1007: Long-Term Debt
Subject Area: Accounting
Responsible Office: Financial Services
Sponsor: Associate Vice President for Finance
Originally Issued: October 1992
Revised: January 2010
Refer Questions To: James Ribikawskis, 773-702-3690
Purpose: To properly account for long-term debt.
1. Financial Services is responsible for accounting for all long-term debt in accordance with the applicable financial accounting guidance.
2. Resources borrowed in support of capital projects will be recorded as a liability and an asset of the Unexpended Plant Fund until such time that the funds are expended and the project cost capitalized. Any realized gains (losses) or interest income earned on investments will be recorded in the Unexpended Plant Fund.
3. Resources borrowed in support of current operations will be recorded as a liability of the Current Unrestricted Fund. Debt service for such borrowings will be funded from Current Unrestricted Funds.
4. Resources borrowed and expended for land, buildings, and equipment will be recorded as a liability of the Plant Fund. Unless otherwise provided for, debt service on such borrowings will be funded from unrestricted funds.