University of Hertfordshire Charitable Trust

UNIVERSITY OF HERTFORDSHIRE CHARITABLE TRUST

CUSTODIANSHIP AND DISBURSEMENT OF TRUST FUNDS

(Amendments to the version published previously are shown in italics.)

1INTRODUCTION

This document sets out the policies approved by the Trustee for the custodianship and disbursement of funds held by the University of Hertfordshire Charitable Trust[1].

2DEFINITIONS

2.1For the purposes of this document, the following definitions will apply:

2.1.1‘Trust’:

the University of Hertfordshire Charitable Trust;

2.1.2‘Trustee’:

the Board of Governors of the University of Hertfordshire, in its capacity as the University of Hertfordshire Higher Education Corporation, is the sole Trustee of the University of Hertfordshire Charitable Trust (Minute 251, Board of Governors, 20 October 2009, refers);

2.1.3‘Restricted Funds’:

funds (donations) residing in the Trust whose management, administration, investment or disbursement may be restricted by terms and conditions stipulated by the donor;

i‘Endowment’

a capital element is maintained and only income earned on the capital is spent, normally in the form of scholarships, bursaries and grants: endowments are normally Restricted Funds but will be termed ‘Unrestricted Funds’ where the donor has not imposed restrictions;

ii‘Income fund ‘

a Restricted Fund where the donation is intended for use as soon as possible and usually within three (3) years. Income funds are used for scholarships, prizes and bursaries. Additionally, the Trust may receive donations for other uses within the University, for example, moneys to be used specifically to support a particular project: Income Funds will be termed ‘Unrestricted Funds’ where the donor has not imposed restrictions;

2.1.4‘Unrestricted Funds’:

Funds (donations) residing in the Trust whose management, administration, investment or disbursement is not restricted by terms and conditions stipulated by the donor.

3Principles and Assumptions

3.1At any one time, the Trust may hold Restricted and Unrestricted Funds.

3.2It is anticipated that in the long-term the funds received by the Trust, from whatever source, will continue to increase through the receipt of donations and endowments (Restricted and Unrestricted) and capital growth.

3.3The Trustee recognises its obligations properly to manage, use and dispose of the funds held by the Trust in accordance with the Objects of the Trust and a need to promote capital growth, particularly from the Unrestricted Funds, so that the value of any moneysit might make available in pursuit of the Trust’s Objectives are improved continually.

3.4The Trustee will actively disburse funds held by the Trust in accordance with the Objects of the Trust and where applicable, any terms and conditions stipulated by the donors of Restricted Funds.

4CUSTODIANSHIP ANDDISBURSEMENT OF FUNDS

4.1The Trustee, through good stewardship, aims to increase, through investment, the total value of the funds held by the Trust year-on-year.

4.2Restricted Funds will be managed to the benefit of all funds held by the Trust (Restricted and Unrestricted Funds) and, where relevant, in compliance with the specific requirements of any donor. The Trustee will determine an investment strategy for the whole Trust Fund, rather than individual strategies for each Restricted Fund.

4.3The Trustee will monitor all Restricted and Unrestricted Funds held by the Trust.

4.4The Trustee has adopted the Investment Strategy of the University of Hertfordshire Higher Education Corporation approved from time-to-time by the University’s Board of Governors[2], save and except that the Trustee, at its absolute discretion, may resolve to adopt alternative investment strategies where it deems this appropriate. Therefore, any changes made to the Investment Strategy of the University of Hertfordshire Higher Education Corporation will be submitted to the Trustee for consideration and formal approval.

4.5The University of Hertfordshire Higher Education Corporation, in its role as Trustee of the University of Hertfordshire Charitable Trust, will from time-to-time determine arrangements through which the business of the Trust is administered on behalf of the Trustee by committees of the University’s Board of Governors. These arrangements require the prior approval of the Trustee and form part of this document. The business of the Trust shall include promoting the donation of Restricted and Unrestricted Funds to the Trust.

4.6The Trustee will from time-to-time and at its absolute discretion make grants from the Unrestricted Funds held by the Trust in accordance with the Objects of the Trust. In doing so the Trustee will have regard for the income and expenditure of the Trust and in determining that a grant is to be made will ensure that sufficient funds are available.

4.7The schemes approved by the Trustee for the disbursement of funds in the form of grants may vary in size and scope.

4.8The Trustee will from-time-to-time determine processes for the receipt and consideration of grant applications and the proper management of any grants made by the Trust.

4.9The decision of the Trustee in connection with any grant application is final.

4.10The disbursement of minor funds from Restricted Funds, up to a limit of £10,000 in any one transaction, such as those donated for the purpose of distribution to students, diplomates and graduates,will be dealt with by officers authorised by the University’s Financial Regulations to approve transactions of such type and value. These transactions will be reported to the Charitable Trust Committee. Any single transaction of more than £10,000 will require the prior approval of theCharitable Trust Committee, unless the nature or value of the proposed transaction is such that it falls outside the limits of the authority delegated to the Committee by the Trustee, in which case the prior approval of the Trustee will be required.

4.11Where the Trust is the beneficiary of a donation to be used by the University for a specific purpose, such as a new University building, the University’s Board of Governors will ensure that the Trustee receives clear guidance on the wishes of the University and the donor so that the Trustee can dispense the funds concerned at the appropriate time and in the appropriate manner.

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© University of Hertfordshire Charitable Trust (2011)

[1]Minute 504.1.3, Charitable Trust, 22 March 2011, refers.

[2]UPR FR01 ‘Financial Regulations’