§ 143C-1-3. Fund types.
§ 143C‑1‑3. Fundtypes.
(a) Types. TheController shall account for State resources through use of the fund typeslisted in this subsection. The Controller may not establish a fund type thatdiffers from the listed fund types unless the Governmental Accounting StandardsBoard has approved the use of the different fund type.
The fund types are describedas follows, except that where a conflict exists between a description used inthis section and the definition of the corresponding fund type issued by theGovernmental Accounting Standards Board, it is presumed that the definitionissued by the Governmental Accounting Standards Board shall prevail.
Governmental Funds.
(1) Capital ProjectsFunds. Accounts for financial resources to be used for the acquisition orconstruction of major capital facilities other than those financed byproprietary funds or in trust funds for individuals, private organizations, orother governments. Capital outlays financed from general obligation bondproceeds should be accounted for through a capital projects fund.
(2) Debt Service Funds. Accounts for the accumulation of resources for, and the payment of, generallong‑term debt principal and interest.
(3) General Fund. Accountsfor all financial resources except those required to be reported in anotherfund.
(4) Special RevenueFunds. Accounts for the proceeds of specific revenue sources, other thantrusts for individuals, private organizations, or other governments or formajor capital projects, that are legally restricted to expenditure forspecified purposes.
(5) Permanent Funds. Accountsfor resources that are legally restricted to the extent that only earnings, andnot principal, may be used for purposes that support the reporting government'sprograms.
Proprietary Funds.
(6) Enterprise Funds. Accountsfor any activity for which a fee is charged to external users for goods orservices. Activities are required to be reported as enterprise funds if any oneof the following criteria is met. Each of these criteria should be applied inthe context of the activity's principal revenue sources.
a. The activity isfinanced with debt that is secured solely by a pledge of the net revenues fromfees and charges of the activity.
b. Laws or regulationsrequire that the activity's costs of providing services, including capitalcosts, be recovered with fees and charges rather than with taxes or similarrevenues.
c. The pricing policiesof the activity establish fees and charges designed to recover its costs,including capital costs.
(7) Internal ServiceFunds. Accounts for any activity that provides goods or services to otherfunds, departments, or agencies of the primary government and its componentunits, or to other governments, on a cost‑reimbursement basis. Internalservice funds should be used only if the reporting government is thepredominant participant in the activity. Otherwise, the activity should bereported as an enterprise fund.
Agency and Trust Funds.
(8) Agency Funds. Accountsfor resources held by the reporting government in a purely custodial capacity.Agency funds typically involve only the receipt, temporary investment, andremittance of fiduciary resources to individuals, private organizations, orother governments.
(9) Investment TrustFunds. Accounts for the external portion of investment pools reported by thesponsoring government.
(10) Pension and OtherEmployee Benefit Trust Funds. Accounts for resources that are required to beheld in trust for the members and beneficiaries of defined benefit pensionplans, defined contribution plans, other postemployment benefit plans, or otheremployee benefit plans.
(11) Private‑PurposeTrust Funds. Accounts for all other trust arrangements under which principaland income benefit individuals, private organizations, or other governments.
(b) Designation. IfState resources are designated by law as a fund or an account within a fund andthere is a conflict between the legal designation and the appropriateaccounting designation of the State resources, then the Controller shalldetermine the appropriate designation of the State resources based on theintended use and financial treatment of the State resources as set out in thelaw establishing the fund or account. The Controller shall determine the fundtype of all separate funds and account for them accordingly. The Controllershall keep the total number of funds to the minimum number practical.
(c) Notwithstandingsubsections (a) and (b) of this section, funds established for The Universityof North Carolina and its constituent institutions pursuant to the followingstatutes are exempt from Chapter 143C of the General Statutes and shall beaccounted for as provided by those statutes, except that the provisions ofArticle 8 of Chapter 143C of the General Statutes shall apply to the funds:G.S. 116‑35, 116‑36, 116‑36.1, 116‑36.2, 116‑36.4,116‑36.5, 116‑36.6, 116‑44.4, 116‑68, 116‑220,116‑235, 116‑238. (2006‑203, s. 3.)