Agency Accounts

• What is an Agency Account?
• Procedure
  • Creating an Agency Account
  • Billing and Reimbursement
• Overhead Charges
• Sales Tax
• Outside Purchases
• Salaries and Wages
• Contacts

What is an Agency Account?

An agency account is a budget number in the University's Financial Accounting System (FAS) for non-University users of campus services who are affiliated with the UW. These users will reimburse the University. (NOTE: UW does not maintain agency accounts for activities funded by a grant or contract. Contact Grant and Contract Accounting to set up these budgets.)

Financial Accounting sets up agency budgets (at the request of UW departments) under the following circumstances:

• $3,000 or more of University resources will be charged annually on behalf of one of the following types of organizations affiliated with the UW:
  • Non-profit educational organizations
  • Non-profit professional societies
  • Government agencies with agreements allowing them to use University resources
• the non-University organization will reimburse the budget for these charges within 30 days.

Examples of non-University groups with agency accounts are:

• Organizations that publish professional journals, or groups that organize UW-hosted conferences.
• Governmental agencies (such as Harborview Medical Center) that have agreements that 1) allow them to purchase from University Stores, or to use other University resources such as office space or equipment, and 2) require them to reimburse the University for the costs.

Procedure:

Creating an Agency Account

To set up an agency account:

1. Download and complete a Request for Agency Account form.
2. Get the approval of appropriate UW officials. (For example, dean or vice president).
3. Send the completed form to the Agency Account Desk, Financial Accounting, Box #351120, or email it to accountg@u.washington.edu.
4. Financial Accounting will send written approval of your account.
5. Open your account by depositing an estimated two months' average expenditures (not less than $500). Although the University does not pay interest on deposits, you may deposit more money than required to eliminate the need for monthly payments.
6. Maintain your account:
   • Keep your account current (make sure the charges are reimbursed promptly - within 30 days).
   • Remember the specific purpose for your account (you stated it on the form and Financial Accounting approved it) and get written approval from Financial Accounting before you deviate from that purpose.

Billing and Reimbursement

• Charges to the account will appear in the current month’s Budget Activity Report (BAR) for the account.
• Soon after the 15th of the month, Agencies will be billed as follows:
• UW Departments with agency accounts will receive a copy of the BAR directly from Computing & Communications.
• Departments should promptly invoice the Agency, based on the BAR.
• If the Agency account is in deficit (expenditures exceed receipts including deposits), for longer than three months, Financial Accounting will charge the balance back to the Department’s operating budget.
• In all cases, it is the requesting Department’s responsibility to see that charges are paid timely, so there is a positive balance in the account at all times.
• The Agency should reimburse the University from the invoice by the end of the month in which it is received.
• If reimbursements are consistently delayed, the cash advance must be increased accordingly, or the Agency Budget Number will be closed until the deposit is increased.

Overhead Charges:

• Overhead is charged to all agency accounts except for those exempted, listed below.
• The overhead rate is applied to expenditures.
• The overhead rate will be periodically adjusted by the Office of Planning and Budgeting.
• Exemptions from overhead charges apply to the following:
  • Overhead will not be charged to accounts for-
    • Tuition Guarantees
    • Harborview Medical Center
    • Scientific and Professional Journal Editors
    • Professional and Academic Society Editors
  • Also, student, faculty and staff-related agency accounts may request an exemption from overhead charges. Exemption requests should be submitted to the Office of Planning and Budgeting.

Sales Tax will be charged except for -

• state and federal agency accounts
• accounts for other organizations authorized by the State Department of Revenue to purchase for resale. Resale certificates must be provided to the Financial Accounting Office.

Outside Purchases:

• Agency accounts are expected to make only a minimal amount of outside purchases.
• All outside purchases by the University of Washington, including those made by Agency accounts, must be made in accordance with the statutes of the State of Washington.
• Only the Purchasing Department is authorized by the University of Washington to make commitments to suppliers on orders greater than $3,000, including those made by Agency accounts.

Salaries and Wages:

No salaries or wages may be charged to any agency account unless:

• the salaries or wages are paid to people who are already permanently employed by the University, or
• the salaries and wages are paid to part-time temporary employees, or
• the Agency and the University have signed a formal contractual agreement allowing salaries or wages to be charged.

Non-compliance with any of the above provisions may result in the termination of agency account privileges.

Contacts

Please send your comments and questions to either:

• Financial Accounting at accountg@u.washington.edu, or 206-221-7845.
• Nancy Treibel, Financial Accounting, Box #351120, treibel@u.washington.edu

Financial Accounting
Division of Financial Management
accountg@u.washington.edu
Modified: January 12, 2006