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

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 All numbered funds except: 11 (state), 15 & 21 (grants), 314 & 315 (ECUP)

Overhead/F&A Funds Begin with 12xxxx Indirect cost earned from grants 50412 - Grant and Contract F&A Distribution 58259 – Indirect Cost Transfer (overhead to overhead) Expenditures must be research related Established at college or division level

Overhead/F&A Funds (cont.) According to University Spending Guidelines, Overhead Receipt Funds may not be used for: 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. 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

Institutional Trust - General Begin with 13xxx – 14xxxx (not 143xxx) Must be expended in accordance with approved fund authority form, University policies, and UNC-FIT guidelines Examples Student activity programs Fees for services (i.e. registration, training, etc.) Royalties, patents, copyrights

Institutional Trust - Residual Funds Begin with 143xxx 143xxx are residual balances transferred from grants Revenue/Income should only show in account code 58253 - Nonmandatory Restricted 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 23 - Scholarships 24 - Professorships 25 - Departmental Use 27 - Other Restricted 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 including revenue deposited. If ProCard is used, prepare a Journal Entry monthly to moved expenses to 26500.

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, use Banner 9 Admin Pages. Requires the use of only 2 screens: FGITBAL – Trial Balance FGIBDST – Operating Ledger (YTD Revenues & Expenses) Use F3 to see details

Cash Balance Banner 9 Admin Pages ecuBIC report 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

Delegation of Authority All expenses on journal entries, direct payment forms, and travel need approval from someone with delegation of authority. https://ecubic.ecu.edu/reports/report/ecuBIC/Fin ance/Delegation%20of%20Authority/Delegation %20Of%20Authority%20Query%20by%20Orga nization%20Code

Xtender Xtender instructions are located on the Financial Services website. http://www.ecu.edu/cs- admin/financial_serv/?RenderForPrint=1

Administrative Overhead Charges Often referred to as admin fees Are applied to auxiliaries and trust funds Why? Areas receive considerable services from Materials Management, HR, ITCS, and Financial Services beyond which the University receives State appropriation Need to have a cash balance available to cover this charge

Administrative Overhead Charges Rates: Auxiliaries 1.25% Institutional Trust Funds 1.75% Based on prior year’s expenses, excluding transfers Charge posts annually in the Fall

Calculating Admin Fee Total Expenses $29,627.49 Admin Fee Rate x 0.0175 Admin Fee 518.48

Worker’s Compensation & Unemployment Fee University maintains a pool account for supporting non-state worker’s compensation & unemployment claims Charge is based on the amount of prior year’s salary expenditures (not including benefits) Charges post in the Fall of every year Worker’s Comp / Unemployment rate has remained 0.22% for several years, but is subject to change based on actual claims The 0.22% is divided amongst the two rates based on analytical analysis.

Worker’s Compensation / Unemployment Fee

Calculating the Worker’s Compensation / Unemployment Fee Total Salary $3,700 WC/UE Rate x 0.0022 WC/UE Fee 8.14

ITF budget functions moving to UBO The University Budget Office (UB0) is managing the budget functions related to EPAF’s, PCF’s, and People Admin actions with ITF funding. Non-State funded positions will be budgeted at the full salary amount similar to State-funded positions.   Any correspondence related to ITF budgets, including budget entries for PCF’s, should be emailed to budgetofficeitf@ecu.edu or you may call Laura Fanning at 737-1719.    New fund requests and fund modifications will continue to be requested via DocuSign. Sharon Cullipher and the ITF staff are the designated approvers. ITF staff will approve and monitor expenses on ITF funds. Journal entries, payroll redistributions, direct pays and post travel approval should be emailed to ITF-SPECIALFUNDS@ecu.edu.   

What to Expect from the ITF Office Items that require ITF approval Journal Entries, Payroll Redistributions, Direct Pays, PORT, ITF Scholarships and Awards, Distinguished Professorship Expenses, Travel, Gift Card Authorization Create, Update, and Maintain all funds in our range Process Admin Overhead charges, Worker’s Comp and Unemployment 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!

Staff Sharon Cullipher, CPA Cindy Modlin, CPA Anthony Bechtel 737-1403 culliphersh@ecu.edu New Fund Requests, JVEs, Spending Questions/Approvals Cindy Modlin, CPA 737-4916 modlinc@ecu.edu Accounting Manager, Financial Statements Anthony Bechtel 737-1143 bechtela16@ecu.edu Payroll Redistributions, JVEs, Spending Questions/Approvals Michelle Yeager 737-1138 yeagerm16@ecu.edu Endowments, Scholarships, Distinguished Professorships