The UNC
Policy Manual
600.5.1.1[G]
Adopted 02/08/91
The
1990 Session of the General Assembly amended N.C.G.S. § 116-36.1 to provide an expanded definition of institutional
"trust funds." That definition
now includes institutional student auxiliary enterprise funds and funds
received from the operation and maintenance of institutional forests and forest
farmlands. The same legislation also
repealed N.C.G.S. § 116-36.3,
which had regulated institutional student auxiliary enterprise funds. This legislation required revision to the
Board of Governors' regulations for institutional vending facilities. On February 8, 1991, the board adopted the
foregoing resolution to make appropriate changes to board policy with respect
to institutional vending facilities and guidelines related to the board's new
regulations for reporting proceeds from vending facilities (Attachment B). These administrative policies provide further
guidance in implementing the amended law and the revised regulations through
comment within the following series of paragraphs, whose titles and numbers
correspond to the section titles and numbers of the board's revised
regulations. In addition, "Vending
Facilities Reporting Guidelines" and report formats are attached.
1. Vending Facilities Definition. The term "vending facilities" as
defined in the regulations is unchanged and thereby continues the broad and
comprehensive definition previously established by the General Assembly.
2. State Funds. The designation as "State funds" of
receipts from vending facilities operated by a constituent institution of the
University of North Carolina remains in effect.
3. Deposits. The deposit requirement remains unchanged.
UNC General Administration previously requested specific confirmation from the
Office of State Budget and Management (OSBM) that current practices for
depositing vending receipts are acceptable.
By letter of November 17, 1987, to Vice President Joyner from Mr. Marvin
K. Dorman, Jr., Deputy State Budget Officer, OSBM reaffirmed its earlier
acceptance of institutional practices for depositing vending receipts. This
reaffirmation remains in effect.
4. Authorized Uses. The authorized uses of net proceeds from the
operations of vending facilities are unchanged.
In some cases, though, those uses are closely conditioned by instruments
of gift or other external documents. For
example, Carolina Inn proceeds, as specified in the gift of the Inn to the
University of North Carolina at Chapel Hill, are used, in part, to support the
University libraries, especially the North Carolina Collection.
5. Account Applicability. The requirement under N.C.G.S. § 116-36.4 for reporting the net
proceeds of vending facilities embraces only those accounts defined, budgeted,
and expended pursuant to N.C.G.S. § 116-36.1
(Institutional Trust Funds). However,
N.C.G.S. § 116-36.1, as amended
in 1990, expanded the definition of institutional "trust funds" to
include institutional student auxiliary enterprise funds for the operation of
housing, food, health and laundry services, effective July 1, 1990; and to
include moneys received from the operation and maintenance of institutional
forests and forest farmlands, effective July 1, 1991. The effect of the first statutory addition
was to subject accounts for the four student auxiliary services to the vending
regulations. On the other hand, moneys
received from the operation and maintenance of institutional forests and forest
farmlands, by definition, are not subject to vending regulations.
The
majority of the vending operations covered by N.C.G.S. § 116-36.1, as amended, are included in student auxiliaries
(activity 200), along with some portions of institutional auxiliaries (activity
210) and independent operations (activity 220).
The attached "Reporting Guidelines" denote general categories
of reporting applicability. This listing
should be used as a guide. A continuing
assessment must be made by each institution to determine the institutional
vending facilities covered by the legislation and related reporting
requirements. In some instances, it may be necessary to establish internal
records to provide a separate accounting for covered vending facilities. It is the responsibility of each institution
to establish such records. Refer to
Section 7. or applicable formatting instructions.
Special
Funds (N.C.G.S. § 116-36.2) are
not covered by the vending legislation; but the budgeting and expenditures of
those accounts are covered by other applicable legislation.
6. Definition of Net Proceeds. The definition of the term "net
proceeds" for a covered vending facility is unchanged. It continues to be the equivalent of
"net income" in accounting terminology.
