Did you know that custodial funds (i.e., funds within the 9nnnnn fund code range) are legally external to the University of Illinois System? Given this fact, there are limitations on the types of services and benefits that custodial funds can receive.
For example, custodial funds cannot utilize the U of I System's:
- Federal Employer Identification Number (FEIN);
- Sales tax exemption on any of their purchases;
- Tax-exempt status for the purpose of soliciting charitable donations to their organization;
- Departmental C-FOPs for making purchases on behalf of their organization;
- Credit card terminals for processing credit card receipts on behalf of their organization; or
- Purchasing power or discounted pricing for their external organization’s purchases.
Keep in mind that custodial funds are used to account for many types of external financial activity, such as Registered Student Organizations (RSOs), the Chicago Organization Fund (COF), and hosted conferences. For further details, refer to Section 2 and Section 13.6 within the Business and Financial Policies and Procedures.
Contact
If you have any questions, reach out to one of our subject matter experts in the Custodial Funds section of UAFR's Who to Ask list.
