Fiscal Agent Accounting Treatment
Fiscal Agent Accounting Treatment
The fiscal agent may be a recipient of the program under the arrangement (i.e. a participating district) or
can administer the arrangement and not receive program revenues (a non-participating district with or
without administrative responsibilities).
Fiscal Agent as a Participating District
The district receives the specified funds and disburses such funds in accordance with the outside
entity’s approval. The district is one of the grant recipients and their district is involved in defining the
program and is involved in any program decisions over the allocation or expenditures of such funds at
their district.
 Accounting Treatment:
All money received by this district should be recognized as revenue and expenditures in
the fund financial statements. See Chapter 7 Section 9 Scenario 1.
Fiscal Agent as a Non-Participating District with Administrative Responsibilities
A district that enters into an agreement with another entity to administer the entity’s specific grant
funds, as prescribed by the grantor. The district receives the specified funds and disburses such
funds in accordance with the outside entity’s approval. The district is not one of the grant recipients,
but is responsible for grant compliance.
 Accounting Treatment
All money received by this district should be recognized as revenue and expenditures in
the fund financial statements. See chapter 7 Section 9 Scenario 2.
Fiscal Agent as a Non-Participating District with No Administrative Responsibilities (Cash
Conduit Only)
The district does not have administrative responsibilities, but does receive the specified funds, and
disburse such funds in accordance with the outside entity’s approval. The district is not one of the
grant recipients, is not involved in defining the program, and is not involved in any program decisions
over the allocation or expenditures of such funds at their district.
 Accounting Treatment
Infrequent cases, such as this, in which a recipient entity serves only as a cash conduit, the
funds should be reported in the agency fund (fund 7). A recipient government serves only
as a cash conduit if it merely transmits grantor-supplied moneys without having administrative
or direct financial or programmatic involvement in the program. See Chapter 7 Section 9
Scenario 3.
Fiscal Agent as a Participating District and On Behalf Payments
This is the same as the Fiscal Agent as a Participating District, but the fiscal agent purchases
services or equipment for themselves and/or the sub-recipients of the program (or on behalf of the
other district) in addition to the fiscal agent responsibilities. Purchases are made in accordance to the
agreement and the program requirements.

Accounting Treatment:
All money received by this District should be recognized as revenue and expenditures
in the fund financial statements. See Chapter 7 Section 9 Scenario 4
Page 1 of 6
Fiscal Agent Accounting Treatment
Shared Service Arrangements with Fiscal Agent Responsibilities
Background for All Scenarios
School District’s A, B and C have agreed to participate in a shared service arrangement for a federal
grant that requires one of the Districts to be a fiscal agent. The three districts have signed an interlocal
agreement, applied and have been awarded the grant. The following four examples are intended to
illustrate typical journal entries for each type of fiscal agent arrangement situations that may occur.
Note: Revenue codes for federal funds would be as follows:
 61XX are for federal revenues that come to the district though OSPI.
 62XX are for federal revenues that come to the district directly from a federal agency.
 63XX are for federal revenues that come to the district indirectly through a Non-federal agency,
such as the fiscal agent.
Also note in this example that when the fiscal agent accounts for the funds in an agency fund, the subrecipient of these funds would not code a 63XX, but a 62XX, (see scenario 3).
Scenario 1 – Fiscal Agent as a Participating District
School District A is administering the grant and has monitoring responsibilities for School District’s B & C.
All school districts are benefiting from this grant; therefore, School District A is a Participating Fiscal
Agent. After all three school districts have expended funds in accordance to the grant purposes; B & C
have requested reimbursement from A of $300 each. School District A has requested reimbursement
from the federal agency of $300 also, $900 total. The journal entries are as follows:
School District A, B & C – Accounted for in the General Fund
General
Ledger
Code
Account Description
Dr
Cr
1) School District A, B and C expend $300 each for grant purposes and make the following
journal entry:
530
Expenditures
300
241
Warrants Outstanding
300
To recognize grant expenditures.
School District A – Accounted for in the General Fund
1) When the fiscal agent, School District A, receives B & C’s claim for expenditure
reimbursement, School District A makes the following journal entry:
530
Expenditures
600
601
Accounts Payable (630 Due to other governments at year
end for accrual districts.)
600
To record B & C’s grant expenditures
2)
a)
Upon receipt of the grant proceeds, School District A makes the following journal entries:
240
Cash on deposit with county treasurer
900
960
Revenues
900
To record receipt of grant proceeds
b)
601
241
Accounts Payable (630 Due to other governments at year
end for accrual basis districts.)
