Bank Account and Investment Account Restrictions
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.
This Administrative Policy Statement (APS) focuses on restrictions to Bank AccountsBank accountsSee Sction III. Definitions and Investment AccountsInvestment accountsSee Sction III. Definitions 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 FundsUniversity fundsAll funds appropriated, generated, awarded, donated or otherwise received by the University regardless of their source. With the exception of University Physicians Incorporated (UPI) funds, the term University Funds does not include Agency Funds (Fund 80) that the University maintains for legally separate External Student Organizations or other entities. 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 into the University Treasury. 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.
Italicized terms used in this APS are defined in the APS Glossary of Terms or are defined in this policy.
- 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.
- Investment Account: An account at a financial institution or brokerage into which funds are placed with the expectation of future earnings.
- Public Funds: Funds as defined in C.R.S. § 11-10.5-111.
IV. Related Policies, Procedures, Other Resources and FAQs
- Related Policies:
- Accounting Handbook: Cash Control
- Accounting Handbook: Gift/Charitable Contribution Processing
- 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.
- Other Resources
- University Treasurer’s Office at (303) 837-2182
- 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.
- Adopted: March 19, 1981.
- Revised: January 1, 2012; January 31, 2018 (Cleanup); March 1, 2022 (changes made to section IV.C removing the Credit Card Checklist).
- Last Reviewed: 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