To Financial Statements 2. Under fund accounting, resources held for various purposes are classified into funds in accordance with the specified objectives. The operating fund accounts for the costs of academic, administrative and other operating expenditures of the University funded by fees, grants and other income. Plant and equipment utilized by ancillary operations are accounted for within this group. The capital fund accounts for funds received and expended for the acquisition of all property, plant and equipment except for acquisitions utilized for ancillary operations.
Unexpended balances held in the capital fund are for the completion of capital projects.
The restricted funds account for funds received for research and other designated purposes. Some donations are in the form of endowments whereby only income earned on the fund is available for expenditure. Other donations are fully expendable for the purposes intended. The endowment fund also includes funds designated as endowments by Governing Council in the exercise of its discretion rather than as a result of externally imposed restrictions. In such cases, Governing Council has the right to subsequently decide to remove the designation.