205.3 - Procedure on Establishing, Modifying and Closing an Institutional Trust or Special Fund Source


University of North Carolina at Chapel Hill Procedure on Establishing, Modifying and Closing an Institutional Trust or Special Fund Source



This Procedure explains how to establish, modify or close an institutional trust or special fund source.


This procedure applies to all campus units establishing new trust fund account sources within the University's financial system.

Procedure Statement

An institutional trust or special fund ("trust fund") may be established in ConnectCarolina using the Source Create module (see Forms and Instructions for details).

The following types of new trust funds can be created in the Source Create module: University Expendable Gifts, University Endowments, Education and Self-Supporting Funds, Foundation and Other Agency Funds, Contracts and Grants (excluding Sponsored Research), Auxiliary, Strategic Reserved Funds and Central Administrative Funds.

Each new trust fund, excluding contract and grant funds recorded with the Office of Sponsored Programs, must be requested from and approved by the University Controller.

Establishing a Trust Fund Using ConnectCarolina's Source Create Module

Requests for new trust fund Sources must be processed through the Source Create module in ConnectCarolina. The new source request process creates an electronic request with supporting documentation and is required to go through five levels of approval in the Source Create module:

  1. The first level of approval is at the department level.
  2. Next, the source request is routed to Accounting Services for two levels of approval. Accounting Services Level I group reviews the source request along with supporting documents, approves or denies the source request. If approved, a new source number is established.
  3. Accounting Services team then emails the source requester the source number and accounting instructions.
  4. The source request is routed to Accounting Services Level II group who reviews terms of Source Authority regarding how the fund is to be spent. On the other hand, the Business Analyst group update corresponding records and trees in ConnectCarolina.
  5. The final step is for University Controller to approve the Source Authority form. Upon completion of this five-level approval, a Source Authority form is established and can be downloaded in the Source Create module. Both the disbursing authority and requester receive email notifications when the Source Authority form is established.

Departments must inform Accounting Services of any changes relating to disbursing authority, owning department, source title, funding source, purpose or attribute values. Accounting Service determines whether modification of the existing Source Authority form is needed.

Significant correspondences regarding the existing trust source must be copied and forwarded to Accounting Services. Accounting Services attach the correspondences to source request in Source Create module when modification of Source Authority form is not required.

Changes to an established trust fund, including deactivation, must be submitted on the original source request to maintain historical data records in Source Create module. Change requests require supporting documentation with the same approval workflow as establishing a new trust fund.

Closing a Trust Fund

Please review all your trust fund sources, at minimum, annually.

If the original purpose and intent of a trust fund Source no longer exists, please deactivate the source by having the disbursing authority complete the appropriate procedures after any balances have been cleared to zero.

If the purpose of a Source has been met and completed, please review and clear the remaining positive or negative balances immediately. The department may move the dollars to an appropriate Source as determined by the budget owner or central office staff.

The deactivation request should be processed as a Change Request through the Source Create module, supported by a memo describing status of the Source, addressed to the University Controller and signed by the disbursing authority, or disbursing authority's delegate.

Forms and Instructions

Related Data

To establish or modify or close a trust fund Source, please consult with Financial Accounting Unit of Accounting Services.

Related Policies



  • December 18, 2020 - Revised policy to reflect the current electronic procedures of managing trust fund accounts through ConnectCarolina; new forms added and link to a training manual in cc info. Two new forms are added: 205.3.1f and 205.3.2f. The Source Modification checklist will replace a current form based in PolicyStat which is a user manual available in Infoporte. Training manuals will remain in cc info and this page will link to the needed training manual, Entering Source Chartfield Request.
  • March 22, 2010
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Article ID: 131480
Thu 4/8/21 9:09 PM
Tue 10/31/23 1:16 PM
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