The University of Iowa

Description of the UI Accounting System

The financial statements of the University are prepared on the accrual basis of accounting in accordance with generally accepted accounting principles for governmental colleges and universities. In order to ensure the observance of limitations and restrictions placed on the use of available resources, the accounts of the University are maintained in accordance with the principles of fund accounting. Fund accounting is the procedure by which resources for various purposes are classified, for accounting and reporting purposes, into funds according to the activities or objectives specified.

Externally restricted funds may only be utilized in accordance with the purpose(s) established by the source of such funds and are in contrast to unrestricted funds over which the University retains control to use in achieving any of its institutional purposes.