Overdraft Spending Policy

Revised 09/24/2025

Purpose

Financial risk for all overdraft spending requests made before Kansas State University’s acceptance of a sponsor award and for any overspending of sponsored project accounts rests solely with the project’s departments and/or units, unless special arrangements are made with the college’s associate dean for research (ADR).

The university allows a principal investigator (PI) to request an overdraft account when the PI and their department or unit head determine that the project’s funding risk is minimal (Per PPM 7010.140 Overdraft Requests). To manage college-level risk, additional internal authorization processes are required.

Authorization guidelines

Overdraft requests for both New and Continuing Accounts will be authorized on a month‑by‑month basis. Department or unit heads responsible for each project personnel’s expenditures, as defined in the approved overdraft budget, must agree to the following:

    • Temporary End Date: On the Cayuse Overdraft Spending Form, enter a temporary end date no later than one month after the anticipated overdraft start date.
    • Mission-Critical Budgets: Overdraft budgets will include only mission-critical line items, with priority given to Graduate Research Assistant (GRA) and term staff positions.
    • Departmental Financial Responsibility: If the project does not become active, the department or unit is fully responsible for all costs, including full salary and fringe benefits paid from the overdraft account.
    • Salary Coverage: All salaries must be funded by the appropriate department or unit for project personnel as outlined in the college-approved overdraft budget and internal college agreements.
    • Budget Compliance: Expenditures must not exceed the college-approved overdraft budget, which must be provided to ERGP when a Cayuse overdraft request is submitted. To avoid delays, departments are encouraged to seek advance review of budgets by ERGP.
    • Equipment Restrictions: Equipment purchases are not permitted while a project is in overdraft unless explicitly approved by the ADR.

Exceptions

Situations that fall outside the scope of this policy or involve situations not addressed in standard procedures will be reviewed on a case-by-case basis.