Could you define the various IU fund groups and explain how funds are utilized?
|
Fund Group Definitions
The accounts of Indiana University are maintained in accordance with the principles of fund accounting. Resources for various purposes are classified into funds in accordance with the activities or objectives specified and separate accounts are maintained for each fund.
Current Funds
Funds that are available for current operations and include those for unrestricted as well as those for restricted purposes. Unrestricted Current Funds, supported primarily by state appropriations and student fees, are divided into two groups: General Funds, which provide funding for expenditures for current operating costs of the university as budgeted and appropriated by the Board of Trustees; and Designated funds, which are assigned by administrative action for support of specialized and continuing activities.
Restricted Current Funds
Funds of the university on which restrictions with respect to the nature of expenditures have been placed by the donor. Sources of funds are federal grants and contracts, state grants and special appropriations, and gifts and grants from private sources. Restricted funds are not earned until all of the terms of the agreement under which they were given to the university have been met.
Auxiliary Enterprises and Service Departments
Unrestricted Current Funds supported primarily by charges directly related to the cost of goods and services provided. They are combined for reporting purposes. Auxiliary Enterprises are activities for the benefit of students, the general public, faculty and staff. They include activities such as Halls of Residence, Hospitals, Bookstores and Athletics. Service Departments are activities that provide goods or services to departments of the university. They include operations such as Physical Plant Services, Central Stores, Communication Services and Printing and Duplicating Services.
Loan Funds
Funds that are held by the university specifically for making loans to students. These funds are derived from a number of sources, including private and governmental gifts and grants, federal borrowing and unrestricted allocations. Interest income, in most instances, is returned to this fund groups as an increase to the available fund balance.
Endowments and Funds Functioning as Endowments
Gifts to the university that have been restricted by donors to the extent that only income derived from the investment of gift principal may be expended and funds designated by administrative decision for similar use. Reporting as a part of this group are several Life Income Estates in which donors have reserved rights to occupancy or income for their and/or their beneficiaries' lifetime, after which any and all benefits revert to the university. Income from the Endowments is distributed to unrestricted or restricted fund groups according to the designation of the donor.
Plant Funds (Four Categories)
- Construction and Major Remodeling Accounts established to record expenditures for capital improvements and major maintenance of the physical facilities of the university. Funds are provided primarily by issuance of bonds or notes, State of Indiana and federal appropriations or grants, allocations from Current Funds and gifts.
- Retirement of Indebtedness Established for the payment of debt obligations resulting from financing of construction or acquisition of physical facilities. funds for payment of annual debt service are provided through net earnings from housing, parking and hospital facilities operations; allocation of student fees; earnings from investments of funds on deposit with trustee banks; and federal interest subsidy grants.
- Renewal and Replacement To provide funded reserves to cover the cost of major building repairs and equipment replacements in connection with Auxiliary Enterprise and Service Department operations. Periodic transfers from Auxiliary Enterprises and Service Departments operating accounts are the sources to provide the funded reserves.
- Investment in Plant Assets are stated at cost or amounts assigned at date of gifts, less accumulated depreciation, computed on straight-line basis over the estimated useful lives of the assets. Fund Balance for Investment in Plant is the net asset value less the outstanding indebtedness of the capital assets. Equipment and related accumulated depreciation are removed from the record at the time of disposal.
Agency Funds
Funds held for others for which the University acts as custodian or fiscal agent on behalf of the payor.
Other Funds
Funds held by an outside agency for the Trustees of Indiana University for future tuition fees.
|
