Frequently Asked Questions
What are restricted funds?
What is the basis of the restriction?
How does the University differentiate between unrestricted and restricted contributions?
|Net Asset Class||Definition|
|Temporarily Restricted (TR)||
|Permanently Restricted (PR)||Corpus or principal of endowed contributions where donor specifies the original donation be held in perpetuity while part or all of the income can be used for general or specific purposes.|
What are designated funds? Are they different from restricted funds?
|Fund Type||Funding Source Range|
|Temporarily restricted||1xxxxx – 3xxxxx|
What funds should be spent first - UNR or TR?
What kind of funds can be deposited to TR funding source?
Any other types of revenue received by a department are considered unrestricted and should be deposited to an unrestricted funding source, including:
- Educational Program Fees
- Affiliate Program fees
- Event fees
What attributes are used to distinguish contributions from exchange transactions?
|Recipient (CMU) organization’s intent in soliciting the asset.||CMU asserts it is soliciting the asset as a contribution.||
CMU asserts it is seeking resources in exchange for specified benefits.
|Resource provider (donor) expressly states the purpose of funding provided.||Resource provider asserts a donation/ contribution is being made to CMU.||
Resource provider asserts that is transferring resource in exchange for specified benefits (a service).
|Payment||The resource provider determines the amount of the payment.||
Payment equals the value of the
asset to be provided by the University
or cost plus mark-up.
Who is responsible for the stewardship of TR funds?
These responsibilities include:
- Knowledge of the restriction (donor wishes) on the funds
- Ensuring that the funds are expended in accordance with donor wishes
- Ability to answer questions about how the funds were expended (from donors or auditors)
- Sound fiscal management of the funds (i.e. redistributing inappropriate charges in a timely manner and where possible, not overspending the funds available and halting spending when payments are not received, etc.)
- Effecting transfers and clearing deficits as necessary
When should I record an income transfer / funding entry?
- To fund an activity, program or initiative within unrestricted (UNR) funds
- To fund an activity code or another organization within the same temporarily restricted (TR) funding source
- To fund another TR funding source provided the use is consistent with the donor's intent
- To fund an agency funding source provided the use is consistent with the agent's intent
Note: Always use the same object code on both sides of the entry and use a journal category of funding, funding PTA or agency funding.
Please follow the Temp Restricted & Agency Funding Source Transfers procedure.
When should I NOT record an income transfer / funding entry?
- To move funds between TR and UNR (see below)
- To fix a charge recorded to the wrong account string (use redistribution process)
- When Oracle won’t accept the correct object code (review string)
- When charging an organization for goods or services
How do I clear a deficit in a temporarily restricted fund?
Deficits can be cleared with unrestricted funds by utilizing object code 88510 (see Funding TR Deficits with UNR procedure) or by transferring contributions received with like purposes between temporarily restricted funding sources using accounts 72100 or 72200 (see above).
Can I donate some of my restricted funds to support a campus initiative?
Yes, if the support is consistent with the donor’s restriction on the funds you can contact Elizabeth Kaciubij, Interim Senior Director, Accounting & Financial Reporting, at firstname.lastname@example.org to handle the transaction. Appropriate donor documentation supporting the request is required.
If I have a deficit, can I pay it off with future contributions?
Why can’t we leave deficits in temporarily restricted funding sources? Why do we have to clear them to unrestricted when they’re easier to track in TR?
If a funding source is fully expended, should we close it out?
CMU Ethics Reporting Hotline
www.reportit.net (Username: tartans; Password: plaid)