To establish policy governing the priority of release of restricted resources when both restricted and unrestricted resources are available to satisfy an expense.

This Policy applies to all West Virginia University departments, including those on the regional campuses (Potomac State College of WVU, WVU at Parkersburg, WVU Institute of Technology, Charleston division of the Robert C. Byrd Health Sciences Center, Jackson’s Mill State 4-H Conference Center and Camp, and the WVU Farms).

 POLICY

If an expense is incurred for a purpose for which both unrestricted and restricted net assets are available, the University’s policy is to first apply and exhaust restricted resources to satisfy the expense, and then apply unrestricted resources towards that expense.

Net assets are considered restricted when constraints placed on their use are either: (a) externally imposed by creditors, grantors, contributors, or laws and regulations of other governments or (b) imposed by law through constitutional provisions or enabling legislation.

The Accounting & Reporting Unit of Accounting & Financial Systems is responsible for procedure development.

The responsibility for implementation of this policy rests with the Accounting & Reporting Unit of Accounting & Financial Systems.

The responsibility for interpretation of this policy rests with the Accounting & Reporting Unit of Accounting & Financial Systems.

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