Institutional Trust Funds Office East Carolina University Financial Services, MS 203 3800 E. 10th St. 2nd Floor

Fund Types

What are Institutional Trust Funds? Are established at the University level by authority of Chapter 116, Article 1 of the General Statutes Are set up for specific business purposes as determined by the approved Fund Authority, and in compliance with UNC-FIT and University guidelines Are NOT state appropriated Are NOT for personal benefit G.S. 116-36.1

Types of Institutional Trust Funds

Overhead/Indirect Cost Funds Begin with 12xxxx Indirect cost earned from grants No other funding should be deposited or transferred into these funds Expenditures must be research related Established at college or division level

Overhead/Indirect Cost Funds (cont.) According to University Spending Guidelines, Overhead Receipt Funds may not be used for: Legal Costs (attorney fees related to patents are allowed) Lobbying Costs Memberships in country clubs, social or dining clubs and organizations where purpose is lobbying Organizational costs of establishing a new organization e.g., broker’s fees, incorporation fees, attorneys, etc. Personal use goods or services Selling and marketing costs of products or services Student activities costs (publications, clubs, athletics, etc.) Travel or subsistence or living allowances for Board of Trustees or Board of Governor Alcoholic Beverages Alumni Activities Bad Debts Charitable contributions, donations, gifts Commencement and Convocation Expenses Disallowed direct costs (Grants Office is responsible for checking for these types of expenses) Entertainment costs Fines, penalties, damages and other settlements Fund raising and investment management costs Investment costs, borrowed capital, etc.

Institutional Trust - General Begin with 141xxx Must be expended in accordance with approved fund authority form, University policies, and UNC-FIT guidelines Examples Royalties, patents, copyrights Student activity programs Service centers if self-supporting (not captured in Auxiliary range) Fees for contract services

Institutional Trust - Residual Funds Begin with 143xxx 143xxx are residual balances transferred from grants No other funding should be deposited or transferred into these funds Expenditures must be research related Established at college or division level

Auxiliary Funds Begin with 31xxxx Includes student auxiliaries, institutional auxiliaries, and service center operations Self-supporting entities Examples Parking and Transportation Student Health Center Housing and Dining Student Stores

Restricted Trust Funds Must be used only for the donor-restricted purpose Restricted Trust Funds begin with 23, 24, 25, 27 Restricted Endowments begin with 2E, 6C, 6Z, 6R 3 parts: Corpus (6C or 6Z), Restricted (6R), Spendable (2E) Corpus and Restricted Funds cannot be spent Principal is invested and interest earned is allocated annually to the spendable fund in accordance with ECU’s endowment policy.

Agency Funds Begin with 8xxxxx Funds Held for Others Use account 26500 “Funds Held for Other Noncurrent” for all transactions

Operation and Use of Trust Funds Need to maintain a positive cash balance Must be used as documented on the approved Fund Authority Must follow ECU spending guidelines, and comply with UNC-FIT and the General Statutes Requires VC approval to establish Changes in scope, purpose, source of revenue, organizational code, etc. must be reported to the ITF Office Requires an updated Fund Authority A new fund may be required

Do not use Self Service Banner for Institutional Trust Funds

ITF Fund Management To manage your ITF funds, it is highly recommend to use Internet Native Banner (INB) Requires the use of only 2 screens: FGITBAL – Trial Balance FGIBDST – Operating Ledger (YTD Revenues & Expenses)

Cash Balance ecuBIC report INB ODS Quick Queries http://www.ecu.edu/banner ecuBIC report Finance -> Institutional Trust Funds -> ITF Balances by Acct Pool Summary ITF ecuBIC Report ODS Quick Queries http://www.ecu.edu/syscoord/ Username and password typically the same as Pirate Port; if need help/reset, put in a ticket with ITCS

Use the year we are in or past years for “research” Cash Balance - INB Use the year we are in or past years for “research” Same as last years ending balance Beginning balance + Revenues to date - Expenditures to date ±Change in A/P Sharon -Walk through how to find the ecuBIC report and how to use it. Note the “as of date” Note: Budget adjustments should not be done thru Banner as is done for state funds; should always use the budget transfer form and send to us! State funds uses the Available Balance column and requires budget transfer for items that go negative. This is not necessary for ITF funds as we do not budget all expenses like state funds do.

