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Re: Full Cost of Attendance
I understand recognition on a modified accrual basis, measurement focus, and means of spending and control. Fund balance reserve is a portion of fund equity that must be segregated for some future use and is not available for future appropriation. The reserve is not a liability, it is a reservation of fund balance. This has a few similarities to appropriation of retained earnings in an enterprise. If a portion of the fund balance is designated as reserved, the fund balance should be reported as unreserved fund balance. The restricted current funds is utilized by colleges to account for resources that are to be spent for current operating purposes. The unrestricted fund accounts for all currently expendable resources that are to be used in primary objectives of the institution such as research. Restricted current funds are special purpose federal grants and private donations for a specific purpose. Restricted current funds are externally restricted because donors or outside parties determine how the resources are used. Current funds revenues include tuition, governmental appropriations and grants, private gifts and grants, endowment income, sales and services of educational departments and auxiliary enterprises, and expired term endowments. Current funds revenues are reduced by refunds; scholarships and tuition remissions are included in revenues and offset by expenditures. Endowment funds are similar to the nonexpendable trust funds in state and local governments. The university would have to keep the principal of the gifts in tact. The earnings from the investment of the principal will be expended for current restricted or unrestricted purposes, depending on the wishes of the donor. If expended for current restricted purposes, the resources are transferred to the Current funds-Restricted group and expenditures are made according to donor restrictions. All income earned for current purposes is recognized as endowment income. Term endowments are like endowment funds except that the principal may be spent after a period of time following the occurrence of an event. Quasi endowment records unrestricted monetary balances that have been voluntarily been set aside by the university rather than applied to current operations. Annuity funds consist of funds acquired by the institution subject to agreements where the assets are made available to the school with the condition the institution binds itself to pay stipulated amounts to designated individuals. Plant funds are unexpended plant funds, funds for renewal and replacement, funds to retire indebtedness, and investment in plant. Agency funds are used to maintain a record of monies held in a fiduciary way for other parties. Loan funds account for loans made by the university granted to students to assist them in financing their education.
I understand recognition on a modified accrual basis, measurement focus, and means of spending and control. Fund balance reserve is a portion of fund equity that must be segregated for some future use and is not available for future appropriation. The reserve is not a liability, it is a reservation of fund balance. This has a few similarities to appropriation of retained earnings in an enterprise. If a portion of the fund balance is designated as reserved, the fund balance should be reported as unreserved fund balance. The restricted current funds is utilized by colleges to account for resources that are to be spent for current operating purposes. The unrestricted fund accounts for all currently expendable resources that are to be used in primary objectives of the institution such as research. Restricted current funds are special purpose federal grants and private donations for a specific purpose. Restricted current funds are externally restricted because donors or outside parties determine how the resources are used. Current funds revenues include tuition, governmental appropriations and grants, private gifts and grants, endowment income, sales and services of educational departments and auxiliary enterprises, and expired term endowments. Current funds revenues are reduced by refunds; scholarships and tuition remissions are included in revenues and offset by expenditures. Endowment funds are similar to the nonexpendable trust funds in state and local governments. The university would have to keep the principal of the gifts in tact. The earnings from the investment of the principal will be expended for current restricted or unrestricted purposes, depending on the wishes of the donor. If expended for current restricted purposes, the resources are transferred to the Current funds-Restricted group and expenditures are made according to donor restrictions. All income earned for current purposes is recognized as endowment income. Term endowments are like endowment funds except that the principal may be spent after a period of time following the occurrence of an event. Quasi endowment records unrestricted monetary balances that have been voluntarily been set aside by the university rather than applied to current operations. Annuity funds consist of funds acquired by the institution subject to agreements where the assets are made available to the school with the condition the institution binds itself to pay stipulated amounts to designated individuals. Plant funds are unexpended plant funds, funds for renewal and replacement, funds to retire indebtedness, and investment in plant. Agency funds are used to maintain a record of monies held in a fiduciary way for other parties. Loan funds account for loans made by the university granted to students to assist them in financing their education.
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