The Plant Fund Accountant prepares the request for the draw of bond funds from the investment company that manages the investment of the unexpended funds.
On at least a monthly basis, the accountant reviews the expenditures incurred on projects authorized for each particular bond issue. The accountant prepares a request for the funds to be transferred from the unexpended investment trust account to CMU's bank account.
The amount of the draw is the lesser of the cash equivalents available in the trust account or the project expenses incurred to date for which bond funds had not yet been drawn. The bond draw request is approved by the Assistant Controller, Financial Reporting.
After submitting the bond draw request to the investment company, the Plant Fund Accountant prepares the necessary journal entries to record the anticipated wire transfer to the appropriate Cash general ledger account. The accounting clerk responsible for monitoring the bank account activity and reconciling it to general ledger will notify the Plant Fund accountant of any discrepancies between the journal entry and the actual deposit of funds recorded by the bank.