All transactions processed by the Office of Financial Affairs, Purchasing Department and Banner Web for Finance will be subject to non-sufficient funds checking. This will be an electronic check through the Banner Finance System that will determine if there are sufficient funds available in a budget line to process a transaction. If there are insufficient funds in a budget line, the transaction will not be processed. It is the responsibility of each University department to ensure all budget lines have sufficient funds before sending transactions or purchasing services from the Office of Financial Affairs, Purchasing Department, Travel Area, University Press, Information Technology and the Mailroom. The specific policies for each type of transaction are outlined below:
Budget Adjustments (Transfers of budget monies within a department or area)
- All departmental and grant budget adjustments must be done electronically on Banner Web for Finance. If the adjustment is taking money from a line with non-sufficient funds, the budget adjustment will not be processed. The budget adjustment must be recreated once funds are available.
- All budget adjustments that are restricted from entry at the departmental level will be entered by the Office of Financial Affairs. If the adjustment is taking money from a line with non-sufficient funds, the budget adjustment will be returned to the department.
Journal Entries (Interdepartmental charges of actual expenses and corrections to previous transactions)
- All journal entries will be processed by the Office of Financial Affairs. These include entries for postage, University Press charges, telephone charges, Information Technology purchases and other interdepartmental charges.
- Information Technology will check a budget line before a purchase order is issued for computer equipment or software.
- The University Press (photocopy, printing) and Mailroom will send a statement by the fifth working day of the month of departmental charges for the previous month. Budget adjustments should be processed electronically by University departments by the eighth working day of the month in order to cover all previous month charges.
- Journal entries between departments that are charging a budget line with non-sufficient funds will be returned to the University department that submitted the journal entry.
- Requisitions received in the Purchasing Department will first be edited for accuracy of information. Part of the editing process is to review the referenced budget line to insure the proper organization and account codes match up to the requesting University department and item(s) being ordered. If necessary, corrections will be made and communicated back to the department. The budget is checked for sufficient funds to support the purchase. If it is determined that there are non-sufficient funds to support the order, the requisition will not be processed until a budget adjustment has been made to support the purchase.
Future Year Purchase Orders
- Purchase orders issued in the current fiscal year for the next fiscal year will automatically go into suspense because the next fiscal year budget will not be in effect. The next fiscal year budget will be reviewed to determine if funds will be available to support the purchase. If there are sufficient funds in the next fiscal year budget the purchase order will be approved and processed.
Request for Funds/Invoices
- When a Request for Funds (RFF) or invoice is entered into the Finance Accounts Payable (AP) System and there are non-sufficient funds in the budget line being charged the RFF or invoice will stay in process in the AP system. An email will be sent to the University department notifying them that there are non-sufficient funds for their request. The email will be sent the day the RFF or invoice is processed by the Office of Financial Affairs. Once the non-sufficient funds condition has been corrected the transaction will be completed.
- If the RFF is for the Tuesday’s check run, the non-sufficient funds condition must be corrected with a budget adjustment by the following Monday at noon.
- If the RFF is for the Thursday’s check run, the non-sufficient funds condition must be corrected with a budget adjustment by the following Wednesday at noon.
- When the budget adjustment is complete, the University department should respond to the initial email received from the Office of Financial Affairs and inform them of the budget adjustment number that will cover the amount of the RFF or invoice. The RFF or invoice will be processed in the next check run. Do not resubmit a new Request for Funds.
- If a budget adjustment is not done within the timeframe outlined above, the RFF or invoice will be stamped "Non Sufficient Funds" and returned to the University department.
- The Travel Coordinator will check travel budget lines for sufficient funding when University departments are making arrangements for travel. University departments should ensure adequate funds are available in their travel account codes before travel arrangements are made.
Proper Account Code
- The Office of Financial Affairs and Purchasing Department (PD) will change an account code to the proper line if the University department has coded the transaction incorrectly. The account codes will be changed based on the definitions of account codes distributed by the Office of Financial Affairs. The Office of Financial Affairs and Purchasing Department will notify University departments of this change and it will be the responsibility of the department to make budget adjustments to cover any non-sufficient fund conditions caused by this change. The notification will be done by email or phone the day the document is reviewed for processing.