Understanding Fiscal Agency
A fiscal agent works with a nonprofit organization and agrees to oversee and in other instances manage grant funds on behalf of that agency. Ordinarily the lead applicant for a grant would receive the funds directly, especially if that applicant has demonstrated sufficient capacity, firstly to meet the contractual obligation and requirement, secondly to manage the resources. When that is not the case the fiscal agent serves to administer and protect the grant funds to further the nonprofit agency’s mission.
Significant Role of the Fiscal Agent
The primary duty of a fiscal agent is to promote the mission of the agency by protecting its accounts and controlling the outlays of its funds. Some of the agent’s tasks include the coordination of hiring practices, disbursement of travel expenses for agency personnel and reconciliation of regular budget reports. The agent must also prepare any documents requested by the agency responsible for granting the funds to ensure they are used in accordance with the grant’s requirements.