University Policies

University Financial Reserves and Responsibilities Policy

Approval Date: September 3, 2024
Approved By: President

POLICY STATEMENT 

Western Illinois University has adopted a formal policy in response to the updated Legislative Audit Commission University Guidelines, found at https://www.ilga.gov/commission/lac/lac_home.html.

SCOPE (WHO SHOULD READ THIS POLICY) 

University employees responsible for fiscal management.

DEFINITIONS 

  • Legislative Audit Commission – State commission responsible for the oversight of the State audit program, review of the stewardship of public funds and the monitoring action to correct weaknesses disclosed by the audits of state agencies. 
  • Non-indentured entities – WIU financial resources that are not bound by formal contracts or agreements.
  • Bond-indentured entities – WIU financial resources that are legally bound by terms and conditions between the bond issuer and bondholders.

POLICY

Financial Reserves: 

The Legislative Audit Commission University Guidelines establishes parameters for which reserves can be established. Reserves may be established for expenses such as equipment, extraordinary maintenance, software, development and for other similar purposes. 

The establishment of such reserves for non-indentured entities shall be approved by the University President and Vice President for Finance and Administration. 

The establishment of reserves for bond-indentured entities shall be approved by the Auxiliary Facilities System committee.  All reserves for bond-indentured entities shall be established in compliance with the bond resolution and indenture (specifically outlined in the Official Statement). 

The use of reserve dollars is not allowable for operating expenditures. 

Financial Responsibilities:

The University President and Vice President for Finance and Administration (Chief Financial Officer) are responsible for compliance with all state and federal financial regulations. While maintaining compliance, the University President and Vice President for Finance and Administration are authorized to make technical financial adjustments to best meet the needs of the University.

PROCEDURES 

Individuals are encouraged to review further procedures on financial operations in the Administrative Procedures Handbook (https://www.wiu.edu/administrative_procedures_handbook/) and at the Business Services website (https://www.wiu.edu/business_services/.)

RESPONSIBILITIES (Implementation and Enforcement) 

Vice President for Finance and Administration, Business Services, and Budget Office.

RESOURCES 

Standards