Restricted Fund Accounting Policies and Procedures

Contracts Overview

Effective Date: July 1, 2009

Board Approval: June 9, 2009

1. Purpose

To provide a table of contents for policies and procedures for restricted fund accounting for contracts, grants, and agreements (hereinafter referred to as contracts).

2. Background

• A separate accounting fund shall be used to account for the operation of activities restricted by contracts which impose external restrictions on services provided and fund balances.

• Restricted activities include: federal and state financial aid programs, federal contracts (direct or pass-thru), state contracts (including State Custom Fit Training), local agency and private contracts, and independent operations.

• Per State policy, local custom fit is accounted for in the designated fund.

• General policies applying to all contracts are included in Policy 06-01.

• Additional policies for all federally funded contracts are outlined in Policy 06-10, including requirements from OMB Circular A-87, Cost Principles Applicable to Grants and Contracts, which limits what federal funds can be spent on. The contracting entity may place additional restrictions on the funds as well.

3. Restricted Fund Accounting Table of Contents