BYU STUDENT, FACULTY, AND STAFF CLUBS, ASSOCIATIONS, AND
HONOR SOCIETIES PROCEDURES
(Last updated September 2, 2011)
Types of Agency Accounts
BYUSA Clubs
Please note that BYUSA Clubs are handled by the Campus Involvement Coordinator, 3494 WSC (Student
Leadership). Information about BYUSA Clubs can be found at: http://byusa.byu.edu/clubs-0.
Student Academic Associations
Student Academic Associations includes department clubs, affiliations with other clubs/organizations (Non-BYU),
honor societies, and performing arts groups. The approval for a club or organization is handled through the
Associate Academic Vice President–Undergraduate Studies in D-380 ASB. The application process for Student
Academic Associations and Honor Societies can be found on the Organization Management System website located
at: http://clubs.byu.edu/home. No agency account will be opened for organizations that fall under this category
unless the club has met all recognition requirements listed on the OMS website.
Faculty/Staff Associations
Faculty/Staff Associations include professional organizations (national organizations, conferences), gifts and
remembrance funds, and BYU affiliated organizations.
Organizational Setup for an Agency Account
Organization Charter
All agency accounts should be governed by a club/organization charter.
“The organization must be governed by an approved charter, and members must be BYU students and/or
employees who understand that the organization represents Brigham Young University.”
For more details please consult the BYU Student, Faculty, and Staff Clubs, Associations, and Honor Societies Policy
found in the University Policies. To access the policy, log in to Route Y, under the Work tab find the option for
University Policies/Procedures, then click on Student, Faculty, and Staff Clubs, Associations, and Honor Societies.
The direct URL: http://policy.byu.edu/view/index.php?p=20.
Organization Adviser
Advisers must be full-time faculty, staff or administrative personnel. The adviser is responsible to make sure
University policies are followed by the club and works with student leaders to resolve problems and oversee activities
of the group. In addition, the adviser helps to manage the organization’s funds and to ensure adequate financial
records are maintained for the agency account. The organization account must maintain a positive balance at all
times. If an overdraft occurs, this must be resolved immediately. Any questionable behavior on the part of the
agency account regarding finances should be reported immediately to Treasury Services for appropriate action.
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Campus Privileges Extended to Organizations in Agency Status
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Checking account service
Room scheduling (through Campus Scheduling)
Collecting dues through an internet site
Depositing checks at the Department Deposit Cashier Window in the ASB
Setting up an Agency Checking Account
For the student academic organizations, setting up an agency checking account is part of the BYU Organization
Management System (OMS) process.
If an organization needs to collect or expend funds, it is required to establish an agency account at the University.
Organizations with “agency” account status are not permitted to have off-campus bank accounts. Treasury Services
provides an accounting service to track the cash inflows and outflows for BYU agency affiliated organizations. These
resources are accounted for on the general ledger as fund 47 accounts. Although these funds are held by BYU as a
service, the sole ownership is upon the organization and funds should not be comingled with any BYU resources
(Funds 11, 19, 20, 23). Misuse of funds in agency accounts should be reported immediately to Financial Services as
well as to the dean, director, or chair of the sponsoring campus unit.
To set up an agency account two forms must be completed for Treasury Services. (The URL to obtain any
agency form: https://finserve.byu.edu/content/agency-accounts)
Request to Set Up an Agency Operating Unit
To set up an account in the general ledger system (Fund 47) a “Request to Set Up an Agency Operating
Unit” must be completed. This form is located on the BYU Financial Services website by clicking the
following links: Faculty and Staff, General Services, Financial Services, Controller & Financial Assistants,
Forms, Agency Accounts, Request for an Account Number (for new accounts only) under Account
Maintenance.
Officers and Adviser Agreement
As part of setting up an agency account, a completed “Officers and Adviser Agreement” is required. This
form should be delivered to D-151 ASB. This form can be accessed at the BYU website by clicking the
following tabs: Faculty and Staff, General Services, Financial Services, Controller & Financial Assistants,
Forms, Agency Accounts, Officers and Adviser Agreement (Signature Card) under Account Maintenance.
