Institutional Trust Fund Balance Usage Regulation 316
|Approved: May 17, 2017
|UNIVERSITY OF NORTH CAROLINA SCHOOL OF THE ARTS
Institutional Trust Fund Balance Usage Regulation
|Source of Authority:
Office of State Budget Management (OSBM); UNC Code § 700 (A)
|First Issued: May 17, 2017
|Cash Management Regulation 302
|Financial Services Department
|May 17, 2017
This regulation is to outline guidelines for usage with respect to department institutional trust fund balances.
This regulation applies to all institutional trust fund balances within UNCSA.
"Fund Balance" is defined as the accumulation of the portion of revenue remaining in the institutional trust fund after all expenses have been paid at June 30th of any given year.
"Fund Manager" is defined as the employee who is responsible for overseeing the fund.
Fund Balance is defined as the accumulation of the portion of revenue remaining in the institutional trust fund after all expenses have been paid at June 30th of any given year. This amount rolls forward into the new fiscal year on July 1st to the fund's cash/fund balance. If the balance for the year in the fund at June 30th is negative (i.e. more was spent than collected), the amount is rolled into the cash/fund balance, reducing the amount that rolls forward. The Institutional Trust Fund Balance should increase, year after year.
Institutional Trust Funds that have annual recurring commitments/expenses are required to have enough revenue in the Cash Reserve to cover 1 years' worth of expenses. For Institutional Trust Funds that do not have annual commitments, we require a minimum of 6 months of revenue to cover expenses.
Any Fund Manager wishing to utilize institutional trust fund balance for a non-recurring, one-time expense must submit a written request to the Director of Budget. The request must be accompanied by an approval from the Cabinet member who has oversight of the department/school.
Upon review and in consultation with the Associate Vice Chancellor of Finance, a recommendation on approval or denial of the request is sent to the Vice Chancellor for Finance and Administration for final approval. Once a decision is reached, the Fund Manager will be notified.
V. Revision History
A. First Issued: May 17, 2017