Agency Fund Accounting

Agency fund accounting is a specific way of tracking financial resources that an organization holds on behalf of others, without any ownership interest. In this context, the organization acts as an agent to manage these funds, ensuring they are used according to the specified agreements or purposes. This type of accounting focuses on accountability and transparency, recording receipts, disbursements, and the balance of these funds. It is commonly used by governments, non-profits, and educational institutions to manage resources like scholarships or trust funds, ensuring proper handling and reporting of the money they do not own.