ESTABLISHMENT OF ACCOUNTS AND RECEIPT OF FUNDS

	ESTABLISHMENT OF ACCOUNTS AND RECEIPT OF FUNDS	No. 5-4	Rev.
		Date 8-17-77

I. PURPOSE

To outline the responsibilities for the establishment of new accounts and acceptance of funds deposited to existing accounts.

II. DEFINITIONS

Restricted Award

An extramural grant, contract, gift, gift-in-kind, fellowship, etc., which requires separate accounting for the purpose of future financial or progress reporting or end product results. An award designating what the awarder wants the award to be used for (athletics, education, etc.) but not requiring an accounting or report of proper usage is considered to be "unrestricted."

III. PROCEDURE

A. Accounts will be established or deposits honored only when revenue monies are accompanied by the following documents:

1. A copy of the document requesting the funds (if written request was not made to the awarder, then a letter from the recipient)

2. A copy of the awarding document and covering letter

3. An appropriate receipt

4. Instructions and budgets necessary for the Business Office to account for the future expenditure of funds

B. The above documents for funds to be deposited must be forwarded to the appropriate offices as listed below. Deposits will not be credited to an account until authorization has been given by the concerned office as follows:

1. Office of Sponsored Projects

a. All funds where financial or progress reports or other items are required by the agency or organization providing the funds (restricted accounts). Normally, these are research, educational service, training and instructional grants and contracts

b. All restricted gifts, restricted gifts-in-kind and fellowships (which require financial or progress reports or other end items)

2. Office of University Relations

All alumni related gifts and other gifts which are unrestricted so far as follow-up reports and other follow-up restrictions are concerned (the I.R.S. definition of a gift)

3. Business Office

a. Funds received from state appropriations

b. Income from athletic events and auxiliary enterprises

c. Tuition and other fees for deposit to general fund and do not require separate activity or accounting

d. Routine payments on account

e. Revolving accounts

f. Revenue from sales of surplus equipment (except equipment procured with federal grant or control funds which are governed by PPM 4-27)