This article covers creating a department. For assigning scholarships to it, see Adding Scholarships to a Department.
To create a Department, go to Settings > Scholarships > Departments and click + Add New.
Enter the department name and click Save Changes.
A department has only a name, its administrators (Department Admins tab) and its scholarships (Associated Scholarships tab). To control what each administrator can access, go to Users > Admins, open the administrator, and use the Permissions tab. See User Permissions & Roles.