Fund Stewardship and Management Review Guidelines

LAST UPDATED: March 12, 2018

It is the responsibility of individual department managers to ensure compliance requirements are being met at the individual fund level. Fund review should take place on a regular basis, and at least monthly.  

Receive Funds and Review Restrictions

  • Review reports (Spendable Balance) on a regular basis. If/when any new Funds are assigned, use the Fund Restriction/Designation by Chartstring Report to review specific Endowment (E) and Expendable Gift (B) Fund restrictions.
  • Since we rely on the Departments for stewardship of restricted Funds, this responsibility and accountability should be shared across Department staff*.
  • Knowledge of the balances and restrictions on your department’s Funds will help you plan ahead.

Expend Funds

  • All buyers should know restrictions and availability. It is best to charge an expense to the right place the first time.
  • When an expense meets multiple funds’ restrictions, spend the most restricted monies first.   This will help ensure the less restricted money is available for a variety of expenses at a later date.
  • When restrictions are met, be sure to spend your Endowment (E) & Expendable Gift (B) Fund money first. This will help ensure Advancement can report back that donor money is needed and being utilized.
    • Departments may need to accumulate funds in anticipation of future needs.   When this accumulation occurs departments should have a clear, documented plan which outlines the anticipated future use.
  • Post reasonable and prudent expenses directly to the Fund.  

Review Balances

  • Review spendable (remaining) balances on a regular basis to avoid over-spending and monitor spending on the Fund.  
  • Send spending/accounting report to originating department if required.
  • Review activity for appropriateness against the restrictions of the Fund, University policy and the department’s financial plan. Specific procedures include:
    • Review recorded transactions and investigate those that you don’t recognize or appear unusual,
    • Compare transactions to source documents as needed,
    •   Review infrequent transactions, and
    • Investigate and resolve issues of concern – It is the University’s expectation that any compliance concerns be brought to the attention of the employee’s supervisor, an employee in the University office that has oversight authority for the policy or law, the Director of Academic Management (academic department issues).

Assess and Address

  • I f spendable balance remains, with no plan for further spending, return monies to originating departments when necessary (e.g. for one time events where not all assigned money was needed).
    • For those Funds where spending cannot occur because of a narrow restriction, such restrictions should be reviewed by the department administrator, and F&T Funds Management should be contacted to obtain assistance in determining what options are available pertaining to these unspent funds. F&T will then contact the Office of General Counsel (OGC), Development and Provost offices for any necessary assistance.
  • Carefully review those Funds that have deficit balances. Reclass expenses off of the Fund or request additional assignment if appropriate.
    • Careful monitoring of Funds will help to ensure that deficit balances only occur in rare situations. 

*Each department head is responsible for the implementation of this review within his/her area. The person responsible for review should have a good understanding of:

  • Initiating source or event – what action(s) are causing the transaction and who are the appropriate initiating individuals 
  • Type of expenditures and the related business purposes that generally occur,
  • Frequency of expenditures,
  • Recurring or non-recurring nature of the transaction,
  • Unusual or exceptional transactions – understand what activity would constitute an unusual or exceptional transaction that might require additional review or special handling,
  • Transaction risk – understand the financial, compliance and operational risk of the business activity. Consider the source of the funding, compliance requirements for the type of transaction, department or management expectations, past history or knowledge of potential problems, and
  • Restrictions of the Fund, University policy and the department’s financial plan.


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