APS 4004 - Bank Account and Investment Account Restrictions

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Policy Profile

Policy Title: Bank Account and Investment Account Restrictions 
APS Number: 4004
Effective: January 1, 2012
Approved by: President Bruce D. Benson
Responsible University Officer: University Treasurer
Responsible Office: Treasurer’s Office
Policy Contact: Treasurer’s Office, (303) 837-2181
Supersedes: Bank Accounts and Investments, March 19, 1981
Last Reviewed/Updated: January 1, 2012
Applies to: Faculty, staff and students who deal with University Funds

Policy Snapshot

Brief Description: Identifies the Treasurer as the sole officer authorized to open and maintain bank, custody, broker, and safekeeping accounts on behalf of the university which are not specifically authorized by the Board of Regents.

Reason for Policy: To comply with C.R.S. 11-10.5-111, Regent Law 13.B.3 and 15.A.2.

I.  Introduction

This APS focuses on restrictions to Bank Accounts and Investment Accounts that prevent adverse tax and legal consequences for the university, donors and event sponsors.

The university’s name has at times been associated with bank accounts, activities, fundraising events, and social events that are neither official nor sanctioned by the Board of Regents or university administration.  In such situations where funds are involved, there can be adverse tax and legal consequences for donors as well as confusion about event sponsorship among the university’s constituencies.  More recently, the increasing role of the Internet, e-commerce, and credit card payments can result in University Funds being directed to unapproved bank accounts.  This APS focuses on restrictions related to bank and investment accounts that will both protect University Funds and the university’s reputation.

II.  Policy Statement

All Bank Accounts and Investment Accounts that hold Public Funds of the university must be authorized by the Treasurer or the Board of Regents.  University Funds are Public Funds and shall be deposited or electronically directed, in accordance with Fiscal Procedures Statement: Cash Control, Section C. – “Deposits”, into the University Treasury or into accounts at financial institutions in the university’s name that are authorized by the Board of Regents or the Treasurer.  Similarly, University Funds shall only be invested as authorized by the Board of Regents or the Treasurer.  Bank Accounts, into which any University Funds including credit card receipts settle electronically, shall have been approved in advance by the University Treasurer.  Faculty, staff and students wishing to open Bank Accounts and Investment Accounts with non-university funds shall ensure that the financial institutions and brokers holding these non-university funds and the public can distinguish between these accounts and those authorized by the Treasurer or the Board of Regents.  In addition, these non-university funds cannot be identified with the university’s Taxpayer Identification Number (TIN) nor can the account be titled in the university’s name.

III.  Definitions

  1. Bank Account: A demand deposit or savings account at a financial institution to which funds may be deposited or from which funds may be drawn.  
  2. Investment Account: An account at a financial institution or brokerage into which funds are placed with the expectation of future earnings.  
  3. Public Funds: Funds as defined in C.R.S. 11-10.5-111.

IV.  Related Policies, Procedures, Forms, Guidelines and Other Resources

  1. Administrative Policy Statements (APS) and Other Policies:  Board of Regents Policy 13.A.
  2. Procedures  Fiscal Procedures Statement: Cash Control C. Deposits; Faculty, staff and students wishing to open Bank Accounts and Investment Accounts with University Funds must first work with their campus Finance Office and the Treasurer’s Office to establish such accounts.
  3. Guidelines: Credit Card Guide 
  4. Other Resources:
    1. Credit Card Checklist
    2. University Treasurer’s Office at (303) 837-2182
  5. Frequently Asked Questions (FAQs) 
    • Q: How can I tell if the funds in an affiliated organization that I am responsible for are University Funds? 

      A: Ask for a review by campus controller. 
       
    • Q: May I open a bank or investment account and use the university’s tax ID?

      A: No, except in rare cases, and in those, the University Treasurer must be involved. 
       
    • Q: My department wants to establish e-commerce as a means of increasing its resources.  Where do I start?

      A: Begin by contacting the Treasurer’s Office at (303) 837-2182.

V.  History

  • Initial policy approved on March 19, 1981
  • Revised January 1, 2012

VI.  Key Words

cash, funds, bank, checking, savings, investment, brokerage, merchant, credit card, university funds, public funds, cash control, deposits, student bank account