award Balance = Distributed Award Amount less Actuals
    4. GL Balance = Budget less Actuals
    5. Deficit to be cleared = Distributed Award Bal less Waiver Amount (Note: Pgm Code 80 (OH) deficits will be cleared to a Central Org. Departments are only responsible for the non-80 pgm code deficits)

While it is difficult to correlate the results of the GL summary reports with the C&G Deficit report because of the use of Anticipated Funding (Award amount) and other exemptions that are built into the C&G report, the GL Sum by ChartFields ModC&G is a good starting point. Please note the C&G deficit report results are always as of the most recently closed month. Therefore, current month expenditures do not appear on the report. In addition, a contract or grant may enter the 120 day exemption period in the current month but appear on the prior months report as subject to the clearing process. The GL Sum by ChartFields ModC&G should be run for the period that just closed, in sync with the default period that appears in the C&G Report. From the report you will be able to see the deficits and/or surplus by Dept ID/Pgm/ChartField1/ChartField2 and take the necessary corrective action as appropriate. If your department is not the primary department for the fund in deficit, and you are expecting additional funding, you may want to follow up with the primary department to get this funding allocated so that deficits are cleared from the C&G deficit report. If you are either the primary or non-primary department and if contract or grant funding is final, you will want to think of moving expenses to other fund sources (please check the terms).

Screenshots from the C&G Deficit Report

Dashboard

BAIRS Dashboard

Sort Selection Page

BAIRS Sort Selection Page

The C&G Deficit Report by Department

Deficit report by department

The C&G Deficit Report by Fund

Deficit report by fund

C&G Deficit Report – 120 Adj Period

Deficit report 120 day adjustment period

C&G Deficit Report – By Dept/PI/Fund

Deficit report by department/principal investigator, fund

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