USTCAF Inactive Sub-fund Clean-Up Guideline
To clean up the inactive sub-funds and improve financial management efficiency.
The USTC Alumni Foundation has the practice of setting up “sub-funds” to track donation income and grant expenses. It has proven an effective way to encourage donation and member participation in the past.
Over the years, some of the funds have become inactive. This resolution aims at introducing a mechanism to properly wind down these inactive sub-funds.
Definitions of Inactive Sub-funds:
If a sub-fund’s total income is less than $100 within last 3 years and has no expense activities within the last 2 year it will be designated as an inactive sub-fund, except the flowing cases:
(1) The sub-fund is reserved for a future purpose approved by the board, or otherwise authorized as an exemption by the board;
(2) The sub-fund is for student or faculty award purposes, has a clear description of the award criteria and amount, and has a balance adequate for at least one award described by the sub-fund;
(3) Good-Will sub-funds with balance higher than $50;
(4) The sub-fund is an USTCAF general purpose sub-fund;
Determination of Inactive Sub-funds:
The Secretary’s Office is responsible for making the determination of a sub-fund being inactive, and notifying the USTC AF Board and the Treasurer.
Revival Effort for Inactive Sub-funds:
Once a sub-fund is determined as inactive, the flowing actions shall be taken in an attempt to revive it, if the corresponding sub-fund manager contacted and is co-operative:
(1) The Secretary’s Office will inform the sub-fund manager of the inactive status of the sub-fund and possible upcoming cleanup actions;
(2) A three-month grace period will be given to the sub-fund manager to bring sub-fund up to meet the active sub-fund requirement;
(3) If the sub-fund manger fails get the sub-fund active and the remaining balance is negative, the Secretary’s office shall make an effort to collect additional donation for the sub fund until the negative balance is covered, or until 12 months after the determination, whichever occurs first;
(4) The revival effort is deemed completed when all of the above have been attempted.
Inactive Sub-fund Clean-up Process:
The Secretary’s Office shall inform the USTC AF Treasurer on a periodical basis the list of inactive sub-funds, which has gone through a failed revival effort as defined above. The Treasurer shall then take the following actions:
(1) The non-Goodwill sub-fund will be closed and the its remaining positive balance be transferred to the General Fund;
(2) A Goodwill sub-fund will have its balance transferred to the General Good-will Fund.
Bill of Conflict:
USTCAF will reserve the final rights to interpret this article. The decisions by the Board on matters are final. Any exemption from the guidelines listed in this article will need to be approved by the Board.
Author: Han Zhao
Sponsor: Xun Li, Linghang Ying