Florida International University
Agency Guidelines
I. Purpose
In certain instances, the University may act as a fiscal agent for an outside party. This policy governs the creation
and use of agency funds.
II. Definitions
Agency Fund: A fund established to record the administration of monies for which the University acts as a fiscal
agent on behalf of an outside Principal. Use of these monies primarily benefit the Principal and incidentally benefit
the University via its affiliation to the Principal.
Agency activities are not operating activities of the University. Agency funds are not considered University monies
or charitable contributions to the University; outstanding agency funds are liabilities to the Principal and will be
remanded to the Principal at their request or at the completion of the agency activity.
Principal: A sponsoring entity outside the University that authorizes the University to act as its agent, subject to
the Principal's general control and instructions as expressed through the Sponsor.
Sponsor: a University faculty or staff employee authorized by the Principal to act on its behalf and who assumes
responsibility for the proper administration and monitoring of the agency fund. The monitoring responsibilities of
the Sponsor cannot be delegated.
III. Examples
The following constitute agency activities:
 Student organizations or clubs sponsored by a separate legal entity (e.g. fraternity or student chapter of
national organization).
 Employee organizations (e.g. unions).
 Conferences or events offered by an outside professional organization and administered by the University
on an ongoing basis, spanning multiple fiscal years or one-time events exceeding $7,500 in annual deposits.
The following do not constitute agency activities:
 Fundraising activities.
 Revenue-sharing agreements between the university and outside parties.
 Student deposits for tuition or study abroad educational programs.
 Deposits wherein the University acts in a capacity of a bank, (e.g. FIU One Card balances due to students
and employees).
 Withholding taxes or other amounts (e.g. sales taxes, insurance).
Note that while these activities do not meet the criteria to be established as an agency, the outstanding
balances do represent liabilities and should be accounted for as such in the corresponding fund which the
activity supports. The exception above is fundraising and study abroad activities, which are auxiliaries and
as such have revenues and expenses.
IV. Terms and Conditions of Agency Funds
Financial Management and Accounting Principles
1.Disbursements of agency monies are subject to the University’s prescribed procurement practices, including
applicable competitive solicitation requirements and guidelines for allowable expenditures.
2.The resources of the University will not be used in support of the sponsoring entity without appropriate
reimbursement for direct and indirect costs. In those cases where the use of resources of the University is not
significant, the Office of Auxiliary and Enterprise Development may waive such reimbursement.
3.Campus service department recharges for goods and services ordered by and rendered to the Principal will be
directly charged to the agency activity.
4. Agency monies cannot be used to compensate University employees.
5. Residual balances for this fund group will be recorded as liabilities in account #339010 Unexpended Agency
Funds. Receipts and disbursements of these are accordingly classified as additions to, and deductions from, the
liability account rather than as revenues and expenditures which will affect fund balance. The Office of the
Controller will request that the Sponsor confirm that the liability balance in the agency activity is due to the
Principal on an annual basis.
6. Agency funds must have a positive cash balance at all times. Accounting may enforce this provision by not
processing a disbursement that will create or increase an overdraft.
7. The Sponsor will identify an alternative source of funds to cover any possible overdraft of agency funds when
requesting creation of the agency activity.
8. No interest will be credited to outstanding agency cash balances.
General Rights and Responsibilities
1. Monies accepted for deposit in agency funds are not considered tax-deductible gifts to the University.
2. The Principal must adhere to applicable federal, state, and local laws.
3. The University does not assume responsibility for any obligation or activity undertaken by the Principal which is
not properly communicated to the University procedures.
4. The record of all agency funds shall be subject to review or audit by appropriate University, State, or external
auditors as necessary.
V. Request for New Agency Activity Number
1. Submit a “New Activity Nbr. Request Form” in the Office of Controller website at:
http://finance.fiu.edu/controller/Forms.html, under the Financial Systems and Support section.
2. Submit completed and signed Agency Request Form found below to: Jose Zubimendi, Office of the Controller,
CSC345, 305-348-1139.
Florida International University
Agency Request Form
Complete this form, secure appropriate approvals and route to Office of the Controller.
(1) Name of activity ____________________________________________________
(2) Type of Activity:
[ ] Student organization
[ ] Employee organization
[ ] Professional organization hosting conference or event on ongoing basis,
spanning multiple fiscal years or one-time event exceeding $7,500 in deposits
[ ] Other
(3) Describe the purpose of this activity.
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(4) Name, address and contact information of the entity for whom FIU will act as a fiscal agent
(Principal):
________________________________________________________________________________
________________________________________________________________________________
(5) Federal Tax Identification Number (FTIN) of Principal in (4) above:
________________________________________________________________________________
(6) Name, title, department, telephone and email address of department contact who will be responsible
for the agency account (Sponsor):
________________________________________________________________________________
________________________________________________________________________________
(7) Activity number for alternative source of funds to cover any possible overdraft of agency balance:
________________________________________________________________________________
(8) How long will the funds be needed?
________________________________________________________________________________
(9) How will residual dollars be distributed at the end of the activity?
[ ] Refund to the agency named in (4), above
[ ] FIU gift (Foundation)
[ ] Other: ____________________________________________
I certify that I have read the Agency Guidelines and agree to the terms and conditions under which FIU
provides agency account services.
Sponsor’s signature: ___________________________________________ Date: ______________________
Printed Name: _________________________________________________