| Policy Title | University Bank Accounts Policy |
|---|---|
| Policy Category | Financial Policies |
| Original Policy Approval Date | November 5, 2018 |
| Policies Superseded | None |
| Responsible Office | Finance |
| Related Policies | None |
| Frequency of Review | 5 Years |
| Date of Next Review | April 2030 |
I. Scope
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.
III. Policy
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 AVP for Finance, University Controller. A University bank account may not be opened unless it is authorized by the Vice President for Finance and Administration. Requests to close University bank accounts must be submitted in writing to the AVP for Finance, University Controller and approved by the Vice President for Finance and Administration.
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. All must be authorized as signers by the Arcadia University Board of Trustees.
Online banking system user access and levels of transactions and reporting access must be approved by the University Controller.
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 AVP for Finance, University Controller and the Vice President for Finance and Administration are the responsible officials for 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 should be directed to the AVP for Finance, University Controller.
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
