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Section 3: Fund Accounting Principles

Agency Accounts

Effective Date:


Approved By:

Lenora Chapman , Associate Vice President, Financial Affairs

Last Revised On:


For Assistance Contact:

Accounting Services


To provide guidance for the establishment and administration of agency accounts for funds held by UTSA as custodian or fiscal agent on behalf of faculty/staff/student organizations, internal service contractors, and other non-UTSA entities.


  • National Association of College and University Business Officers (NACUBO) Advisory Report 1999-5; Accounting and Reporting for Student Clubs and Groups

  • NACUBO Financial Accounting and Reporting Manual 354.6 – Agency Funds


Table of Contents

A. Overview

Agency accounts, such as the UTSA Alumni Association cost center, are funds held by UTSA as custodian or fiscal agent for non-UTSA entities, and as such they are not UTSA funds nor do they represent tax-deductible charitable contributions to UTSA. For example, gifts to the UTSA Alumni Association are not gifts to UTSA and expenses in the association account are not UTSA expenses. Agency funds do not earn interest. Agency account revenue and expenses are not reported in UTSA's Annual Financial Report (AFR).

At year-end, funds remaining are recorded as a liability in the AFR. Activities for which funds are accepted for deposit must be closely associated with or related to UTSA activities and they must directly or indirectly provide services or benefits to UTSA students, staff or faculty.

B. Types of Agency Accounts

Agency accounts may be established for:

  1. Registered student organizations and activities - such as student clubs, residence hall associations and workshops sponsored by student organizations. For more information on registration requirements and establishment of agency accounts for student organizations, see the Student Organization Handbook.

  2. Faculty/staff organizations - such as professional or scientific organizations for which faculty or staff are officers; and conferences, workshops and special events sponsored by UTSA faculty/staff. The UTSA faculty or staff must have a significant role in the association, conference, or event.

    NOTE: Activities that are officially sponsored by UTSA are excluded.

  3. Funds due to external entities – such as insurance premiums and retirement. Funds deducted by Payroll Services that are due to an external entity and held temporarily by UTSA until payment is made on a routine basis. Agency accounts may also be established to hold funds temporarily for loan payments prior to payment to the lending organization.

  4. Internal service contractors - includes but is not limited to bookstore and food service contractors. These accounts provide a means for the internal service contractor to charge and be billed for UTSA services. Examples of such charges include telephone services and repairs/maintenance performed by UTSA personnel. These charges should be paid within 60 days by the internal service contractor and are monitored by Financial Services.

  5. Third-party funds for the benefit of students who are selected by the entity – such as an external scholarship fund that provides scholarships to UTSA students. These funds do not represent UTSA revenue or expense because the scholarship recipients are not selected by UTSA.

C. Account Establishment

Although registered student organizations must have an Employer Identification Number (EIN), assignment of agency accounts for faculty and staff organizations does not require an EIN, nor does it require or confer 501(c)(3) status.

NOTE: UTSA cannot give tax advice. Assignment of an agency account does not infer tax consequences of deposits, expenses, or any other activity related to the agency account.

For all agency accounts, download and complete the Chart of Accounts (COA) Maintenance Request Form  and submit it to Accounting Services ( with the required approvals and documentation. The following approvals are required to establish agency accounts:

Type of Agency Account Required Vice President (VP) Approval

Student organizations/activities

VP Student Affairs or delegate

Faculty organizations/activities

VP Academic Affairs or delegate

Staff organizations/activities

VP Business Affairs or delegate

Internal service contractors

VP Business Affairs or delegate

For more information on requesting new accounts, see the UTSA Financial Management Operational Guideline (FMOG) - Establishing, Modifying and Inactivating an Account.

D. Account Administration

UTSA does not exercise direct fiscal control over the use of agency account funds. The Agency cost center Department Manager  must ensure compliance with all applicable policies and procedures, and federal, state and local laws and regulations.  The Department Manager is responsible for the administration of the account, including approving transactions, monitoring and tracking account activity and balances, and contacting Accounting Services regarding changes to the account.

The Department Manager is also responsible for reviewing any balance in the account at the end of each fiscal year and ensuring that the balance does not remain open indefinitely. If the balance from a conference or other event is to be returned at the completion of the activity, the Department Manager must complete the required paperwork, submit a voucher for payment, and close the account. For more information on closing an account, see FMOG - Establishing, Modifying and Inactivating an Account.

Disbursements and Travel Services will issue UTSA checks against an agency account based on approved voucher submittal with proper documentation and approvals. Salaries may be paid from an agency account on an exception basis.

Agency accounts should have a positive balance at all times. Should a deficit occur, the Department Manager is responsible for covering the deficit. Payments cannot be approved for an account with insufficient funds.

Official UTSA (non-agency) funds cannot be deposited or transferred into an agency account, and agency account funds and costs cannot be transferred to official UTSA accounts. If an official UTSA account is used to subsidize an event, the expenses related to the subsidy must be charged directly to the UTSA account and the benefit to UTSA must be shown in the documentation. Agency accounts cannot be used for research grants or contracts.

In addition to these requirements, student organization agency accounts are also subject to the guidelines set out in the Student Organization Handbook.

An agency account with no activity for three consecutive semesters (student organizations) or more than 13 months (all other agency accounts) will be inactivated. Prior to inactivation, balances in student organization accounts will be closed into the UTSA Student Activities Cost Center (AG0142) and balances in all other agency accounts will be closed into the UTSA Miscellaneous Income Cost Center (DZX060).


Term Description

Agency Account Department Manager

The Department Manager is the individual with fiscal responsibility and decision making authority for the agency account, who has approval access to commit funding from the account using the institutional financial accounting system.

Employer Identification Number (EIN)

A form of Taxpayer Identification Number issued/used by the Internal Revenue Service for the administration of tax laws.


Internal Revenue Code Section 501(c)(3). An organization that meets the requirements of this section is eligible to receive tax-deductible charitable contributions.




1) Chart of Accounts Maintenance Request Form Instructions

2) Chart of Accounts Maintenance Request Form


Date Description


Updated DEFINE informaiton for transition to PeopleSoft.


Published guideline to be effective on 06/11/12. Email with any questions and/or feedback.

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