Associate Vice Chancellor  CB# 1000, 304 South Building
            for Finance The University of North Carolina at Chapel Hill
Chapel Hill, NC 27599-1000

March 19, 2003


To:  Deans, Directors and Department Heads
From: Roger D. Patterson, Associate Vice Chancellor for Finance

Revised Guidelines for Facilities and Administrative Funds and Selected  Expense Guidelines by Fund Group


Facilities and Administrative (F&A) funds are a special type of Institutional Trust Fund. The guidelines for their use are being revised effective April 1, 2003, to allow the payment of instructional and training grant expenses from this source of funds. The expense categories noted are areas where questions generally arise.

Expense Category

Fund Authority Guidelines


Business Entertainment

Business entertainment should not be paid from F&A Receipts.

Employee Awards

Employee awards, including gift certificates, should not be paid from F&A Receipts.

Instructional Costs

Faculty salaries and other costs of instruction are allowable.

Membership Dues

Membership dues are allowed based on departmental policy.

Moving Expenses

Moving expenses paid to or on behalf of faculty or research staff are allowable.

Office Appliances

Expenses for office appliances are allowed if the need is sufficiently documented.

Professional License and Certificate Fees

Expenses for professional license and certificate fees are allowed.

Scholarships and Fellowships

Scholarships and fellowships are allowable. A separate account should be established to provide segregation of financial aid funds.

Training Grants

Training grants are allowable.

Attached for your convenience is a revised "Quick Reference Grid". Should you have questions regarding the attached information, please contact Pat Tayloe at 843-5098 or Please remember to share these changes with your departmental business manager.

Audit Rules - Revised Effective, 04-01-03