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Cash and Treasury Services

BANK ACCOUNTS

Related Policy

Procedure

The Office of Cash and Treasury Services establishes all bank accounts with financial institutions for the deposit of University funds. No other organizational unit, department, or administrative office has the authority to open an account on behalf of the University. In the unusual situation that a department requires a bank account, they must contact the Office of Cash and Treasury Services. If banking needs cannot be met by an existing banking arrangement and a specific bank account is required, the Office of Cash and Treasury Services will obtain approval from the Executive Vice President for Finance and Operations and the Office of the State Treasurer to open the account.

Departments requesting to open a bank account must email their request to the Banking and Payment Card Coordinator at:

Email: cdorfne@clemson.edu

The request must include:

  • The purpose of the account, including justification as to why the account is needed
  • The proposed name of the account. All accounts will begin with Clemson University as part of the name.
  • The type of account needed
  • The duration the account will be needed
  • The name and phone number of the appropriate contact person
  • Approval from the appropriate Business Officer to establish the account


The email request will be reviewed by the Office of Cash and Treasury Services, which will process the request as follows:

  • Review the request to ascertain that justification for the need to establish the bank account has been made.
  • Once determination has been made, the Office of Cash and Treasury Services will request approval from the Executive Vice President for Finance and Operations.
  • Bank accounts also require a written request for approval to the Office of the State Treasurer.
  • Once approved, the Office of Cash and Treasury Services will notify the department by email that their request has been approved.
  • The Office of Cash and Treasury Services will work with the department to determine the appropriate bank to use for the account.

The Office of Cash and Treasury Services will work with the department to:

  • Fund the bank account
  • Obtain and complete signature cards and other bank documents required to open the account.
  • Establish a bank account custodian in the department who is responsible for the account.

Use of Clemson University Federal Identification Number

Only bank accounts approved by the Executive Vice President for Finance and Operations and the Office of the State Treasurer may use the Clemson University federal identification number. Student Organizations cannot 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 and reconciler. Based on the Separation of Financial Administrative Duties policy, individual’s 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.

Custodian

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.

Reconciler

The account should be reconciled to the bank statement each month by someone other than the custodian. Any errors or discrepancies noted should be resolved through communication with the account custodian. A copy of the bank statement, reconciliation of the bank account, and attached detail, are to be forwarded to appropriate area in the department within 45 days of the end of the month.

Annual Review of Bank Accounts

At least on an annual basis, the Office of Cash and Treasury Services will verify and update information on authorized signatures for the bank accounts and may review the use and need for the 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 annually of University requirements to establish a University bank account.

Audits of Bank Accounts

The Internal Auditing Department will perform audits of bank accounts for compliance with established policies and procedures.