|Policy Title||University Bank Accounts|
|Policy Category||Financial Policies|
|Original Policy Approval Date||November 5, 2018|
|Frequency of Review||Three years|
|Date of Next Review||November 5, 2021|
|Date of Revision|
This University Bank Accounts Policy (“Policy”) applies to all faculty and staff who are authorized to open bank accounts on behalf of Arcadia University (“University”) and governs all University bank accounts used for operational purposes both in the United States and internationally. The establishment and maintenance of bank accounts for investment related activity, debt service, real estate property management, and escrow accounts are not covered in this Policy and may be subject to separate policies.
II. Policy Statement
The purpose of this Policy is to ensure that the University maintains adequate control and stewardship over its funds by creating a formal process for establishing and maintaining University bank accounts. All operating bank accounts containing University funds must be properly authorized in accordance with this Policy. Bank accounts and related activity must be recorded in the University’s official accounting records and reconciled to bank statements.
A bank account owned by or containing funds belonging to the University may only be opened or maintained with the knowledge and written approval of the University Controller for domestic accounts or the Controller for The College of Global Studies (TCGS) for international accounts. A University bank account may not be opened unless it is authorized by the Vice President for Finance and Administration for domestic accounts or the Vice President for TCGS for international accounts. Requests to close University bank accounts must be submitted in writing to the University Controller for domestic accounts or the Controller for TCGS for international accounts and approved by the Vice President for Finance and Administration, or the Vice President for TCGS, as applicable.
A. Authorized Signatory Officers for ACH’s, Wire Transfers, and Checks
The only signatories for Automated Clearing House’s (ACH), wire transfers, and checks drawn on the University’s general operating bank accounts are the Vice President for Finance and Administration, and the University Controller for domestic accounts or the Vice President of TCGS, the Chief Operating Officer of TCGS, and the Controller for TCGS for international accounts. All must be authorized as signers by the Arcadia University Finance Committee of the Board of Trustees.
United States citizens or aliens admitted for permanent residency with signing authority over an international bank account are required to file a personal Foreign Bank Account Report (FBAR) as part of their personal income tax filings with the Internal Revenue Services. Official information regarding FBAR can be found on the IRS website. TCGS will provide the form completed with accurate bank information. It is the individual’s responsibility to report their US citizenship status to TCGS and file the form according to US tax laws.
Online banking system user access and levels of transactions and reporting access must be approved by the University Controller or the Controller for TCGS for international accounts.
B. Recording Bank Accounts and Related Activity on the General Ledger
All University bank accounts must be recorded on the University’s general ledger immediately upon the establishment of such accounts. Activity related to University bank accounts, including deposits, disbursements, transfers to other accounts, and other transactions, should be recorded in the University’s official accounting records during each monthly close.
C. Administration of University Bank Accounts
Both the University Controller and the Controller for TCGS are the responsible officials for their respective University bank accounts for the purpose of ensuring compliance with University internal control procedures, including, but not limited to:
- timely reconciliation of bank accounts;
- adequate segregation of duties regarding the administration of the accounts;
- monitoring the continued need or appropriate structure for such accounts;
- Maintaining current and formal documentation which sets forth the authorization of bank accounts, signatures, and other relevant correspondence and documentation; and
- other management requirements as appropriate.
Individuals assigned by the responsible official to reconcile the account shall not be the same individuals who are authorized to sign checks or approve wire transfers or ACH’s. A comprehensive reconciliation of all bank accounts must be performed monthly. All matters regarding banking services and relations for domestic accounts should be directed to the University Controller and all banking services and relations for international accounts should be directed to the Controller for TCGS.
IV. Effective Date
The Effective Date of this Policy is the date that it is signed by the President.
V. Date of Approval
November 5, 2018