(Last Modified on November 2, 2010)
The institution may agree to serve as a fiscal agent for an agency fund only after satisfactorily considering all the following:
The purpose for the agency fund must relate to, but not be a fundamental aspect of, activities dedicated to the achievement of educational, research and public service goals.
The agency fund is in the best interests of the institution, taking into account all risk management implications.
The establishment of an agency fund account is appropriate, according to the circumstances and reporting principles involved.
An agreement governing the agency relationship is established.
The approval and establishment of an agency account does not:
- Automatically entitle the organization to the use of any institution services, other than the normal administration of funds as it relates to cash receipt and disbursement services.
- Place the agency fund under the institution’s tax-exempt umbrella. Monies accepted for deposit in an agency fund are not considered tax-deductible gifts to the institution. Expenditures from an agency fund are not entitled to the institution’s state sales tax exemption.
- Make the institution liable for any of the organization’s debts, liabilities or actions.
- Continue indefinitely. Agency status is contingent on adherence to all institution policies. The institution has the right to close an agency account at its discretion consistent with agreements between the organization and the institution.