Financial Regulation 14.1 stipulates that:
Heads of Department must ensure that:
- donation accounts and trust funds are maintained in credit;
- funds are applied for the public benefit for charitable, educational or research purposes only; and
- any Ordinances or regulations governing the receipt of donations and the conduct of individual accounts are followed.
The Standard Summary Report by Source of Funds that is issued monthly by the Finance Division, will show whether the donation accounts are being maintained in credit. In addition to showing a summary of the income and expenditure year to date it also details the amounts invested on both the Deposit Account and within the CUEF for each source of funds.
The 'Source of Funds - Long Report' is another version of the same report that is available on request from the Reporting Team in the Finance Division. It shows the same information but further broken down by cost centres. This enables you to identify the performance of individual departmental accounts and identify specifically where any potential overspends may be.
Additionally, the Treasury & Investments Team within the Finance Division will issue regular Trust Fund Statements to help you with the management of your trust funds.
Where potential overspends/deficits are identified departments should:
- Check that only appropriate expenditure has been allocated to the donation. Use the standard UFS reports: Transaction Code Balances and for specific information on individual transactions use the Account Analysis 3 report.
- If the account has money on deposit and/or CUEF holdings consider whether the shortfall will be made up by the anticipated income from interest/ monthly distributions for the remainder of the financial year.
- cIf is still forecasted to be in deficit, consider taking money off deposit and potentially selling CUEF units.
- If this is not possible, transfer expenditure (using the transfer transaction code) to another departmental account which is in surplus.
Further details on how to use transfer codes are given in the Best Practice Guide No.3