University of Wisconsin-La Crosse has established a Deficit Account Policy to
provide accounting controls and procedures for the management of university
accounts. The Deficit Account Policy requires that departmental accounts are to
be managed by individuals authorized for the account within the approved
expenditure budget on a monthly and annual basis for each fiscal year.
account is in a deficit status if the commitments exceed the resources. The
budget at the individual account level represents the total resources of the
account. If encumbrances plus expenditures exceed the budget, the account is in
deficit. The individual authorized with account authority has responsibility
for the account as reflected on the PeopleSoft Financial WISDM System. The
University’s Controller retains the official record of authorized individuals
for each university account.
the end of each month, the Budget Office will prepare a report of all operating
accounts in deficit status. Notification will be sent to each authorized
account manager with a deficit account and also provided to their supervisor,
division head, and Vice Chancellor for Administration and Finance. It is the
responsibility of the authorized individual to provide an explanation for the
deficit account and plan for eliminating the deficit within the next thirty-day
reporting period after the deficit account notice.
the authorized account manager, their supervisor and the Budget Office
determine that the deficit cannot be eliminated by the end of the fiscal year,
the account shall be balanced with an internal loan and interest will be
charged at the rate earned by the University. The internal loan must be repaid
within one fiscal year. All internal
loans shall be reported to the unit supervisor, division head, and Vice Chancellor
for Administration and Finance.
to the Deficit Account Policy will be allowed for grant and contract
expenditures when timing differences result from reimbursement of expenses to
the University by the grantor and for other reasonable expenditures made in
anticipation of the timely receipt of account funds.