Trust Funds - Establishing an Account

REG 07.30.20

Financial Reporting and Accounts Receivables
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Authority: Vice Chancellor for Finance and Business

History: First Issued: November 1, 2001.

Additional References:
University Controllers Website
NCSU Unrelated Business Income
NCSU Trust Funds- Definitions
Request for Institutional or Special Trust Fund Account (BA-108)
Sales Activity Questionnaire (BA-109)
Service Center Use Rate Calculation Form (CG006)

Contact Info: University Controller (919-515-3824)

1. Purpose

The following statement provides directions for the establishment of a non-contract and grant trust fund.

2. General Guidelines

Departments, organizational units, individuals, or groups may request the establishment of a trust fund which falls within the definitions and criteria outlined in Trust Funds- Definitions.

3. Procedures

3.1. Complete Form BA-108, Request for Institutional or Special Trust Fund Account.

3.2. You must 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.

3.3. Attach photocopies of correspondence, donor letters, and any relevant documentation that will provide information for the permanent file.

3.4. 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).

3.5. If you have marked Sales of Goods & Services as the source of receipts, please complete NCSU FORM BA-109.

3.6. Questions concerning completion of this form should be directed to the Accounting Office at Extension 5-7204.

3.7. Submit all Gifts and Agency request to the University Accounting Office, Box 7205.

3.8. Submit all Sales & Services request along with the BA-109 and CG006 to Contracts and Grants, Box 7214. For information on completing form CG006 see Contract and Grants - Service Centers.

3.9. Request will be reviewed and the individual requesting the account will receive a letter indicating whether or not the account has been approved.

3.10. If an account is approved, a Fund Authority citing terms and restrictions will be returned to the person originating the request.

4. Forms

4.1. Form BA-108, Request for Institutional or Special Trust Fund Account may be obtained from University Accounting, extension 5-2148 or 5-7204. A copy of the form can be downloaded from the internet by clicking on FORMS at the top of the page. The form can be copied once an initial form is obtained.

4.1.1. Enter name of school, department, or organizational unit.

4.1.2. Enter date of request.

4.1.3. Enter suggested name of trust fund.

4.1.4. Enter Organizational Unit Code.

4.1.5. Enter name and identifying title of the principal person who will assume primary responsibility for the account, campus phone and campus box.

4.1.6. Indicate any other persons who may be authorized to accept receipts and initiate disbursements from the account. Include title, phone and box.

4.1.7. Enter Location of Activity.

4.1.8. List all University Employees whose efforts directly benefit this activity and the percentage of time spent towards the activity.

4.1.9. Indicate whether or not NCSU will be acting in an agency capacity in handling this account (an agency relationship exists when NCSU is providing accounting or other services for an organization and the funds belong to that organization and not to NCSU.)

4.1.10. Indicate whether or not unreimbursed supplies or services from budget codes are furnished directly to this activity and if so list budget code and annual amount.

4.1.11. Enter off-campus sources of receipts and on-campus sources of receipts and indicate percentages.

4.1.12. Provide the estimated total annual receipts and the anticipated source of receipts. Reference Trust Funds- Definitions for types of receipts.

4.1.13. 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.

4.1.14. 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.

4.1.15. Check appropriate boxes at bottom of FORM BA-108 and attach appropriate documentation as requested.

4.1.16. On a separate sheet provide a detailed description of the types of activities, programs, or operations to be supported by this account. Indicate any specific restrictions, terms, or conditions for the use of funds deposited to this account.

4.1.17. Attach copies of correspondence, agreements, award letters, and any other relevant documentation that will provide information for a permanent file.

4.2. Form BA-109, Unrelated Business Income Questionnaire, may be obtained from University Accounting, extension 5-2148 or 5-7204. The purpose of this form is to determine if an activity is related or unrelated to the exempt purpose of the University. If the activity is unrelated, it would result in tax being assessed to the University on the net income of the activity. The department responsible for the account would be responsible for the tax.

Enter the Trust Fund name.

Enter who completed the form and the campus phone.

Answer questions 1-7 as complete as possible.

Provide any additional information that may be related to the questions and/or Trust Fund Activity.

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