FISCAL AGENT - 8002.1-DEC-2013
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 unusual conditions exist requiring the use of fiscal agents, requests for approval should be submitted to the Department of Finance (Finance), Fiscal Systems and Consulting Unit (FSCU) prior to finalizing the contract. All requests shall 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 state department and the fiscal agent.
The fiscal agent may maintain separate bank or savings and loan association accounts for any money under its control. The same approval procedures and reporting requirements apply as to any account outside the centralized State Treasury System. See SAM sections 8002 and 7975.
Information on how to obtain FSCU approval can be found on the Finance website at: http://www.dof.ca.gov/Accounting/FSCU/FSCU_FAQs/.