General Accounting

Frequently Asked Questions

No, an income fund cannot be used to pay an academic salary. Academic salaries are budgeted funds and are usually State Support, such as General Funds or Opportunity Funds.

Guidelines for UCSB Agency Accounts
UC Policy Business Financial Bulletin A-54

Overview

This local procedure on agency accounts is UCSB’s guidelines to implement BFB A-54, which has been UC Policy on agency accounts since October 15, 1987. This local guideline was needed to clarify and provide instruction to UC Santa Barbara for establishing and managing agency accounts. Agency accounts are set up by UCSB’s General Accounting team for non-university entities - these are not UCSB revenues nor expenditures. Agency accounts are used if the university does not have ownership of the funds.  The financial activity of the agency accounts is reported in accordance with Government Accounting Standards Board pronouncement 84, Fiduciary Activities (GASB 84).

Guidelines & Process

What is an Agency Account?  Agency accounts are established by UCSB for non-UCSB entities. The activity must provide benefits to the university community. The university acts as a custodial or fiscal agent. The university does not exercise any direct financial control over the use of the funds. At fiscal year-end, expense and revenue transactions on agency accounts are excluded from university income statements, and agency account balances are reclassified on the balance sheet as a current asset or a current liability.

How to Establish an Agency Account:  The outside agency must coordinate with a sponsoring campus department to establish an agency account. To establish a new agency account, the outside agency must provide a completed Agency Account Request Form to General Accounting, including:

  1. The name of the agency
  2. The primary contact person(s) for the agency
  3. The purpose of the agency account, including benefit to the university community
  4. The nature of cash receipts and disbursements anticipated on the agency account
  5. Which sponsoring campus department/contact person will be acting as fiscal agent for the agency account
  6. Agency, sponsoring department, and control point approval signatures

Depending on the level of services provided to the agency, the university may charge the agency an administrative fee for the cost of services (purchasing, payment of invoices, etc.) provided as a part of the agency agreement. General Accounting will approve and maintain the forms and set up the account. These accounts will be set up as non-reportable expenditure accounts in the 80xxxx account series.

Roles and Responsibilities of Approved Agency Account Holders:

  1. Complete Signature Authorization forms (found in Data Warehouse) to document who has the authority to process agency account transactions, and follow campus policy notifying BFS whenever authorized signers change in order to update signature authorizations.
  2. Maintain a positive account balance, depositing funds as needed to cover overdrafts in a timely manner, and no later than fiscal close each year.
  3. Review disbursements for appropriateness and maintain compliance with applicable UC Policy, federal, state, and local laws.
  4. Notify General Accounting to close the agency account once no future activity is anticipated. Any credit balance remaining in the fund will be refunded to the agency or, if the agency no longer exists, transferred to the Chancellor’s campus-wide miscellaneous income account. If a deficit in the fund cannot be recovered from the agency, it will be charged to the department sponsoring the agency account.

Services Provided for Agency Accounts: The University provides normal administration of cash receipts and disbursement services for agency accounts, except for payroll disbursements and Gateway procurement services.

Agencies with agency accounts may also make use of campus recharge operations and service departments. Agency accounts are charged the same recharge rates as UCSB users for these services. Note that because these funds belong to outside entities, amounts recharged to agency accounts should not credit the recharging department’s expense account with recharge credit object code 3900, but should instead credit the recharging department’s income account.

Note that checks for deposit to an agency account should still be made payable to UC Regents, as these deposits are processed using university bank accounts.

Agency funds do not have campus budget appropriations, therefore budget journals and Transfers of Funds cannot be processed on agency account-funds.

Additional Information & Background

It's important to note that BFB A-54 specifically excludes the Associated Students organizations from UC agency accounting, as these are UC entities. "The Regents at their May 18, 1972 meeting reaffirmed that the, 'Associated Students in the several campuses of the university are official units of the university.'" Accordingly, at UCSB, Associated Students is included in our General Ledger. They operate as a separate department and they manage some UC fees separately with their own bank account, however their financial activity is included in UCSB’s consolidated financial reporting.

Funds accepted for an agency account are not tax deductible charitable contributions to the University.

UCSB established these guidelines for agency accounts to minimize the risk of financial exposure to the university resulting from an agency account holder’s inability to pay.  General Accounting periodically audits agency accounts for compliance, evaluating the convenience of keeping the cooperation with the agency, or the cancellation of the relationship.

Questions about agency accounts? Contact General Accounting at ga@bfs.ucsb.edu.

For additional information/references, see Business and Finance Bulletin (BFB) Bus-54 Policy for Agency Accounts

Transactions on balance sheet accounts should not have any sub or object code.

Unexpended balance transactions may have sub-0 and a transaction code.

Generally, balance sheet transactions should not be on UFIN 120s. Exceptions are Sales Tax to Income and Key Deposits.

All Loan account (1020XX) journal entries must have a fund number. UCSB sees this as a fund identifier, but UCOP sees an actual fund number.

There are three types of department codes used at UCSB:

  • Owner Code: the physical department, the employees, the account responsibility, the pots of money.
  • Mail Code: the place where things are mailed to. The reason for department codes that have no (UCSB) employees is that they were established to have an address to mail things to, such as off-campus locations.
  • Home department: used for Payroll—each employee is assigned to one department. The Department Code used in the Data Warehouse can represent either the Owner Code or the Mail Code.

NSFAS (Non-State Funded Administrative Support) is the mechanism whereby various departments are charged for administrative support. This is calculated by Alan Williams in the Budget Office, and questions should be directed to him.

Patent Income is to be used to support ongoing research and education programs.

Provision accounts are holding accounts with allocations for distribution to other accounts. They should have budgets, but no expenditures. There are two types of accounts:

  • The account number starts with an 8, but is not an agency account. These will have a UAS Code 800000.
  • The account number is in the regular account structure, in the range of 40XXXX – 78XXXX, with an Annual Report Code 800000.

Refer to the General Accounting website for banking information: Incoming Wire Transfers & ACH

Be sure to either fill out the Wire/ACH Notification Form or email Maureen Espinoza maureen.espinoza@bfs.ucsb.edu so Accounting personnel know to which account to credit the payment.

If you have an approved purchase order dated in the current fiscal year but have not received an invoice or made payment, have your business officer send an e-mail to Russell Remington requesting that Accounting accrue the expected new year payment. Include all relevant info in the request.

If you have received a payment for services that will not occur until the new year, have your business officer send an e-mail to Russell Remington requesting that Accounting defer the new year payment received. Include all relevant info in the request.

In either case, have your business officer send an e-mail to Russell Remington requesting that Accounting defer the new year expense or revenue. Include all relevant info in the request.

Contact Arliene Shelor in the Budget Office. If approved, she will contact the General Accounting Manager and Russell Remington in the Accounting Office, who will update the organization/responsibility structure tables and notify various campus personnel.

The income and expenditure accounts are separately maintained and not netted against each other. This allows the department to determine income and expenditure levels for proper budgeting. So while one is a credit and the other a debit, it’s important to look at the total when you evaluate your operation. At year end, Accounting will take that total fund balance and reappropriate to sub 8. This will be the history of your fund. The history plus the current income and expense will be your total operating position.

Send an email to Russell Remington in Accounting containing the following: reason for the fund request, name for the new fund (up to 30 characters) and an expenditure account to link to the new fund.

We do not accrue utilities. FM will make any necessary adjustments.

The department will need to convene the Rate and Recharge Committee (contact the Budget Office), and provide the necessary documentation to get approval. Thereafter, contact Russell Remington in the Accounting Office to have a journal number assigned.