STATE OF CONNECTICUT
NANCY WYMAN COMPTROLLER	OFFICE OF THE STATE COMPTROLLER 55 ELM STREET HARTFORD, CONNECTICUT 06106-1775	MARK OJAKIAN DEPUTY COMPTROLLER

MEMORANDUM NO. 2002-32

August 20, 2002

TO THE HEADS OF ALL STATE AGENCIES

I. PURPOSE

To notify agencies of statutory changes affecting Activity and Welfare Funds.

II. AUTHORITY

Public Act 02-107, An Act Designating Certain "Funds" as "Accounts".

III. GENERAL INFORMATION

Public Act 02-107 amended sections 4-52 through 4-56 of the Connecticut General Statutes to eliminate the terms "activity fund" and "welfare fund" and to designate all such funds as "trustee accounts." The new terminology is consistent with GAAP and GASB standards.

 

Under the previous statute, agencies were required to use a welfare fund as the depository for donations (not otherwise designated by the donor), unclaimed funds that cannot be redeposited in an activity fund, and receipts from the sale of unclaimed articles. A welfare fund could not be used for the benefit of employees.

 

The new statute eliminates the need for agencies to maintain a separate welfare fund. However, the statute still requires agencies to maintain donations not otherwise designated by the donor, unclaimed funds that cannot be redeposited in another account, and receipts from sales of unclaimed articles to be placed in a separate restricted account. This separate, restricted account may be a sub account within an existing trustee account. There is no need to maintain a separate bank account for these types of funds. The restriction against use of such funds to benefit employees remains in effect.

 

We will not be amending the existing Accounting Procedures Manual for Activity and Welfare Funds at this time. We anticipate additional changes affecting trustee accounts will result from the implementation of CORE CT, the state's new accounting system. A revised accounting procedural manual reflecting both the statutory changes and changes resulting from the new accounting system will be issued after the accounting system changes are finalized.

 

Questions regarding this memorandum may be directed to Michael Sartori of the Policy Services Division of the Office of the State Comptroller at (860) 702-3438.

NANCY WYMAN
STATE COMPTROLLER

NW: MVS 

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