Chapter 7 - General Finance Provisions
for Board Policy 7.5
Objective of this Guideline. To clarify the accounting and financial reporting process for student organizations, clubs, and agency funds.
Part 1. Accounting for Student Activity. Financial activity for student activity accounts should be recorded in HEB fund 220 (Student Association Fee), 225 (Student Activity Fund), 230 (Health Services Fund), 240 (Intercollegiate Athletics Fund), and 250 (Child Care). These funds receive an allocation of student fee revenue collected from all credit taking students, and they may also generate their own revenue from sale of tickets, services, or other miscellaneous activity. Follow any applicable System policies and procedures when administering financial activities in funds 220, 225, 230, 240, and 250 which all point to appropriation LSR.
Part 2. Accounting for Agency Funds. The student organization and club accounts that generate their own revenue from membership or other miscellaneous revenue in accordance with each organization's constitution or other agreements are considered agency funds. The college or university is holding student organization, club, or agency account funds in trust for the benefit of the funds owners, but generally does not dictate what the funds can be used for. Those funds are not considered the funds of the college or university. Financial activity for such student organization/club accounts or agency accounts should be recorded in HEB fund 940.
Part 3. Financial Reporting for Agency Funds. GASB Statement 34, paragraph 33 states that agency funds should be used to report resources held in a custodial capacity. Agency funds include monies held by the institution in a fiduciary capacity where no income or loss should be reported, but any such income should be treated as a liability reflecting the fiduciary type of the agency fund. Also see Financial Statement Preparation Procedures Manual for the 'Funds Held For Others Procedure' found in the liabilities section (Tab 3B).
- Policy 7.5 - Financial Institutions and Investments
- System Procedure 7.5.1 - Local Cash and Investments
- System Procedure 2.8.1 - Student Life
Date of Adoption: 05/16/11,
Date of Implementation: 05/16/11,
Date & Subject of Revisions:
There is no additional HISTORY for guideline 126.96.36.199 at this time.