Deficits
A deficit is defined by a funding source, activity code, organization, and entity combination
that have a negative ending net asset value.
As part of the university’s internal fiscal controls, deficits are reviewed annually and any
deficit over $1,000 requires a documented analysis and a plan to fund the deficit. Any issues
which arise from unfunded deficits will be discussed with university leadership in the fall.
The following is a more detailed description by funding category and a tutorial on reading and
generating the deficit financial reports.
General Operating
General Operating will have no ending net assets at the end of the fiscal year because the
Oracle system transfers (object code 72400) all surpluses and deficits from the general
operating funding sources (000001 through 000003 and 000005 and 000010) by organization
to the organization’s operating reserve (funding source 060000, activity code 000). If a unit
prefers to have the general operating balances moved to any other funding source, activity
code, organization, or entity, it may move balances using the transfer surplus / deficit object
code (72400). Examples are as follows:
 There are 3 organizations within a department, and the department wants to hold the
surplus / deficit in only one organization. The department would transfer the
balances in general operating by department to the operating reserve in the one
department that will hold the balance.
 An organization has tracked actual revenues and expenses by activity codes
throughout the year to follow specific tasks. If the department wants to continue to
track cumulative balances by activity code, it must transfer those balances from
funding source 000001 to the operating reserve by activity code.
General Institutional
The General Institutional funding source (000004) must be zeroed out at fiscal year end. The
Budget and Financial Planning Office works with each department that has responsibility for
general institutional activities throughout the year, and clears all surpluses and deficits at the
end of each fiscal year.
Designated Operating, Unrestricted Endowment, and Capital Reserves
These categories are defined as follows:
 Unrestricted endowment (funding source 000100 through 049999)

Designated operating (funding source 060000 through 069999 and 800000 through
809999), which includes operating reserves, unrestricted faculty discretionary funds,
internally funded projects, technology transfer dockets, cost sharing, faculty
development grants from the Provost’s Office, SURG, and affiliate programs.

Capital reserves (funding source 090100).
All deficits over $1,000 require a documented analysis and a plan to fund the deficit.
Auxiliaries and Recharge Centers
Each auxiliary (funding source 050000) and recharge (funding source 055000) needs to
provide explanations for surpluses and deficits, as well as a pricing and cost plan to eliminate
the balance. These responses will be shared with the Cost Analysis department.
Sponsored Projects
Sponsored Projects (funding sources 07xxxx and 08xxxx) surpluses and deficits are defined at
the project, task, and award level. In addition, the total sponsored projects balance needs to be
reconciled to the balance in the BMS (budget management spreadsheet). All differences must
be identified and resolved. All deficits over $1,000 require a documented analysis and a plan
to fund the deficit.
Temporarily Restricted
Temporarily Restricted endowed (funding sources 1xxxxx) and gift (funding sources 2xxxxx)
deficits should be cleared by the end of each fiscal year. Any deficits not cleared require a
documented analysis and a plan to fund the deficit.
Agency
Agency (funding source 9xxxxx, entity 95) deficits over $1,000 require a documented
analysis and a plan to fund the deficit.
Deficit Reports in Oracle
There are two financial reports (FSG) in Oracle for deficit analysis and reporting.
FS DETAIL – DEFICITS displays the following account segments:




Funding Source – value and description
Organization – value and description
Activity – value only
Entity – value only
Row Order is used to sort the account segment values by Funding Source, Organization and
Activity.
FS DETAIL – DEFICITS displays the following measures:
 Increase/(Decrease) Net Assets
 Beginning Net Assets
 Ending Net Assets
………………………………………………………………………………………………
FS DETAIL – DEFICITS AGENCY/ORG displays the following account segments:


Funding Source – value and description
Organization – value and description
Row Order is used to sort the account segment values by Funding Source then Organization.
FS DETAIL – DEFICITS AGENCY/ORG displays the following measures:



Increase/(Decrease) Net Assets
Beginning Net Assets
Ending Net Assets
GENERATING THE REPORT
Be sure to include Segment Override values for your Organization and Entity
Publish the report through Oracle. An Excel spreadsheet version of the FS DETAIL –
DEFICITS report will allow the user to easily add Comments that address/explain each deficit
within the organization. Direction for running reports in Oracle can be found at:
https://www.cmu.edu/finance/systems/documentation/files/rpt_mgr_ug.pdf