207 - University of North Carolina at Chapel Hill Policy on Fund Authority

Reason for Policy

To provide specific terms and conditions, accountability and fiscal responsibility for account established based on the underlying gift or contractual agreement, memorandum, correspondence or other supporting documentation.

Policy Statement

A fund authority is a document which governs the use of institutional trust funds, special funds, and endowment funds (commonly referred to as "trust funds"). A fund authority is issued to the department with specific terms and conditions and for recording financial transactions in the trust fund account.

At a minimum, the fund authority of a trust fund account should include the following elements:

  • North Carolina General Statute reference
    For example, North Carolina General Statute (N.C.G.S.) Sec. 30, Ch 116-36.1 (g) (1), which is the citation of regulations governing institutional trust funds. The chapter and section further define regulations applicable to the type of account created.
  • Account Title
    This is the long title of the account provided by the department requesting the account. This title should support or meet the requirements of the supporting documents.
  • Disbursing Authority
    The disbursing authority on an account is an individual holding a position at the dean, director, or department chair level. The disbursing authority has a fiscal responsibility to manage the use of funds in accordance with the fund authority, applicable agreements, university policies, and other regulatory agency guidelines. For more information refer to Finance Policy 102 - Disbursing Authority. The disbursing authority is referred to as the "responsible person" in the online UNC Account Request System and University Financial Records System.
  • Source
    Term refers to source of funds for the account established. Examples: gifts, devises, allocations and other sources. For a comprehensive list, refer to N.C.G.S. Ch. 116-36.1 (g) (1).
  • Purpose
    Purpose of the account is summarized from the supporting documentation and the justification provided in the account request.
  • Terms
    Terms refers to the administration of the account including budget allocation, life of the account if applicable, or any conditions stipulated in the supporting documentation.
  • Instructions
    General instructions to use the source of funds for the purposes intended in this document, how to record financial transactions, and information on the subsidiary ledger accounts, if applicable.
  • Modifications to Fund Authority
    Fund authority may be modified to reflect the changes, if any, in the underlying terms and conditions or change the disbursing authority of the account.

The reason for this is to provide specific terms and conditions, accountability and fiscal responsibility for account established based on the underlying gift or contractual agreement, memorandum, correspondence or other supporting documentation.

Accounts that are established in the agency fund group are excluded and not within the scope of this document.



Special Situations




Additional Information

Frequently Asked Questions

Q: How do I obtain a fund authority of an account?
A: Fund authority of an account is issued to the departments and can be obtained from the department. In addition, a copy may be requested from Accounting Services. If the trust fund account was created using the online UNC Account Request system, then the fund authority may be retrieved online.

Related Data


Policy Contact
Subject Contact Telephone Fax E-Mail
Fund Authority Accounting Services - Financial Accounting 919-962-5606 919-962-3306 financial_accounting@unc.edu



  • 2/17/2023, 3/31/2010.


Article ID: 131482
Thu 4/8/21 9:10 PM
Fri 2/17/23 1:56 PM
Effective Date
If the date on which this document became/becomes enforceable differs from the Origination or Last Revision, this attribute reflects the date on which it is/was enforcable.
03/31/2010 12:00 AM
Issuing Officer
Name of the document Issuing Officer. This is the individual whose organizational authority covers the policy scope and who is primarily responsible for the policy.
Issuing Officer Title
Title of the person who is primarily responsible for issuing this policy.
University Controller and Executive Director of Enterprise Financial Accounting
Last Review
Date on which the most recent document review was completed.
02/17/2023 12:00 AM
Last Revised
Date on which the most recent changes to this document were approved.
02/17/2023 12:00 AM
Next Review
Date on which the next document review is due.
02/16/2026 12:00 AM
Date on which the original version of this document was first made official.
09/30/2004 12:00 AM
Responsible Unit
School, Department, or other organizational unit issuing this document.
Budget and Finance