281—98.101 (298A) Agency funds. Agency funds are used to account for funds that are held in a custodial capacity by the school district for individuals, private organizations, or other governments. Agency funds may include moneys collected for another government, a grant consortium when the school district serves as fiscal agent for the other school districts but has no managerial responsibilities, or funds for a teacher or a parent-teacher organization which has its own federal identification number (FIN). In an agency fund, the school district or area education agency merely renders a service as a custodian of the assets for the organization owning the assets and the school district or area education agency is not an owner. Agency funds typically involve only the receipt, temporary investment and remittance of assets to their rightful owners.
	   98.101(1) Sources of receipts in agency funds. Sources of receipts in the agency funds include temporary receipts of cash, investment instruments, property, and interest on investments held.
	   98.101(2) Appropriate uses of agency funds. Appropriate disbursements from an agency fund depend on the nature of the rightful owners’ conditions or the responsibilities of the custodian. Typically, disbursement will involve remittance of assets to their rightful owners or to a third party on behalf and at the request of the rightful owners. The school district cannot disburse more funds at any point in time than it has received from the rightful owner.
	   98.101(3) Inappropriate uses of agency funds. Inappropriate disbursements from agency funds include any disbursement which is not consistent with the terms of the agreement, not legal to a school district, or that exceeds the amount of funds that have been received from the rightful owner or on behalf of the rightful owner.
[ARC 8054B, IAB 8/26/09, effective 9/30/09]