Deposits and Banking

Scope

To provide guidance for establishing bank accounts, direct contact with banks, depositing funds, and safekeeping deposits.

Reason for Policy

The purpose of this policy is to ensure prompt deposit of funds and to prevent the loss of funds.

Policy Statement

Conducting Business Directly with the Bank
Only the UM System Treasurer’s Office has the authority to establish bank accounts in the name of the University of Missouri.

The recommendation by the campus and authorization of the UM System Treasurer’s Office is required for an individual or unit to deal directly with a bank for the purpose of:

• Making deposits
• Making safekeeping deposits
• Exchanging checks for cash
• Ordering deposit supplies

Individuals or units not authorized to deal directly with a depository bank must conduct their banking business with the campus cashier’s office.

Depositing Funds
All funds received by the University must be restrictively endorsed immediately upon receipt and deposited with the campus depository bank using a preprinted deposit slip displaying the department’s 4-digit location code. The restrictive endorsement should read: 

FOR DEPOSIT ONLY
TO THE CREDIT OF
THE CURATORS OF THE
UNIVERSITY OF MISSOURI
Bank Account #
Account Name & Number for department that delivered check

When the depository bank has a branch located on the campus, deposits are made directly at the branch.  If the depository bank does not have a campus branch, deposits are made using the campus cashier’s office or by armored car services for authorized departments.

Deposits must be made at least once daily unless otherwise authorized in writing by the campus Division of Finance. In situations where this authorization has been granted, the funds must adequately safeguarded until the deposit is made.  In no case may deposits be authorized to be made less frequently than once per week. More frequent deposits (more than one per day) must be made in situations where funds accumulate rapidly, such as registration. Any deposit greater than $500,000 should be reported IMMEDIATELY to the UM System Treasurer's Office (umvpfacashmgmt@umsystem.edu) in order to insure sufficient collateral at the depository bank.

If a department is authorized to make deposits less than daily, then deposits must be made when accumulated receipts are greater than $1,000.00 or weekly, whichever comes first. The Campus Division of Finance will state cash-handling guidelines in the written approval of the request for less frequent deposits.

Departments that receive cash gifts directly from donors should make them part of their regular bank deposit and complete a gift CRR

Foreign Funds
Foreign funds are not generally acceptable for over-the-counter sales. They are acceptable, however, as payment on account, subject to the amount of U.S. dollar value that can be collected in exchange.    Deposits of all foreign funds shall be submitted to the depository bank for collection as a separate item and not part of the regular deposit. Adjustments will be made by the bank for fees for conversion. Locations making direct deposits will handle their own foreign funds. Locations making deposits through the campus cashier’s office will send their foreign funds to their campus cashier’s office for collection as a separate item.

Deposits for Safekeeping
Funds must be transferred to another facility for temporary safekeeping when:

• Funds received too late to be deposited for credit cause the total amount of funds on hand to exceed the risk classification of a facility
• The regular safekeeping facility is not available to employees having funds to be secured after normal business hours
• A facility is subject to an increased risk exposure as a result of such conditions as a long holiday closing or a civil disturbance

During normal business hours, the campus cashier’s office provides for the safekeeping of funds for other campus operations. Subject to advance arrangements, the campus cashier’s office accepts funds for temporary safekeeping after normal business hours or makes the necessary arrangements for departments to use the night depository facility at the depository bank.

A transfer of funds for temporary safekeeping purposes does not involve a transfer of responsibility for and effective control of funds.  All funds must be counted prior to deposit for safekeeping and immediately upon recovery. Records must be kept of all transfer transactions.

Only containers that are approved by the campus cashier’s office or the depository bank and which can be locked by key or combination, or tamper resistant plastic bags are to be used. All containers used for safekeeping deposits must be labeled in such a way as to be individually distinguishable.  Keys and combinations must be restricted to those persons responsible for the funds. The cashier’s office will maintain a log of containers received. A representative from the cashier’s office as well as the courier from the department will each initial the log to verify delivery of a container.  For any deposit not in an approved container, the deposit must be processed in the presence of the department courier and a receipt given.

Funds deposited for safekeeping must not be surrendered without verification of the identity of the person requesting the funds.

Definitions

Deposit - Cash or checks to be put into the University’s bank account.

Foreign Funds - include all coins and currency issued by a non-U.S. government and all checks written on non-U.S. banks or for non-U.S. dollar values.

Accountabilities

UM System Treasurer’s Office:

• Select and maintain relationships with depository banks
• Establish and oversee all bank accounts
• Ensure sufficient collateral is available for large dollar deposits
• Set up direct deposit locations
• Assist, as needed, with ordering deposit supplies

Campus Cashiers Office:

• Receive deposits from departments
• Make daily deposits with the bank
• Provide safekeeping of funds
• Approve storage containers for safekeeping

Departments:

• Deposit funds with bank or cashiers office as appropriate
• Ensure safekeeping of funds not deposited

Additional Details

Forms

Related Information

Policy 25702 on Transportation, Escorts and Guards

History

This policy combines the following former policies:

• Cash Receipts Manual 301 – Dealing with the Bank (effective 4/6/2006)
• Cash Receipts Manual 302 – Deposits for Credit (effective 7/17/2007)
• Cash Receipts Manual 303 – Deposits for Safekeeping (effective 12/8/1999)
• Cash Receipts Manual 304 – Foreign Funds – Exchange and Deposit (effective 2/28/1997)

Procedure