Accounting

Effective Date: 07/01/00

Policy Statement 5: Establishing a Trust/Special Fund


Trust Fund Criteria

Each new Trust fund (but not Grants and Contract funds recorded in the Office of Grants and Contracts) must be requested from the Special Funds Office and approved by the Comptroller. The following conditions must be present to establish a Trust Fund:


REQUESTING A TRUST FUND

New Fund

A trust fund should be requested when funds are anticipated which qualify under the conditions outlined above.

Sources of significant amounts should not be combined except by type of revenue and purpose of fund. For example, revenue obtained through gifts should be placed in a separate trust fund from revenue generated by contractual services.


FUND AUTHORITIES

Guidelines

After requesting a new fund, the Special Funds Office will send a fund authority, along with instructions for completion, to the requesting department.


Pertinent Information

Each trust fund authority request is examined carefully and must contain the following information about the proposed fund:

After the Comptroller approves a new fund, the Special Funds Office will assign an account number and have it entered in the system. The department will be notified of the account number and procedures for initiating financial transactions.


Correspondence

Anticipated changes in disbursing authority and/or address, fund name, source of funds, or purpose should be reported to the Trust Funds Office so that a revised authority may be prepared.

Significant correspondence regarding the trust/special fund should be copied and forwarded to the Special Funds Office to be placed in the official fund folder.

A new fund should be requested if significant amounts are received which do not fit the description of an existing Trust/Special Fund.


CLOSING A TRUST/SPECIAL FUND

Remaining Balances

If the purpose of the Trust/Special fund no longer exists, the disbursing authority should request that the account be closed. If the conditions of the gift or grant have been fulfilled, unless the grantor has specific instructions, any residual monies, whenever possible, should be used to support a program or purpose of similar nature, or closely related, to the original program or purpose.


Closing

The disbursing authority should prepare and submit a memo describing the status of the fund to the Special Funds Office so that the fund may be closed.