Chapter 4: Criterion Two
The institution has effectively organized the human,
physical resources necessary to accomplish its purposes.
Overview. Restricted funds are monies conditionally accepted by an institution for a specific purpose established by the individual, organization, or agency that grants the funds. By accepting the funds under the specified conditions, the institution has a contractual obligation to spend the funds according to the terms of the agreement. Figure 4.17 in Appendix D shows the details of revenues and expenditures for restricted funds from FY 1993 to FY 2003.
Revenue Trends. UNK's restricted revenues come from four different sources: federal grants and contracts, state grants and contracts, local and private grants and contracts, and interest earnings from idle funds. The highlights of restricted fund revenues are as follows:
- Total current fund restricted revenue has increased from $6,397,269 in FY 1993 to $7,895,021 in FY 2003, a growth rate of 2.1% per year.
- UNK has seen large increases in two revenue categories. Local and private grants and contracts show the largest growth, going from $601,199 in FY 1993 to $1,362,088 in FY 2003, an annual growth rate of 8.5%. State grants and contracts increased at an annual rate of 5.9%, moving from $485,932 in FY 1993 to $863,975 in FY 2003.
Expenditure Trends. Higher education fund accounting principles include current fund restricted expenditures in the same functional categories used for current fund unrestricted expenditures. The highlights of restricted fund expenditures are as follows:
- Overall expenditures have increased from $6,242,754 in FY 1993 to $7,931,428 in FY 2003, an annual growth rate of 2.4%.
- The scholarships and fellowships function represents the largest functional category of current fund restricted expenditures at $5,153,095 in FY 2003. As a percentage of overall current fund restricted expenditures, scholarships and fellowships decreased from 74.7% in FY 1993 to 65.0% in FY 2003.
- As Figure 4.18, Appendix D, indicates, annual expenditures for instruction, research, student services, and institutional support have grown significantly. Expenditures in these functional categories grew at an annual rate of 4.9%, 20.4%, 9.8%, and 20.7%, respectively.