Organization Advisors must be listed on the Officer and Adviser Agreement. In addition, all current
organization officers that are involved in disbursing funds on the account must be listed. Only BYU
students, faculty, and employees can be authorized as signers on the account.
The form is in PDF; consequently, it can be completed online and then printed to obtain the appropriate
signatures. If you have any questions, please feel free to contact the Agency Finance Coordinator at (801)
422-6643. The signatures on this form are used in the daily check review process.
Officers and Adviser Agreement Update. An updated Officers and Adviser Agreement must be
provided to Treasury Services (D-151 ASB) no later than November 1st of each year for an agency
account to remain active. Agency accounts that are left inactive for two years will be closed as
described in the section, Closing an Agency Account.
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Managing the Agency Account
Incoming Funds
Balances. Inquiries regarding account balances may be obtained by contacting the Agency Finance
Coordinator at 8014226643.
Cash Handling and Preparing Deposits. Deposits should be made at least weekly or daily when funds
collected exceed $50.00. Cash or checks should not be held by an individual for an agency account over
the weekend. Funds must be held in a secure campus location pending deposit. Deposits can be accepted
at the Department Deposit Cashier window in D-155 ASB. When preparing deposit slips, organizations
must balance their daily cash receipts to the receipts issued. Copies of receipts to support the detail of the
total deposit amount must be retained for the current calendar year (January through December) plus four
(4) prior years.
Donations. BYU does not consider student clubs as qualifying charitable organizations under the IRS
code; therefore, donations to students clubs do not qualify for the University’s charitable status. Club dues
are not considered a donation; therefore, receipts will not be issued for tax deductible purposes. However,
there may be some agency accounts that do qualify for tax-deductible charitable status under some
organization other than BYU (e.g. Phi Kappa Phi, LASSO, etc.) These groups may accept donations (cash,
checks, or credit card via a BYU web-site set up by Treasury Services) under the following conditions.
 Provide Treasury Services with a copy of the letter from the IRS documenting they are an IRS
qualified charitable organization.
 Issue receipts on behalf of their qualified organization for donations accepted, and
 Provide a contact number for a person who will handle questions regarding donations.
Dues. Most organizations will have dues as a source of funding for their organization. Dues can be paid by
cash, check, or credit card via the web.
 Cash and Checks. A receipt must be issued to each individual from whom monies are received.
Cash and checks should be handled as described in the paragraph, Cash Handling and
Preparing Deposits.
 Credit Card. A new service for receipting funds on the web is now available. To access this
service, please have an officer of the organization contact the Agency Finance Coordinator
(extension 26643). The form to complete can be found at the BYU website: Faculty and Staff,
General Services, Financial Services, Controller & Financial Assistants, Forms, Agency Accounts,
Request for On-line Payments Form under Account Maintenance. Groups may use this site to
collect dues, contributions, event expenses, etc. Please keep in mind the merchant fees (
approximately 2%) for the transactions will be passed on to each respective club/organization.
The advantage of utilizing this option will be to minimize the risks of handling cash. You can check
out this web-site at https://commerce.cashnet.com/webagency (you will need to copy and paste
this URL into the URL line; this URL will not work if you do a control/click.)
Fundraising. Please see the Fundraising Policy. BYUSA and the Student Academic Associations will
adhere strictly to this policy. This policy can be reviewed online by using this link:
http://clubs.byu.edu/static/documents/resources/FundRaisingPolicy.pdf
Interest. Accounts with a balance in excess of $1,000 will be paid interest.
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Disbursing Funds
The primary method of disbursing funds for an agency account is by using agency checks.
