The Banner financial system is based on the fund accounting concept where financial transactions are accounted for and reported in separate, self-balancing accounting units called FUNDS. Specifically, each fund has its own asset, liability, revenue and expense accounts. Separate accounting units (fund types) ensure that the funds received are accounted for in a manner that will demonstrate compliance with legal requirements, the purposes for which the funds were established, and the authority provided by the State of North Carolina.
Fund TypesFor accounting purposes, University funds are separated as follows.
State funds are funds subject to the Executive Budget Act. They are generally "appropriated by the General Assembly of North Carolina" and/or "collected by or for the State, or any agency thereof, pursuant to the authority granted in any of its laws" (Chapter 143, Article 1, General Statutes of North Carolina).
State funds in Banner are all begin with a “1” and are numbered 101xxx-199999.
While contract and grant funds and trust funds are maintained separately by the University, both are institutional trust funds as described in General Statutes 116.36.1 and 116.36.5 as follows:
- moneys, or the proceeds of other forms of property, received by an institution as gifts, devises, or bequests that are neither presumed nor designated to be gifts, devises, or bequests to the endowment fund of the institution;
- moneys received by an institution pursuant to grants from, or contracts with, the United States Government or any agency or instrumentality thereof;
- overhead receipts collected from contract and grant funds are classified as institutional trust funds, effective July 1, 1998;
- moneys received by an institution pursuant to grants from, or contracts with, any State agencies, any political subdivision of the State, any other states or nations or political subdivisions thereof, or any private entities whereby the institution undertakes, subject to terms and conditions specified by the entity providing the moneys, to conduct research, training or public service programs, or to provide financial aid to students;
- moneys collected by an institution to support extracurricular activities of students of the institution;
- moneys received from or for the operation by an institution of activities established for the benefit of scholarship funds or student activity programs;
- moneys received from or for the operation by an institution of any of its self-supporting auxiliary enterprises, including institutional student auxiliary enterprise funds for the operation of housing, food, health, and laundry services.
- moneys received by an institution in respect to fees and other payments for services rendered by medical, dental or other health care professionals under an organized practice plan approved by the institution or under a contractual agreement between the institution and a hospital or other health care provider.
- moneys received from the disposition effected pursuant to Chapter 146, Article 7, of any interest in real property owned by or under the supervision and control of an institution if the interest in real property had first been acquired by gift, devise, or bequest or through expenditure of moneys defined in Section II.A. as "trust funds", except the net proceeds from disposition of an interest in real property first acquired by the institution through expenditure of moneys received as a grant from a State agency (Chapter 529 of the 1981 Session Laws);
- moneys received from operation and maintenance of institutional forest and forest farmlands, provided that such moneys shall be used, when used, by the institution for support of forest-related research, teaching, and public service programs.
Special funds are described in State legislation General Statute 116.36.2 as follows:
- moneys received from or for the operation by an institution of its program of intercollegiate athletics;
- moneys held by an institution as fiscal agent for individual students, faculty, staff members, university-related foundations and organizations.
Endowment funds result from donations where the principal is to remain intact and is to be invested to produce income which may be expended or reinvested. Endowments are defined under General Statute 116.36. The solicitation of these funds is usually coordinated through the Office of University Advancement. Title to endowment assets is vested by statute in the Board of Trustees of the Endowment Fund of Western Carolina University.