Policy 6.03 - Use of Self-Supporting Funds

In accordance with state guidelines based on 23 NCAC 2D.0203(b) for the budgeting, accounting, and expenditure of funds generated through self-supporting classes, the college adopts the following policy:

Direct Costs

The following items should be considered direct costs in providing self-supporting instruction:

  1. Instructor salary, including FICA, travel, and course development.
  2. Instructional supplies and materials.
  3. Rental of building and other directly assignable costs.
  4. Advertising (e.g., printing costs associated with a brochure, postage, and mailing).
  5. Equipment associated with instruction.
  6. Other costs necessary for and directly assignable to a class (could include administrative/clerical costs if verified as directly assignable).

Indirect Costs

Indirect costs are those costs for activities that support the offering of classes but cannot be directly and exclusively assigned to a self-supporting class or the self-supporting program. If indirect costs can be directly and exclusively assigned to a self-supporting class or a self-supporting program, the costs can be considered direct costs. Examples of indirect costs include coordination/administration; clerical salary and fringe benefits; utilities; custodial services; and security.

Use of Excess Funds

If self-supporting receipts for all categories (i.e., curriculum and community services) exceed expenditures for the fiscal year, the following provisions apply:

  1. If receipts exceed direct expenditures, the surplus revenue should be expended for student financial aid/scholarships and/or program improvement. Expenditures should be of direct benefit to students.
  2. Funds in excess of the above direct and indirect expenses should not be used for:
    1. supplemental salaries of any personnel
    2. administrative support of the college other than noted above for direct benefit to students
    3. college entertainment expenses (Educational activities for non-college personnel or college personnel to enhance student success would not be entertainment. Functions in which the primary purpose is fund raising would be entertainment)