University of Wisconsin-Madison

Regent Notice 2011-2

Attachment A – Tools for Managing Overdrafts

March 31, 2011

Currently Available:

• Monthly overdraft reports
  • Overdraft reports are generated monthly and forwarded to every Division.  Division offices should review and prepare transfers to ensure timely reconciliation. 

Coming soon:

• Designated suspense accounts for every division (May 2011)
  • Every division will be asked to designate a suspense account that can, as a last resort, be used as a temporary home for overdrafts.  These accounts will be subject to year-end procedures and must be balanced at least once a year.    
• Standardized RSP communication process with units
  • An automatic e-mail will be sent to PIs and administrators 60 days before the award end date as a reminder of the imminent end of the award and recommended steps on dealing with an overdraft and preparing for closing an award. (currently piloted in Engineering, Graduate School, L&S, SOHE, and Vet Med)
  • Standardized e-mail message and spreadsheet between RSP and the departments regarding unallowable charges, including overdrafts.  (May 2011)

In Development:

• Standard award closeout checklist (July 2011)
  • This will be a departmental administrator checklist for closing an award that encompasses best practices from departments, divisions, and central offices.  It will also provide a common frame of reference in discussing overdrafts and the steps necessary for closing an award. 
• Quarterly report on overspent awards (July 2011)
  • The Associate Deans for Research will receive a report at their quarterly meeting that will help identify the status and trends of overspending in all Divisions. 
• Improvements to the cost transfer process (late Spring 2011)
  • The new cost transfer tool will reduce the processing time of cost transfers significantly by eliminating paper forms and providing electronic tracking. 

RSP Notice 2011-2