SPECIAL PURPOSE TRUSTS - 19440
Gifts or grants may be donated to the state for specific purposes (e.g., conducting research in a particular field, assisting deserving students, providing money or other resources for the education or entertainment of an institution’s inmates).
In accordance with Government Code (GC) sections 16305 through 16305.3, agencies/departments shall deposit all money they possess or collect in trust with the State Treasurer, except when otherwise authorized by the Director of Finance or the money is deposited directly into a fund in the State Treasury. Specific provisions of law permit trusts to be maintained in centralized State Treasury System (CTS) accounts or in an account outside the CTS instead of in a fund in the State Treasury.
A few statutes provide that special purpose trusts outside the State Treasury will receive the income from certain sources. For example, Welfare and Institutions Code section 4125 provides that a benefit trust for the education or entertainment of patients will receive the income from the investment of a hospital's cash trust moneys. For information on accounts outside the CTS, see SAM Section 8002.
GC section 16302 states that agencies/departments shall deposit to the fund or appropriation specified by the donor. If the donor specified no fund, appropriation, or specific purpose, agencies/departments shall deposit in the State School Fund. In accordance with GC section 16372, if the donor specified the purpose of the money but did not specify a fund or appropriation, and no existing fund fulfills the purpose, agencies/departments shall deposit in the Special Deposit Fund.
For information on the acceptance of gifts, see GC section 11005. For the accounting procedures for accepting gifts, see SAM Section 8634.
Special purpose trusts outside the State Treasury normally will be deposited in the CTS and accounted as follows:
|
Debit/ |
Account | Legacy Account | Account Description |
| Debit | 1101400 | 1120 | Agency Trust Fund Cash |
| Credit | 3902000 | 5530 | Fund Balance-Unappropriated |
Agencies/Departments may maintain a separate self-balancing group of General Ledger accounts for each special purpose trust.