Financial Services Manual (FIN)

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Effective: 3/1/2005

Revised: 3/1/2014

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FIN 214: Agency Accounts

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Purpose

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To describe agency accounts

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Source

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University policy

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Background

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Agency agency/orgs (“agency accounts”) are established and maintained by Financial Services separate from university agency/orgs within its accounting system (Advantage).

An agency account is an account supported by an external funding source that has a relationship with the university but is financially independent of ASU. Typical agency account categories, with examples, are:

  1. separate organizations (e.g., Residential Hall Association fundraising)
  2. journal publications (e.g., German Studies Review)
  3. another organization’s event at ASU (e.g., NCAA Regional Basketball Championship)
  4. another organization’s conference (e.g., National Educational Computing Conference)

    and

  5. another organization’s operations (e.g., Rocky Mountain Math Consortium).

In some situations, it may not be clear if a new agency/org is an agency account. The presence of the following might help to indicate whether an agency/org is an agency account:

  1. the funding is coming from registration fees, subscriptions, or other revenues made payable to an organization legally separate from ASU
  2. when the account is closed, any remaining balance belongs to an organization separate from ASU
  3. expenses are the responsibility of an organization other than ASU

    and

  4. the majority of the funding is coming from sources other than ASU accounts and the revenue does not belong to ASU.

For agency/orgs with one or more of the foregoing conditions, please contact Financial Services for a determination about whether the funds should be accounted for in an agency account.

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Policy

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ASU maintains fiduciary responsibility for agency account funds as long as they reside in ASU’s financial system. The following apply to all agency accounts:

  1. Agency accounts are required to follow university policies and procedures. Specific exceptions to university policies and procedures must be preauthorized in writing by the vice president for finance and deputy treasurer.
  2. Agency accounts that function primarily as payroll clearing accounts or that incur significant payroll-related expenses are assessed an administrative services charge by ASU.
  3. Agency accounts are expected to maintain positive balances. In situations where agency accounts incur a negative balance, the deficit must be funded within 10 days of occurrence.
  4. Agency accounts with recurring deficits not funded within 10 days may be subject to a special administrative services charge in order to recoup investment income lost by the university.
  5. Agency accounts are not to be identified as a part of ASU and may not use any of ASU’s identifying numbers, e.g., tax identification number. Questions should be referred to the ASU Office of General Counsel.
  6. Agency accounts may not use ASU’s name or logo without specific written approval of the appropriate university office. Questions should be referred to the ASU Office of General Counsel.
  7. Agency accounts are prohibited from using “capital” object codes and “gifts” revenue codes in order to simplify the accounting for university assets and gifts.
  8. Revenue belonging to ASU must not be deposited to nor recorded in an agency account.
  9. Agency accounts are prohibited from using transfer in/out object codes because it signifies an internal transfer of university funds.
  10. Checks for payment or sponsorship for deposit to an agency account should be made payable to the title of the account or sponsoring organization for the account.

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Additional Information

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For information on the establishment of new agency/orgs, refer to the Financial Services Forms Web page, Advantage Forms, New Account Application Form, Form Instructions.

For information on agency/org structures, expenditure coding, and revenue coding see the Financial Servies, Financial References Web page.

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