A trust fund is an account established for deposit and disbursement of funds which are not controlled through the state budget process. The following statement provides information about activities which are included in trust accounts.
General Guidelines/Applicable Policies
General Statute 116-36.1 allows the University to establish accounts or trust funds outside state budget codes for certain categories of funds. Departments, organizational units, individuals, or groups may request establishment of trust funds which fall within the categories defined below.
Gifts – This category includes all unrestricted and restricted gifts received from individuals and non-governmental organizations. Gifts to the Endowment Fund of the University are specifically excluded and should be processed through the Office of Foundations and Development. The characteristics of a gift are that it is given voluntarily and does not impose on the University any responsibility, either written or verbal,to generate a tangible product or service, such as a report of research results.
Generally, gifts fall into two broad categories including (1) funds received to support the educational, research, and extension programs of the University and (2) funds received which may be used at the discretion of the account custodian to support any legal activity in support of the University. In either case, the funds should not be used to personally benefit the account custodian.
Contracts, Grants, and Agreements – Requests for trust funds of this type are processed through the Contracts and Grants Office (see Section D of this manual for further information).
Sales and Service Enterprises – This category includes receipts from the operation of self-supporting service enterprises which exist primarily to furnish goods and services to students, faculty and staff, and institutional programs. Salaries, equipment, supplies, and all other costs associated with sales and service revenues must be funded from this account. Sales and Serivice Enterprises should be established on a cost reimbursement basis.
All sales and service trust funds may require a use rate schedule preapproved by the Office of Contracts and Grants See Section 9.2 C (8).
Note: Sales and Service activities should normally operate within established state budget codes. However, if a request for a trust fund is made, it must be accompanied by a strong justification explaining why the activity cannot be handled within the state budget code accounts.
Student Extracurricular Activities- This category includes receipts derived from student activities fees. These fees are established by the Board of Governors and usually relate to student organizations, athletic and recreational activities other than intercollegiate athletics, student entertainment, and student publications.
Fees for Services of Health Care Professionals- This category includes fees and other payments received for services rendered by health care professionals under an organized practice plan approved by the University or a contractual agreement between the institution and a hospital or other health care provider.
Intercollegiate Athletics- This category includes receipts from or for the operation of intercollegiate athletics by the University.
Agency Funds- This category includes funds held by the University as fiscal agent for individual students, faculty, staff, and organizations.