What must be done with restricted or allocated funds?

Restricted or allocated funds are designated for specific purposes and must be utilized in accordance with those intended purposes. This ensures that the funds are spent in a manner that aligns with their original intent, which is often determined by external sources such as grants, government regulations, or donor restrictions. By adhering to the designated uses of these funds, schools can maintain accountability and transparency in their financial practices, which is essential for trust and compliance with legal or policy requirements. Using restricted funds for unintended purposes could lead to legal repercussions or loss of funding in the future.

In contrast, options that suggest flexibility in spending or movement of these funds could undermine the integrity of budgetary constraints and reporting responsibilities established for restricted funds.