University Policy 3-4 Banking Policy – Has Changed

University Policy 3-4 Banking Policy – Has Changed

(Policy Approved by Board of Trustees January 14, 2008 and Effective Same Date)

The University’s banking policy was updated with changes effective January 14, 2008. Highlights of key elements of the policy and significant changes from the prior policy follow. Business officers and those responsible for receiving funds on behalf of the University should read this summary and the new policy closely to see how they are affected.

  • Three day rule. Language has been added that requires all University funds be deposited within three banking days. This not only represents a good business practice to minimize loss of funds, it also increases the University’s ability to invest funds as required by state law.
  • Prohibition on use of University’s name and taxpayer ID. Section III.B.2 was added prohibiting the use of the University’s taxpayer identification number and/or name on bank accounts not properly authorized per this policy.
  • Prohibition against unauthorized bank accounts. Section III.B.3 was added prohibiting the conduct of University business outside of authorized bank accounts. Both this item, and the one immediately before, were added as a result of an Internal Audit on unauthorized bank accounts.
  • Responsibility for merchant services. Section III.E was clarified to assign responsibility for merchant card processes to Income Accounting.
  • Responsibility for e-check services. Section III.F was added to reflect the increased use of electronic checks (e-checks) by University customers).
  • Banking services. Numerous other changes were made to update language related to the selection and retention of the University’s bank and affect only a limited number of staff at the University. Readers wishing additional information regarding these section should consult the policy.

Questions should be directed to either the Investments Office or the Controller’s Office.

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