FISCAL AGENT - 8002.1

Fiscal agents are financial institutions or other third parties receiving remittances and/or making disbursements on behalf of the state. The state's normal procedures for receipts and disbursements should be used whenever possible to minimize the use of fiscal agents.

If special circumstances require the use of fiscal agents, agencies/departments must request approval from the Department of Finance, Fiscal Systems and Consulting Unit (FSCU) before finalizing the contract. The request must be submitted according to SAM section 7040 and include the following information:

1. Justification for the fiscal agent.
2. Name and location of the fiscal agent.
3. Description of all functions to be performed by the fiscal agent.
4. Description of the internal control procedures between the state agency/department and the fiscal agent.

Fiscal agents may maintain separate bank or savings and loan association accounts for any money under its control. Those accounts will follow the same approval procedures and reporting requirements for accounts outside the Centralized State Treasury System, as defined in SAM sections 8002 and 7975.