Yin, et al:
 
The responses by Rae Weimer and Mark Janzen pretty much cover your question. The only thing I would add, as a former auditor for state/federal grant monies distributed through a state agency to non-profit groups (in my case, non-museum entities), is that restricted grants typically involve several categories of grant expenditure, with limitations ("restrictions") on each of the various categories. As an example (in the case of a museum grant), a grant might allow $x for exhibit development, $y for salaries involved directly with a project's curation, and/or $z for conservation.
 
Depending on the granting agency, these limitations could also be further defined: the exhibit development line might provide for 40% or less allocated to in-house expenses, with the balance earmarked for outside consultation; curation salaries might require dollar-for-dollar matching by an institution, or maybe raising in-kind funding from outside the institution for that specific project; conservation limitations might involve materials only.
 
As Mark pointed out, a detailed accounting of grant funds may very well be required. Depending on the granting agency, an institution's accounting records may also be subject to audit! This is why it is extremely important to know exactly what, if any, limitations are placed on a grant. If there are restrictions, it is extremely important to maintain indisputably good accounting records to substantiate your expenditures against that grant!
 
I was involved with some individual grants in excess of $1-million where, after auditing to the category limitations, I had to request an agency to return half the monies because various limitations were exceeded, or disbursements were unaccounted for or unstantiated. In other words, if you receive grant monies, avoid the headaches by adhering to any limitations, while maintaining accurate, squeaky-clean accounting records!
 
I hope this helps...
Thom DiGregorio
(former auditor in another life!)


Mark Janzen <[log in to unmask]" target=_blank>[log in to unmask]> wrote:

Yin,

Restricted and or unrestricted funds are exactly that. Some can be used for
anything you want (unrestricted), presumably related to the project for
which you got the grant. Some funds can only be used for materials, or
labor, or planning, etc, thus being restricted. The most common restriction
I have seen prevents the use of grant funds for operating support or
salaries. Some grants require a careful accounting report at the end of the
project, and the return of unused monies, which I guess would be another
restriction.

The granting agency should be able to tell you exactly what kind of funds
they provide and all the restrictions involved.

Good luck.

Mark Janzen
Registrar/Collections Manager
Edwin A. Ulrich Museum of Art
Martin H. Bush Outdoor Sculpture Collection
Wichita State University
(316)978-5850


Yin Yoon <[log in to unmask]" target=_blank>[log in to unmask]> wrote:

After one receives a grant, when deposited into your institution's account
it is deposited either as restricted or unrestricted funds.

Can anyone please tell me what is the difference between restricted and
unrestricted funds?

THANK YOU!!!

Yin Yoon, Education Manager
Petersen Automotive Museum
6060 Wilshire Boulevard
Los Angeles, CA 90036
Phone: 323.964.6347
Fax: 323.930.6642
www.petersen.org 

 

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