| VOLUME: I |
POLICIES RELATED TO ACCOUNTING ADMINISTRATION |
| SUBJECT: |
Recharge Center Transfers |
| SOURCE: |
Cost Accounting Standards (CAS) 9905.501, Consistency in estimating, accumulating and reporting costs by educational institution, CAS 9905.502, Consistency in allocating costs incurred for the same purpose by educational institutions, and Chief Accountant. |
| DATE ISSUED: |
July 1996 |
| POLICY NO.: |
I-410 |
| RATIONALE: |
To determine what funds may be appropriately transferred from a recharge center. |
| POLICY: |
Funds transferred from the recharge centers other than entries related to retire indebtedness and an amount equal to accumulated depreciation should be approved by the appropriate Campus Business Officer and the Chief Accountant |
| DEFINITIONS: |
Accumulated depreciation is the amount of dollars that have been amortized to date.
Recharge center is a University entity whose primary mission is to provide a good or service provided to Indiana University
|
| PROCEDURE REFERENCE: |
The recharge center can transfer funds from an operating account to the debt service fund to pay off the debt. This would include principal, interest, prepayment of debt, and required compensating balances. The recharge center could also transfer funds to a replacement and renewal account for the amount of the straight line depreciation expense. A transfer of funds document must be used for these transactions. Any other transfer will require the approval of the appropriate Campus Business Officer and the Chief Accountant |
| CROSS REFERENCE: |
See policy See Accounting Administration Policy I-370, Fund Balance in Recharge Centers. |
| RESPONSIBLE ORGANIZATION: |
Financial Management Support |
