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Summary: UNIVERSITY OF HOUSTON SYSTEM
ADMINISTRATIVE MEMORANDUM
SECTION: Fiscal Affairs NUMBER: 03.G.01
AREA: General Accounting
SUBJECT: Year End Closeout Procedures for Deficit Balances
May 7, 1993; Revised May 4, 2004 Page 1 of 2
1. PURPOSE
While it is desirable to prevent deficit fund equity balances, it is not always operationally
possible to do so. This document sets forth the procedures to control the carry forward of
deficit fund equity balances within fund groups for a department and deficit fund equity
balances within fund groups for a component university as a part of the year end closeout
procedures. These procedures shall apply to all fund groups.
2. POLICY
2.1. Budget authorities at the appropriate level at each component university and the
System Administration shall review all cost centers in their respective area as a
part of the annual closeout procedure to determine the extent of deficit fund
equity balances and which deficit balances need to be corrected. Any fund group
(1xxx, 2xxx, etc.) for a department with a deficit fund equity balance shall have
expenditures transferred from the fund group and/or sufficient fund equity or
revenue moved to the fund group to bring the fund equity balance to at least zero.
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