(Last Modified on July 1, 2019)
Fiduciary activity will be reported as custodial funds if all of the following criteria apply:
- Assets are held by the institution.
- Assets are for the benefit of individuals and the institution does not have administrative or direct financial involvement with the assets. For the purposes of this section, the institution does not have administrative or direct financial involvement if the institution:
- Does not monitor compliance with any requirements of the resource provider;
- Does not determine appropriateness of expenditures;
- Does not have the ability to exercise discretion over how assets are allocated.
- Assets are for the benefit of organizations or other governments that are not part of the financial reporting entity.
Custodial funds will be reported in the following funds:
- Fund 60000 – Contains funds received and administered for others, such as club accounts, student organization accounts and concessionaire accounts.
- Fund 61000 – Contains funds designated for scholarships. Note: Scholarships which do not meet criteria 2 above should be reported in restricted fund.
Fund 62000, which is for payroll operations and withholding activity, will be reported as balance sheet activity on the institution’s Statement of Net Position.
See Section 14.4 for additional discussion of fund groups.↑ Top