Clearing Overdrafts

Clearing Overdrafts

February 24, 2014

UCLA MEMORANDUM - CORPORATE ACCOUNTING 

To:      Campus Departments with Overdrafts
From:  R. Craig Squire
RE:      Yearend Closing Process

Colleagues:

As mentioned in the recent CAO/CFO meeting, campus departments are requested to clear overdrafts for this fiscal close, with particular emphasis on the following fund ranges:

  • Gift funds
  • Endowment funds
  • Other Source funds

A list of your department’s overdraft funds may be obtained by running the Overdraft Reports by Fund and the Overdraft Reports by Account/Fund in OFSR (Online Financial System Reports).

Once you have identified the funds in overdraft for your area, please take the following action:

  • If there are expenses in the current fiscal year, departmental personnel should create an online Non-PEAR to move these overages to an allowable funding source to clear the deficit. This action should be initiated prior to July 9 in time for the issuance of the prelim ledger.
  • If there are Campus gift funds that have an associated Foundation-linked gift fund with available resources, the department may request a Monetary Transfer of Funds (MTF) to draw down money from the Foundation to clear the campus gift fund deficit. Because the latest Foundation report available shows March 31 data, the department should conservatively estimate the income earned through between April and June and draw down the available funds prior to the MTF cut-off date of June 30.
  • If steps 1 and 2 above are not sufficient to clear the deficit, or if the deficit was caused by overspending in prior fiscal years, the department will need to submit a request through the Ask Accounting application on the General Accounting portal: www.accounting.ucla.edu. In the request, the department should provide the current FAU in deficit, the amount to transfer and an allowable FAU to accept these charges. This request should be made by June 30. 

Please find the Overdraft Policy and Request Form under Related Information.

If you have any questions or need additional assistance, please use the Ask Accounting feature on the General Accounting portal.

Thank you,

R. Craig Squire
UCLA Director of Corporate Accounting

General Accounting Staff Directory