APPROVED BY THE PRESIDENT 1 AUGUST 1991
                 UPDATED BY PRESIDENT'S LEGAL OFFICE, APRIL, 1996
 
  I.   Policy
 
       Education and General Designated Account ("Revolving") funds
       represent special activities not included in the formal
       University budget process.  All revolving funds must be
       reviewed annually for renewal consideration.  The transfer
       of State funds into revolving fund accounts is prohibited,
       except for interdepartmental billings for services rendered.
 
 
       All purchases using revolving fund monies are subject to
       existing University purchasing policies and procedures, and
       State law and regulation. The hiring of full-time or
  part-time permanent personnel for a revolving fund activity is
       not normally allowed.  The Campus Finance Committee must be
       petitioned for specific written approval prior to hiring
       permanent personnel who are to be funded from a revolving
       fund.
 
  II. New Fund Requests
 
       All requests for new revolving fund accounts require the
       approval of the Vice President for Administrative Affairs.
       The procedure for approval is as follows:
 
            1.   A Justification Form and proposed budget must be
                 submitted for review and approval to the
                 Department Chair. The forms may be obtained from
                 the UMCP Comptroller's Office.
 
            2.   After approval by the Department Chair, the
                 signatures of the Dean and appropriate Vice
                 President must be obtained on the Justification
                 Form and the proposed budget.
 
            3.   The approved forms along with appropriate
                 supplemental materials should be forwarded to the
                 Assistant Vice President for Finance.
 
            4.   Upon approval by the Assistant Vice President for
                 Finance, the forms are forwarded to the Vice
                 President for Administrative Affairs for final
                 approval.
 
            5.   Approved account requests are sent to the UMCP
                 Comptroller for establishment of an appropriate
                 account number.
 
            6.   In cases where a revolving fund activity plans to
                 charge or increase a fee or rate, approval must be
                 obtained from the Office of the Vice President for
                 Administrative Affairs.
 
  III. Annual Renewal Procedure
 
       1.   An annual request fund must be prepared for each
            revolving fund account for the upcoming fiscal year by
            May 31 of each year following the same steps as
            outlined above.
 
       2.   Any change in the original fund should be described
            fully in order to assure correct fund classification
            and continuation of the fund.
 
       3.   In the event an annual renewal request is not
            submitted, the revolving fund shall be terminated on
            the first day of the upcoming fiscal year.  Any
            revolving fund balances shall be transferred per the
            State Disposition of Balances in the letter of
            justification.