Trust Funds - Operation and Use
REG 07.30.22
Financial Reporting and Accounts Receivables
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Authority: Vice Chancellor for Finance and Business
History: First Issued: November 1, 2001.
Related Policies: NCSU REG07.30.21 - Exempt Accounts
Additional References: University Controllers Website
Contact Info: University Controller (919-515-3824)
1. Purpose
The following statement provides general guidelines for the operation and
use of trust funds.
2. General Regulation
Account custodians should request termination of trust funds which are no
longer required. The University Accounting Office will periodically review
all trust fund accounts to determine which accounts should be closed due to
little or no activity. Account custodians are contacted prior to any action
being taken. .
3. Procedures
3.1. Trust funds must at all times maintain a positive cash balance unless
prior written approval has been obtained from the Vice Chancellor for Finance
and Business or his designee.
3.2. The primary purpose of expenditures must be for the benefit of the University
and, therefore, not for the direct benefit of an employee.
3.3. Sales and Service trust funds must follow the same spending guidelines
which are applicable to state appropriated funds.
3.4. Expenditures for alcoholic beverages should be strictly limited and must
have the signature of the appropriate Director, Dean, or Vice Chancellor.
Expenditures for alcoholic beverages are prohibited from Sales and Service
trust funds and state appropriated funds.
3.5. 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 Director, Dean, or Vice
Chancellor. Expenditures of this type are prohibited from Sales and Service
trust funds and state appropriated funds.
3.6. Payments for member dues in civic or political organizations, "clubs",
or like organizations are not permitted from any University fund source.
3.7. The "principal persons responsible for the account" are responsible
for providing in writing to the University Accounting Office, any information
which may change the status of their accounts. This is to include 1) when
responsibility for the account is reassigned; and 2) when an account is
inactive and should be closed.
3.8. Unless a specific written exemption is made (see
Exempt Accounts), State Purchasing and Travel Policies and Procedures
must be followed.
3.9. 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 Accounting Office.
Further, Account Custodians are responsible for exercising appropriate care
in reviewing and approving transactions that result in an expenditure of
funds from any of their accounts.
