1. Institutional Trust Funds East Carolina University Financial Services, MS 203 3800 E. 10 th St. 2 nd Floor Sherrilyn Johnson, Financial Director - Institutional Trust Funds/Foundations

2. Who We Are Institutional Trust Funds Office Financial Services 3800 E. 10 th St. 2 nd Floor a.k.a. Special Funds Accountants: Sharon Cullipher * Cindy Modlin * Virginia Bridgman

3. 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

4. University & Foundation Fund Types

5. Types of Institutional Trust Funds

6. 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

7. 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

8. 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

9. 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

10. 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. Virginia Bridgman 737-1138

11. Scholarships Due Dates: –All Summer ScholarshipsMarch 15th –Fall/Spring April 15th –Spring Semester OnlySept. 15th Must send Scholarship Information Form, Fund Manager Approval, and Scholarship Committee Survey Virginia Bridgman 737-1138

12. Creating a Trust Fund If the activity meets the criteria for a trust fund: Submit a Trust Fund Request form and a Fund Authority form to the ITF Office with the appropriate signature approvals If appropriate, complete a Sales Activity Questionnaire A letter along with a copy of the approved Fund Authority form will be sent to the person responsible for the fund once the ITF Office has set up the fund Sharon Cullipher 737-1403

13. Updating a Trust Fund ORGN changes, responsible party changes, purpose, source of revenue Submit a revised Fund Authority form with the changes and appropriate signature approvals to the ITF Office A copy of the approved Fund Authority form will be sent to the person responsible for the fund once the ITF Office has made the changes For ORGN changes: move transactions and budget to the new FOAP including payroll redistributions

14. 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

15. Matching Concept Revenues must be matched with the associated expenses. *Revenue-generating Funds should not be set up in the ITF range if the expenses/resources used to generate that revenue are paid from State or other Funds.*

16. Salary and Benefit Budgets Permanent salary and matching benefits are budgeted on ITF funds Loaded into Banner Finance beginning of fiscal year by ITF Office Budgets should include all positions whether filled or vacant Sharon Cullipher 737-1403

17. Personnel Actions PCFs:- all about position budget & funding - only required for permanent positions EPAFs:- all about the assigning the employee to the position - required for all jobs, special pays and fringe benefits PCFs and EPAFs affecting ITF funds must be routed to our office for approval. EPAFs are only approved if position budget is available in POSMAN or if a PCF has been submitted. Payroll Redistributions that debit an ITF fund should be approved & posted by the ITF Office

18. ITF Cash Balances Departments should monitor frequently Should ALWAYS have a positive balance FGITBAL or ecuBIC Report Does not include payments in process or deposits in transit https://reports.intra.ecu.edu/Reports/Pages/Folder.aspx?ItemPath=%2f ecuBIC&ViewMode=List

19. Cash Balance

21. Journal Entries/ Interdepartmental Transfers Must meet UNC-Fit guidelines Must verify the amount and have a valid business purpose Documentation required that supports the transaction –Examples include Banner screen prints, a copy of an invoice, a report, or an email Accounting staff and/or auditors should be able to clearly understand the purpose of the transaction

22. JE/IDT Continued Preparer must sign his/her name or type in name and initial beside it Approver must sign his/her full name –Signed names must be legible! –Approver must be on the Delegation of Authority for the ORGN being debited. Preparer cannot be the approver. Preparer cannot sign as the approver on behalf of someone else +/- for budget entries, D/C for journal entries J51 for Internal Sales and Services, J63 for Journal Entry Adjustments

23. Administrative Overhead Charges Often referred to as administrative fees Are applied to auxiliaries and most 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

24. Administrative Overhead Charges Rates: –Auxiliaries1.25% –Institutional Trust Funds1.75% Based on prior year’s expenses, excluding transfers Charge posts annually in the Fall

25. Calculating Administrative OH Charges

26. Worker’s Compensation Fee University maintains a pool account for supporting non-state worker’s compensation 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 rate has remained.2% for several years, but is subject to change based on actual claims

27. Worker’s Compensation Fee ORGN Name Fund Name Prog Name

28. Calculating Worker’s Comp Fee Total Salary $141,464.22 Worker’s Comp Rate X.002 Worker’s Comp Charge $282.93

29. 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

30. 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!

31. Contacts Virginia Bridgman737-1138 Endowmentsbridgmanv@ecu.edu Scholarships Distinguished Professorships Cindy Modlin737-4916 Journal Entriesmodlinc@ecu.edu Fund Set-up/Maintenance Sharon Cullipher737-1403 Personnel actionsculliphersh@ecu.edu Payroll redistributions Budget/Financial Information