Western Carolina University

Background

Trust fund legislation was enacted by the 1977 General Assembly and revised in 1998 to include Facilities and Administrative funds (also known as F&A funds or overhead receipts). General Statute 116-36.1 allows the University to establish accounts or trust funds outside State budget codes for certain categories of funds. Departments, organizational units, individuals, or groups may request the establishment of a trust fund or special fund that falls within the definitions and criteria outlined in Understanding Banner Funds and in this Policy. Requests for trust funds that are funded through contracts, grants, and agreements are processed through the Contract and Grants-Post Award Office.

Section 116-36.1(a) of the trust fund legislation states that the "Board of Governors is responsible for the custody and management of the trust funds of The University of North Carolina and of each institution. The board shall adopt uniform policies and procedures applicable to the administration of these funds which shall assure that the receipt and expenditure of such funds is properly authorized and that the funds are appropriately accounted for." The legislation also requires the trust funds to be deposited with the State Treasurer. Section 116-36.1(d) states that trust funds "are subject to the oversight of the State Auditor pursuant to G.S. 147-58 but are not subject to the provisions of the Executive Budget Act except for capital improvement projects which shall be authorized and executed in accordance with G.S. 143-18.1."

Trust Funds Legislation Recap

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Trust Fund Types

• Gifts, Devices, or Bequests 
• Contracts and Grants.
• Collections to support the extracurricular activities of students
• Self-Supporting Auxiliary Enterprises
• Overhead Receipts.

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Special Fund Types

• Operation of the institutions intercollegiate athletics
• Agency Funds-Monies held by the institution as fiscal agent for students, faculty, staff and organizations.