Cash and Treasury Services
Types of Clemson University Bank Accounts. Clemson University has three types of bank accounts:
- Institutional Level Bank Accounts - Primary accounts for depositing and disbursing university funds.
- Petty Cash Bank Accounts - Accounts established to meet unique deposit and disbursement requirements at a departmental level. These accounts are established with an approved imprest amount and are used to reduce cash requirements.
- Local County Extension Bank Accounts Accounts established for remote Cooperative Extension offices at the county level. Necessary local receipts and disbursements are made to/from these accounts to facilitate local county level operations.
How to Establish a Bank Account.
A written request to establish a bank account must be submitted with a Bank Account Request/Change Form to Cash and Treasury Services, Attn: Bank Account Management, Administrative Services Building , and should include the following information:
- The name of the University department requesting the bank account
- The intended purpose of the bank account
- Adequate justification for the need to establish the bank account and the amount of funds needed
- The proposed name of the account (all accounts should begin with "Clemson University" as part of its name)
- The names of up to three individuals who will be authorized to sign on the account
- Appropriate approval at the budget center administrative channel to establish the account.
The Cash and Treasury Services Department will process the request as follows:
- Review of the request will be made to ascertain that justification for the need to establish the bank account had been made.
- Once a determination has been made, the Cash and Treasury Services Department will perform the following:
- Review the request with the Chief Business Officer and obtain authorization to proceed with the approval process.
- Petty Cash Bank Accounts require a written request for approval to the State Auditor's Office.
- Upon receiving approval for a Petty Cash Bank Account from the State Auditor's Office to establish the account a request will be sent to the Office of the State Treasurer.
- A request will then be sent to the Office of the State Treasurer for approval of the other types of bank accounts.
- The Cash and Treasury Services Department will notify the budget center by e-mail or letter when the request has been approved.
- They will also notify Accounting Services by e-mail of the newly established account to be recorded in the University accounting system.
3. The Cash and Treasury Services Department will then prepare a voucher and have a check prepared in the name of the new account. This check, along with a copy of the letter of authorization, is to be delivered to the requesting budget center to the designated bank where the account is to be opened.
All accounts should begin with "Clemson University" as part of the account name. Any necessary changes subsequent to the original authorization (i.e., an increase or decrease in the amount, change of bank, etc.) should be requested through Cash and Treasury Services in a manner similar to the original request. The Budget Center responsible for the account will:
- Obtain signature cards and other documents required by the bank to open the account.
- Obtain signatures consisting of:
- An individual to disburse the funds. This individual must be a full-time permanent employee.
- An individual on campus in the department responsible for the account who is also a full-time permanent employee (account custodian)
- Copies of signature cards should be forwarded to the Cash and Treasury Services Office. Custodian changes with new signature cards must be forwarded to Cash and Treasury Services immediately. The Cash and Treasury Services Office will obtain the signature of the Chief Business Officer on the bank corporate resolution with the signature of the Executive Secretary of the Board of Trustees.
Use of the Clemson University Federal Identification Number
Only bank accounts approved by the Chief Business Officer for Clemson University may use the Clemson University federal identification number.
Operational and Reporting Requirements
Good business practices and effective controls require a basic separation of duties related to the operation of a bank account. To achieve adequate controls and a timely reconciliation process, responsibilities will be assigned to a custodian, reconciler, reviewer, and a monitor. Based on the Separation of Financial Administrative Duties policy, individuals assigned responsibility for performing these reviews should be independent of the transactions related to the asset or liability. Employees should be adequately trained to perform the bank account operating requirements.
The account custodian is responsible for the bank account. This person must determine that all disbursements from the account are made only for official business of the University in accordance with the guidelines established in the letter of authorization and that paid receipts, invoices, vendor statements, pick-up payroll vouchers, and other supporting documentation are maintained to substantiate each disbursement.
The account custodian is responsible for notifying the Cash and Treasury Services Department of updates in the bank account information, such as address, authorized signers, changes in purpose or amount required.
The account should be reconciled to the bank statement each month by someone other than the custodian. A reconciliation preparer should use the Statement of Petty Cash Account form prepared in accordance with the instructions on the form or use a format approved by the Comptroller's Office. Any errors or discrepancies noted should be resolved through communication with the account custodian. Serious or recurring problems or delays should be communicated to the bank account reviewer. A copy of the bank statement, the bank reconciliation or the Statement of Petty Cash Account, with attached detail, are to be forwarded to the assigned bank account reviewer for each bank account within 45 days of the end of the month.
Account custodians are encouraged to reconcile the accounts as soon as possible, but no later than the following:
- Composite (State Treasurer) and International Accounts..........Within 45 days of the end of the month.
- Other Accounts..................Within 15 days of the end of the month
A bank reconciliation must be reviewed and approved by a reviewer. The bank reconciliation reviewer is responsible for assuring that bank reconciliations are performed, and reconciling items are resolved in a timely manner. The bank reconciliation reviewer should not have custodian or reconciliation responsibilities. Once a reviewer has approved the reconciliation (indicated by initials and date, reconciliations are to be sent to the assigned bank account monitor.
The monitor is responsible for collecting assigned bank reconciliations and to assure that the bank reconciliations are completed on a timely basis as prescribed by the Bank Account Procedures. All bank accounts will be assigned to the following areas for monitoring on a monthly basis.
- Assigned Bank Account Monitors
- University Level Bank Accounts - examples are the University Vendor and Payroll accounts. The bank reconciliations monitoring responsibility is assigned to Accounting Services.
- Other Bank Accounts Located on the Clemson University Campus - examples are the University Union, Student Financial Aid Refund account. The bank reconciliations monitoring responsibility is assigned to Cash and Treasury Services.
- Off Campus Accounts - examples such as Local County Funds and Research Education Centers. The bank reconciliations monitoring responsibility for off campus accounts is assigned to the Public Service Business Office and Cash and Treasury Services. Periodic review is done by Cash and Treasury Services.
At least on an annual basis, the Cash and Treasury Services Department will verify and update information on authorized signatures for the bank accounts and may review the use and need for bank account. The review process will include a request to the custodian for authorized signatures, account name address and a copy of the most recent bank statement. These records will be matched to the information provided by the banks, such as account name, address, authorized signers and federal identification number. Local banks will be notified at least every two years of University requirements to establish an university bank account.
Audits of Bank Accounts
The Internal Auditing Department will perform audits of bank accounts and petty cash funds for compliance with established policies and procedures.