Home : Financial : Cash Management and Investments

The University Treasurer allows departmental bank accounts to be utilized when they will provide departments with a means for disbursing funds for unique, unusual and atypical expenses. Sometimes this may be necessary in a country outside the United States.

All activities related to the use of a University of Minnesota financial institution account is the sole responsibility of the Treasurer. University departments and staff are not authorized to open or close any such accounts. Financial accounts are defined as follows: banking to include checking, savings, depository, money market, certificates of deposit, zero balance, control disbursement, etc.) Use of the Regents of the University of Minnesota's name or any derivative thereof as well as the use of the University's tax identification number is strictly limited and requires approval by the Treasurer for such purposes. The Office of Investment & Banking is responsible on behalf of the Treasurer for oversight of all financial institutional accounts. Requests for access to a financial account (i.e. bank account) must be submitted to the Office of Investment and Banking.

Individual bank accounts do not replace the current central disbursement process, but give flexibility to departments when the central disbursement process cannot meet special expenditure needs. All expenses that are not unique in nature and do not require immediate payment are required to be issued centrally through the AP system and mailed to the recipient. The Office of Investment & Banking will work with a department to determine whether an account is appropriate and what services are required (i.e. positive pay) in order to best protect the University's assets and meet financial reporting requirements.

In some cases, payments made outside the normal AP process may provide a more secure means for protecting the identity of human subject patients used in research projects. Access for research purposes is evaluated on a case by case basis and requires completion of a checkbook screening questionnaire.

When expenses are paid centrally they follow normal procedures for proper recording and tracking of expenses in the Universities general ledger. Centrally recorded expenses are easier to identify and track for departments and central accounting, as well as easier to report for escheatment purposes.

Using the central disbursement process provides the best methods for the University to meet federal 1099 reporting responsibilities and internal controls to protect the University's assets against fraudulent activity and fulfill fiduciary responsibilities.

Use of departmental bank accounts are granted only when the benefits of using them outweigh the advantages of using the central disbursement process.

Some of these procedures (marked as TBD) are still under revision to take into account the use of the Enterprise Financial System (EFS). Please contact Stacy Hebdon for more information at 612-624-5858 or s-hebd@umn.edu. See also the procedures supporting the Administrative Policies listed in Related Information.

• Utilizing a University of Minnesota Bank Account
• Maintaining a University of Minnesota Bank Account
• Discontinuing Use of a University of Minnesota Bank Account
• Opening an International Bank Account
• Maintaining an International Bank Account TBD
• Closing an International Bank Account

• Questions for Screening Potential Checkbook Holders (email Treasury Accounting at kraem046@umn.edu)
• Request for Authorized Access to the ZBA Account (contact Office of Investment and Banking)
• Check Copy or Stop Payment Request

Subject	Contact	Phone	Fax/Email
Primary Contacts	Stacy L Hebdon Warren Skallman	612-624-5858 612-624-5061	s-hebd@umn.edu skall008@umn.edu
Bank Accounts	Stacy Hebdon	612-624-5858	s-hebd@umn.edu
Policy Questions	Policy Helpline	612-626-1462
General Ledger	Treasury Accounting	612-624-8514

Unique, Unusual, or Atypical Expenses

Expenses that cannot be paid using the normal university purchasing options such as a purchasing card or the centralized AP system. Using the normal purchasing options would significantly diminish the University department from meeting its objectives or University mission or significantly increase risks or costs to the University. Examples include payments for research subjects and some international projects. Payments of a reoccurring nature such as utility, telephone or internet charges do NOT constitute unique.

Reconciliation

The process of comparing information that exists in two systems or locations, analyzing differences and making corrections so that the information is accurate, complete and consistent in both systems or locations. For financial reporting purposes, the process includes comparing the local unit's record of financial information to the general ledger.

Official U Bank Account Requirements

All official accounts of the University must be approved, opened and accessible to the University Treasurer and reflect the University's federal tax identification number. The title "Regents of the University of Minnesota must be in the title and the University Treasurer must be listed as an authorized signer. The account may only contain University funds. The account cannot be used for personal gain is subject to all University policies and must remain under the control of the University Treasurer. The Office of Investments & Banking is responsible on behalf of the Treasurer for all University bank accounts.

Department

Complete routine maintenance to include maintain an accurate check register, monthly reconciliations, recording general ledger activity. Notify The Office of Investments & Banking of personnel changes, contact information, update authorized signers and account documentation as necessary. Perform required escheatment related activity. Complete all requests and documentation required by the Office of Investment & Banking and Accounting Services. In some cases departments will be required to pay for the costs of the additional banking services.

Office of Investments and Banking

Administer and oversee all University bank accounts. Open, maintain, and close bank accounts. Assist departments with bank account maintenance and track department's compliance with their duties. Final approval of use of University bank accounts. Maintain all documentation and authorized signers for all university bank accounts.

Treasury Accounting

Approve use of University departmental bank accounts and assign location numbers for users. Reconcile monthly bank activity. Work with departments regarding the escheatment process. Monitor, track, and document department's compliance with required duties. Assist departments with bank account maintenance. Allocate bank fees if necessary. Submit necessary reports to state and federal authorities.

Office of General Counsel

Review all domestic and international bank account contracts.

• Exhibit A - Check register template example
• Exhibit C - Check copy or stop payment request
• Exhibit E - ZBA Checkbook Unclaimed Property/Escheating Review Process Memo

There is no FAQ for this policy.

• Presidents Delegation Matrix FN 26

Amended:

July 2008 - Updated for Enterprise Financial System.

Amended:

April 2007 - Clarified definitions and responsibilities.

Amended:

May 2006 - Added Exhibits A through H as appendices. Added instructions for getting the "Request for Authorized Access to the ZBA Account" form from OAM.

Effective:

December 2005

Supercedes:

Zero Balances and Permanent Advances Financial Policy

To obtain a copy of a historical policy, e-mail the U Policy Librarian at policy@umn.edu or call 612-624-4372.