Policies & Procedures

Section: ###
Part: ###
Statement No.: ###
Date: 10/01/2014
University of North Carolina - General Administration
Administrative Policies and Procedures Manual
Title: Discretionary Trust Funds

FRS Account Number Range 5-15000 - 5-15102

PeopleSoft Fund & Source Range:

Fund:  191XX

Source:  65XXX

Discretionary funds, those funds that are not budgeted to be used for some specified purpose, can be used to meet a broad range of university needs.   The flexibility that is associated with discretionary funds is vitally important to the agency.  At the same time expenditures of discretionary funds must be consistent with a number of general guidelines as set out below.

  • Each expenditure of discretionary funds must be for a valid agency purpose.  These expenditures must follow all agency policies that apply to that type of expenditure and must be accompanied by appropriate documentation including receipt(s), prupose, date, location, and names of persons involved.
  • The very flexibility assocated with discretionary funds means that determining the propriety of some expenditures will require judgement.  In these cases, the prudent person test applies.   The individual making the decision about the expenditure must be comfortable with the prospect that the specific expenditure would come under the scrutiny of individuals outside the agency.
  • Expenditures for official business meeting costs (breaks, meal costs) are allowable, provided each meeting is documented and approved on Conference / Meeting Approval form in advance.  The meeting must adequately document the business nature of the meeting, provide a list of participants in the meeting, and fully demonstrate that the meeting adds value to the division's overall mission, and a favorable cost benefit relationship exists to warrant approval of all costs associated with the meeting.
  • Use of discretionary funds for donations or contributions to non-profit organizations is only permitted if a substantial university purpose can be demonstrated and the receipt of the donation by the organization does not threaten the tax exempt status of the agency or its foundation.