A borrowing limit is a memo entry in STARS that allows expenditures to process before the related revenue or reimbursement has been received from the federal government. Contact David Fulkerson at the Division of Financial Management for a new borrowing limit or a change to a current borrowing limit.

Request the borrowing limit at whatever level that you are posting the federal grant to the Cash-Post-Level on the Grant Control Table S029, whether it is at the Fund or Fund Detail, or at the Grant or Grant Phase levels

The Cash Control Posting Level indicator that identifies whether the Grant Cash will post to the Grant level on the Cash Control File (63). The indicator types are as follows:

• 0 – No separate Grant Cash Control. Cash can be spent up to the amount of the cash in the fund or fund detail, not restricted by grant. CASH CTL TYPE must be ‘0’, No control.
• 1 – Maintain separate Grant Cash Control. Only this grant/fund can use the cash posted to this grant/fund. If not enough cash is available in the grant and fund, STARS will not process expenditures.
• 2 – Maintain separate Grant Phase Cash Control. Only this grant phase/fund can use the cash posted to this grant phase/fund. If not enough cash is available in the grant phase and fund, STARS will not process expenditures. Also posts grant/grant phase to the Average Daily Cash File.

Figure 1 - Grant Control Table example

Once the borrowing limit is approved, the State Controller's Office will enter a STARS Transaction Code 199 to create the borrowing limit. 

You can see your borrowing limit in the Cash Control File screen S063 or S073 and see the increase in the Balance.

Figure 2 - Cash Control File example

Notice that the prior year ending Balance includes the borrowing limit, but the next year's Beginning Balance is the actual cash amount without the borrowing limit (971,932.65 less 1,500,000.00 = -528,067.35).

An IBIS Cash Control Inquiry will display the same data as the Cash Control File screen S063.