Agency Checks
Checks may be ordered as needed by completing the form, “Request for Check Stock”, which can be found by going
to the BYU home page and clicking on Faculty and Staff, General Services, Financial Services, Controller &
Financial Assistants, Forms, Agency Accounts, Check Stock Request Form under Issuing Checks. A current Officer
and Advisor Agreement (Signature Card) and current registration on clubs.byu.edu are required before additional
checks will be issued. The check request form can be electronically submitted to the Agency Finance Coordinator at
agencyaccounts@byu.edu or by calling 8014226643. Also, this form may be delivered to D-151 ASB. Please give at
least 48 hours notice when placing an order. Check stock may then be picked up by an officer or adviser in A-153
ASB between the hours of 8:00 a.m. and 5:00 p.m. University identification as well as a signature will be required to
pick up the checks. These checks must be kept on campus, in a locked file or desk, at all times.
Only checks provided by Treasury Services can be used for disbursements on agency accounts. These checks
require two signatures from amongst those who are on the Officers and Adviser Agreement form.
Agency checks will be issued in a “voucher” format (three sections to the sheet with each section showing the agency
account name and number and the check number). A check register (8½” x 11” sheet) is available online (go to the
BYU home page and click on Faculty and Staff, General Services, Financial Services, Controller & Financial
Assistants, Forms, Agency Accounts, Check Register under the heading “Issuing Checks”). The top section of the
voucher check is the check, the middle section is a remittance advice for the payee and the bottom section is to be
attached to the original receipts. This middle section, or remittance advice, is not mandatory. However, it can serve
as a receipt to the payee to explain the nature of the transaction. It should include an invoice number so the payee
can match their invoice with the payment. We have several check templates available to aide you in issuing your
checks. These templates can be accessing the BYU home page and clicking on Faculty and Staff, General Services,
Financial Services, Controller & Financial Assistants, Forms, Agency Accounts, Check Templates under the heading
“Issuing Checks”.
General guidelines in issuing checks (each check as it clears the bank will be evaluated as follows):
 Blank checks should not be signed.
 Checks must be signed by two authorized signers from the current signature card (Officer and
Adviser Agreement) on file for the account
 Checks should not be written over the $2500 limit without prior approval from the Agency Account
office.
 Checks should never be written for “cash”.
 The payee may not be one of the authorized signers on the check.
 Checks may not be used to pay salaries or wages.
 A description of the expenditure must be written in the memo line of the check and in the check
register.
 All disbursements should show adequate documentation (receipts and invoices) for the
expenditure.
Copies of Cleared Checks. Please contact the Agency Finance Coordinator, 8014226643, if you are in
need of a copy of an agency check.
Electronic Processing of Checks. Some merchants are electronically processing checks. The two most
common merchants are Target and Walmart. When checks are presented to these merchants, the
merchant will endorse the check as it is being scanned into their system and will hand the check back to the
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customer. Because we image all cleared agency checks, it will be required that this original endorsed check
be delivered to D-151 ASB.
Gift Cards. Agency accounts may only purchase gift cards issued by Treasury Services. Agency accounts
may not purchase gift cards off campus. Gift cards include prepaid cards, merchant gift cards, gift
certificates, coupons, or any other cash equivalent.
To purchase gift cards through Treasury Services, please contact John Leatherwood in Treasury Services,
A-153 ASB. The request form (and specific instructions) will be on the Financial Services web-site
(Controller & Financial Assistants, Forms, Gift Cards). This will need to be signed off by the dean for
academic areas; unit director for auxiliary unit areas. Please pay for the gift cards with an agency check
when picking up the cards at the Department Deposit window in D-155 ASB. An inventory of commonly
used denominations will be kept on hand and issued for immediate needs. Other denominations can be
ordered. A campus gift card will be available for any denomination. Documentation verifying the proper
distribution of gifts should be returned to Treasury Services within 30-days of issuance.
Lost/Stolen Checks. If any of your agency checks have been lost, please contact the Agency Finance
Coordinator, 8014226643, immediately. A “Request for Stop Payment” will need to be processed. This
form is available by going to the BYU homepage, clicking Faculty and Staff, General Services, Financial
Services, Controller & Financial Assistants, Forms, Agency Accounts, Stop Payment Request (for lost or
missing checks) under Issuing Checks.
Overdrafts. If an overdraft of an agency account occurs, the negative balance needs to be resolved
immediately. A $20.00 per check charge will be assessed if overdraft is not resolved. Additional privileges
may be revoked and penalties assessed.
