diff --git a/ntp_core.c b/ntp_core.c
index 8c92175..f2a3138 100644
--- a/ntp_core.c
+++ b/ntp_core.c
@@ -582,8 +582,8 @@ NCR_CreateInstance(NTP_Remote_Address *remote_addr, NTP_Source_Type type,
 
   /* Create a source instance for this NTP source */
   result->source = SRC_CreateNewInstance(UTI_IPToRefid(&remote_addr->ip_addr),
-                                         SRC_NTP, params->sel_options,
-                                         &result->remote_addr.ip_addr,
+                                         SRC_NTP, NAU_IsAuthEnabled(result->auth),
+                                         params->sel_options, &result->remote_addr.ip_addr,
                                          params->min_samples, params->max_samples,
                                          params->min_delay, params->asymmetry);
 
diff --git a/refclock.c b/refclock.c
index 1a78bfe..44df2c6 100644
--- a/refclock.c
+++ b/refclock.c
@@ -253,8 +253,9 @@ RCL_AddRefclock(RefclockParameters *params)
   inst->filter = SPF_CreateInstance(MIN(params->filter_length, 4), params->filter_length,
                                     params->max_dispersion, 0.6);
 
-  inst->source = SRC_CreateNewInstance(inst->ref_id, SRC_REFCLOCK, params->sel_options, NULL,
-                                       params->min_samples, params->max_samples, 0.0, 0.0);
+  inst->source = SRC_CreateNewInstance(inst->ref_id, SRC_REFCLOCK, 0, params->sel_options,
+                                       NULL, params->min_samples, params->max_samples,
+                                       0.0, 0.0);
 
   DEBUG_LOG("refclock %s refid=%s poll=%d dpoll=%d filter=%d",
       params->driver_name, UTI_RefidToString(inst->ref_id),
diff --git a/sources.c b/sources.c
index 685eee6..4ea64d6 100644
--- a/sources.c
+++ b/sources.c
@@ -118,7 +118,13 @@ struct SRC_Instance_Record {
   /* Type of the source */
   SRC_Type type;
 
-  /* Options used when selecting sources */ 
+  /* Flag indicating that the source is authenticated */
+  int authenticated;
+
+  /* Configured selection options */
+  int conf_sel_options;
+
+  /* Effective selection options */
   int sel_options;
 
   /* Score against currently selected source */
@@ -172,6 +178,7 @@ static double combine_limit;
 /* ================================================== */
 /* Forward prototype */
 
+static void update_sel_options(void);
 static void slew_sources(struct timespec *raw, struct timespec *cooked, double dfreq,
                          double doffset, LCL_ChangeType change_type, void *anything);
 static void add_dispersion(double dispersion, void *anything);
@@ -215,9 +222,9 @@ void SRC_Finalise(void)
 /* Function to create a new instance.  This would be called by one of
    the individual source-type instance creation routines. */
 
-SRC_Instance SRC_CreateNewInstance(uint32_t ref_id, SRC_Type type, int sel_options,
-                                   IPAddr *addr, int min_samples, int max_samples,
-                                   double min_delay, double asymmetry)
+SRC_Instance SRC_CreateNewInstance(uint32_t ref_id, SRC_Type type, int authenticated,
+                                   int sel_options, IPAddr *addr, int min_samples,
+                                   int max_samples, double min_delay, double asymmetry)
 {
   SRC_Instance result;
 
@@ -250,6 +257,8 @@ SRC_Instance SRC_CreateNewInstance(uint32_t ref_id, SRC_Type type, int sel_optio
 
   result->index = n_sources;
   result->type = type;
+  result->authenticated = authenticated;
+  result->conf_sel_options = sel_options;
   result->sel_options = sel_options;
   result->active = 0;
 
@@ -258,6 +267,8 @@ SRC_Instance SRC_CreateNewInstance(uint32_t ref_id, SRC_Type type, int sel_optio
 
   n_sources++;
 
+  update_sel_options();
+
   return result;
 }
 
@@ -282,6 +293,8 @@ void SRC_DestroyInstance(SRC_Instance instance)
   --n_sources;
   Free(instance);
 
+  update_sel_options();
+
   /* If this was the previous reference source, we have to reselect! */
   if (selected_source_index == dead_index)
     SRC_ReselectSource();
@@ -479,6 +492,18 @@ SRC_ResetReachability(SRC_Instance inst)
 
 /* ================================================== */
 
+static void
+update_sel_options(void)
+{
+  int i;
+
+  for (i = 0; i < n_sources; i++) {
+    sources[i]->sel_options = sources[i]->conf_sel_options;
+  }
+}
+
+/* ================================================== */
+
 static void
 log_selection_message(const char *format, const char *arg)
 {
diff --git a/sources.h b/sources.h
index 6d97ee4..6a6b870 100644
--- a/sources.h
+++ b/sources.h
@@ -59,9 +59,9 @@ typedef enum {
 /* Function to create a new instance.  This would be called by one of
    the individual source-type instance creation routines. */
 
-extern SRC_Instance SRC_CreateNewInstance(uint32_t ref_id, SRC_Type type, int sel_options,
-                                          IPAddr *addr, int min_samples, int max_samples,
-                                          double min_delay, double asymmetry);
+extern SRC_Instance SRC_CreateNewInstance(uint32_t ref_id, SRC_Type type, int authenticated,
+                                          int sel_options, IPAddr *addr, int min_samples,
+                                          int max_samples, double min_delay, double asymmetry);
 
 /* Function to get rid of a source when it is being unconfigured.
    This may cause the current reference source to be reselected, if this
diff --git a/test/unit/sources.c b/test/unit/sources.c
index ce7dc00..6f7f3d5 100644
--- a/test/unit/sources.c
+++ b/test/unit/sources.c
@@ -51,7 +51,7 @@ test_unit(void)
                                     SRC_SELECT_TRUST | SRC_SELECT_REQUIRE);
 
       DEBUG_LOG("added source %d options %d", j, sel_options);
-      srcs[j] = SRC_CreateNewInstance(UTI_IPToRefid(&addr), SRC_NTP, sel_options, &addr,
+      srcs[j] = SRC_CreateNewInstance(UTI_IPToRefid(&addr), SRC_NTP, 0, sel_options, &addr,
                                       SRC_DEFAULT_MINSAMPLES, SRC_DEFAULT_MAXSAMPLES,
                                       0.0, 1.0);
       SRC_UpdateReachability(srcs[j], 1);