Cash Balance - ecuBIC Sharon -Walk through how to find the ecuBIC report and how to use it. Note the “as of date” Note: Budget adjustments should not be done thru Banner as is done for state funds; should always use the budget transfer form and send to us! State funds uses the Available Balance column and requires budget transfer for items that go negative. This is not necessary for ITF funds as we do not budget all expenses like state funds do.

Cash Balance – ODS Quick Query Sharon -Walk through how to find the ecuBIC report and how to use it. Note the “as of date” Note: Budget adjustments should not be done thru Banner as is done for state funds; should always use the budget transfer form and send to us! State funds uses the Available Balance column and requires budget transfer for items that go negative. This is not necessary for ITF funds as we do not budget all expenses like state funds do.

Sharon -Walk through how to find the ecuBIC report and how to use it. Note the “as of date” Note: Budget adjustments should not be done thru Banner as is done for state funds; should always use the budget transfer form and send to us! State funds uses the Available Balance column and requires budget transfer for items that go negative. This is not necessary for ITF funds as we do not budget all expenses like state funds do.

ITF website contains detailed instructions for Xtender Fund Authorities Quick access to most recent Fund Authorities Can search by ORGN or by what the fund begins with (ex. 141* - will bring up all funds in your ORGN range that begin with 141) Journal Voucher (JVE) Allows user to check the entry for correctness Shows entry, all signature, and backup Receipts Any checks related to conference/workshop registration fees, rental/lease income, royalty checks, and any other miscellaneous receipts credited to ITF funds will need to be scanned into Xtender. Please redact any Personal Identifying Information (PII) such as social security numbers, checking/savings account numbers, etc. ITF website contains detailed instructions for Xtender

DocuSign –Fund Authorities DocuSign will allow departments to create and revise Fund Authorities electronically Approvers can access the forms through their e-mail and provide their electronic signature This will reduce the time it takes to complete these documents and the documents can be signed from anywhere with email access

Creating An ITF Contact the ITF Office to determine if the fund purpose meets the criteria of an ITF Submit a New Fund Authority form to the ITF Office via DocuSign New Fund Authority Form If appropriate, complete a Sales Activity Questionnaire via DocuSign – This will be determined by your answer to “Type of Institutional Trust Fund Requested” on the Fund Request Form Sales Activity Questionnaire Once the ITF Office has set up the fund, an approval letter along with a copy of the approved Fund Authority form will be sent to the signers

Call the ITF Office if you have any questions Call the ITF Office if you have any questions. We will be happy to set up a training session if you need further instruction Make sure all necessary signer names and emails are completed correctly because you can’t go back and add approvers The link to the forms can be found in this presentation as well as on the ITF website

What to Expect from the ITF Office Budget office for Institutional Trust Funds Load salary and benefit budgets annually Items that require ITF approval Journal Entries/IDT’s, Personnel Actions, Direct Pays, ITF Scholarships and Awards Create, Update, and Maintain all funds in our range Process Admin Overhead charges and Worker’s Comp fees annually Analysis and Reporting Enforce General Statutes, Legislation, and University Guidelines

What Can We Do For You? Please feel free to call us with any questions or concerns. We are here to offer guidance and support!

Sharon Cullipher Vacant Cindy Modlin Anthony Bechtel 737-1403 culliphersh@ecu.edu New Fund Requests, JVEs, Spending Questions/Approvals Cindy Modlin 737-4916 modlinc@ecu.edu Accounting Manager, Financial Statements Vacant 737-1138 Endowments, Scholarships, Distinguished Professorships Anthony Bechtel 737-1143 bechtela16@ecu.edu Personnel Actions, Payroll Redistributions