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. 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. Endowment fund gifts are also included in this category.
Generally, gifts fall into three broad categories including (1) funds received to support the educational, research, and extension programs of the University, (2) funds received which may be used at the discretion of the account custodian to support any legal activity in support of the University, and (3) funds received to support endowments for the University. University funds from the three categories may not be used to personally benefit the account custodian.
Contracts, Grants, and Agreements - Requests for trust funds of this type should be made through the Office of Sponsored Programs.
Sales and Service Enterprises - This category includes receipts from the operation of self-supporting service (auxiliary) 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 these accounts.
Note: Sales and Service activities other than auxilary enterprises 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. New accounts of this type must be requested by the Vice Chancellor for Student Affairs.
Intercollegiate Athletics - This category includes receipts from or for the operation of intercollegiate athletics by the University. New accounts of this type must be requested by the Director of Athletics.
Agency Funds - This category includes funds held by the University as fiscal agent for individual students, faculty, staff, and organizations.