Elizabeth City State University

Accounting Procedures

Trust Funds - Rules and Regulations

The following statement provides general guidelines for the operation and use of trust funds.

General Guidelines/Applicable Policies

• Trust funds must at all times maintain a positive cash balance unless prior written approval has been obtained from the Vice Chancellor for Business and Finance or his designee.

• The primary purpose of expenditures must be for the benefit of the University and, therefore, not for the direct benefit of an employee.

• Sales and Service (auxiliary) trust funds must follow the same spending guidelines which are applicable to state appropriated funds.

• Expenditures for alcoholic beverages are not permitted from any fund source without the written approval of the Chancellor.

• Payment requests for food, supplies, or refreshments for departmental receptions, office functions (e.g., a retirement or commencement party), student orientation functions, "coffee breaks" at employee workshops or seminars, and like events must include the appropriate documentation and the approval (signature) of the appropriate Department Head or Vice Chancellor. Expenditures of this type are prohibited from Sales and Service (auxiliary) trust funds, state appropriated funds, and contract and grant funds (unless specifically authorized in writing by the grantor).

• Payments for member dues in civic or political organizations, "clubs", or like organizations are not permitted from any University fund source.

• The person responsible for the account (Account Custodian) is responsible for providing in writing to the University Controller any information which may change the status of the account. This includes, but is not limited to: 1) when the responsibility for an account is reassigned; and 2) when an account is inactive and should be closed.

• Purchasing and travel policies and procedures must be followed for all accounts unless the account custodian has a specific written exemption (see exempt accounts) from the Vice Chancellor for Business and Finance.

• Individuals designated as Account Custodians have the responsibility to ensure that proper documentation procedures are followed for accounts which they control, and to ensure that only authorized expenditures are made from their accounts. Any unauthorized expenditures which appear on a monthly accounting report should be reported to the University Controller's Office. Further, Account Custodians are responsible for exercising appropriate care in reviewing and approving transactions that result in expenditures of funds from any of their accounts. Finally, Account Custodians are responsible for reconciliations of their accounts on at least a monthly basis.