AD is not a separate legal entity
Posted on: September 2, 2021 at 11:20:43 CT
ScottsdaleTiger MU
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Legally, the AD is just one part of the University. It’s income goes to the University and expenses are paid by the University. It’s construction projects typically are financed by bonds issued by the University. I.e. the 98 million SEZ project was roughly half financed by funds raised by the AD from donors and half raised by the University selling bonds.
The AD keeps separate records, but it’s income goes into the University’s general accounts and it’s expenses are paid from those accounts.
If the AD runs a surplus (rare in recent years), the surplus is entered as a positive number in a “reserve” account in the University’s accounting system. If it runs a deficit, the number is entered as a negative in the reserve account.
The AD has no separate AD bank accounts.