July 11-12, 2002

MONTANA BOARD OF REGENTS OF HIGHER EDUCATION
 Policy and Procedures Manual

SUBJECT:  FINANCIAL AFFAIRS
Policy # 901.12

Board Policy:

1.       The Montana University System elects to receive designate timber sale revenue from MUS trust lands generated after July 1, 2001, as distributable revenueduring FY02 as non-distributable permanent fund revenue.

2.       Should the Montana University System elect to designateTtrust land timber sales revenuesavailable as a result of this policydistributable revenue in subsequent fiscal years, the revenue shall be used for one of the following purposes:

a.       Legal obligations under the indentures(s) to which trust land income is pledged.

b.       Elimination or reduction of chronic or material negative fund balances as defined in Board of Regents Policy - Negative Fund Balances.

c.       Deferred maintenance and equipment/fixed asset expenditures that are not recurring in nature.

History:  

ITEM 114-115-R0102, Use Of Timber Sale Revenues (NEW), approved by the Board of Regents as amended on January 18, 2002.