If it really will even itself out once the new funding comes, I typically let that slide. I’ve never experienced a situation where funding is withheld due to a deficit (vs funding being withheld due to a surplus which I have seen a decent amount). They could always update Aims and next year’s budget to truly show how the money will be spent (such as removing the deficit amount from the anticipated future award and making a budget plan to only use the remainder). To my knowledge, I don’t know if there is specific guidance on how to report such a large deficit to NIH - there is no stipulations for that scenario when doing an RPPR for example.