Funding Priority

This level of structure captures the separate breaks in a funding agreement based on dollars, allowing one or more sequential billing ceilings according to the agreements with funding sources. Priorities are followed sequentially in the reimbursement process: funding priority 1 must be depleted (based upon available budgetary funds) before priority 2 begins etc.  It’s possible that a single accounting line may cross multiple Funding Priorities, in which case it may be split, on the posting line, in multiple ways according to the priorities applicable.

The last Funding Priority within a Funding Profile is generally the cost overrun (Overflow) priority, to capture additional costs that are not eligible for billing to any funding source.  Overflow costs can be tracked for reporting and for inclusion in the reclassification run if more funding becomes available.

Overflow funding sources can be identified and controlled to allow proper recording of expenditures that exceed the agreement amounts, if applicable. If it is desired to allow expenditure activity to exceed the original funding agreement, then an additional Funding Priority can be established to capture the cost overruns by selecting the Overflow option. During disbursement transaction processing, charges will automatically post against the overflow priority if the previous Funding Priorities identified in the original funding agreement have been depleted.

Priorities are defined in sequential numerical order. If the first priority record entered on the funding priority is a single digit that is 1, 2..., then the corresponding records should be in entered in the same sequence and the Funding Profile should not have Funding a Funding Priority beyond 9 or reclassifications will not move from a 2-digit to a 1-digit Priority.  The recommended approach is to enter all Priorities as 2-digits from 01 to 99.

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