Accounting for Agency Funds
Agency Funds do not belong to the university, but are managed by a university employee. Money coming into Agency Funds is generally payment from external entities. A typical example is an academic journal of which the editor is a faculty member. Payment is accepted for subscriptions and printing, distribution and other expenditures are recorded, but the funds ultimately belong to the organization that publishes the journal. Other common examples of Agency funds are faculty professional organizations, fraternities & sororities, campus newspapers and other independent organizations that are closely connected to the University.
How to Request a New Agency FAS Account:
A completed Form 70A (Request for an Unrestricted Account) must be provided to Financial Services. In addition, the request email should include the following information:
- The responsible manager of the Agency account, if different than the Account Administrator.
- A FAS guarantee account (typically an unrestricted or gift account).
- An account closure date, if the agency account is only being requested for a specific project and is not for on-going activity.
Agency Project Management
Financial Services periodically reviews cash balances of agency accounts for overdraft positions. Responsible managers (or Account Administrators) may be notified by Accounting if the account is in overdraft position. Responsible managers (or Account Administrators) must respond within thirty days of plans to correct the deficit balance. Failure to inform Accounting of such a plan may result in the account being frozen.
Agency projects' income and expense activity are removed from the University financial records at year end to exclude non-University transactions for financial reporting purposes. The agency project's surplus, or positive cash position, is carried as a liability on the University's books, that is, as monies that are due to another entity. The prior year activity will be reflected in the beginning available balance the following year.