Receipts. If a check is issued for the purpose of reimbursement, a receipt documenting the expenditure
must be collected and kept on file by the organization. Receipts show documentation of a reimbursement
rather than a payment issued. All payments have to be reported to the IRS. Receipts must be retained for
the current calendar year (January through December) plus four (4) prior years.
Scholarships. Checks used for scholarship awards should not be given directly to recipients. Instead,
these checks must be processed through the office of Off-Campus Scholarships (A-41 ASB). Please
complete the following procedures for these types of checks:
1.
Prepare an agency check for the scholarship amount.
 Make the check payable to BYU.
 Include the student’s name and ID number on the memo line of the check.
2. Submit documentation with the check to Off-Campus Scholarship (A-41 ASB).
 Include the student’s name, ID number, semester the money is for, *enrollment requirement,
and any special instructions.
*Please note that if the enrollment requirement for the student to be eligible for the scholarship is less than
full-time, specify this in the correspondence that accompanies the check.
For more information on this policy, please visit http://saas.byu.edu/ebrochure/BYU_Financial_Aid_
and_Scholarships_Guide/Step_2__Financial_Opportunities_and_Options/Off-Campus_Scholarships.php
If you have any questions regarding this policy, please contact Cindy Swenson at 422-6433.
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W-9 Issues Concerning Payments, Gifts, Prizes, and Awards. All agency account payments (that are
not reimbursements) of any amount to a U.S citizen or permanent resident must require the payee to
complete and sign an IRS W-9 form. This should be submitted to the Agency Finance Coordinator’s office
along with a copy of the check being used. When an agency account is used to pay for gifts, prizes, or an
award to BYU employees and students, the BYU identification number must be provided regardless of the
amount.
A blank W-9 form can be found using this link: http://finserve2.byu.edu/_files/2011_W-9.pdf.
W-8 Issues Concerning International Recipients. When payment is issued by an agency account to an
international recipient, a W-8 BEN form must be completed (instead of a W-9 form that is used for U.S.
citizens). This form, along with a copy of the check being used, should be submitted to the Agency Finance
Coordinator’s office. The international payee must complete part I and sign part IV of the W-8 Ben form.
Please note that additional withholdings may apply to international payees. Many payments to non-U.S.
citizens/non-permanent residents are subject to different U.S. reporting and withholding laws. Please
contact Regulatory Accounting at 801-422-8098 before making a payment to international recipients to
resolve any potential tax issues. Failure to do so may result in the agency account being required to pay
additional amounts to cover taxes that should have been withheld on the payment.
A blank W-8 BEN form can be found using this link: https://finserve.byu.edu/content/agency-accounts.
Agency Disbursements Guidelines
Agency checks should be used to pay for agency account expenses. Below is a table for quick reference on the
guidelines for issuing payments for products and services with BYU and Non-BYU entities.
Types of
Expense
Products
Payee/
Recipient
BYU Departments
Products
Non-BYU Vendors
(individual or company)
Services
Services
BYU Departments
BYU Employees
Services
Non- BYU Vendors
(Individual or company)
Reimbursement
to department
Reimbursements
BYU Sponsoring
Department
BYU Affiliated and Non-
BYU Guideline
An agency check should be used to make purchases from BYU
departments.
An agency check should be used to make purchases. Purchasing cards
or Purchase Orders are not allowed for making agency payments.
Foreign Currency. A BYU Fast Track may be used for foreign currency
payments only. Please contact the University Cash Manager (Treasury
Services) at extension 21292 to get details on how to handle this
process.
An agency check may be used to purchase services from BYU entities.
Any payment made to a BYU employee for services rendered must be
processed through the Payroll Office. This would include payments
using terms such as salary, stipends, wages, honorariums, etc.
