Policy Number: VIII-9.00(A)
University of Maryland, College Park Policy and Procedures Concerning Education and General Designated Accounts ("Revolving Funds")
(APPROVED BY THE PRESIDENT UPDATED BY PRESIDENT'S LEGAL OFFICE, APRIL, 1996)
Education and General Designated Account ("Revolving") funds represent special activities not included in the formal University budget process. All revolving funds must be reviewed annually for renewal consideration. The transfer of State funds into revolving fund accounts is prohibited, except for interdepartmental billings for services rendered.
All purchases using revolving fund monies are subject to existing University purchasing policies and procedures, and State law and regulation. The hiring of full-time or part-time permanent personnel for a revolving fund activity isnot normally allowed. The Campus Finance Committee must be petitioned for specific written approval prior to hiring permanent personnel who are to be funded from a revolving fund.
II. New Fund Requests
All requests for new revolving fund accounts require the approval of the Vice President for Administrative Affairs.
The procedure for approval is as follows:
- A Justification Form and proposed budget must be submitted for review and approval to the Department Chair. The forms may be obtained from the UMCP Comptroller's Office.
- After approval by the Department Chair, the signatures of the Dean and appropriate Vice President must be obtained on the Justification Form and the proposed budget.
- The approved forms along with appropriate supplemental materials should be forwarded to the Assistant Vice President for Finance.
- Upon approval by the Assistant Vice President for Finance, the forms are forwarded to the Vice President for Administrative Affairs for final approval.
- Approved account requests are sent to the UMCP Comptroller for establishment of an appropriate account number.
- In cases where a revolving fund activity plans to charge or increase a fee or rate, approval must be obtained from the Office of the Vice President for Administrative Affairs.
III. Annual Renewal Procedure
- An annual request fund must be prepared for each revolving fund account for the upcoming fiscal year by May 31 of each year following the same steps as outlined above.
- Any change in the original fund should be described fully in order to assure correct fund classification and continuation of the fund.
- In the event an annual renewal request is not submitted, the revolving fund shall be terminated on the first day of the upcoming fiscal year. Any revolving fund balances shall be transferred per the State Disposition of Balances in the letter of justification.