Home » Delta State University Policies » University Policies » Finance and Accounting » Restricted Funds
Restricted funds are those that come from sources other than normal University operating funds and are provided to conduct specific projects or programs. Such grants are sponsored for research, public service, or educational service. The purpose of this policy is to provide guidance to project directors handling funds for grants. Federal grants for financial aid to students are not within the scope of this policy.
Restricted funds: account for current expenditures expended for operating purposes, but restricted by donors or other outside agencies as to the specific purpose for which they may be expended.
PROCEDURES and RESPONSIBILITIES
Grants and contracts are normally awarded to institutions rather than to the individuals responsible for the conduct of the programs. Thus, the institution assumes full legal responsibility for the programs and for fulfilling sponsoring agency requirements. The President of the University or his designee is the only individual authorized to sign award documents on behalf of the University, which commit the University to a grant program.
After a grant award is accepted by the University, the project director has prime responsibility for the conduct of the grant within the regulations of the sponsor and the University. In the areas where there is a difference between the grant agreement and University regulations, the more restrictive will apply. The financial administration of the grant is under the direction of the project director. The University Accounting office is responsible for determining that proper fiscal policies and procedures are followed in conformance with both University and sponsor requirements.
The primary responsibility for budget planning rests with the project director in consultation with the department chair or dean. University Accounting is available to assist in planning in areas concerning salaries and wages, indirect cost, and fringe benefits.
Upon acceptance of a fully-executed contract or grant award document, the project director should forward to the University Accounting office copies of the following documents: grant proposal, award letter, and approved budget. Upon receipt of this award package, University Accounting will assign a fund number and enter the budget into Banner. The project director is not authorized to incur any expense relating to a particular award before these steps have been accomplished.
Once the grant award has been received, all its terms and conditions must be followed explicitly. All expenditures must be required solely to accomplish the purpose of the award and should be based on the budget as approved by the granting agency and the conditions of the award. It is the project director’s responsibility to stay within the total authorized budget. Any budget deficits will normally be charged to the project director’s departmental operating budget.
Project funds must be expended in accordance with the award budget and time period. Thus, services and materials purchased cannot be charged to the project account if received prior to the grant-established starting date or after the ending date.
The University Accounting office will periodically transmit financial reports to the project director. These reports will indicate the detailed financial activity for the period, with cumulative totals for the University fiscal year. This information is also available on-line in Banner at any time. The project director should review these reports and alert the University Accounting office if errors occur.
Generally, the University Accounting office is responsible for reporting all official grant activity to the sponsoring agency. The project director will be required to review and concur with the final accounting statements prior to the submission of the final fiscal report to the agency.
Periodically it becomes necessary to revise a budget by shifting funds from one budget line item to another. All such budget revisions must conform to both the grant requirements and University policy. Once approval is obtained to rebudget, the University Accounting office will adjust the grant budget in Banner.
Proposals to secure outside funding must be prepared and submitted in accordance with University instructions and procedures. A detailed budget must be attached to the proposal at the time it is submitted through University channels for review, even if it is not a requirement of the sponsor.
Matching funds are the portion of the total project cost contributed by the University. All proposed matching must be identified when a proposal is submitted. Departments submitting proposals must have funds budgeted in their departmental operating budgets to support any direct costs that are not provided by the grant. Supporting documents for in-kind matching is the responsibility of the project director.
All University policies and procedures apply to restricted funds. University policies relating to procurement, travel, personnel, etc., must be followed unless otherwise specified by the grant/contract terms and conditions.
Indirect cost should be included in all budgets (except gifts, scholarships, and other student aid agreements) at the current approved University rate unless not allowed by the grant. Information on the current indirect cost rate may be obtained from the Institutional Grants Administrator or the University Accounting office.
Indirect cost recovered by the University will be reallocated as follows:
30 % to University Accounting
30% to Vice President
40% to Department
- Receive grant documents from project director.
- Set up budget in Banner according to the grant agreement.
- Approve all grant related requisitions based on budget narratives
- Periodically transmit financial reports to the project director.
- Report all official grant activity to the sponsoring agency.
- Forward grant proposal, award letter and approved budget to University Accounting.
- Expend project funds in accordance with the award budget and time period.
- Review periodic financial reports, reporting any errors to University Accounting.