What You Should Know
Departments are expected to monitor project grant income and expense activity on a monthly basis.
Review Reports Monthly
Review spending authority, actual expenses, encumbrances, and balance calculation using the DSR001, the Traditional Departmental Summary YTD Report, and supplemental reports such as those from Labor Accounting. Correct any errors immediately.
Manage Within Spending Authority
Departments are expected to manage their budget within their spending authority. If you anticipate exceeding your spending authority, you should discuss options with your department’s cabinet officer and notify the budget office of potential budgetary problems as they arise. Many larger departments are expected to send fiscal year-end projections for fund 10 to the budget office each spring, usually by early March.
When estimating expenses, take into account open encumbrances, typical seasonal expense patterns, and future planned commitments to determine your anticipated available balance.
An encumbrance is an approved expenditure that has not yet been paid and posted on the general ledger. When a purchase order encumbrance is not fully paid on the general ledger and the remainder will never be paid, you must take action to reduce or remove the unwanted remaining purchase order encumbrance.
The budget office recommends that encumbrances be monitored and updated monthly. Each month when you reconcile your project grants, any remaining purchase order encumbrances should be reduced or removed before the start of the following month.
For more information about reducing or removing encumbrances see Administrative Processing in the PeopleSoft Financials Purchasing Manual.