Deficit Clearing Process

Contracts and Grants Accounting (CGA) is responsible for handling the monthly and year-end Deficit Clearing Processes for all Contracts and Grants (C&G) awards. The campus Budget Office is responsible for the Deficit Clearing Process for all non-C&G funds. The C&G Deficit Clearing Process supports proactive management of awards and complies with the campus’ deficit clearing policy, sponsor and federal guidelines, and internal and external deadlines.

Research Administrators, Fund Managers and CAOs should be monitoring and reviewing their awards and promptly transfer any deficits to the appropriate fund to ensure compliance and adhere to award closeout deadlines. In the event that a deficit is not transferred, the Contracts and Grants Deficit Clearing Process will clear the deficit.

Monthly C&G Deficit Clearing Process

The Monthly C&G Deficit Clearing Process will be run on the 6th business day of the month on closed awards. The process will calculate the deficit at the award level, and clear balances (deficits or surpluses) not equal to zero at the full chartstring level (excluding account and program codes) in the C&G fund. This chartstring includes: bu-fund-deptID- CF1-CF2-PCBU-project-activity.

Deficits are transferred from C&G awards via journal entry to a new, designated fund (fund 69900) which has been set up specifically for C&G deficit clearing, using the deficit clearing account code 57710, and the award’s primary department ID. The C&G Deficit Clearing Process will make it easier to trace the origin of the deficit because most of the chartstring information is retained in the journal line description and reference fields of the deficit clearing entry.

During the award closeout process performed by CGA (Final Closeout Period), an ad-hoc Deficit Clearing Process will be run on individual awards that are in deficit.

Year-End C&G Deficit Clearing Process

The Year-End C&G Deficit Clearing Process on Open awards will follow the same process as the monthly Deficit Clearing Process. The following are exempt from the Year-End C&G Deficit Clearing Process:

  • Open awards with final Financial Reports due after May 31st and before January 1st
  • Awards for which the deficit clearing waivers have been approved by the Vice Chancellor of Finance
  • Open awards with an Anticipated Funding Amount recorded in BFS that exceeds the total actual expenses as of June 30

The Anticipated Funding Amount for awards is found in the BFS fund panel on the "Award Info" page.

For the Year-End Deficit Clearing Process, BFS users can submit the C&G Deficit Clearing Waiver Request Form through the RA Grant WorkCenter (the form will be available in the first week of June). Access to the RA Grant WorkCenter is obtained by submitting a request via the SARA system. 

Available Reports

BFS users can run the following deficit clearing reports in the RA Grant WorkCenter > Reports/Queries > Award Information:

  • Summary Report by L3 or L4
  • Summary Report by Award
  • Detailed Report by Award

For questions about deficit clearing of non-Contracts and Grants please refer to the Deficit Resolution Policy provided by the Campus Budget Office at: