DESCRIPTION

Restricted Funds Budgets are usually established by the sponsoring agency from data submitted with the project proposal. These budgets are frequently in more detail than the major categories used by the General Fund, and the accounting system is designed to show such details. Budgets are approved and amended by the Office of Research and Sponsored Program Services.

POLICY

The sponsoring agency expects that actual project expenditures will be in accordance with their budget and that the interim and final financial reports will reflect this situation. If a sponsoring agency is not willing to approve budget amendments, the university must then adhere to the financial plan represented by the original budget. This means that even though the project would be better served (in the eyes of the principal investigator) by a different way of spending, a sponsor's refusal to amend the budget precludes going in the different direction. The Dean or Director of the budgetary unit is responsible for seeing that the budget is adhered to, that budget amendments are sought where appropriate, that the sponsor's refusal to amend the budget is complied with, and that project expenditures do not exceed the budget in any category. Many sponsoring agencies expect the return of unused funds in accordance with the project budget.

Expenditure of project funds must be in accordance with the university's guidelines which limit expenditures to university purposes and prohibit such things as personal items. Sponsors frequently add further restrictions and prohibitions which must be complied with, e.g., travel, equipment, etc. Most equipment purchases are routinely routed through the Office of Research Sponsored Program Services for their prior review, but the Dean or Director is responsible for seeing that all expenditures comply with both the university and sponsor guidelines.

DEFINITION(S)