Effective Date: 07/01/00
Policy Statement 4: Fund Types
For accounting purposes, University funds are separated into three major groups, each having its own offices for pre-audit and accounting responsibility.
State Funds - maintained by the General Accounting Office and the Budget Office.
Grants and Contract Funds - administered by the office of Grants and Contract Administration (See Grants and Contracts (GCA) Section of the Business Manual).
Trust Funds, Special Funds, and Endowment Funds - maintained by the Special Funds Office.
State funds are funds which are subject to the Executive Budget Act. They are generally "appropriated by the General Assembly of North Carolina" and/or "collected by or for the State, or any agency thereof, pursuant to the authority granted in any of its laws." (Chapter 143, Article 1, General Statutes of North Carolina.)
GRANTS AND CONTRACT FUNDS
While Grants and Contract funds and Trust funds are maintained separately by the University, both are Institutional Trust Funds, described in State legislation as follows:
- monies, or the proceeds of other forms of property, received by an institution as gifts, devises, or bequests that are neither presumed nor designated to be gifts, devises, or bequests to the endowment fund of the institution;
- monies received by an institution pursuant to grants from, or contracts with, the United States Government or any agency of instrumentality thereof;
- monies received by an institution pursuant to grants from, or contracts with, any State agencies, any political subdivision of the State, any other states or nations or political subdivisions thereof, or any private entities whereby the institution undertakes, subject to terms and conditions specified by the entity providing the monies, to conduct research, training or public service programs, or to provide financial aid to students;
- monies collected by an institution to support extracurricular activities of students of the institution;
- monies received from or for the operation by an institution of activities established for the benefit of scholarship funds or student activity programs;
- monies received from or for the operation by an institution of any of its self-supporting auxiliary enterprises, including institutional student auxiliary enterprise funds for the operation of housing, food and health services.
- monies received by an institution in respect to fees and other payments for services rendered by medical, dental or other health care professionals under an organized practice plan approved by the institution or under a contractual agreement between the institution and a hospital or other health care provider.
- monies received from the disposition effected pursuant to Chapter 146, Article 7, of any interest in real property owned by or under the supervision and control of an institution if the interest in real property had first been acquired by gift, devise, or bequest or through expenditure of monies defined in Section II.A. as "trust funds", except the net proceeds from disposition of an interest in real property first acquired by the institution through expenditure of monies received as a grant from a State agency. (Chapter 529 of the 1981 Session Laws);
Special funds are described in State legislation as follows:
- monies received from or for the operation by an institution of its program of intercollegiate athletics;
- monies held by an institution as fiscal agent for individual students, faculty, staff members, university-related foundations and organizations.
Endowment funds result from donations where the principal is to remain intact and is to be invested to produce income which may be expended or reinvested. Title to endowment assets is vested by statute in the Board of Trustees of the Endowment Fund of East Carolina University.