Restricted gifts, grants, appropriations, endowment income, and other restricted resources are accounted for in the appropriate restricted funds. Cash and short-term investments are recorded at cost which approximates market. These funds are available for current operating needs and include U.S. Treasury bills, overnight repurchase agreements, money market funds, and certificates of deposit with maturities of less than one year. Prepaid expenses and deferred revenues - Revenues and expenditures related to summer semesters are deferred to the subsequent accounting period in which the academic programs are predominantly conducted and, accordingly, are reported as prepaid expenses or deferred revenue at June 30 of the year paid or received. Property and equipment are recorded at original cost or fair market value at date of donation in the case of gifts.
Depreciation is recorded on plant assets using the straight line method.
Interest for construction financing is capitalized net of any investment income earned from the temporary investment of project borrowings. Purchases of library books are recorded as current fund expenditures and are not capitalized in the plant funds. Interfund balances consist primarily of advances of current funds for periods of five years or less for fixed asset additions. Interest normally is charged at the current market rate earned on short-term investments. Government grants and contracts normally provide for reimbursement of indirect costs, subject to audit.