Approval of Financial Plans and Expenditure of Funds


AUI funds may be expended only according to a financial plan approved by the appropriate AUI management authority.

Annual financial plans for plant, equipment and operating funds for Research Centers shall be submitted to the President for approval. Such plans are also reported to the Board. Proposed significant changes in approved financial plans resulting from funding sponsor or Congressional actions, or by a Research Center’s redirection of funds, must be approved by the President and reported to the Trustees.

A Corporate Office financial plan request shall be prepared annually by the Controller and submitted to the Operations and Administration Committee for review and then submitted to the Board for approval. The financial plan includes funds for general Corporate expenses, expenses incurred by the Corporation for non-reimbursed Research Center activities, for the development of new business opportunities, and for special purposes. Funding of the Corporate Office operations is derived by allocating the expenses to the direct cost base of its contractual agreements or other funding arrangements through an indirect cost rate. Funding also comes from a management fee when appropriate.

The Corporate Office and Research Centers shall provide the Board with periodic reports of the actual status of funds compared to the approved financial plans. Additionally, Research Centers shall comply with all contractually mandated financial reporting requirements.