Warrants outstanding
600
600
To disburse grant proceeds to School District B and C
Page 2 of 6
Fiscal Agent Accounting Treatment
School District B and/or C – Accounted for in the General Fund
General
Ledger
Code
Account Description
Dr
Cr
1) School District B and/or C receive grant proceeds from the fiscal agent, School District A,
and make the following journal entry:
240
960
Cash on deposit with county treasurer
Revenues
300
300
To record receipt of grant proceeds
Page 3 of 6
Fiscal Agent Accounting Treatment
Scenario 2 – Fiscal Agent as a Non-Participating District with Administrative Responsibilities
School District A has agreed to be the fiscal agent and based on the grant agreement School District A
has administering and monitoring responsibilities for the grant. School District A is not benefiting from the
grant with the exception of receiving a $100 administrative fee. The administrative fee is reimbursable
from the grant proceeds.
Prior to School District A receiving reimbursement, they first bill the $50 administration fee to School
District B & C.
 For this scenario, we will assume that School District B & C have already paid School District A
the administrative fee and have submitted their reimbursement requests totaling $900 to School
District A, ($400 in grant expenditures and $50 administrative fee for each participating school
district).
 The following are the journal entries:
School District A – Accounted for in the General Fund
General
Ledger
Code
Account Description
Dr
Cr
1)
When the fiscal agent gets B & C’s claim for expenditure reimbursement. School District A
makes the following journal entry:
530
Expenditures
900
601
Accounts Payable (630 Due to other governments at year
900
end for accrual type districts.)
To recognize grant expenditures and set up the payable to
district’s B & C.
2)
a)
Upon receipt of the grant proceeds, School District A makes the following journal entries:
240
Cash on deposit with County Treasurer
900
960
Revenues
900
To record receipt of grant proceeds
b)
601
241
Accounts Payable (630 Due to other governments at year
end for accrual type districts)
Warrants Outstanding
900
900
To disburse the grant proceeds to School District B & C
School District B and/or C – Accounted for in the General Fund
General
Ledger
Code
Account Description
Dr
Cr
1) School District B and/or C receives the grant proceeds from A and makes the following journal
entry:
240
Cash on deposit with county treasurer
450
960
Revenues (Since this is a federal grant and it was received from A,
450
this revenue should be coded to 63XX)
To record receipt of grant proceeds
Page 4 of 6
Fiscal Agent Accounting Treatment
Scenario 3 –Fiscal Agent as a Non-Participating District with No Administrative Responsibilities
(Cash Conduit Only)
School District’s B and C are the beneficiaries of this grant; however, to be eligible for the grant they must
have a fiscal agent. School District A agrees to be the fiscal agent with no administrative responsibilities.
School District A is not receiving an administration fee, they are simply acting as a cash conduit for
School District’s B and C. School District A will report the grant proceeds in the Agency Fund (Fund 7).
School Districts B and C have expended funds according to the grant agreement and have requested
reimbursement through School District A. When A receives the grant reimbursement from the grantor,
the journal entries would be as follows:
School District A – Accounted for in the Agency Fund
General
Ledger
Account
Account Description
Dr
1) When School District A receives money from the grantor for School Districts B and C, the
following entry is made:
968
Non-operating Revenues
900
538
Non-operating Expenses
Cr
900
To record receipt of grant proceeds
2)
School District A then disburses the funds to school district B and C. The following journal entry
is made:
538
Non-operating Expenses
900
968
Non-operating Revenues
900
To record the disbursements of grant proceeds to districts B
&C
School District B or C – Accounted for in the General Fund
General
Ledger
Account
Account Description
Dr
Cr
1) School District B and/or C will make the following journal entry when they receive the funds from
the fiscal agent (School District A):
240
Cash on deposit with county treasurer
450
960
Revenues (Since School District A was merely a cash
450
conduit this direct federal grant should be coded to the 62xx
revenue code)
To record receipt of grant proceeds
Page 5 of 6
Fiscal Agent Accounting Treatment
Scenario 4 –Fiscal Agent as a Participating District with Administrative Responsibilities and On
Behalf Payments
School District A is administering the grant, which includes purchasing items which will be used by all
three of the school districts. School district B and C will not be getting any of the cash funds but rather
will be provided with the resources (equipment, etc.) provided under the intent of the grant. The journal
entries for purchasing the equipment and receiving the grant proceeds would be as follows:
School District A – Accounted for in the General Fund
General
Ledger
Code
Account Description
Dr
Cr
1) School District A purchases equipment for themselves as well as School Districts B and C.
School District A makes the following journal entry:
530
Expenditures
900
241
Warrants Outstanding
900
To record the purchase of equipment
2)
After purchasing the equipment, A requests reimbursement from the grantor. When the grant
proceeds are received the following journal entry would be made:
240
Cash on deposit with county treasurer
900
960
Revenues
900
To record receipt of grant proceeds
School District B and/or C – Accounted for in the General Fund
General
Ledger
Code
Account Description
Dr
Cr
1) School District B and C receive the equipment from School District A. The following journal entry
is made:
530
Expenditure
300
960
Revenues
300
To reflect the equipment purchased by school district A with
grant proceeds on behalf of school district B or C
Page 6 of 6