Cash Balances in Fund Accounts

Effective: Moved to Policy Library from UPM 10.2(5)
Reviewed and Updated: March 22, 2016
Contact: Controller's Department

Introduction

The university’s financial transactions are recorded and its financial reports compiled using systems managed by the Controller’s Department and Information Technology Services. Accounts reflect monies allocated or otherwise provided for the use of the university in conducting its operations and also reflect the expenditures of those funds. Fund and sub fund groups from the university’s chart of accounts indicate the source of funds and provide general guidance for the allowable uses.

Policy Statement

University faculty, staff, and administrative units with authority to authorize  expenditures also have responsibility for assuring sound management of funds and avoiding deficit cash balances. In general, all university accounts must maintain a positive cash balance.  Deficit balances must be promptly resolved.

Exceptions to maintaining a positive cash balance include accounts where reimbursement of costs occur, such as cost reimbursable sponsored accounts and fee for service operations with cyclical funding, such as farms.

Resources