Issued: July 17, 1989
Owner: University Comptroller
Latest Review: January 25, 2000
FINANCIAL ACCOUNTING POLICY - GENERAL
**ACTIVE BUT UNDER REVISION**
This policy is currently under revision at the University. Although the statements herein reflect enforced policy guidance, please contact the "Owner" listed above if you have questions about how this policy applies to your office. The statements herein are to be used as general guidance until the policy has been revised and added to the University Policy Directory. Thank you.
Financial accounting policies are designed to:
- Provide financial reporting consistent with generally accepted accounting principles for higher education and hospitals.
- Provide management information required for financial planning, coordination, and control.
- Provide financial reporting required to respond to the various external entities that provide financial support for the University.
2.0 Policy [Top]
2.1 Responsibility for the Establishment of Financial Accounting Policies
The University Comptroller is responsible for the establishment of University financial accounting policies.
The Medical Center Director of Finance is responsible for the establishment of Medical Center financial accounting policies.
In developing comprehensive University financial accounting policies, consideration will be given to the special needs of divisions, departments, and activities.
2.2 Current Financial Accounting Policies
Current financial accounting policies of the University have been established in conformity with generally accepted accounting principles for higher education as set forth in College and University Business Administration, the American Institute of Certified Public Accountants (AICPA) Industry Audit Guide Audits of Colleges and Universities, the Financial Accounting Standards Board Statements of Financial Accounting Standards, and the Governmental Accounting Standards Board Statements of Governmental Accounting Standards. Separate statements for the Medical Center are prepared in conformity with the AICPA Hospital Audit Guide. Specialized policies have been established as required to conform with regulations promulgated by agencies of the federal and state governments.
Annual financial statements are prepared that include the accounts of all organizational units of the University of Virginia including the Academic Division, the Medical Center, and University of Virginia at Wise.
2.3 Responsibility for the Submission of Accounting Data
The responsible person named for each established account has ultimate responsibility for the timely and accurate transmittal of the account's financial transactions to the central accounting offices in conformity with established University financial accounting policies and procedures.
See also Policy VII.A.11, "Timely Payments to Vendors" for provisions of the State Prompt Payments Act.
2.4 Monitoring of Adherence to Financial Policies by the Audit Department
The University's Audit Department will monitor and evaluate adherence to generally accepted accounting principles.
See also Policy I.C.1, "Internal Audit."
3.0 Definitions [Top]
4.0 References [Top]
5.0 Approvals and Revisions [Top]
Previous version in effect from 7/17/89 to 1/25/00 available in policy archive.