Trust Funds

Form: New Trust Account AgreementPDF File Opens in new window

Last Revision Date: 01/2020

Macro Enabled: No

Details Below

Definition

In accordance with Section 89721 of the Education Code, money received in connection with certain sources or purposes shall be deposited and maintained in a Trust Account. For CSUF, these include:

  • Room, board, and similar expenses of students enrolled in the international program of the California State University;
  • 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;
  • Money received by the trustees for research, workshops, conferences, institutes, and special projects.
  • Money collected as higher education fees and income from students of any campus of the California State University and from other persons pursuant to Section 89700. The Controller shall have the authority to audit the expenditure of these funds.

 

Establishing a New Trust Fund Process

  • Step 1:

    Each Trust Fund established shall be supported by an executed New Trust Account Agreement formPDF File Opens in new window , which clearly indicates the source and purpose of the Trust Account.

  • Step 2:

    Each such agreement shall be reviewed by Financial Services and requires the approval of the Assistant Vice President of Resource Planning and Budget and the University Controller.

  • STEP 3:

    Once approved, Accounting Services will create a new fund in the PeopleSoft Financial Systems (CFS).

  • STEP 4:

    The requestor will be notified when the fund is ready for use.

Trust Fund Administration

  • Trust Funds should only generate revenue to fund expenses associated with providing a service or activity.
  • There should be no significant excess in revenue.
  • The cash balance (account 101903 - Investment-Wells Fargo) must not be negative.
  • Expenditures can only be made against existing deposits.

Allocation of Administrative Expense and Interest to Trust Funds

As specified by the Trust Fund Agreement, an administrative fee of up to 6% is charged to the reimburse Financial Services for business and financial services provided to Trust Fund activities.

The administrative fee is calculated on revenues earned (account 5xxxxx). Accounting Services & Financial Reporting posts the fee quarterly and will appear as an expense in account 660804 (Admin Charges).

Accounting Services & Financial Reporting distributes investment earnings on a quarterly basis or as information is provided by the Chancellor’s Office. Investment Distribution Allocation (IDA) is calculated based on the trust fund's average daily cash balance (ADB) during the month. Funds with negative average daily balance do not earn interest nor assessed interest expense.

Bi-annual Renewal of Existing Trust Fund Accounts

All Trust Accounts will be subject to renewal and approval by Financial Services on a bi-annual (every other year) basis using the New Trust Account Agreement form.PDF File Opens in new window

In mid-June, each department with an existing trust account(s) will receive a form from the Controller’s Office (Accounting Services & Financial Reporting). The form is used to review and update the information contained in the Trust Fund Agreement currently on file with Accounting Services & Financial Reporting. The form must be completed, approved, and returned to the Controller’s Office by July 1st in order to ensure that the Trust Account is updated and made available for the upcoming fiscal year(s).