Agency Fund Reports

 

Home |Commercial Card | Contact Us | Inventory | Petty Cash

 

Agency Fund Definition

By definition, “agency funds account for resources held by the University as custodian or fiscal agent
for faculty, staff members, and academic organizations” (NU Accounting Policies and Procedures
Manual, June 1991). Accounting reviews agency funds on a quarterly basis for credit cash balances
(these represent overdrafts of available cash).  Managers of funds in an overdraft position will be
contacted by Accounting.  If Accounting is not notified within thirty days by managers of plans to
correct the deficit balance, an interest charge may be assessed on the deficit amount at the NU
working capital rate (per Treasury Office).

Agency funds’ income and expense activity are removed from the University financial records at year
end to exclude non-University transactions for financial reporting purposes (debit to balance sheet 6080
and credit to balance sheet 7000).  The agency fund’s surplus, or positive cash position, is carried as a
liability on the NU books, that is, as funds that are due to another entity.  The agency FUND/AREA/ORG
accounts are re-established in the new fiscal year.

Detail Trial Balance (NA11)

This report details the account balances for each fund. A fund is a self-balancing set of accounts in
which transactions are recorded.  The report groups all balance sheet accounts together (account types 01 & 02)
which represent the fund assets and liabilities.  Revenues are credited to balance sheet account 6080.

The report also groups all encumbrance and expense transactions for a fund (account types 21 & 22) by Area
and ORG.  The ending balance for the ORG/FUNC/AREA is the last amount on the report and represents
the total expenses and encumbrances on the ORG. Monthly NA11 reports are distributed by Accounting to the
account managers for their review and reconciliation of activity.  Managers should report discrepancies to
Accounting for research and resolution.  A total cash debit balance represents funds available to spend. A total
cash credit balance represents an overdraft of funds which must be investigated and corrected on a timely basis.

 

How to Determine Available Monies

The total cash balance in the fund represents the monies available to spend.  It is the total of all the cash balance
sheet accounts (type 01) on your NA11 report.  To illustrate:

BS ACCT 0100 ENDING BALANCE                  127.35

BS ACCT 0102 ENDING BALANCE                  736.00

BS ACCT 0105 ENDING BALANCE                  127.35 CR

BS ACCT 0131 ENDING BALANCE                  100.00 CR

Total CASH BALANCE                                          636.00

The total cash is a debit balance of $636.00, that is the amount available to spend.  When the total is a credit
balance, cash has been overdrawn and the fund is in deficit.  

 

 



© Copyright 2001 Northwestern University. World Wide Web Disclaimer and University Policy Statements


Office of Accounting Services 
Updated by: Jamal Davis
619 Clark St. Rm. 217 
Last Updated: 6/26/2002

Evanston, IL 60208

 
Phone: (847) 491-5337   

                                              .
Northwestern University