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Use of Restricted Resources


West Virginia University Policy
Division of Administration and Finance

Policy Number: IARA-09

General Information

Reason For This Procedure:

  • To establish procedure governing the priority of release of restricted resources when both restricted and unrestricted resources are available to satisfy an expense.


To Whom Does This Procedure Apply:  

  •  This Procedure applies to all West Virginia University departments, including those on the regional campuses - Potomac State College of WVU, WVU Institute of Technology, Charleston division of the Robert C. Byrd Health Sciences Center, Jackson’s Mill State 4-H Conference Center and Camp, and the WVU Farms – and the West Virginia University Research Corporation.   


Restricted Resources

Net assets are considered restricted when constraints placed on their use are either: (a) externally imposed by creditors, grantors, contributors, or laws and regulations of other governments or (b) imposed by law through constitutional provisions or enabling legislation.



  • If an expense is incurred for a purpose for which both unrestricted and restricted net assets are available, the University’s policy is to first apply and exhaust restricted resources to satisfy the expense, and then apply unrestricted resources towards that expense.



Procedure Development

  • The responsibility for procedure development of this policy rests with Institutional Accounting, Reporting and Analysis.


  • The responsibility for implementation of this procedure rests with the Institutional Accounting, Reporting and Analysis.


  • The responsibility for interpretation of this procedure rests with the Institutional Accounting, Reporting and Analysis.


Additional information or questions regarding this procedure can be obtained by contacting Institutional Accounting, Reporting and Analysis at 304.293.4008.



Originally Issued: July 1, 2010
Updated: February 8, 2016
Approved by: Daniel A. Durbin, Senior Associate Vice President for Finance