Fund Utilization

Use of funds is governed by the fund authority for the specified fund type, or in the case of trust funds for the specified account.  Managers are responsible for understanding the restrictions on use for all fund types, and for any trust account utilized by the department.

Click here for a chart of allowable expenses by fund type.

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Trust Funds

Managers should have on file the fund authority for each trust fund utilized by the department.  Fund authorities may be obtained from Accounting Services, or if the trust fund is a Medical Foundation account contact The Medical Foundation.  The fund authority should be reviewed with all staff to ensure that funds are being appropriately utilized.  It is a violation of State and University policy to use funds in a manner contradictory to the fund authority.
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Clinical Funds

The Clinical Fund Authority which is part of Appendix A of the Health Affairs Code was updated 7/03 and should be carefully reviewed by all departments who have clinical accounts (this includes any basic science and center departments for whom FBO has established clinical accounts to meet business needs).

Facilities & Administrative (F&A) Funds

F&A Funds (aka Overhead) - F&A utilization is governed by a variety of policies as published by UNC. A general summary of restrictions is provided in the Vice Chancellor for Finance's 3/19/03 memo regarding Guidelines for Facilities and Administrative Funds and Selected Expense.

Since overhead receipts are more flexible than state funding, FBO is frequently asked whether there is a UNC policy governing distribution of indirects earned. Per University policy, approximately 15.6% of the indirects earned in the prior fiscal year are distributed to the department administering the grants. Although it is not a formal policy, common practice is to share overhead monies between administering departments and other participating units. This sharing of overhead monies is often done to reflect the fact that many faculty are housed in space assigned to another unit, or that the salary support for that faculty is provided by a unit other then the administering department. SOM's Research Advisory Committee issued a guideline on the sharing of overhead receipts in 1998; that guidance continues in effect today.

SOM F&A Distribution - information and charts


Summary of Allowable Expenses by Fund Type- This chart provides an excellent summary of the general restrictions that apply for virtually all fund types including state, overhead, grants, trust funds, recharge centers and other auxiliary sources. You may want to to print this chart and share with all staff. Simultaneously, departments should review the UNC Business Entertainment Policy.