An agency check should be used to pay for services performed by
independent contractors.* This would include design, editing, speaking,
piano performance, dance instruction, sound and tech support, etc. A
W-9 (Request for Taxpayer Identification Number and Certification),
found at http://www.irs.gov/pub/irs-pdf/fw9.pdf?portlet=3, must be
completed by the individual providing the service before an agency
check is issued for payment. The W-9 and a copy of the check must be
submitted to the Agency Finance Coordinator in D-151 ASB who will
insure that federal reporting requirements are met.
Note: Wages and salaries cannot be paid from agency accounts.
An agency check should be used to reimburse a department.
All expenses (travel, etc.) incurred on behalf of the agency fund should
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(Travel, etc.)
BYU Affiliated
be reimbursed using an agency check. Documentation of the actual
expenses should be attached to the bottom section of the voucher
check.
*NOTE: Items reported to Regulatory Accounting may add up to $600 to warrant the issuance of a 1099 (Statement of Miscellaneous Income)
at year-end.
Unacceptable Methods of Payment (BYU Instruments): The following BYU methods of payment may not be
used by agency accounts except as so noted in the section Comingling of Funds.
BYU Bookstore departmental card
Journal entries
Signature cards
Campus purchase orders
Purchasing cards
Sales Tax. Agency accounts are not eligible to participate in the University’s tax exemption. Those desiring a sales
tax exemption must make application to the State of Utah to obtain a sales tax exemption identification number.
Monthly Statements. Monthly financial statements are distributed by Financial Services’ Financial Accounting and
Reporting via email to the adviser as listed on the Request to Set up an Agency Operating Unit form.
Record Keeping. Typical items that are to be maintained in a file should be: the check register, deposit slips that
identify source of funds, copies of the checks with attached receipts or other supporting documentation and
reconciled financial statements (monthly reports sent to the responsible person which normally would be the adviser).
These records should be retained for the current calendar year (January through December) plus (4) prior years.
Financial audits may be requested at any time. University internal auditors will periodically review accounts to assure
procedures are being followed.
Comingling of Agency Funds with Church Appropriated Funds (Fund 11, 19, 20, 23). Church appropriated
funds should not be used to cover agency expenses. Agency accounts should not be used for university operations,
research contracts/grants or donation activities.
BYU Department Payments. The following are two examples of when a BYU department may need to make a
payment to an agency or club account.
 Club or agency account performs a service for a BYU department as part of a fundraising activity. (i.e. letter
writing, cleaning the stadium, etc.)
 Reimbursement for the department’s share of costs related to a joint activity between the department and
the club. The department should use the Fast Track system (category TSR 7920 – BYU Payments to
Agency Fund Units (47xxxxxx)) to make the payment to the agency account.
Journal Entries. The following are two examples of when journal entries may be used for agency accounts.
 Correct coding errors. For example, a journal entry may be used to correct an expense that should have
been paid for by an agency fund unit but was incorrectly charged to a BYU department.
 Distribute funding. When funding has been received centrally by one BYU department or one agency fund
unit and it needs to be distributed to multiple agency accounts.
Closing an Agency Account
To close an agency account the following process should be followed:
Request to Inactivate an Agency Operating Unit
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Department clubs and organizations must notify Treasury Services in writing to close an account and submit
the form, “Request to Inactivate an Agency Operating Unit”. This form can be found at BYU’s home page by
clicking Faculty and Staff, General Services, Financial Services, Controller & Financial Assistants, Forms,
Agency Accounts, Close Agency Account Form. Please submit the form to the Agency Finance Coordinator
in D-151 ASB. Remember to remove all information about and for the organization from any websites
where it may be posted.
Financial records for the organization should accompany the Request to Inactivate an Agency Operating
Unit.
Any agency account will be subject to closure if it is left inactive for two years or if the club/organization fails to
properly update the Officers and Adviser Agreement by November 1st of each year.
In the event there are excess funds in an agency account being closed, the disposition of these funds must be
approved and coordinated with the Agency Finance Coordinator. The club charter should state the disposition of
excess funds upon dissolution of the club.
Inactive Accounts
An agency account is considered to be inactive when no activity has occurred on the account for two years.
Reactivate a Closed Account
The same process for opening an account should be followed in reactivating a closed account.
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