Policies

Treasury Standard Practice Guide references

Treasury policies

ATM/CDM installations

The university allows the installation of automated teller machines (ATM) or cash dispensing machines (CDM) on its Ann Arbor, Dearborn and Flint campuses. The primary purpose for the installation of these machines is to benefit the student, faculty and staff populations having cash needs.

All activities related to the installation and operation of any ATM or CDM shall be the sole responsibility of the Treasurer’s Office. University units and their staff should not coordinate directly with any financial institution regarding the installation of any ATM or CDM except as authorized in writing by the Treasurer.

If you have any questions, please contact the Treasurer’s Office at (734) 763-1299.

 

TREASURER’S OFFICE

POLICY ON BANKING OPERATIONS, ACCOUNTS AND ASSOCIATED FEES

(Internal Bank approval 2/22/06, rev 11/1/11)

  

The University maintains a centralized management approach for all of its Treasury Services.  The Treasurer’s Office is responsible for the optimization of cash flow and security of all funds collected, managed, and disbursed by the University.  All banking and treasury services are approved by the Treasurer’s Office (SPG 519.01).   This arrangement is beneficial to units in the following:

  • Institutional monitoring/oversight of the account to reduce cost and risk
  • Tax benefits of any charitable contributions
  • Treasurer and EVPFO as authorized signers help assure University access to funds

This central management approach also has the ability to leverage banking services based on volume and consistency of process.   The risk of fraud (hacking into UM accounts) is also reduced due to corporate account features applied to UM accounts.   Standard features include: 

  • Disbursement accounts will have positive pay capabilities to reduce risk.
  • Controlled disbursement will be used when applicable to maximize cash position.
  • Account features will be required to maximize cash positioning, reporting, analysis and minimize risk.  These features include but are not limited to Account Reconciliation, Zero Balance Accounts, and Web reporting.
  • Secure transportation and/or transmission to/from bank (armored car or insured carrier, bank file encryption)

These principles will be incorporated into the University’s banking structure and most costs absorbed centrally.  Fees associated with special requested collecting methods (lockbox, credit card, courier), disbursement (special checking accounts) and/or Electronic Funds Transfers (wires, ACH) are charged directly to the unit receiving the benefit The following are estimates of the type of service and cost[1]

  • Lock Box Fees
    • Account Maintenance, Imaging ($200/mo)
    • Per item charges (vary depending on services < $1 to $25)
  • Credit Card Fees (Transaction Fee 2-3%, Equipment Purchase $500)
  • Special Checking Account Fees (Est. $200/month + volume) 

    • General Account Services ($120/Mo)
    • Per item depository services ($ .10/transaction)
    • Disbursement Services (Per item checks, imaging, positive pay ($1.60 per item), Stop Payments ($10-$25/item)
    • Reconciliation Services ($80/mo + .10/item)
    • Reporting Services ($40/month)
  • Insured courier service - $10 local pickup (Metro delivery)
  • Endorsement stamps $7
  • Deposit bags & tickets $20/200 

The result should be the highest services, and security for an appropriate price. In doing so, a framework of best practices and internal controls in cash management are incorporated into the establishment of bank accounts, features and the related services.  

International Treasury Transactions
 

There are specific challenges in dealing with International Treasury transactions that University Units should be aware of.  The University has established banking relationships in order to deal with these unique circumstances.  

  • Obtaining funds before traveling internationally
    • Pcard
    • Imprest Cash Fund
    • Travel Advances
  • Transferring funds
    • IAT Compliance
    • OFAC
  • Opening Foreign Bank Accounts

The establishment of Bank Accounts in a foreign country is often a difficult and complex endeavor.  Before a department requests the establishment of a foreign account, the following should be considered:

  • It is not uncommon that Electronic Transfers of funds to foreign accounts are credited/posted to the beneficiary account on a delay.  Frequently the receiving bank will hold the funds and the University or a partner financial institution must personally contact the bank during their hours and speak their language to resolve the issue of delay.
  • Authorized signers on the account will frequently be asked to supply passports, utility bills and other personal identification items to validate their residency in the United States.
  • Authorized signers may have to include the foreign bank account on their personal income tax form.
  • All bank fees associated with the bank account are the responsibility of the department requesting the account.

The Treasurer’s Office will approve the establishment of all bank accounts (including international) based upon the business case to establish it and other alternatives available.  If approved, the Treasurer’s Office will evaluate the financial institutions available and proceed with establishing the account in accordance with federal governmental guidelines and local international governmental policies.

 

Expectations of University Units engaged in International activity 

Word version of this document below Bank_Policies_11_01_2011.docx


[1] These figures are provided as estimates for budgeting purposes.  Actual costs will vary depending on the bank providing the service and current fee structure.

 

 

 

 

Opening/closing of a bank account

All activities related to the opening and closing of any financial institution account with regards to the University of Michigan shall be the sole responsibility of the Treasurer’s Office. University units and their staffs should not deal directly with any financial institution regarding the opening or closing of a bank account except as authorized in writing by the Treasurer.

A financial institution account is defined as any account (checking, saving, depository, money market, etc.) opened at a financial institution that uses the name of the University of Michigan, Regents of the University of Michigan or any derivation thereof, uses the University of Michigan tax identification number, or receives the deposit of or disburses university funds.

To open a financial institution account requires appropriate approval by the Board of Regents. Additionally, the Treasurer’s Office will need to know the business need for the account, whether it is to be a deposit or disbursement account (or both) and the appropriate structure/features for the account (zero balance basis, controlled disbursement, positive pay, etc.) The business need for the account might be satisfied by integrating the need with an existing account structure.

Unless otherwise directed by the Treasurer’s Office, all statements for any accounts for the university shall be mailed to Banking and Transaction Services to allow for prompt account reconciliation. Additionally, all account analysis statements (showing charges for services rendered) for any accounts shall be sent to the Treasurer’s Office.

Accounts no longer active or no longer needed should be closed. The closure process requires written authorization to close the account from the business unit utilizing the account. The Treasurer’s Office will then contact the appropriate institution and request the account be closed and provide information as to the dispensation of any remaining funds left in the account. Additionally, the Treasurer’s Office will provide information regarding the closing of the account to the appropriate personnel in Banking and Transaction Services.  The Treasurer’s Office will notify the business unit to confirm the completion of the account closure process.  The business unit is solely responsible for the proper destruction of any and all remaining check stock and/or deposit ticket inventory previously utilized for the account.  Check and deposit ticket items should be destroyed securely and within 5 business days of receipt of the account closure confirmation.  Any costs associated with the proper destruction of these items shall be borne by the business unit.

If you have any questions, please contact the Treasurer’s Office at (734) 763-1299.

 

Wire transfers

All wire transfer activity utilizing the Federal Reserve Systems’ FedWire capabilities shall be the responsibility of the Treasurer’s Office.

The Treasurer’s Office will only utilize a wire transfer of funds in payment of an obligation of the university when the situation requires immediate good funds to settle a transaction. If a more inexpensive mechanism can be utilized to effect payment of the obligation (i.e., ACH or paper check) the Treasurer’s Office shall reserve the right to effect payment with the more inexpensive mechanism.

If you have any questions, please contact the Treasurer’s Office at (734) 763-1299.

Attachments
FileLast Updated
internetsalespolicy.pdfThursday, November 5th, 2009 at 7:10 PM
Bank_Policies_11_01_2011.docxWednesday, February 15th, 2012 at 3:36 PM