Business Procedures Manual

Fiscal Affairs Division

14.6 Accounting For Custodial Funds

(Last Modified on July 1, 2019)

In accordance with the implementation of GASB Statement No. 84, Fiduciary Activities, custodial funds are replacing the activity traditionally reported as agency funds. In addition to the change in nomenclature, there is significant changes in accounting and reporting. Custodial Funds are to be reported as part of Fiduciary Activities financial statements, which will include the following:

  • Statement of Fiduciary Net Position 鈥 full accrual basis financial statements that show all of the assets and liabilities of the institution鈥檚 fiduciary activities;
  • Statement of Changes in Fiduciary Net Position 鈥 reports additions, deductions and reflects how fiduciary net position has changed during the year under review.

Unique department and/or project ID鈥檚 will be required for each custodial fund in order to accurately track the transactions by fund. Department or project ID鈥檚 will be required for all transactions.

Custodial fund additions will be reported in the general ledger using account range 4961xx to 4964xx. Custodial fund disbursements will be reported in the general ledger using account range 7961xx to 7964xx. Fiduciary net position will be reported in account 396000.

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