Robert W. Gilbert
Acting Comptroller

Ph: (540) 464-7270
Fax: (540) 464-7794

Smith Hall, 3rd Floor
Virginia Military Institute
Lexington, Virginia 24450

Contact Comptrollers Office


Restricted Funds Accounting

NOTICE TO READER:  

Segments of this document in bold, italic print represent policy which can be changed only by authorization of the VMI Board of Visitors.  All other segments represent procedures which may be changed by authorization of the Superintendent.

Section 60000

TABLE OF CONTENTS

60100    Restricted Funds Accounting Policies

60200    Restrictions on Restricted Funds

60300    Accounting for Receipts and Expenditures


60400    
Reporting of Restricted Funds


60100   Restricted Funds Accounting Policies  [Return to top]

Restricted funds derive from gifts, grants, and contracts received by the Institute for operating purposes but restricted by donors, grantors, and outside agencies as to the specific purpose for which the funds may be expended.  The department authorized to use the funds has the responsibility for monitoring expenditures from restricted funds.

 

60110   Control Over Restricted Funds   [Return to top]

Funds received for restricted purposes are separately accounted for in accordance with generally accepted accounting principles.  The Treasurer's Office shall periodically review the restricted fund accounts to insure that they are being administered properly.

 

60120   Determination of Restricted Funds  [Return to top]

The Comptroller’s Office and Treasurer’s Office, in consultation with The VMI Foundation, Inc. and the Auditor of Public Accounts, are responsible for determining whether gifts, grants and contracts received by the Institute are to be accounted for as restricted current funds.

 

60130   Budgeting Restricted Funds  [Return to top]

Procedures for budgeting restricted funds are established in accordance with budgeting policies and procedures.

 

60200   Restrictions on Restricted Funds  [Return to top]

Grant and contract awards are obtained from various governmental and private agencies for restricted purposes.  VMI’s grants and contracts are either Federal or State funded.  The Institute has a separate organization, the VMI Research Laboratories, Inc. (VMIRL), that handles the administration of the majority of the grants and contracts awarded the Institute.  This Manual does not address those grants and contracts that are the responsibility of VMIRL.

The restrictions on restricted fund accounts may be detailed or general, allowing allocation of the funds to specific projects.  For example, an endowment may be established in which the annual proceeds are to be used to support professional chairs in engineering.  When the distribution is made, the proceeds may be deposited specifically with Civil Engineering, Electrical Engineering or Mechanical Engineering.  All distributions from restricted accounts shall be in accordance with donor specifications and restrictions.

 

60210   Review of Restricted Fund Accounts  [Return to top]

Restricted accounts are continually reviewed by the Comptroller’s and Treasurer's Offices and annually reviewed by the Auditor of Public Accounts to determine that the donor’s restrictions are being observed.  However, the primary responsibility for restricted funds is with the department using the funds.

 

60310   Receipts of Restricted Funds  [Return to top]

VMI shall process restricted funds received from all sources including gifts, grants, contracts, and endowments in accordance with the cash receipts procedures in Section 30000 of this manual.  The VMI Bursar shall credit the applicable restricted accounts in the General Ledger for such income. Restricted accounts, which are part of the VMI endowment, including the scholarship and awards accounts, will be posted with interest income quarterly.  The amount of interest each account receives is based upon the number of units the account holds relative to the total number of units in the pool. 

 

60320   Expenditures of Restricted Funds  [Return to top]

Departments shall process the expenditures of restricted funds in accordance with purchasing procedures, as outlined in the Section 90000 of this manual and disbursement procedures as outlined in this manual (Section 45000).  It is the responsibility of the account Budget Officer to monitor and control expenditures so that the funds are available for the duration of the budget period.  Departments shall review all expenditures reported on YTD Budget Reports to insure that charges are accurately posted.

 

60400 Reporting of Restricted Funds  [Return to top]

External reporting of restricted funds is performed as requested by the donor or sponsor.  The Comptroller’s and Treasurer’s Offices have the responsibility for filing timely financial reports concerning grant and contract awards with the appropriate sponsoring agencies.  All reports require the signature of the Comptroller before they can be released.  Financial information to be included in external reports shall be available from the Colleague Finance Accounting System.