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Business and Financial Policies and Procedures

1.1.2 How the Unit Financial Report Calculates Unit Flexible and Inflexible Fund Cash

Each unit is expected to have sufficient and appropriate cash to pay salaries and operating expenses. The Unit Annual Financial Report prepared for each unit measures solvency utilizing the "net flexible cash" amount at the end of the fiscal year. A net flexible cash balance indicates the unit is solvent. A net flexible cash deficit indicates the unit is insolvent.

Flexible Funds - Cash in flexible fund sources is available to pay unit program costs.

Inflexible Funds - Cash in inflexible fund sources is available to pay specific project or program costs.

Net Flexible Funds - Positive cash balances in the unit's flexible fund sources, less cash deficits in the unit's flexible fund sources, less cash deficits in the unit's inflexible fund sources.

The following table lists inflexible funds, the method for calculating the amount of cash, and restrictions on the use of these funds:

The following table lists inflexible funds, the method for calculating the amount of cash, and restrictions on the use of these funds:

Last Updated: July 5, 2016 | Approved: Senior Associate Vice President for Business and Finance | Effective: July 5, 2016

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