To provide guidance to Georgia Tech colleges, schools, departments and units as it relates to establishing an Agency Funds.
Colleges, schools, departments, organizational units, individuals, or groups may request the establishment of an Agency Fund which provides a benefit to Georgia Tech. The requester must provide justification with the request for establishment of the fund.
Agency Fund agreements should be completed and maintained by the institution. The agreement should be signed by representatives of both the institution and the external organization or by the department representing the external organization. Each agreement should contain complete information on the terms and conditions of the agency relationship, including:
- The business reason for the agency account; that is, the reason why the organization does not open its own bank account
- The nature of activities that will be processed through the fund
- Any specific restrictions, terms or conditions for the use of the funds
- The estimated annual receipts and source of revenue/receipts
- The legal/corporate status of the organization. For example, 501(c)(3), Corporation, Not for Profit Organization, etc.
- The Federal tax ID number of the organization
- The affiliation of the organization with Georgia Tech
- The agreement from date and to date
- The disposition of any remaining funds at the end of the agreement
- The printed name, title and signature of the person(s) responsible for managing the funds including authorizing receipts and initiating disbursements
- The printed name, title and signature of the Dean, Chair, Director or Department Head approving the agency fund
Departments, organizational units, individuals, or groups may request the establishment of an Agency Fund which provides a benefit to Georgia Tech. The requester must provide justification with the request for establishment of the fund.
This policy applies to all schools, colleges, departments, and units of the Institute.
Establishing an Agency Fund
Colleges, schools, departments, organizational units, individuals, or groups requesting an Agency Fund must complete the Agency Fund Agreement Form. The form may be mailed to the Controller’s Office at Lyman Hall Mail Code 0257, or it may be scanned and emailed to email@example.com.
Once received, the Controller’s Office will review the request and notify the college, schools, department, organizational unit, individual, or group requesting the fund by email whether or not the Agency Fund is approved. If an Agency Fund is approved, the email to the custodian will include terms and restrictions for managing the Agency Fund.
Maintaining an Agency Fund
The individual designated as the Agency Fund Custodian has the responsibility to ensure that proper documentation procedures are followed for accounts which he / she controls, and to ensure that only authorized expenditures are made from the accounts. Any unauthorized expenditures report should be reported to the Controller’s Office. Further, the Custodian is responsible for exercising appropriate care in reviewing and approving transactions, ensuring the fund is active and resolving deficits timely. Lastly, the custodian is also responsible for providing in writing to the Controller’s Office any information which may change the status of an account. This includes 1) when responsibility for the account is reassigned; and 2) when an account is inactive and should be closed.
Closing an Agency Fund
The Agency Fund custodian should request termination of agency funds which are no longer required. The account custodian should send an email to firstname.lastname@example.org requesting that the fund be closed. When the request has been processed, the agency fund custodian will receive written notification from the Controller’s Office that the fund has been closed.
Periodic Review of Agency Funds
The status of each agency fund should be reviewed periodically, at least once a year, for the purpose of ensuring whether the agency status should be suspended or revoked. Circumstances to consider when reviewing agency funds include:
- Failure to adhere to institution policies and procedures.
- The nature of the activities and functions has changed such that agency account status is no longer appropriate.
- Deficit balances that are not remedied on a timely basis.
- In the judgment of the president or designee, suspension or revocation is in the best interest of the institution.
- Inactive balances should not be carried forward indefinitely from year to year, but should be disposed of in accordance with the agency agreement.
The Controller’s Office performs periodic reviews of Agency Funds to ensure accountability and oversight of the funds and to minimize the Institute’s financial exposure. The review is also performed to ensure funds are properly managed and that deficit balances are funded timely.
Additional information regarding Agency Funds can be found in section 14.1 (Agency Funds) of the Board of Regents Business Procedures Manual.
The college, school, department or unit is responsible the fiscal management of Agency Funds requested by their unit.
The Controller’s Office is responsible for establishing the Agency Fund in the Institute’s ledger and performing periodic reviews of Agency Funds.
To report suspected instances of noncompliance with this policy, please visit Georgia Tech’s EthicsPoint, a secure and confidential reporting system, at: https://secure.ethicspoint.com/domain/en/report_custom.asp?clientid=7508
|10-03-2014||Controller’s Office||Periodic review and verbiage update, new form. New Title. New Form.|