Agency Funds are funds held by the university as a custodian or fiscal agent.
They are funds held by the university as a custodian or fiscal agent on behalf of non-university entities/sponsors to be used in university-related activities (Per PPM 330-09).
Agency funds begin with fund numbers "5XXXX". The most common fund numbers are 50000 - Bench Funds (prior fund number was 00002), 54000 - Agency external money (prior fund number was 00002), and 55000 - Registered Student Organizations (prior fund number was 00010).
Restrictions
Agency accounts are not to be used for contracts or grants even when awarded to specific faculty members. All sponsored activity must go through Office of Research.
The following is a list of approved types of agency funds:
- Student Organizations and Activities
- Student clubs, residence hall associations, or workshops sponsored by student groups
- Excluded are Associated Students organizations
- Faculty/Staff Organizations and Activities Campus Foundations
- Professional and scientific organizations
- Conferences or workshops sponsored by faculty or staff groups
- Scholarships and Fellowships
- Funds received to be provided to students enrolled at the university
Note: Expenses charged directly to agency funds should not be transferred to university funds. Work directly with General Accounting if the agency fund was incorrectly charged.
Frequently Asked Questions
- What are principals and authorized approvers?
A principal is an individual or entity responsible for paying all costs associated with the activity either by directly paying for expenses or indirectly by collecting funds from participants to pay the costs. If the event is non-university, the Principal must be a non-university entity such as an individual or non-university organization (i.e., not a university department, research or public service center). The principal may be a university employee if the activity is specific to the university (e.g. a retirement party or office water cooler fund).
An authorized approver is the person granted authority by the principal to request and approve disbursements from the agency fund, and granted authority by the department to approve financial system (e.g., AE) transactions.
- What do I and the provider of the funds need to know about agency funds?
- Please note the following:
> Funds accepted for agency transactions are not tax deductible charitable contributions to the university.
> The university does not exercise any direct financial control over the use of agency funds but acts only as custodian or fiscal agent on behalf of the principal.
> Disbursement of agency funds are not subject to the same level of oversight and restriction as University funds; however, general university policies must be followed and reasonable internal control over agency funds must be exercised.
> The activity must be closely associated with or related to the activities of the university. It must provide benefit to the university community (i.e., students, staff, and faculty). Receipts and disbursements from these funds must be in line with the purpose stated. - How can I request an agency fund?
- Visit the Agency Account process guide website for more information.
- How should I manage my agency funds?
When an agency fund is established, funds are received and then expenses are charged against the account. Unless there is a signed business agreement which indicates payment will be made on a reimbursement basis, agency funds must have a positive balance and overdrafts must be cleared as soon as possible.
Because disbursements from agency funds do not receive the same level of oversight or go through the same approval processes (e.g., alcohol and other entertainment expenses) as university funds, expenses may not be moved from agency funds to university funds without prior approval of General Accounting. You can, however, move expenses to an agency fund if the expense was appropriate for the purpose of the account.
- Who can see the agency fund ledgers?
- The agency fund's transaction and cash balance information will be available to authorized AE users. If a non-UC Davis principal would like to access the information directly, the UC Davis department overseeing the agency funds can provide the information to them.