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Business and Financial Policies and Procedures

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  • Open Comment Period: September 19 - October 3, 2014: Section 2 - Agency Funds: Policies for Managing Fund Type 9D Agency Funds

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pczarn2@uic.edu Jul 29, 2016 11:19 am

1. Need wording on fund usage. I am assuming that these funds have specific uses spelled out in a document/contract and the costs must align. Who is responsible for this responsibility - owner or UI?
2. Need some guidance on how purchases over the bid limit are handled given these are not University funds.
3. How would an owner perform a regular reconciliation of banner monthly statements if the University only reports transactions and balances "periodically" to the owner?

pczarn2@uic.edu Jul 29, 2016 11:19 am

It would have been beneficial and possibly minimized the questions and concerns if current Agency Fund users were consulted during discussions. This policy does not seem applicable to all Agency Fund accounts.

pczarn2@uic.edu Jul 29, 2016 11:19 am

The role of the University is not clear in this policy regarding consortia when there is a Memorandum of Understanding in place between a consortium and the UI. When there are140 members in the organization and the UI is designated to act on their behalf, who is the one owner?

How would the owner who is outside of the University reconcile Banner and be responsibile for following the rules and regulations of the State and the University?

Would the financial accounting responsibility be moved to an external owner?
How will pass-thru revenues and expenditures be handled thru the Agency account if there is one owner?

pczarn2@uic.edu Jul 29, 2016 11:19 am

1. Should a Role of the University be to provide the owner with regular reporting from Banner? They would need that information to peform their role.
2. The owner is responsible to not create a deficit. The proposed policy has no University role listed to ensure transactions are not processed which would create a deficit. However, we can bill for a deficit if created. Was it a specific intent to remove any policy statement regarding deficit monitoring or control from the University role?

pczarn2@uic.edu Jul 29, 2016 11:18 am

Given the basic principal that the money is not owned by the University, I believe there needs to be more guidance into how procurement of goods and services are handled. Can University contracts be used for procurement of goods and services from Agency funds? Will these transactions be tax-exempt under the University tax-exempt certificate? Who is the contracting authority for these procurements? Does the Illinois Procurement Code and Section 7 of the OBFS Policies and Procedures apply to these transactions? The University Liaison role states they will “Process cash receipts, disbursements, and journal entries as directed by the owner”. What mechanisms will be used to process these?

pczarn2@uic.edu Jul 29, 2016 11:18 am

First, good work on pulling this policy together! It appears fairly complete. The one suggestion that I have is to include a section that addresses restrictions on how funds may be used, e.g. no personnel costs.