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11. Business and Financial Operations

11.1. Financial Operations

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11.1.4. Reserves

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Effective Date: 2-21-73

Revision Date: 12-2-03

UNIVERSITY POLICY STATEMENT 

Eastern Michigan University will maintain financial reserves, properly recorded in its general ledger system, adequate enough to protect the University's interests in accordance with generally accepted accounting principles.

 

UNIVERSITY PRACTICE 

Throughout the year, and at fiscal year-end in tandem with the University's external auditors, general ledger reserve balances will be reviewed and evaluated against both reported liabilities and incurred but not reported liabilities.  Funding of these liabilities will be budgeted annually and adjusted as needed.

Reserves include, but are not limited to, self-insured coverages such as employee health benefits, general liability, property loss, errors and omissions, unemployment compensation, workers' compensation, sick and vacation leave accruals and other potential liabilities.

 

RESPONSIBILITY FOR IMPLEMENTATION 

The Vice President for Business and Finance, or his/her designee(s), has overall responsibility for implementation and administration of this policy and for adopting, amending and/or revising related administrative policies and procedures. 

 

SCOPE OF POLICY COVERAGE 

This policy applies to al Eastern Michigan University financial reserves.

Authority for Creation and Revision

Minutes of the Board of Regents, February 21, 1973, para. .1194M.
Minutes of the Board of Regents, June 22, 1977, response to Audit of Construction.
Minutes of the Board of Regents, December 2, 2003, para. .6201M.