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 before finalizing the contract. The agency/department must submit the request according to SAM Section 7040 and include the following information:

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

Agencies/Departments working with fiscal agents may maintain separate bank, savings and loan association, or credit union accounts for any money under the fiscal agents’ control. Those accounts must be established under the agency/department’s name and Federal Employer Identification Number. The agencies/departments shall ensure collateralization requirements are continually adhered to, in accordance with the law.

The accounts will follow the same approval procedures and reporting requirements for accounts outside the centralized State Treasury System (CTS). For information on accounts outside the CTS, see SAM Sections 8002 and 7975.