University of Southern Indiana

Agency Fund Quick Guide

What is a University Agency Fund?

Agency funds are defined as funds held by the University on behalf of an affiliated organization. These funds work largely like checking accounts and are available to registered clubs and organizations.

  • An organization must always have a positive balance in their agency fund.
  • If an organization’s agency fund has a negative balance, the organization will be notified by Student Development Programs. Following the notification the student organization will have until the end of that month to reach a positive balance.
  • Organizations have the option to monitor their agency fund through the “Treasury” function on their OrgSync portal.

Advantages of a University Agency Fund

  • Agency funds earn interest on average cash balances monthly
  • Student Organizations are exempt from Indiana sales tax (on most purchases), if they maintain an agency fund exclusively and DO NOT have any off-campus accounts.
  • All accounting records are preserved by the USI
  • University pays postage on most outgoing checks
  • Organizations operate under the University’s tax identification number (TIN). If an organization maintains exclusively an agency fund, with no off-campus accounts the organization will not have to obtain a separate TIN from the Internal Revenue Service (IRS).

What do “Org”, “Fund”, and “Account” mean?

Every financial transaction processed by the University requires a fund, org, and account.

  • The fund and org are five (5) digits each and identify the club or organization.
    • All student organizations have the org number 07020.
  • The account also consists of five digits and is used to describe the type of revenue being deposited or expense being charged.
    • The account number changes depending on the type of action taking place. Five digit revenue account numbers begin with 5 and the five digit expense accounts begin with the number 7.
    • For more information on account codes see the “Commonly Use Accounts codes Table” on page 3 of this guide.

Off-Campus Account Disclosure

All student organizations are required to submit an annual disclosure statement regarding off-campus accounts. The Student Organization Off-Campus Bank Account Disclosure Statement must be completed in order to keep the organization’s agency fund in good standing. An organization that is newly created or requesting an agency fund must complete this disclosure statement. The form may be submitted by email or printed and sent to the Accounting Office. Failure to submit the form could result in an inactivation of the organization’s University fund.

Organizations with BOTH an agency fund and off-campus accounts:

  • Will only able to charge campus services to their on-campus University fund.
  • Do not receive the University's sales tax exemption status.
  • On-campus funds will not earn interest.
  • Are required to keep a positive balance.

If an organization elects to close their on-campus account, the organization will be required to pay all services on-campus in advance from their off-campus account.

Financial Manager

  • Some forms regarding an organization’s agency fund will ask for a financial manager signature.
  • An organization’s financial manger MUST BE a full-time employee. Most of the time, the on-campus advisor is the organizations financial manager. In some cases, the financial manager for a student organization may not be the advisor, but rather another employee who handles the financial management for the office for which the student organization is affiliated with.
  • Financial Managers are responsible for reviewing financial activity for accuracy and conformance with budget constraints.
  • Charges and withdrawals from the university agency fund will require financial manager approval.
  • Financial Managers are asked to ensure that financial transactions comply with University guidelines and any external restrictions, including grant limitations and federal, state or local regulations.
  • If your student organization does not utilize a university agency fund, it is good practice to be aware of where the organization’s money is located and who has access to it.
  • If a student organization loses their financial manager, Student Development Programs will serve as the interim financial manager.

Cash Advance Process

A cash advance may be requested when an organization needs to buy something and cash is required prior to the purchase. *All forms mentioned in the directions below can be found in the “Files” section of your student organization’s OrgSync portal or the USI Accounts Payable webpage.

1. (Begin the cash advance process 7-10 business days prior to the date the cash is needed.) The student requesting the cash advance must fill out the Student Organization Cash Advance Waiver and the Direct Pay Form which must be signed by their financial manager. These forms should be turned into the basket at the front desk in Accounts Payable (located in the lower level of the Orr Center). Forms must be approved by Accounts Payable before an advance may be issued.

