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Business and Financial Policies and Procedures

2.4 Comply with Unit Liaison Responsibilities for an Agency Fund

Policy Statement

A University unit must serve as liaison between the University and the owner of money held in an agency fund. The liaison unit serves as the University's official contact with the owner and is responsible for oversight of the Banner fund that provides a record of the owner's financial transactions and balances. Consult Policies for Managing Agency Funds.

If your unit will receive cash as part of your liaison responsibilities, you must be a cash handling unit. For additional information, consult 10 Obtain Approval as a Cash Handling Unit.

Procedure

To comply with liaison responsibilities for an agency fund:

  • Ensure that the owner understands which services the University does and does not provide.
  • Ensure the owner understands that it cannot present itself as being part of the University. For additional information on what to communicate to owners, consult 2.1 Policies for Managing Type 9D Agency Funds.
  • Obtain the owner's signature on the Agency Fund Agreement which is part of the Banner Fund, Program, Index Code Request form required to establish an agency fund and keep the signed statement in your unit for 5 years after the termination of the agency relationship.
  • Request an agency fund. Consult 2.3 Request Approval for an Agency Fund.
  • Ensure that the owner (or a responsible member of the owning entity) understands how to transfer money to and from the agency fund, authorize payments, and obtain financial reports.
  • Receive, account for, and disburse money on behalf of the owner.
  • Provide the owner with regular access to reports of their agency fund transactions and balances. Perform the following tasks regularly and at fiscal year end:
    • Review agency fund transactions to ensure the activity remains appropriate for agency funds according to guidelines provided in 2.2 Determine the Need for an Agency Fund.
    • Review the agency fund balance to verify it is not in overdraft. If an overdraft exists, do one of the following:
      • Work with the owner to eliminate the overdraft within 30 days
      • Establish a billing in Banner Accounts Receivable to charge the owner for the overdraft
      • Pursue termination of agency fund relationship if the fund is consistently in unapproved overdraft status
  • Ensure that agency funds are reconciled and make reconciliations available to UAFR when requested.
  • If the owner requests additional services, the University may provide additional services at its discretion under an agreement. Because the process for additional service agreements is currently under review, contact UAFR at uas@uillinois.edu for information. For more information on basic bookkeeping services, consult "Role of the University" in 2.1 Policies for Managing Type 9D Agency Funds.
  • When the University's agency relationship with the owner is terminated and the agency fund is no longer needed:
    • Confirm there are no outstanding bills to pay.
    • Communicate to all units providing services to the owner that the relationship has been terminated.
    • Submit a Request to Return Agency Funds to Owner form to remit any balance as directed by the owner, to eliminate the fund's cash balance.
    • When the Banner agency fund shows no remaining balance, send an email to UAFR at uas@uillinois.edu asking to terminate the fund in Banner.

Request to Return Agency Funds to Owner
Banner Fund, Program, Index Code Request

2.2 Determine the Need for an Agency Fund
10 Obtain Approval as a Cash Handling Unit
2.3 Request Approval for an Agency Fund

2.1 Policies for Managing Type 9D Agency Funds

Last Updated: December 19, 2014 | Approved: Senior Associate Vice President for Business and Finance | Effective: December 2014

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