UAMS ADMINISTRATIVE GUIDE
|SUBJECT:||DESIGNATED FUND PROCEDURES|
The Designated Fund (Fund 175) is to be used to account for Current Unrestricted Funds which have been designated for a specific purpose. These funds will carry forward from one fiscal year to another at an individual center level. Unrestricted gifts will continue to be accounted for in the Other Unrestricted Fund (119). No expenditures will be permitted in Invest in Life and Special Funds. Interest allocations will be recorded as revenue. Fund Balance Transfers will be used to move funds in and out of the fund as needed. The Designated Fund is not an exempt fund. The Designated Fund may be used for three different purposes.
- The minimum amount for additions to a Special Fund center will be $25,000. No more than one addition to or deduction from a Special Fund center will be allowed within one fiscal year. Any transfer out will require thirty (30) days' notice because of restrictions on withdrawals from externally invested funds.
- The source center or centers for the initial transfer for a Special Fund account may not become deficit within a period of twelve (12) months following the transfer. If the source center or centers should become deficit during that period, the department will have thirty (30) days to cover the deficit.
- The interest income for Special Funds will be allocated quarterly based on the long-term rate less fifty (50) basis points.
- Interest income allocated to the Special Funds must be accumulated in the account until the specified objective has been met. After the objective has been met, departments may request authorization to use interest income for funding the objective. The request should be submitted to the Director of Financial Analysis and Reporting at Slot 545 on the form on Page 5 of this policy.
- If unforeseen circumstances force departments to request transfers out of the Designated Fund back into their departmental accounts, they may request that the transfer be made. Requests for transfer out will be made on the form on Page 4 of this policy. The request should be submitted to the Director of Financial Analysis and Reporting at Slot 545. If the request is granted and the funds have not been in the Designated Fund for at least five years, the interest rate for the period the funds were in the Designated Fund will be reduced to the average of the short-term rate for the period the money was in the fund.
- Invest in Life Funds would be numbered using 175 as the first three digits, 388 (MCPG's Capital Campaign Fund department number) for the next three digits and a "project number" for the last four digits. An example of a center number for Invest in Life Funds would be 175-3880362. This indicates that the center is for Invest in Life and that it corresponds to the foundation's Account Number of 362. The Foundation numbering system has three digit numbers for nonendowed and unrestricted accounts and four digit numbers for endowed accounts. These would be used as the four-digit "project number". The three-digit project numbers would begin with a zero (0).
- All Special funds would be numbered using 175 as the Fund, the three digits of the department number as the second three digits and a "project number" as the final four digits. An example is the Nettleship Chair Reserve Center which is 175-3151000. The center number indicates that it is a Pathology center and is the first project for Pathology. The next numbers could be 175-3151001, 175-3151002, etc.
- All Other Designated Funds would be numbered using 175 as the Fund, the department number as the second group of three digits and a "project number" for the final four digits. The project number would start with a "5". Project numbers beginning with "5" would not be used in Invest in Life or Special Funds. Other Designated Funds would be identifiable by the "5" at the beginning of the project number. An example of a center number for Other Designated Funds would be 175-3155001.