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.

Exclusions

None

Special Situations

None

Procedures

None

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

• Finance Policy 102 - University of North Carolina at Chapel Hill Policy on Disbursing Authority
• Finance Related Data 207.1rd - Sample Institutional Trust Fund Authority Form
• North Carolina General Statute 116-36.1 (g) (1)

Contacts

History

Revised:

• 2/17/2023, 3/31/2010.