Fayetteville Policies and Procedures  332.1 

Agent Advance

Overview

This policy describes the purpose and permissible uses of agent advances, the procedures for establishing agent accounts and processing agent advances, and related reporting requirements. 

Definitions

An Agent Advance is a cash disbursement provided in advance to a university employee who has been authorized to act as a paying agent on behalf of the institution. Agent Advances may be used for specific university-related expenses that cannot be processed through conventional purchasing methods. Typical uses include cash payments to research study participants, on-site project supplies for fieldwork, or transactions in locations where credit card processing or established vendor systems are unavailable. An Agent Account refers to the funds advanced to the employee, for which the employee assumes full responsibility. The agent is accountable for managing, documenting, and reconciling all expenditures made from the account in accordance with university financial policies.

An Agent Agreement formally authorizes the employee to serve as a university agent for financial disbursements. It outlines the employee’s responsibilities for safeguarding and appropriately using university funds, and affirms their understanding of compliance requirements as defined in Fayetteville Policy and Procedure 332.1.

The process for establishing an agent account, obtaining and expending agent advances, and reporting on such activities is as follows. Each of the required forms may be found under policy documents herein on the Fayetteville Policies and Procedures website. Forms must include the required electronic or original signatures.

Establishing an Agent Account

An employee must sign an Agent Agreement form before receiving access to an agent account. This form supplies the necessary agent information and includes the terms of the advance. In order to remain eligible to receive an agent advance, each active agent must sign an agreement form each 12-month period. The Agent Agreement does not constitute a contract of employment, either express or implied. The University—at its sole discretion—may change the information in the Agent Agreement without notice at any time. In addition, the Agent Agreement is not an offer of employment for a term
certain and shall not create an expectation of continued employment for a specific term. The employment of employees who enter Agent Agreements remains at will, meaning they can be terminated at any time, for any reason, except for a reason prohibited by law.

Requesting an Agent Advance

Submit the completed Agent Request for Advance form to the Controller’s Office. Requests must be submitted at least five working days prior to the activity. Reconciliation and submission of an expenditure report is based on the activity dates. If the agent advance needs to be extended, the original agent advance will need to be closed and a new agent advance created. The dates of activity cannot exceed twelve months. If the activity does exceed twelve months, separate agent advance requests should be submitted for each period of time exceeding twelve months. The previous agent advance should be reconciled and closed prior to the subsequent agent advance request.

The agent is deemed to be personally responsible to the University for the amount of the advance until such time as the money is returned and/or the Controller’s Office receives an acceptable Expenditure Report.

Completion/Submission of an Expenditure Report

The agent must file the final Expenditure Report with the Controller’s Office no later than thirty days after the completion of the approved activity. For activity spanning two calendar years, an interim Expenditure Report must be filed by the last working day in December. For activity spanning two fiscal years, an interim Expenditure Report must be filed by the last working day in June.

Return of Excess Funds

In the event that the agent advance was greater than the incurred expense total, the agent will be invoiced for and shall return the excess.

Participant Payments

If the agent provides cash payments to participants for research or other purposes, the agent should utilize the Participant Payment form, which itemizes the information necessary for tax compliance. Two options to this form are posted for agent convenience. Alternative presentations of or exceptions to this form must by approved by the Controller's Office prior to the agent activity.

Incomplete Expenditure Reports

The agent will be contacted and must provide the additional information required if an Expenditure Report is incomplete or if the information is not sufficient to make proper accounting determinations.

Canceled Activity

Departments should promptly notify the Controller’s Office of a canceledactivity. In the event an activity is canceled, the agent will be invoiced for the amount of the unspent advance.

Payroll Deduction

The University of Arkansas is authorized to withhold the full amount of any past due advance from any payment(s) due the agent, including payroll disbursements. If such a deduction occurs twice within a twenty-four month period, the employee will not be eligible for agent advances for the next twenty-four month period.

Record Retention

Prior to the Workday implementation, agent records are maintained for approximately 10 years. Post Workday implementation, all required documentation should be included with the Agent Advance request and related expense report. Records are reviewed for tax compliance.

Exceptions

Any exceptions to any provisions of this policy must be submitted to Financial Affairs for approval. For cash advances needed when in travel status click here to see Travel Office's Policy on Travel Advances

Revised December 15, 2025
Revised May 8, 2017
Reformatted for Web May 28, 2014
Revised August 18, 2010
February 14, 2005