Separate accounts are maintained in the University Business Office for all current restricted, income, and revolving accounts. These accounts receive no allocations from the University general fund and balances do not lapse to the general fund.
Salaries are paid from these funds on the basis of approved budgets in the same manner as for accounts receiving budget allocations. The same procedure and general regulations apply to expenditures from these funds as apply to expenditures from allocated funds.
- Income Accounts. Income accounts are those which are set up for activities or enterprises which are supported solely by the income received from the sale of goods or services. These include a limited number of organized educational activities, auxiliary enterprises, the stores, service departments, and revolving funds.
- Current Restricted Accounts. Current restricted accounts are those set up for funds received from various sources outside the University. These accounts are comprised of grants, contracts, fellowships, and other sponsored agreements received from both federal and nonfederal organizations in support of a wide range of University activities. Also included in the current restricted accounts are gifts to the University to be used for a variety of special purposes.
All charitable gifts, regardless of their form, are to be acknowledged by The University of Iowa in accord with the quid pro quo requirements and substantiation requirements imposed by the Internal Revenue Service. The University has previously designated The University of Iowa Foundation (Foundation; see I-3.6) as its primary development arm and its preferred solicitor and recipient of and channel for private gifts intended to benefit the University. To the extent possible, deans, directors, and departmental executive officers should encourage current and prospective donors to direct their gifts to the Foundation so they may be properly acknowledged for tax purposes and so they may receive consultation and advice on gift and tax procedures appropriate to their needs, including charitable lead trusts, charitable remainder trusts, life estates, and testamentary dispositions.
Monetary gifts payable to the University are deposited by the University department by following deposit procedures established by the University Billing Office, identifying an appropriate University gift account, and including donor information as an attachment. The Grant Accounting Office forwards the necessary information to the Foundation which, in turn, provides official acknowledgment to the donor on behalf of the University. Non-monetary gifts made to the University should also be reported to the Grant Accounting Office with the appropriate donor information. This information will also be forwarded to the Foundation, which, in turn, provides official acknowledgment to the donor on behalf of the University.
- Accounts Receivable. All sales of materials or services must be reported to the University Business Office for collection. Exception to this rule may be made only upon special approval by the University Business Office.