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

2. 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

3. Types of Institutional Trust Funds
All numbered funds except:
11 (state), 15 & 21 (grants), 314 & 315 (ECUP)

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

5. 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

6. 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

7. Institutional Trust - Residual Funds
Begin with 143xxx
143xxx are residual balances transferred from grants
Revenue/Income should only show in account code Nonmandatory Restricted
No other funding should be deposited or transferred into these funds
Expenditures must be research related
Established at college or division level

8. 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

9. 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.

10. Agency Funds Begin with 8xxxxx Funds Held for Others
Use account “Funds Held for Other Noncurrent” for all transactions including revenue deposited.
If ProCard is used, prepare a Journal Entry monthly to moved expenses to

11. 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

12. Do not use Self Service Banner for Institutional Trust Funds

13. 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

14. Cash Balance Banner 9 Admin Pages ecuBIC report ODS Quick Queries
ecuBIC report
Finance -> Institutional Trust Funds -> ITF Balances by Acct Pool Summary
ITF ecuBIC Report
ODS Quick Queries
Username and password typically the same as Pirate Port; if need help/reset, put in a ticket with ITCS

16. Delegation of Authority
All expenses on journal entries, direct payment forms, and travel need approval from someone with delegation of authority.
ance/Delegation%20of%20Authority/Delegation %20Of%20Authority%20Query%20by%20Orga nization%20Code

17. Xtender
Xtender instructions are located on the Financial Services website.
admin/financial_serv/?RenderForPrint=1

18. 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

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

20. Calculating Admin Fee Total Expenses $29,627.49
Admin Fee Rate x
Admin Fee

21. 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.

22. Worker’s Compensation / Unemployment Fee

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

24. 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 ed to or you may call Laura Fanning at    
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 ed to

25. 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

26. 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!

27. Staff Sharon Cullipher, CPA Cindy Modlin, CPA Anthony Bechtel
New Fund Requests, JVEs, Spending Questions/Approvals
Cindy Modlin, CPA
Accounting Manager, Financial Statements
Anthony Bechtel
Payroll Redistributions, JVEs, Spending Questions/Approvals
Michelle Yeager
Endowments, Scholarships, Distinguished Professorships