The following statements outline the account policies and procedures for East Carolina University regarding the use of Special and Institutional Trust Funds.
Fund Authority Forms are required by the legislation for each individual account and further define the use of the funds. The legislation specifies that the following items must be included in the fund authority form: (1) The Institutional Trust Fund Authority within which the account is established, (2) The name of the account and its accounting designation, (3) The source of the moneys to be credited thereto, (4) The purpose of the account, including any specific restrictions, terms or individual authorized to accept receipts and initiate disbursements from the account. The legislation is very specific that no disbursement shall be made for a purpose not specified in the appropriate fund or account authority or contrary to any specific restrictions, terms or conditions on the use of the funds.
In a resolution concerning the custody and management of institutional trust
funds, the Board of Governors of The University of North Carolina stated that
these funds shall be used to supplement State appropriations to the end
that the institution may improve and increase its functions, may enlarge its
areas of service, and may become more useful to a greater number of people.
Persons authorized to expend these funds should also assure themselves that
the expenditures are consistent with the mission of East Carolina University.
As stated above, trust funds are subject to the oversight of the State Auditor. Current trends indicate that the public is demanding more and more accountability from public entities. Therefore, a prudent public stewardship approach should be taken when expending institutional trust funds. A reasonable test of appropriateness for expenditure should include the following questions:
You must be able to answer yes to each of these questions. Some examples of inappropriate expenditures include payments for non-business related entertainment, payments for bereavement acknowledgments and payments for personal gifts to faculty and staff members. If there is any doubt concerning the appropriateness of expenditure, please consult with Financial Services in advance.
Additional flexibility has been allowed for the following expenditures:
It is important to match the source of revenues and their related expenditures. If expenditure is made from state funds, any resulting revenue should be reported in state funds. Similarly, if state funds generated the revenue, the matching expenditures should be reported in state funds. Trust funds may not be used as a mechanism to collect revenues generated substantially with state time or dollars.
If you have any other questions or concerns regarding special/trust funds, please contact Financial Services at 328-6757.
Also, see Appendix 6: Frequently Asked Questions Regarding the Use of Discretionary Funds