4.1 Accounting System
(Adopted 6-1-1987; Revised 8-25-2008)
East Central College will maintain a financial reporting system that is in conformance with the laws of the state of Missouri, the Uniform Financial Reporting Manual of the Missouri Department of Higher Education and Workforce Development, and generally accepted accounting principles.
Procedures (Revised 8-25-2008; 12-5-2022)
4.1.1 East Central College will use a fund accounting system that is consistent with the Uniform Financial Reporting Manual of the Missouri Department of Higher Education and Workforce Development.
4.1.2 The fund types defined below are established to provide a uniform financial reporting process:
Fund 10 – General Fund
The General Fund has been established to account for revenues and expenditures of the College. The sources of the funds are local taxes, state aid, student tuition/fees, and other general miscellaneous revenue. Expenditures include the costs associated with supporting educational programs, maintaining physical structures, and operating the College.
Fund 22 – Faculty Development Fund
The Faculty Development Fund has been established to provide funding to each full-time faculty member for purposes of professional development expenses.
Fund 25 – College Restricted Fund
The College Restricted Fund has been established to account for College funds that have restrictions imposed by the institution regarding their use. Each department in the College Restricted Fund must be accounted for separately using a self-balancing set of accounts, and the balance of the accounts should be $0 at the termination of the activity. If the department is overspent, the amount is a liability against the General Fund. If the department is underspent, the balance is returned to the General Fund.
Fund 30 – Bond Principal and Interest Fund
The Bond Principal and Interest Fund has been established to account for the payment of principal, interest, and related charges on any outstanding bond issue. Revenue for the fund is received by tax levy which has been authorized by the voters. Fund expenditures are restricted to the payment of the items noted above. Debt service for each bond issue must be accounted for separately, using a group of self-balancing accounts within the fund.
Fund 40 – Auxiliary Services Fund
The Auxiliary Services Fund has been established for the purpose of accounting for College services where fees are charged to students, staff, or the public, be it either a sale fee for a good purchased or a user fee for a service rendered. Each department should be accounted for separately using a self-balancing account within the fund.
Fund 50 – Restricted Purpose Fund
The Restricted Purpose Fund has been established to account for private, state, and federal monies that have restrictions regarding their use. Each specific department in the Restricted Purpose Fund must be accounted for separately using a set of self-balancing accounts. Accounts must be established to ensure that the accounting and reporting requirements of the grantor are met. If the grantor provides a special accounting manual for audit purposes, it should be followed exactly.
The total of all the departmental accounts should be balanced to $0 at the termination of the grant. If it is not, the amount that the department is overspent is a liability against the General Fund. If the department is under spent, the balance must be returned to the grantor.
Fund 60 – Trust and Agency Fund
The Trust and Agency Fund has been established to account for funds when the College serves as a custodian or fiscal agent for another body or student organization. The College has an agency interest; the College does not necessarily have control or direction over the use of the monies. The College uses its financial capability and accounting procedures to ensure the integrity of the accounts. Each agency’s money should be accounted for by a self-balancing set of departmental accounts. These accounts will balance to $0 at the termination of the activity. Monies generated by College clubs that are continuously inactive for three (3) semesters (including only fall and spring semesters) or College athletic activities that are suspended by the Board of Trustees will be transferred to the student government department.
Fund 70 – Capital Fund
The Capital Fund has been established to account for revenues and expenditures which are associated with capital purchases. The source of monies for this fund will be the proceeds of bond sales, gifts, grants, loans, or other funds restricted to such purposes by their origin or by statute. The accounts in this fund will be self-balancing.