2. A student can obtain the cash requested by:

    A. Filling out an electronic Direct Deposit Form. This form will allow the amount of money the student requested for the cash advance to be deposited in the student’s personal bank account. Once this form has been completed and given to the Accounts Payable Department, the student’s information will be on file with the University for future cash advance requests.

OR

    B. Receiving a paper check which will be mailed to the student’s residence.

The Accounts Payable Department will not hold checks in their office for students to pick up. If a student requests a paper check for their cash advance the check can only be obtained through the mail. As a result, the Accounts Payable Department prefers that student’s use the method of direct deposit for cash advances.

3. Repaying the advance:

    A. A cash advance must be repaid by the due date indicated on the Student Organization Cash         Advance Waiver Form.

    B. If there is any remaining cash from the amount of money the student received through the           advance, he or she must deposit the cash at the cashier’s window in the lower level of the Orr Center     into the fund-org-account charged on the Direct Pay Form used for the advance. The student MUST         receive a receipt for this deposit.

    C. If a student spent more money than they received through the cash advance, he/she must fill       out a Direct Pay Form to be reimbursed for their portion of the money used. The student must submit     the following to the Manager of Accounts Payable located in Orr Center Room 0022 (Business Office):

        I. The receipt from the cashier’s window for any remaining cash that was deposited. (If applicable)

        II. The original receipts for all expenses purchased with the cash and the completed Cash Advance         Receipt with the fund-org-account info to be charged for each expense. The Cash Advance                     Receipts Form must be signed by the organization’s financial manager.

Deposits

Deposits can be made at the cashier’s window in the lower level of the Orr Center by providing your

15-digit fund, org, and account numbers. A deposit form should be completed when depositing more than one check and a receipt should always be obtained to verify the amount of your deposit and to keep for your records. The deposit form is located accounts payable webpage or in the Files section of your OrgSync portal.

Commonly Used Account Codes Table

Revenue Account Codes

 

Expense Account Codes

54105

Sales - Taxable

 

70110

Honoria & Professional Services

54110

Sales – Non Taxable

 

70135

Royalties

54210

Services – Non Taxable

 

70145

Physical Plant Services

54255

Membership & Dues

 

70305

Travel – In State

54260

Commissions (Giveback Nights)

 

70330

Travel – Out of State

55360

Miscellaneous

 

70605

Printing & Publishing

 

 

 

70620

Hospitality & Public Relations (Sodexo Catering)

 

 

 

70630

Membership & Subscriptions

 

 

 

70670

Prizes & Awards

 

 

 

72105

Rent-Facilities


How to Find Agency Fund Balance/Activity

Student Organizations can access their agency fund balance at any time through their OrgSync portal. Financial information is automatically updated weekly. To access, sign-in to your organization’s OrgSync portal.

  1. Underneath the organization name, you will find a tool bar of OrgSync functions. Functions include “Home”, “People”, “Events”, “Files”, “Forms”, “News”, and “More”.
  2. Click on “More”. This will drop down a menu. Find “Treasury” and click on it.
  3. This will take you to another page. This page will have a checkbook dialog box. Click “Manage Checkbooks”
  4. At least 2 checkbooks should come up. One titled “General Ledger” and one titled “USI Agency Fund Official (View Only)”. Click on “USI Agency Fund Official (View Only)”.
  5. This will bring up a ledger of all the agency fund activity. It will include account codes (both Revenue & Expenses).

Negative Balances

Your student organization is responsible for tracking the spending in their agency fund. Negative balances can occur from time to time. The university will allow a student group’s balance to be negative funds when the group is traveling. However; proof that the trip has been approved and that funding has been secured is required. If a student organization account becomes overdrawn, the advisor and student leadership will be sent an email from Student Development Programs. The group will be given a deadline to repay the funds. If the fund are not repaid within a specific time frame and the account balance is swept by a Student Development Programs account, the group is STILL responsible for paying back the negative funds.

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