Policies & Procedures


Section: C&G
Part: POL
Statement No.: 4.4.2
Date: 12/12/01
University of North Carolina - General Administration
Administrative Policies and Procedures Manual

Title: Direct Costs - Over Expenditures (Budget Ovedrafts) 

It is the responsibility of the work unit and the Project Director to ensure that over expenditures on sponsored projects do not occur. Preaudit reviews performed by the work unit should identify transactions, which, if processed, will result in over expenditure.

Expenditures in excess of funds awarded are unallowable.

If direct cost budget overdrafts occur, it is the responsibility of the work unit to resolve the overdraft as quickly as possible.

Federal, state and private sponsors do not permit the transfer of costs to other sponsored projects for the purpose of:

    a. Eliminating overdrafts caused by expenditure overruns

    b. Avoiding restrictions

    c. Other reasons of convenience

In some instances, transfers of costs to other sponsored projects may be allowable if the costs are charged to a project with the same technical goals and the costs being transferred contributed directly to those goals.