Number: 
03-150-202
Type: 
Rule
Policy Steward: 
Manager of Analytical Ops
Format Updated: 
University Policy & Standards Converted: 
Status: 
Current
Revision Date: 
Friday, November 30, 2018

This information replaces FIS 103-06 Income Account Code to Agency Funds & FIS 513 Accounting for Agency Funds

 

Income Account Code to Agency Funds Using a JV

Effective: 01/01/2003
Revised: 03/10/2016

Normally, 0xxxx (Revenue) account codes are not allowed on JV’s unless there is a reference to the original “F” document which shows that the dollars came from an outside source and are being moved via JV. However, when “paying” an Agency fund with University dollars, account codes 06xxx or 08xxx would be appropriate. The dollars are from an “internal source”, but in essence, are going to an “outside source” since Agency Funds are not OSU funds, or on OSU’s financial statement.

Do not use 79xxxx or 09xxxx account codes for these transactions.

For example: Paying the conference fee for a University employee attending a conference that is financially managed in a 9xxxx Agency Fund. There would be a debit to 28601 Conference Registration on the departmental index and a credit to 06403 Conference Income on the Agency index/fund.

 

Accounting for Agency Funds

Effective: 01/01/2003
Revised: 11/30/2018

Funds 9xxxxx are Agency Funds.  These funds are established for external entities affiliated with and sometimes residing at OSU to facilitate ease of use of OSU services, such as direct charging from telecommunications or printing/mailing services.  Agency funds are also established for employee deductions payable to another entity. The balance in these funds is owned by the agency, not OSU. Neither revenue nor expenditures are reported in OSU’s financial statements. Agency funds cannot be used to make salary payments and employees of the agency organization cannot be OSU employees. Agency funds represent entities that are legally separate from OSU. Organizations operating under an agency fund are not eligible to take advantage of any OSU contracted rates or discounts.

Normally, 0xxxx (Revenue) account codes are not allowed on journal vouchers (JVs) unless there is a reference to the original "F" document to show that the dollars came from an outside source. However, when "paying" an agency fund with university dollars, account codes 06xxx or 08xxx would be appropriate. The dollars are from an "internal" source and are going to an "external" or outside source since agency funds are not OSU funds or shown on OSU's financial statement.

Do not use 79xxx or 09xxx account codes for these transactions. For example: Paying the conference fee for a university employee attending a conference that is financially managed in a 9xxxxx Agency Fund would be a debit to 28601 Conference Registration on the departmental index and a credit to 06403 Conference Income on the agency index/fund.

Recognized Student Organizations (RSO)

Beginning in FY17, a formal program and process was established to administer OSU financial support for Recognized Student Organizations (RSOs). The process, administered through Student Leadership and Involvement (SLI) provides guidance, accountability, and internal control to ensure that the purpose of these student activities is consistent with the objectives of the university's mission. RSOs include Sponsored Student Organizations (SSOs) and Voluntary Student Organizations (VSOs). Additional details regarding this program and applicable policies are located within the Student Organization Recognition Policy Manual.

Recognized Student Organization (RSO) agency funds begin with 929xxx and utilize the MUNxxx index prefix. These funds are established for use by RSOs to facilitate ease of use of OSU resources. Important properties of these funds include the following:

The balance in each fund is owned by the associated RSO.

OSU will collect and expend fund resources for RSO purposes as long as the RSO is active and in good standing. If a RSO becomes inactive, loses its good standing status or fails to act in accordance with its approved sponsorship or activity agreement, or OSU policies and standards, OSU may redirect the funds to support other RSO activities.

OSU faculty and staff are prohibited from serving as an authorized signer on RSO funds.

Upon receiving approval from an authorized budget authority, an allocation of OSU departmental or OSU Foundation funds may be disbursed to a RSO agency fund. Sponsorship or funding requests must be initiated by an officer through the RSO database (Ideal-Logic), administered by SLI.

These financial support transactions for RSOs must have adequate supporting documentation attached including a copy of the fully executed sponsorship or activity agreement and a description of how funds will be used.

Financial support transactions are required to use a 3JV1 rule code and to make the following entry:

Debit: Departmental or FS Index      use Account Code 24903 Student Org Internal Support Charge

Credit: RSO Agency Fund Index      use Account Code 08003 Student Org Internal Support Rev.

If the funding department chooses to maintain control of funds for contractual and/or purchasing purposes, the amount of the financial support to the RSO agency fund must be adjusted.

Business Affairs, as the approving department for these transactions, will verify that:

the granting fund has sufficient cash to support the request

the transaction has been properly entered in the accounting system, and

an approved sponsorship agreement is on file. Note: The agreement might either be the Annual Funding Agreement or a specific Event Funding Agreement (Funding Award or Activity Sponsorship) and would be approved by the appropriate Department Head/Budget Authority. Designated Faculty Advisors may approve the release of funds as stated in either agreement mentioned here.