AD costs are supposed to be covered by AD revenues.

Posted on: March 21, 2012 at 16:42:14 CT

It is my understanding that the AD does not have seperate bank accounts and that all of its funds are kept in University bank accounts. All revenues go into and expenses are paid from the University's accounts. The University does maintain seperate accounts for the AD in its accounting system.

If the AD accounts in the accounting system show more revenue than expenses for a fiscal year, this surplus is transferred to a reserve account in the University accounting system. This is only an accounting entry, no actual funds are transferred because they are already in the University's bank accounts. If the AD accounts in the accountign system show a negative, then a transfer is made from the reserve account to cover the negative. Again this is only an accounting entry and no actual funds are moved.

Alden has generally budgeted to spend virtually every dollar of revenue. In those years when there are unanticipated expenses, i.e. the buyout of a coach, etc., the AD will often have a deficit.

Edited by 90183 at 16:43:56 on 03/21/12