7. Reporting. The board's regulations direct the President
to make such reports concerning vending facilities as may be required under
N.C.G.S. § 116-36.4. The annual reporting requirement and the due
date, "not later than October 1 of each year," is unchanged. The reports are due in General Administration
by September 1 for subsequent transmittal to the Joint Legislative Commission
on Governmental Operations by October 1 of each year.
N.C.G.S.
§ 116-36.4 requires an
"itemized annual report . . . concerning the use of net proceeds. . .
broken down by campus and by authorized purpose." This requirement is unchanged; and,
therefore, the current format, with emphasis on authorized uses of net proceeds
being consistent with N.C.G.S. § 116-36.4,
is also unchanged. The reporting format,
as determined by the Office of State Budget and Management, is attached. It consists of two sections: Summary Report
and Specific Vending Activity Report(s).
The
"Summary Report" is the total of the values reported for the
separately identified vending activities cited on the accompanying
"Specific Vending Activity Report" form(s).
Each
"Specific Vending Activity Report" identifies a separate vending
activity by stating a brief descriptive title and a three-digit Chart of
Accounts purpose number. The use of
purpose 219, Other Auxiliaries, requires further identification of specific
vending activity(ies) by the use of a more descriptive (non-standard) phrase on
the vending report. A separate report is
required for each current vending activity and for any additional activities
subsequently and appropriately identified pursuant to the "Vending
Facilities Definition" and "Account Applicability" sections of
the regulations.
The
following aspects of the two format sections should be noted:
a. The
amount reported in the space for "Total Net Proceeds" should be equal
to the amount reported in the space for "Total Authorized Uses of Net
Proceeds." All net proceeds for the
reporting period must be identified with one or more authorized uses.
b. As
a result of multi-year reporting experience, when net proceeds accumulated in a
prior fiscal year (typically via item "e" of the authorized uses) are
used for an authorized purpose during a subsequent fiscal year, the use of a
negative number for item "e" may be required to balance the
"Total Net Proceeds" with "Total Authorized Uses of Net
Proceeds." This has the effect of
spending previously accumulated (prior fiscal year) net proceeds from available
fund balances during a subsequent reporting period.
c. Item
"f," "Transfers . . . ," is to be specifically identified
both on the format sections and by a separate attachment, including appropriate
documentation authorizing such use pursuant to the requirements stated in item "f"
of the " Authorized Uses" section.
8. Effective Date. These regulations are effective retroactively
to July 1, 1990.
[This is a rewrite of Administrative
Memorandum #301.]
Vending
Facilities Reporting Guidelines
In
the institutional trust fund accounts, the majority of the operations covered
by the legislation are included in student auxiliaries (activity 200), along
with some portions of institutional auxiliaries (activity 210) and independent
operations (activity 220). The following
general determinations of applicability have been made. This listing is to be used as a guide. A continuing assessment must be made by each
institution to determine the vending facilities covered by the legislation and
related reporting requirements.
200 Student Auxiliaries
202 Campus Center - Sales and services
revenues generated in this purpose are included in the reporting
requirement. Typical revenue sources
are: game rooms; snack bars; bowling alleys; pool rooms; automated (coin activated)
dispensers, including, but not limited to, candy and newspaper stands, food and
beverage machines; and similar concessionary activities.
203 Food Services - Sales and services
revenues generated in this purpose are included in the reporting
requirement. Typical revenue sources
include, but are not limited to: snack bars, lunchrooms, cafeterias,
restaurants, catering activities, vending machines, and similar concessionary
activities.
204 Health Services - Purpose 204 is
generally excluded from the reporting requirement.
205 Housing Services - Purpose 205 is
generally excluded from the reporting requirement. However, vending machine revenues budgeted
and expended in purpose 205 are included.
206 Laundry Services - Sales and
services revenues generated in this purpose are included in the reporting
requirement. Revenue sources include,
but are not limited to, coin activated washers and dryers.
207 Recreational Services - Purpose
207 is generally excluded from the reporting requirement.
208 Student Stores - Sales and
services revenues generated in this purpose are included in the reporting
requirement. Typical revenue sources
include, but are not limited to: over-the-counter sales, services, and rentals;
snack bars; book stores; copy machines, satellite vending stands; and similar
concessionary activities.
