Trust Account Information
Section Contents:
Guidelines for the Establishment and Administration of Trust Accounts
All Trust Accounts shall be established in accord with Section 89721 of the Education Code which authorizes each CSU campus to deposit and maintain in trust accounts moneys received in connection with the following sources or purposes:
- gifts, bequests, devises, and donations;
- student loan or scholarship funds;
- advance payments for anticipated expenditures or encumbrances in connection with federal grants or contracts;
- room, board, and similar expenses of students enrolled in the CSU international program;
- cafeteria replacement funds;
- miscellaneous receipts in the nature of deposits subject to return upon approval of a proper application;
- fees and charges for services, materials and facilities provided by the campus which fees and charges shall be used solely to meet the costs of providing the services, materials and facilities;
- fees for instructionally related activities as defined by the trustees and authorized by section 89700 and revenues derived from the conduct of such instructionally related activities;
- fees for parking, health services, and other self-supporting instructional programs;
- revenue from state lottery; and
- money received by the trustees for research, workshops, conferences, institutes, and special projects.
The proposed Trust Fund Agreement shall clearly indicate the source and purpose of the Trust Account and state the pertinent section of Education Code Section 89721 which gives rise to the establishment of the Trust Account. Each such Agreement shall be reviewed by the Financial Services and will require the approval of the Controller and AVP of Finance. An annual review of each Trust Agreement will take place in May. New Trust Agreements for the next fiscal year will be completed and approved for continuing Trust Accounts. If a new Trust Fund Agreement is not completed or approved by June 1, the pertinent trust account shall be terminated at the end of the current fiscal year.
A Trust Annual Budget Form shall be completed for the forthcoming fiscal year and shall accompany the Trust Agreement. The revenue section shall include a description of the source(s) of funds; the rate or fee charged, if applicable; a projected beginning fund balance and estimated current year revenue. The expense section shall include a description and estimate of proposed expenditures. If the revenue and expense plan results in a proposed FY surplus, an expenditure plan for the surplus should be stated on the Trust Fund Budget Form. The disposition of any annual surplus will either be per the terms of the Trust Agreement, if the account is being closed, or will be reflected as a revenue source in the renewal Trust Agreement for the forthcoming fiscal year. Trust Agreements that propose a FY deficit will not be approved. Accounting Services will assist Campus Fund Administrators or their designees to reasonably insure that the trust accounts have a positive cash balance and fund balance pursuant SUAM Section 3710.01. For Cash Flow Management and Investment purposes, the Trust Annual Budget Form shall contain a section of projected revenues and expenditures by month.
For Trust Agreements proposed pursuant to Education Code Section 89721(g), fees and charges for services, materials and facilities provided by the campus which fees and charges shall be used solely to meet the costs of providing the services, materials and facilities.
Budgets for Trust Accounts will be established annually pursuant to the Trust Account Agreement. Expenditures from the account will either be made directly from the Trust Account or from the Trust Account as a reimbursement to another account where the expenses were incurred. All expenditures must be made in accordance with the purpose as stated in the approved Trust Agreement, and such expenditures will be reviewed quarterly to ascertain compliance with the terms of the Trust Agreement.
Usage of the University Procurement Card with Trust Accounts
The Trust Fund Agreement and Trust Annual Budget forms will be used to request the establishment of a new University Trust Account, or to request the continuation of an existing trust account during the Annual Trust Account Review Process. These forms must be completed in accordance with the Guidelines for the Establishment and Administration of Trust Accounts. These forms may be found in the Accounting Services section of the Forms tab listed above or on Informed Filler (Choose "Services," and "CSUF Forms Server," then "Business Financial Affairs" folder).
For instance, if John Doe was your Approving Official and an authorized signer, Trustee, on the Trust Fund Agreement, John would only need to approve for the transactions online in PaymentNet. However, if he was not a Trustee, John would need to approve your transactions online in PaymentNet
AND an authorized Trustee listed on the Trust Fund Agreement would need to sign the front of your monthly Procurement Card statement.
Completion of the Trust Fund Agreement and Trust Annual Budget
The Trust Fund Agreement and Trust Annual Budget forms will be used to request the establishment of a new University Trust Account, or to request the continuation of an existing trust account during the Annual Trust Account Review Process. These forms must be completed in accordance with the Guidelines for the Establishment and Administration of Trust Accounts. These forms may be found in the Accounting Services section of the Forms tab listed above or on Informed Filler (Choose "Services," and "CSUF Forms Server," then "Business Financial Affairs" folder).
The purpose of the trust account must clearly state why the trust account is needed and how the activity is governed by the criteria specified in the Education Code Section 89721. These criteria are stated in the Guidelines.
Sources of funds and types of expenditures must be detailed so as to assist in the management of the trust project. The Trust Annual Budget form specifies certain revenue and expenditures categories that may be used. If other major categories of revenue and expense are not specifically stated, use the space for other.
Attach any supporting documentation such as agreements, restrictions or reporting requirements that will impact the administration of the account.
Specify the expected duration or time constraints associated with the account. If the account is for a project, specify the termination date. If the account is for an on going concern, specify indefinite.
State the disposition of remaining funds at the termination of the trust project. For example, funds may be reclassified to the General Fund or other appropriate state fund, Foundation, returned to Donor, etc.
Signature specimens must be on file for those authorized to expend from the trust accounts. Expenditures must be approved by the authorized signatories on the Trust Fund Agreement.
A Trust Annual Budget must accompany the Trust Fund Agreement. In order to project a beginning fund balance for the budget form, use the current fund balance from the monthly statements and project revenues and expenses through June 30. This will be your best estimate of the financial position of the trust account at June 30. Accounting Services, upon request, will assist in this determination.
Specify in detail, the planned use of the projected ending fund balance. This may include an extraordinary purchase that is in compliance with the purpose of the Trust, a temporary reduction in fees, etc. Trust Accounts should not be generating large surpluses but rather generating revenue to fund expenses associated with providing the service or activity.
Excess cash in Trust Funds are locally invested and interest income is posted to the trust accounts. A Cash Flow Statement on the Trust Annual Budget Form is required to determine investment strategies. Using historical trends or current knowledge of events, project the timing of revenues and expenditures for the next fiscal year. Accounting Services, upon request, will assist in this determination.
The department must complete forms, obtain the required signatures and forward the request to Accounting Services in CP-300.
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