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ESTABLISHING AN ACCOUNT FOR A NON-STATE FUND

Accounting Services Section (ACT)

PROCEDURE 8

Effective Date: 12/15/2004

Last Modified Date: 12/13/2004

This Procedure is issued under the authority of Dennis Press, University Controller, who reviewed and approved its contents as of September 30, 2004.

Procedure Summary

A non-State fund is an account established for deposit and disbursement of funds that are not controlled through the State budget process. The following statements detail how to establish a special fund or institutional trust fund (a non-contract or grant trust fund). For brevity, these funds may also be called "trust funds" in the rest of this Procedure.

Procedure Background

Trust fund legislation was enacted by the 1977 General Assembly and revised in 1998 to include Facilities and Administrative funds (also known as F&A funds or overhead receipts). 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 the establishment of a trust fund that falls within the definitions and criteria outlined in ACT Policy 11, ACT Policy 12, and in this Procedure. Requests for trust funds that are contracts, grants, and agreements are processed through the Office of Sponsored Research.

Section 116-36.1(a) of the legislation states that the "Board of Governors is responsible for the custody and management of the trust funds of The University of North Carolina and of each institution. The board shall adopt uniform policies and procedures applicable to the administration of these funds which shall assure that the receipt and expenditure of such funds is properly authorized and that the funds are appropriately accounted for." The legislation also requires the trust funds to be deposited with the State Treasurer. Section 116-36.1(d) states that trust funds "are subject to the oversight of the State Auditor pursuant to G.S. 147-58 but are not subject to the provisions of the Executive Budget Act except for capital improvement projects which shall be authorized and executed in accordance with G.S. 143-18.1."

Procedure Steps

  1. Complete ACT Appendix 21b, Request for Institutional Trust or Special Fund Account, Form AS-100. Users may make copies of the blank form as needed for their use. The detailed instructions that follow also appear in ACT Appendix 21a.
    1. Enter the suggested name of the new account (the name of the trust fund).
    2. Enter the date the new account is requested.
    3. Enter the name of the campus unit (school, department, or other organizational unit).
    4. Enter the four-digit department function number.
    5. Enter the name of the dean, director, or department chair who will assume primary responsibility for the account.
      • Enter the title of the person identified above, and
      • Enter that person's e-mail address, campus telephone, and campus box.
    6. Provide a detailed and comprehensive description of activities of the account, including any restrictions, terms, or conditions for the use of receipts deposited to the account. Include the location of activity, or any restrictions on location.
    7. Check the appropriate box for the anticipated source of receipts. See ACT Policy 11, Kinds of Funds, for definitions of types of receipts.
      • There is no need to check a box if receipts are University endowment gifts. For endowment gifts, contact the Development Office.
      • For Facilities and Administrative funds (Overhead Receipts), contact Financial Planning and Budgets.
      • If the source of receipts is from
        • Sale of goods or services, see OSR Policy 13 and OSR Procedure 15, Recharge Operations, for guidance.
        • Conference registration fees, then furnish conference program or brochure, activities planned, and any other publications used for the conference.
        • Other sources, then provide a detailed description of the source. If necessary, on a separate sheet provide specific restrictions, terms, or conditions for the use of funds deposited into the account.
    8. Provide the estimated total annual receipts.
    9. Enter the name and title of the person requesting the account. The signature of the person named as "principal person responsible for the account," is required as a requestor for the account.
    10. The dean, director, or department head must sign to indicate concurrence with the request and should be at least one administrative level higher than the person requesting the account.
    11. Check appropriate boxes at bottom of form AS-100 and attach appropriate documentation as requested.
    12. Attach copies of correspondence, agreements, award letters, and any other relevant documentation that will provide information for a permanent file.
  3. Attach a detailed description of the activities, programs, or operations to be supported by this account. Be sure to indicate any specific restrictions, terms, or conditions for the use of funds deposited to the account.
  4. Attach photocopies of correspondence, donor letters, and any relevant documentation that will provide information for the permanent file.
  5. Only one type of funding source may be used with an individual trust fund. (Example: receipts from sales of goods or services may not be deposited into the same account as receipts from gifts.)
  6. If you have marked Sales of Goods & Services as the source of receipts, please refer to OSR Policy 13 and OSR Procedure 15, Recharge Operations, for guidance.
  7. Direct questions concerning completion of this form to the Accounting Services office. Call 843-6119 for gift accounts and 962-5512 for all other account types.
  8. Submit Form AS-100 to Accounting Services, CB #1210.
  9. Accounting Services reviews the request. If the request is approved, Accounting Services sends a fund authority document to the person who requested the account.

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