In 1995 the Board of Regents Business and Finance Committee redefined the make-up of the components of the Trust Funds. There are now three funds within the Trust Funds: a Principal-Long Term Fund, a Principal-Intermediate Term Fund, and an Income-Cash Management Fund. The primary change was to create the Intermediate Term Fund that has a slightly longer investment horizon than the Income Fund and is expected to generate additional earnings.

Gifts that formerly went into the Income Fund must now, on the transmittal form, identify the fund (Long Term Fund or Intermediate Term Fund) to which the gift should be deposited. Gifts will no longer go directly into the Income Fund.

Since Fiscal Year 1996-97, the budget for the Income Fund accounts has contained the intermediate term balances plus current year receipts. Departments may spend the full budget even though cash is smaller. The difference between the budget and receipts is the intermediate term portion whose cash balance is in fund 162.

All spending will be done from the Income Fund accounts (Fund 161). Monthly, UW-System Trust Funds Office will transfer any needed amounts from the Intermediate Term Fund (Fund 162) to the Income Fund accounts (Fund 161) to cover spending overdrafts.