Trust Funds - Exempt Accounts
REG 07.30.21
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
Contact Info: University Controller (919-515-3824)
1. Purpose
Certain trust funds may be exempted from selected travel and/or purchasing
regulations. The following statement outlines general guidelines and procedures
for the exemptions.
2. General Regulation
2.1. Exemptions From Travel Rules - Travel rules may be waived to allow exemption
from the maximum expenses allowable per day for in-state and out-of-state
travel, from the maximum registration fee allowable, and from the prohibition
on claiming reimbursement for subsistence within thirty-five miles of the
duty station.
2.2. Exemptions From Purchasing Rules - The exemption from purchasing rules means
that purchases may be made without advance requisitioning through the University
Purchasing Department for competitive procurement and/or the approval of the
State Purchase and Contract Division. However, accounts exempt from purchasing
rules may take advantage of state contracts or obtain procurement assistance
from the Purchasing Department by requisitioning their needs in advance, following
the procedures outlined in the Purchasing
section.
2.2.1. Criteria For Exempting Trust Funds - To be exempt from both travel and purchasing
procedures, trust funds must meet one of the following criteria:
2.2.1a. Funds are held by NCSU for students, faculty, staff, or organizations
at their request, i.e., agency funds.
2.2.2. To be exempt from travel (but not purchasing) regulations, a trust fund must
meet the following criteria:
2.2.2a. Source of funding is from gifts, foundations, agency or discretionary
funds.
2.2.2b. Funds are not restricted to a particular purpose, such as scholarships,
which would preclude travel expenditures.
2.2.2c. Exemptions from travel regulations does not automatically exempt an account
from purchasing regulations.
These exemptions do not absolve the person responsible for the account of
the responsibility for properly documenting transactions. Good business practices
should be the rule regardless of the funding source.
3. Procedures
The Accounting Office reviews each request to establish a new account for
the appropriate exempt status. If exempt status is granted, that decision
will be stated in the documentation returned to the department. If exempt
status is not granted or, if the department feels other accounts should
be considered exempt, the account custodian may send a written request that
the decision be reconsidered. The request should state why the account should
be exempt and specifically identify which criteria it meets to qualify for
exemption. The Director of Accounting will review the request and submit
his recommendation to the University Controller for approval before the
request is approved or denied.
A list of exempt accounts will be reviewed at least annually by the University
Accounting Office to determine if the status of any of the accounts has
changed. Accounts which have become inactive or no longer meet the criteria
for exemption will be dropped from the listing.
