UAMS ADMINISTRATIVE GUIDE

NUMBER: 8.1.05
DATE: 10/01/93
REVISION:
04/14/03

SECTION: FINANCE DEPARTMENT
AREA: GENERAL ACCOUNTING
SUBJECT: REDISTRIBUTION OF SURPLUS FUNDS FROM CAPITAL PROJECT ACCOUNTS

PURPOSE

The purpose of this policy is to notify departments within the University of Arkansas for Medical Sciences (UAMS) of the requirements and restrictions to be followed in the redistribution of surplus funds from capital project accounts.  Although a UAMS Expenditure Control Policy exists to provide parameters defining the limits of expenditure authority for all UAMS programs, a need exists to define the limits on the redistribution of capital project funds once these projects are complete.

POLICY

The redistribution of these funds should be carried out at the earliest opportunity following completion of the project.  For purposes of this policy, a capital project will become complete upon determination that there are no outstanding invoices or no unresolved financial issues related to the project.  Surplus funds remaining from closed Capital Project accounts that were originally funded from prior year General Operating (111) accounts should be transferred to the Chancellor's Contingency Account unless sufficient justification is made for some other disposition.

Surplus balances in all other closed capital projects should be used to offset deficits in other capital projects within the same department/division.  If no deficits exist in any of the department/division's other projects, the surplus funds may either be returned to the origination account or transferred to another department account.  If a deficit exists in the project account to be closed, the responsible department/division must identify an account from which funds will be transferred to cover the deficit.

PROCEDURE

(1)        Upon completion of a capital project, Campus Operations will initiate a Request for Termination of Capital Project Account Form identifying the project's title, account number, final account balance, origination of funding, and the Department/Division responsible for the closed project.

(2)        Campus Operations will forward the form to the responsible department/division for identification of desired disposition of the account balance.

(3)        The responsible department director or project coordinator must indicate the department's desired disposition of any fund balances or deficits in the appropriate spaces on the form.  The requested disposition must then be approved by the appropriate division-level Dean, Director, or Vice Chancellor and forwarded to the Vice Chancellor for Finance and CFO.

(4)        The Vice Chancellor for Finance and CFO must approve the department/division's requested disposition of surplus project funds prior to further action.

(5)        Upon approval of the Vice Chancellor for Finance and CFO, the form will be submitted to the Finance Department for final action.

(6)        Copies of the completed form showing final disposition of the closed capital project account must be distributed to the Department Project Coordinator, the Vice Chancellor of Campus Operations, and the Planning Coordinator.