Agency Funds

Purpose

To define agency fund accounts and to outline the procedure for accepting, administering, and accounting for agency fund accounts.

General

An agency fund account may be established by University faculty or staff or by an organization or activity related to the University to account for activities or services that supplement and are consistent with the mission of the University. Ownership of agency funds is retained by the sponsor. Unused funds are to be returned to the sponsor. Agency fund relationships must be supported by a written agreement. All agency fund agreements must be approved by the appropriate Supervisor, Division Head or President’s staff.

Definitions

  • Agency fund account. An account which records funds held by the University as custodian or fiscal agent for a sponsor or a University related organization.
  • Sponsor. The individual or group whose funds are accounted for in the agency fund account.
  • Sponsored individual. The individual or group as identified in the sponsor’s agreement, on whose behalf the funds have been deposited with the University.
  • Responsible person or persons. The person (normally a University employee or employees) designated to authorize expenditures and manage the account in accordance with State and University rules, regulations, and procedures.

Policy & Procedures

  • University funds may not be deposited in an Agency Account.
  • Agency fund accounts are subject to Federal and State laws. The sponsor may impose additional limitations.
  • Responsibility for agency funds:
    • The responsible person will ensure that all disbursements from the account are made in accordance with the written agreement on file.
    • The Controller is responsible for approving (at the recommendation of the appropriate Supervisor, Division Head or President’s Staff) and establishing each agency account in the financial reporting system.
  • University cash may not be loaned to agency fund activities. Sponsors must provide for cash needs in advance.
  • Expenditures may not be processed against an agency account in a deficit cash position. However, with the Controller’s approval, a group of related accounts may be considered a single unit for determining whether there is a deficit cash balance.
  • An agency fund account may not be used to pay student salary or wages, unless a University budget is used to make the payment and the agency account reimburses that budget. Arrangements for payroll must be in writing and approved in advance and wage rates must be consistent with University student wage scales.
  • An agency account that will be disbursing funds to an individual who is not a United States citizen may have special reporting requirements that the sponsor agrees to meet.
  • An agency fund account does not earn interest income and fees are not charged for account maintenance.
  • Checks from agency are processed on the schedule used by the University for Accounts Payable disbursement, normally Wednesday and Friday each week.

Establishing an agency fund account.

An agency fund account is established by completing a “New Agency Account Request” and after obtaining approval of the appropriate Supervisor, Academic Division Head or President’s Staff member. The completed form should be forwarded to the Controller.

Closing an Agency Fund Account.

An agency fund account is closed upon written notice from the sponsor and applicable Supervisor, Academic Division Head or President’s Staff and approval by the Controller. Remaining funds must be returned to the sponsor.

(from http://www.truman.edu/businessoffice/accounts-payable/)

Line of authority

Policy Administrator:

Contact:

Effective date

Effective Date:

Approved Date:

Policy Type: Operations