1. OBFS Policies & Procedures Manual Section 2: Agency Funds
OFFICE OF BUSINESS AND FINANCIAL SERVICES – UNIVERSITY ACCOUNTING & FINANCIAL REPORTING

2. Presenters
OBFS – University Accounting:
Nikki Melander
Bridget To

3. Agenda Agency Fund Definition Background Policy Objectives
Additional Information
Agency Fund Request Form

4. Agency Fund Definition
A type of fund where the University holds money on behalf of an outside entity and acts minimally as its fiscal agent, forming an agency relationship
Must be related to the University’s mission
Non-university activities
Owner can be any entity:
Corporation
Government
Not-for-Profit
Unincorporated Association
Individual

5. Agency Funds at the University
Type
Nature of Activity
Typical Legal Status of Fund Owner 9A
Payroll /Benefit Withholding
Governments, charities, health care providers, pension funds, etc. 9G
Student organizations (includes some staff and similar organizations)
Not-for-profit corporations; Unincorporated associations 9D
All Other:
URO/consortia/similar
Not-for-profit/for-profit corp., governments
Hosted conferences
Not-for-profit/for-profit corp., govt., assoc.
Athletic booster clubs
Not-for-profit corporations
Academic associations
Not-for-profit corp./Unincorp. associations
Study abroad students
Individuals
Private financial aid

6. Background Need for Agency Fund Policy due to:
Contractual relationship created without a formal agreement
Ambiguity about University role, responsibility and liability
University having to cover deficit balances

7. Policy Objectives
Minimize liability & responsibility to protect the University
Implement signed agreements
Limit University commitment to minimal bookkeeping services
Clarify the role of University units as a liaison with the owner of the money

8. Minimizing Liability New agency funds require updated FPI request form
University’s sales tax-exempt number should not be used for any agency fund purchases
Additional information on procurement (iBuy, TEM & P-Cards), conferences, non-resident alien payments, and other processes will be released as finalized

9. Implementing Agreements
All new agency funds will be required to have agency agreements prior to the establishment of the fund, effective immediately
All existing agency funds will be required to have agency agreements by June 30, 2016

10. Limiting Commitment Transaction processing only
Defer to existing campus policies on space use
University will not provide services for:
A/R
Tax (except 1099/NRA reporting)
Insurance/risk management
Legal counsel

11. Liaison Unit Responsibilities
Assure understanding of agreement terms and requirements
Monitor fund
Monthly reconciliations
Review for overdraft potential
Provide regular reports to the owner of the funds
Terminate fund when relationship ends
In the event of a surplus, complete a “Request to Return Agency Funds to Owner” Form:
Payee vendor ID required
Process in TEM

12. Additional Information
Inactive surplus balances are subject to State of Illinois unclaimed property requirements
Student organizations are currently not covered by this policy
Potential fee to departments for undisclosed deficits

13. Agency Fund Request Form
Supplemental information tab
Define University relationship with owner
Discuss relation to University mission
Deficit disclosure
Transfer of activity to a new institution

14. Agency Fund Request Form
Agency agreement tab
Unit prints top portion only (default print view)
Gets ink signature from owner representative
Scans this signed form and returns with request
Unit “signs” bottom portion in spreadsheet via electronic signature

15. Questions? University Accounting Services Group
Michelle Flack
Nikki Melander
Roger Fredenhagen
Bridget To
OFFICE OF BUSINESS AND FINANCIAL SERVICES – UNIVERSITY ACCOUNTING & FINANCIAL REPORTING