210
Institutional Auxiliaries
211 Central Motor Pool - Purpose 211
is generally excluded from the reporting requirement.
212 Central Stores - Purpose 212 is
generally excluded from the reporting requirement.
213 Creamery (NCSU only) - Purpose 213
is generally excluded from the reporting requirement.
214 Printing and Duplicating - Sales
and services revenues generated in this purpose are included in the reporting
requirement. Satellite copy machines and
copy centers are included in the reporting requirement.
215 Rental Property - Purpose 215 is
generally excluded from the reporting requirement.
216 Vehicle Registration - Purpose 216
is generally excluded from the reporting requirement.
219 Other
Auxiliaries - Institutions should identify applicable sales and services
revenues for purpose 219. Separately
organized vending operations would be included, for example.
220
Independent Operations
222 Carolina Inn (UNC-CH only) - Sales
and services revenues generated in purpose 222 are included in the reporting
requirement. Typical revenue sources
include, but are not limited to: dining room; cafeteria; catering activities;
vending machines; and similar concessionary activities. Room rentals and conference fees are excluded
from reporting requirements.
227 Utility Services - Purpose 227 is
generally excluded from the reporting requirement.
228 Continuing Education Center -
Sales and services revenues generated in purpose 228 are included in the
reporting requirement. Typical revenue
sources include, but are not limited to: dining rooms, snack bars, and
restaurants; catering activities; vending machines; and similar concessionary
activities. Room rentals and conference
fees are excluded from the reporting requirement.
Institution
________________________
Report on Vending Facilities Authorized Uses
of Net Proceeds
Summary
Report
For the
Fiscal Year Ending June 30, ______
Total Net
Proceeds $
Authorized
Uses of Net Proceeds:
a. Scholarships and other direct
student financial aid programs $
b. Debt service on self-liquidating
facilities
c.
Student activities specifically
authorized by the chancellor:
i. Social
and recreational activities for students residing in self-supporting University
housing (not to exceed the amount of total net proceeds derived from vending
facilities located in such housing facilities)
ii. Special
orientation programs for targeted groups of students
iii. Operating expenses of scholarships
and other student
awards and honors programs
iv. Supplementary Student Center
operating support (not to
exceed the total net proceeds
derived from vending facilities
located in such Student Center
facilities)
d. Use required by express condition of
gifts, grants, or bequests
e. Retention to provide for working
capital, replacement of facilities and
equipment, and other purposes to
support the continuing, orderly
operation of the particular
self-supporting service operation
f. Transfers to other self-supporting
student service operations and
authorized capital improvements
projects (identify)
Total
Authorized Uses of Net Proceeds $
Report
Approved by:
Chief
Finance Officer Date
Institution ___________________________
Report on Vending Facilities
Authorized Uses of Net Proceeds
Specific Vending Activity Report
For the Fiscal Year Ending June 30,
_______
Description ________________________________________________________
Chart of Accounts Purpose No.
_______________
Total Net Proceeds $
Authorized Uses of Net Proceeds:
a. Scholarships
and other direct student financial aid programs $
b. Debt
service on self-liquidating facilities
c. Student
activities specifically authorized by the chancellor:
i. Social
and recreational activities for students residing in self-supporting University
housing (not to exceed the amount of total net proceeds derived from vending
facilities located in such housing facilities)
ii. Special
orientation programs for targeted groups of students
iii. Operating
expenses of scholarships and other student awards and honors programs
iv. Supplementary
Student Center operating support (not to exceed the total net proceeds derived
from vending facilities located in such Student Center facilities)
d. Use
required by express condition of gifts, grants, or bequests
e. Retention to provide for working
capital, replacement of facilities and
equipment, and other purposes to
support the continuing, orderly operation
of the particular self-supporting
service operation
f.
Transfers to other self-supporting student
service operations and authorized
capital improvements projects
(identify)
Total
Authorized Uses of Net Proceeds $
Report
Approved by:
Chief
Finance Officer Date