Approved Administrative Committee 902.2
ADMINISTRATION OF TRUST FUNDS
PURPOSE
1. The purpose of this policy is to outline the rules governing the administration of Trust Funds at the University of Ottawa.
DEFINITIONS
2. A trust fund is an asset, particularly cash, entrusted with a trustee who has the responsibility of administering the said asset in conformity with instructions received for the performance of specific activities or for the realization of certain objectives. A fund may fall under one of two broad categories, namely:
- Expendable Fund - A fund, the capital of which and the interest earned thereon, if applicable, may be spent.
- Non-expendable Fund - A fund, the capital of which must remain intact; interest only may be spent.
3. Under this policy, "trust funds" include monies that are collected from the public or any source outside the University for a specific purpose (such as a conference, special activity, etc.), and expended for this purpose.
APPROVAL
4. Before being accepted on behalf of the University, trust funds must be approved by one of the following, depending on the purpose of the fund.
Research Services - for all grants, research and service contracts (see Policy 48).
Student Services - for student aid and student activities.
Faculties and Services - for conferences, conventions and seminars that are not supported by grants or contracts from outside agencies.
5. Trust funds that do not fall within one of the above categories must be approved by the Administrative Committee.
6. This approval requirement is not intended to restrict the opening of accounts for administrative convenience, in which funds from the University budget, or from duly approved trust funds, are transferred for a specific purpose. Responsibilities defined as per paragraphs 8 to 12 hereunder will apply to any trust funds transferred to other accounts. Such accounts will require the authorization of the Director of Financial Services to be opened.
RESPONSIBILITIES
7. Trust funds must be assigned to an academic or administrative unit, and the signing authorities that apply to the budget of this unit also apply to the Trust fund.
8. The authority approving a trust fund must designate a full-time member of University personnel as the administrator of the fund. Adjunct and Emeritus professors may be authorized by Research Services to administer research grants or contracts.
9. Notwithstanding the above, the Administrative Committee may decide in certain cases to name a specific administrator.
10. The administrator may delegate to an agent the responsibility assigned to him. All delegations of authority must be transmitted to all concerned, in writing.
11. It shall be the duty of the administrator to:
- a) ascertain that University policies and the wishes and restrictions of donors are complied with and that the terms of contracts are adhered to;
- b) sign all documents pertaining to this account, namely, deposit slips, payment requisitions or any such order;
- c) verify monthly financial reports and, specifically, ascertain that all expenditures are in keeping with budget and available funds;
- d) examine, approve and sign financial statements, if applicable.
12. The administrative or academic unit responsible for the trust fund shall be held responsible for over expenditures. In the case of research grants or contracts, the principal investigator shall be held responsible for unauthorized over expenditures (see Policy 48).
FINANCIAL ACCOUNTING
13. Financial Services shall open accounts only for those trust funds duly approved according to paragraph No. 4 above. It shall be the responsibility of Financial Services to:
- a) verify that all transactions affecting each trust account are in keeping with University policies, the wishes of the donors and the terms of contracts;
- b) distribute monthly financial reports;
- c) submit claims and financial statements as required by fund contributors, by agreement or otherwise.
14. Official financial records, with all original documents required for audit purposes are kept in Financial Services.
FOREIGN FUNDS
15. Any premium or discount resulting from the receipt of foreign funds towards the contracts/grants will be credited or debited to the trust fund, as the case may be.
EXCEPTION
16. No exception may be made to this policy without the written consent of the Administrative Committee.
Published June 16, 1986
(Office of the Vice-President, Resources)