Agency Fund Policy

Title: Agency Fund Policy
Effective Date:
October 2, 2017
Revision Date:
First Version
Responsible Office:
Finance

I.  Scope 

This policy applies to the College of William & Mary in Virginia, including the Virginia Institute of Marine Science, (“the University”) and any associated organization (“Organization”) seeking to establish an agency fund with the University. 

II.  Purpose

This policy provides guidance and an operating framework for the University to serve as fiscal agent for an Associated Organization or certain other entities that are external to the University. 

III.  Definitions 

Agency Fund Agreement:  A legal contract creating a fiduciary relationship between the University and an Associated Organization whereby the Associated Organization establishes an agency fund(s) to be managed on its behalf by a fiscal agent of the University.

Agency Questionnaire:  A document that must be completed by the Associated Organization and sponsoring University unit that seeks to serve as its Fiscal Agent on order to evaluate whether the establishment of an agency fund is consistent with University policy and related accounting standards set forth by the Government Accounting Standards Board (GASB).

Agency Fund: A financial account (also referred to as index in Banner, the University’s financial system) with the University in which an Organization may record deposits, disbursements, and other transactions that are separate and distinct from the University’s funds and activities.

Associated Organization: A separate legal entity with a mission that is complementary to the education, research, and service missions of the University.

Fiscal Agent:  A University department, school, center or administrative unit that acts on behalf of an Associated Organization to perform financial duties as outlined in the Agency Agreement.

IV.  Policy

The University may enter into an agreement at the request of an Associated Organization if it is in the best interest of the University, taking into consideration implications for the University’s fiscal, human resource, risk management, facilities management, budget, tax, legal, and treasury services.    A University department, school or administrative unit may request to serve as the fiscal agent of an Agency Fund.  Any Agency Fund(s) managed by the University on behalf of the Organization may not be used to support activities that are part of the University’s business. 

Agency Funds are purely custodial and are limited assets held in an agency capacity for others.  Pursuant to GASB 34, the University cannot use Agency Funds to support the University’s programs.  The University is merely providing bookkeeping and related services to the organization as set forth in the Agency Fund Agreement.

V.  Authority and Amendment; Implementation 

This policy was approved by the Senior Associate Vice President for Finance and Administration.  The Chief Financial Officer interprets this policy and its implementation.    

VI.  Related Policies, Procedures and Document

Agency Fund Questionnaire
Agency Fund Agreement Template
GASB (Governmental Accounting Standards Board) 34, Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local Governments. http://www.gasb.org/st/summary/gstsm34.html
GASB (Governmental Accounting Standards Board)39, Determining Whether Certain Organizations Are Component Units. http://www.gasb.org/st/summary/gstsm39.html
GASB (Governmental Accounting Standards Board)14, The Financial Reporting Entity. http://www.gasb.org/st/summary/gstsm14.html