The University of Georgia Foundation Contracts and Grants (Restricted Accounts) :: Expenditure Control :: UGA Foundation


Contracts and Grants (Restricted Accounts)

POLICY: 8.11
Effective Date: 01/01/2004
Last Updated: 12/10/2009

At the beginning of each fiscal year, University departments are required to submit budget requests to the Expenditure Control Department for UGA restricted accounts that will be funded by a Foundation account. Approved budget amounts are charged to the Foundation account by the Foundation's Expenditure Control Department and sent to UGA Contracts and Grants to establish the budget for the restricted account for the next fiscal year.  The Foundation will transmit a monthly payment to UGA Contracts and Grants for expenditures incurred in the prior month from each restricted account.

Please note that restricted accounts will be reconciled between UGA C&G and the Foundation Expenditure Control Department at least once a year and adjustments will be made accordingly to ensure budgets are properly funded and approved.

On or before March 1 each year, the Foundation Office will make available an estimated spending budget report for each endowed fund. The budget will cover the new fiscal year beginning July 1.

After the final spending budget for the new fiscal year is published (beginning of August each year), departments/units that use a restricted UGA Contracts and Grants account funded from a Foundation fund must submit to the Foundation Expenditure Control Department a check request for the total budget amount anticipated for the coming fiscal year. This budget should be prepared based on the departments/units projected funding requirements for the new fiscal year and within the FINAL spending budget provided. A Restricted Account (C&G) Budget form must be submitted with the check request, outlining the proposed use of the Foundation funds into the following expenditure categories: (1) personal services, (2) staff benefits, (3) non-personal services, (4) operating, and (5) travel expenses. If personal services are requested, the employee(s) name as (1) listed in the UGA Payroll, (2) job class, (3) payroll type, and (4) funding amount should be indicated.

A brief narrative or summary of how the funding is being used should be provided under the business purpose section of the check request.  If the business purpose or other forms required are incomplete or inadequate, the check request will be returned for additional explanation or information.

Departments/units should assume the beginning fiscal year balance of the restricted account is zero.  Any carry forward balances on the UGA C&G restricted account side from the previous year will be used first to cover expenses for the month of July.  Any positive carry forward balances remaining in August will be deducted from the total budget amount requested for the current fiscal year.  UGA C&G will not reject any charges in July for insufficient budget unless the expenditure falls within the "unallowable expenditures" as defined by the Foundation.

The Foundation Office will compare the restricted account budget requested to the spending budget to ensure there are sufficient funds. The proposed use of funds must fall within the trust purpose of the Foundation fund agreement on file. The ultimate responsibility and authority for the disbursement of the Foundation funds will still remain with the appropriate Vice President, Dean, or Director (refer to policy section Expenditures VIII.C). Once the Foundation has approved the budget, then it will be submitted to the University of Georgia Contracts and Grants Office.

If an increase or decrease is required to the original budget, a budget change may be requested at any time within the fiscal year by following the same procedures as for the original budget.

Non-endowed and in/out funds do not receive a spending budget calculation since the entire fund balance may be expended. The fund balance sets the maximum amount available to spend. Fund representatives should submit a check request to establish a restricted account budget following the same procedure as outlined above for endowed funds.