Institutional Trust Funds

Amanda Robinson

737-1141

Types of Institutional Trust Funds

• Overhead/Indirect Cost Funds

• Institutional Trust Funds

• Auxiliary Funds

• Gift Funds

Overhead/Indirect Cost

• Begin with 120xxx

• Indirect cost earned from grants

• No other funding should be deposited or transferred into

these funds

• Expenditures must be research related

• Established at college or division level

Institutional Trust

• Begin with 141xxx or 143xxx

• 141xxx must be expended in accordance with approved fund authority form

Institutional Trust

• 143xxx are residual balances transferred from grants

• No other funding should be deposited or transferred into these funds

• Expenditures must be research related

• Established at college or division level unless a large dollar amount

Auxiliary

• Begin with 31xxxx

• Self supporting entities

• Examples– Parking and Transportation– Student Health Center– Housing and Dining– Student Stores

Gift

• Begin with 23, 24, 27, 2E, 6C, 6R

• Restricted for Specific Purposes

– Scholarships

– Distinguished Professorships

– Support for specific departmental use

Gift

• The University and the Foundations have endowments

• University endowments are in funds that begin with 6C

• Excess earnings are in funds that begin with 6R

• Both 6C and 6R funds are nonexpendable

Gift

• The Board determines the percentage of earnings that is transferred to the 2E funds annually

• Funds that begin with 2E are the expendable funds

• Must use the money as determined by the donor

• Contact Cathy Laney @ 737-1138

UNC Fit

• Erskine Bowles, President of the UNC System

• New guidelines for University processes

UNC Fit

Journal Entries/Interdepartmental Transfers• Documentation that supports the transaction• Must verify the amount and have a valid

business purpose• Examples include a copy of an invoice, a report,

an email, or Banner screen prints• Accounting staff and/or auditors should be able

to clearly understand the purpose of the transaction

UNC Fit

Journal Entries/Interdepartmental Transfers• Preparer must sign or type his/her name and

initial beside it

• Approver must sign his/her full name

• Preparer cannot be the approver

• Preparer cannot sign as the approver on behalf of someone else

UNC Fit

Create a Fund• Submit a trust fund request form and a fund

authority form to ITF Office with the appropriate signature approvals

• If prompted, complete a sales activity questionnaire

• A letter along with a copy of the approved fund authority form will be sent to the person responsible for the fund once the ITF Office has set up the fund

UNC Fit

Update a Fund • Submit a fund authority form with the

changes and appropriate signature approvals to the ITF Office

• A copy of the approved fund authority form will be sent to the person responsible for the fund once the ITF Office has made the changes

Auxiliary Overhead Charges

• Often referred to as an administrative fee

• Consistently applied since FY 1995-96

• Areas receive considerable services from Materials Mgmt, HR, ITCS, and Financial Services beyond which the University receives State appropriations

Auxiliary Overhead Charges

RatesAuxiliaries 1.25%

Institutional Trust Funds 1.75%

Based on prior year’s expenses, excluding transfers

Charge posts in the Fall of every year

Auxiliary Overhead Charges

ORGN Name

Fund Name

Prog Name

Auxiliary Overhead Charges

Total Expenses $17,278.63

Less Transfers (4,108.01)

Expenses 13,170.62

Auxiliary OH Rate X .0175

Auxiliary OH Charge $230.49

Auxiliary Overhead Charges

Worker’s Compensation Fee

• University maintains a pool account for supporting non-state worker’s compensation claims

• Charge is based on the amount of prior year’s salary expenditures (not including benefits)

• FY 2009-10 rate is .2%

Worker’s Compensation Fee

ORGN Name

Fund Name

Prog Name

Worker’s Compensation Fee

Total Salary $1,281.03

Worker’s Comp Rate X .002

Worker’s Comp Charge $2.56

Fees Collected

• Fees (excluding student) collected that are not a part of a contract or gift activity should be processed through State funds-111103

• Extension instruction and public service activities

• Includes fees for conferences, workshops, and training courses

Fees Collected

• Fees should be deposited as a revenue (account begins with 5)

• Defray costs of event

• Goal should be to break even not to make a profit

Matching Concept

Revenues generated by an activity and the expenses associated with the activity

should be within the same fund.

Revenues must be matched with the associated expenses.

Scholarships

• Deadline for submitting Fall 2010 scholarships is JUNE 1

• Deadline for submitting Spring scholarships is OCTOBER 1

• Payments to students should typically be payroll or scholarships

• Contact Cathy Laney @ 737-1138 with ITF scholarship questions

Salary and Benefit Budgets

• Loaded into Banner Finance beginning of fiscal year by ITF Office

• Budgets should include all positions whether filled or vacant

• Appropriate matching benefits should be budgeted

Salary and Benefit Budgets

• Budget change forms should be prepared throughout the year as position budgets are updated

• All EPAF’s and PCF’s with positions funded by ITF and Payroll Redistributions that the expense is being moved to an ITF fund (debit) should be sent to Stephanie Mele for approval

• Contact Stephanie Mele @ 737-1143 regarding positions funded by Institutional Trust Funds

Cash Balance

Fund Name

Cash Balance

• Should ALWAYS have a positive balance

• Does not include payments in process or deposits in transit

Cash Balance

ORGN NameFund NameProg Name

Cash Balance

Cash Balance using 73800

73800 Balance 978,894.65

Salary/Benefit Budget 176,554.00Expenses (612,382.22)

Cash Balance 543,066.43

Cash Balance per FGITBAL

543,066.43

Contacts

Amanda Robinson 737-1141

Cathy Laney 737-1138

Stephanie Mele 737-1143

FeesPresented by

Stephanie Coleman

ANY CHARGES TO STUDENTS SHOULD FOLLOW THIS PROCESS

Four Types of Fees

• Application Fee

• General Fee

• Fees Related to Debt

• Special Fees

Special Fees

• Students engaged in a particular activity or course of study

• Should not be used to provide general academic revenues

• Board of Governors has not approved any since 2006

Miscellaneous Charges

• Transcripts

• Caps and Gowns for Graduation

• Special Examinations

• Late registrations

• Insurance

• Travel related to course

Process for Requesting a Fee

• Obtain Provost or Vice Chancellor Approval• Fees are submitted one year in advance• Submit request to divisional representative in Fall• Division representative submits to Stephanie

Coleman• Requests are submitted through the Tuition and

Fee Committee, Chancellor’s Executive Council, and Board of Trustees, General Administration and Board of Governors(BOG)

• BOG votes in February for upcoming Fall Semester

Process for Miscellaneous Charges

• Obtain Provost or Vice Chancellor Approval• Miscellaneous Charges are submitted one year in

advance• Submit request to divisional representative in Fall• Division representative submits to Stephanie

Coleman• Requests are submitted through the Tuition and Fee

Committee, Chancellor’s Executive Council, and Board of Trustees

• ECU notifies General Administration of the new miscellaneous charges annually

Timeline

• September- Division representative needs to be notified of fee request

• October- Request is submitted to Stephanie Coleman• November- Tuition and Fee Committee, Chancellor’s

Executive Council and Board of Trustees review and vote

• December- Information is submitted to General Administration

• February- Board of Governors votes• July- Fee can be implemented if successfully approved

Any Charges Currently Being Collected in Department?

• Send Stephanie Coleman colemans@ecu.edu an email with the following:

• Department name

• Purpose for Collecting

• Who are you charging

• Dollar amount being charged

• FOAP using