Finance 106: Agency Accounts

Purpose

To describe agency accounts and provide guidelines for their establishment and administration

Reference

Statewide Accounting Manual

Definitions

Agency Account: An agency account is an account supported by an external funding source. The account is controlled by an organization that has a relationship with university, but is financially independent of UAA. Examples of organizations that qualify for agency accounts are student government, student clubs, and athletic booster clubs. The presence of the following characteristics may indicate eligibility for an agency account.

  1. The funding comes from fees, subscriptions or donations made payable to an organization that is legally separate from UAA.

  2. The organization may be an association or corporation that operates under a defined charter or articles of incorporation, bylaws, rules of operation and, if applicable, is tax exempt.

  3. The revenue does not belong to UAA. When the account is closed any remaining balance belongs to an organization separate from UAA.

  4. Expenses are the responsibility of an organization, not UAA.

Policy

Establishing an Agency Account Contact the General Accounting and Budget Manager for a determination of whether the organization qualifies for treatment as an agency account. The request must be accompanied by documentation that confirms the foregoing characteristics and a copy of the meeting minutes or other official action that approves the request. Once approved and established, the account will be maintained within the university accounting system. Receipts will be deposited in the agency account through UAA Cashiering. Disbursements from the agency account will be made by the issuance of UAA checks. Financial reports will be provided to the agency organization. Account RequirementsUAA maintains fiduciary responsibility for agency account funds as long as they reside in university financial system. The agency organization will have discretionary authority for the use of the funds; however, agency accounts:

  1. Must follow university policies and procedures. Specific exceptions must be authorized in writing by the General Accounting and Budget Manager. 
  2. Are expected to maintain positive balances. Deficits that are not funded within 10 days may be subject to a special administrative service charge in order to recoup investment income lost by the university.
  3. Are not to be identified as part of UAA and may not use any of the university's identifying numbers, e.g., tax identification number. 
  4. May not use UAA's name or logo without specific written approval of the General Accounting & Budget Manager.
  5. Must not have revenue belonging to or designated for UAA deposited to or recorded in it. If contributions that are designated for UAA are inadvertently received by the agency organization, they should be routed to the UAA department with which the agency organization is associated.

Donations to UAA Agency organizations wishing to make donations to UAA may transfer funds by journal voucher. A university department or General Accounting & Budget may assist with the preparation of the JV. The JV should be approved by an agency official, and if it is a restricted donation, supported by a memo from the official that documents the necessary restriction. A copy of the JV should be provided to the Office of Development.

Related Policy: Finance 107: Booster Club Transactions

Effective: 08/30/2005