MEMORANDUM
 
To:  Deans, Directors and Department Heads
 
From:  Roger D. Patterson, Associate Vice Chancellor for Finance
 
Re:  Budgetary and Accounting Changes for Overhead Receipts
 

    The 1989 Session of the General Assembly (Note: This is not a typo, we really are talking about 1989) passed legislation to move overhead funds to trust funds, after the State fully phased out its capture of Overhead Receipts to support the State's General Fund budget.

    The 1997 Session of the General Assembly appropriated funds to the Board of Governors effective with the 98-99 fiscal year to replace the final 10% of Overhead Receipts that the State was still capturing. After the short session ended, the Board of Governors was able to approve the allocations to the institutions, thereby requiring the transfer of the Overhead Receipts to the category of Institutional Trust Funds for budgetary and accounting purposes. The transfer was effective November 30, 1998, based on a directive from UNC General Administration.

    How will this change affect your unit(s)? The current FRS account number structure has not been changed. The FRS attributes have been changed to identify the accounts as Institutional Trust Funds. Overhead Receipts are separately identified within Institutional Trust Funds so departments can still track these funds. This change in classification for Overhead Receipts does not affect the processing of disbursements. In addition, this change does not affect the internal process for Overhead Receipts budget revisions, except that the revisions no longer require approval by the Office of State Budget and Management in Raleigh.

    Please contact one of the following individuals if you have any questions:

 

Budget Issues

Donnie Hall 966-1622

Jerry Fisher 966-1623

Accounting Issues

Dennis Press 962-7007

Carolyn Sturgess 962-0036