TRUST AND AGENCY FUNDS - FEDERAL AND OTHER - SPECIAL ACCOUNTING PROCEDURES - 17400

Each Trust and Agency Fund - Federal and Other (except for the Special Deposit Fund) is established for a specific purpose and accounted for by one agency/department. Therefore, the State Administrative Manual (SAM) does not provide detailed accounting procedures for this fund type.

The Department of Finance, Fiscal Systems and Consulting Unit (FSCU) may issue special instructions to ensure the proper recording and reporting of certain funds in this category. When such instructions have been issued, they will remain applicable except that:

• Accounts prescribed in SAM Chapter 7600 will supersede those shown in such instructions.
• Procedures regarding income accounting prescribed in SAM Chapter 8200 will supersede those shown in such instructions except for funds that use the accrual basis of accounting to record operating income. Funds of this type normally account for operating income as it is billed throughout the year, regardless of when cash is received (see SAM Section 7440).

When no special instruction has been issued by FSCU, agencies/departments will use the following guidelines:

• General procedures prescribed in SAM Sections 7000 to 8900. However, procedures regarding income accounting prescribed in SAM Chapter 8200 will not be used if the fund requires that operating income be recorded on an accrual basis.
• Journal entries described in SAM Chapters 10500 and 10600 to the extent that they are applicable.