Beginning in Fiscal Year 2000, the Texas State Legislature established Permanent Health Fund (PHF) endowments from Tobacco Settlement Receipts (1999 76th Legislative Session, House Bills 1676 and 1945). The UTHSCSA is the recipient of three types of PHF endowments, which are managed by The University of Texas System Board of Regents and The University of Texas Investment Management Company (UTIMCO):
- Permanent Health Funds for Higher Education - Health Related Institutions
- Permanent Endowments - Higher Education (Children's Cancer Research)
- Permanent Endowments - Higher Education (RAHC)
Although these endowments are appropriated, State guidelines mandate these funds be distributed into Designated Funds. Yet, for all practical purposes they must be treated as State funds as the State Comptroller processes all income and expenditure transactions. Any expenditure charged against tobacco funds must be made in accordance with State guidelines and for the purpose of the endowment distribution. Unless specifically authorized, funds must be fully expended or encumbered by August 31 of the year in which the funds were allocated. Any remaining balance will revert back to the institution. Departments will bear the cost of benefits for any salary appointments made with these funds. The UTHSCSA is required to provide quarterly and annual financial reports to State agencies showing how the funds are used and demonstrating continued need for the funds. In order to maintain accountability, allocations may not be transferred outside of the fund in which they were distributed:
- Fund 23055, Permanent Health Funds (PHF) for Higher Education
- Fund 23056, PHF - Institutional Research Grants
- Fund 23065, Children's Cancer Research Institute (CCRI) Research Activities
- Fund 23066, CCRI - Research Departmental State M&O Budget
- Fund 23070, Regional Academic Health Center (RAHC) - Tobacco
Please contact the Budget and Financial Planning Office using the BUD Admin mailbox if it becomes necessary for departments to further allocate tobacco distributions in funds 23055, 23066, or 23070. The Budget and Financial Planning Office will determine the need to establish new project ids and process the appropriate transfer of funds.
Please contact the Office of Sponsored Programs concerning funds 23056 and 23065.