107.3 - Statewide Accounting Policy - Fund Accounting

Policy Area: Accounting and Financial Reporting
Policy Sub Area: Uniform North Carolina Accounting System
Authority:  GASB Codification Section 1300 and GS 143C-1-3
Effective Date: 7/1/1995
Last Revision Date: 4/30/2017
Policy Owner/Division: Statewide Accounting


OSC determines the GASB fund type based on information on the center request form and information provided by the agency.

The State adheres to fund accounting established by Generally Accepted Accounting Principles (GAAP). The financial activities of the State are organized by individual funds, each of which is a separate accounting entity segregated to carry on specific activities or attain certain objectives in accordance with specific regulations, restrictions, or limitations. The financial activities of the State accounted for in the financial statements are classified into GASB fund type categories. 

Agencies operate on a cash and budgetary basis by the creation and use of budget funds. The North Carolina Accounting System (NCAS) utilizes both budget funds and GASB funds to accomplish required reporting from both a budgetary cash basis as well as a GAAP basis.


New GASB funds are created by OSC as accounting standards and reporting requirements change.

Agencies create new budget funds by submitting requests via OSBM’s North Carolina Integrated Budget Information System (NC IBIS).  This new fund is assigned by OSC to the appropriate GASB fund number.  Before the new budget fund can be used, OSC staff must also approve the request and establish the new fund in the NCAS.

Accounting Guidance

Agencies operate on a cash basis, using budget funds.  Budget funds are assigned to a budget code for cash reporting purposes and a GASB fund for financial reporting purposes.  NCAS reporting can be performed on either the budgetary fund basis or the GASB fund basis.

Related Documents (Memos/Forms)

Establishment of a new center (budget fund) or changes to an existing budget fund are initiated through the Office of State Budget and Management (OSBM) and the NC IBIS. 

GASB fund types are listed here.

Active GASB funds for NC are listed here

Revision History

  • 7/1/2006 - GS 143C-1-3
  • 1/26/2017 - Updated related documents section
  • 4/30/2017 - Updated to include more detailed information regarding budget funds.