Units are expected to resolve operating deficits on their own throughout the year. When a deficit remains, the campus implements a technical Deficit Clearing Process (DCP), which will force a resolution of an operating deficit. As best practice, Units are highly encouraged to resolve deficits through their own intervention before the DCP process runs.
Resolving deficits may involve reclassifying expenses or redistributing resources through an operating transfer. The appropriate resolution will differ by fund and circumstance. All deficit remediation should follow procedures established by the controller’s office and can be referenced in the full policy document.
Campus enforces the deficit policy at the Fund-Department (L4) combination. This means that, at a minimum, the ending balance of each Fund-L4 combination may not be in deficit, even if individual chartstrings have surpluses and deficits. Ending balance is the beginning balance plus or minus the net of revenues, operating transfers, expenses, and fund balance transfers (the sum of accounts 30000 through 79999.)
Units can determine which L4-Fund combinations are currently in deficit by running the following deficit report in Cal Answers : "Dashboards>Fund Deficits Reporting>Deficits to be Cleared"