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
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 funds other than gifts, activity in revenue accounts is included with expenses to determine the balance.
- For gift funds, revenue is excluded from the report. Contracts and Grants Accounting (CGA) manages and monitors revenue activity for these fund groups. Departmental users should not modify the revenue entries for these funds.
- We encourage you to use the GL Sum by Five ChartFields as a second step, after the deficit report, to get more detailed information about the deficits (which Dept IDs, ChartField1s, ChartField2s, etc.) and to identify departmental resources available to cover the deficits.
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):
The deficit report:
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:
- are sub-awards where UC Berkeley is the recipient campus (includes Federal Flow-Through)
- 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)
- have been granted waivers in accordance with the Deficit Resolution Policy
- Anticipated Funding = Award Amount (Budgeted Amount plus future funding)
- Distributed Award Amount =
- For Primary Department, Anticipated Funding less Budgeted Amount distributed to other departments
- For Non-Primary Department, Budgeted Amount
- Distributed Award Balance = Distributed Award Amount less Actuals
- GL Balance = Budget less Actuals
- 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
Sort Selection Page
The C&G Deficit Report by Department
- Lists deficits by Department and Fund – for example, a user with L3 or L2 access will be able to see every department/fund in that L3 or L2.
The C&G Deficit Report by Fund
- Lists deficits by Fund and Department – a user with L3 or L2 access will be able to see every fund/department in deficit within that L3 or L2.
- Also displayed are the Award Amount and the Primary Department's L4 code.
C&G Deficit Report – 120 Adj Period
- Lists funds which are in deficit, but within the 120 days adjustment period
- They are listed by PI, Dept and Fund.
- The award end date is also displayed, in addition to other financial data. The award date should be less than or equal to 120 days from the end of the immediately closed month… in the example above, end of February 2007.
C&G Deficit Report – By Dept/PI/Fund
- Lists deficits by Dept, PI and Fund.
- A PI with multiple funds will have them grouped together.
- The award amount is also displayed, in addition to other financial data. In most cases they should match the Distributed Award Amount.