VIII-1.30(A)

UMB Policy on Special Bank Accounts for UMB Funds

Financial Affairs   |   Approved June 7, 2017

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Responsible VP/AVP

Dawn M. Rhodes, DBA, MBA

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Policy Statement

Under certain circumstances an Operational Unit (school, department, division) may need to establish a Special Bank Account to be utilized for a specific purpose (e.g. research conducted in a remote area, student activities, etc.).  Examples of Special Bank Accounts include working fund, lockbox, and accounts used for student, research, and fundraising activities.      

1. Approval from the Maryland State Treasurer’s Office (STO) is required before an Operational Unit or individual may open a Special Bank Account.  Special Bank Accounts are limited to checking accounts and must use the UMB Federal Tax ID Number.
2. Operational Units are responsible for using prudent financial management, enforcing sufficient internal control procedures, and exercising custodial responsibilities to safeguard funds held in Special Bank Accounts.
3. Operational Units and individuals are prohibited from depositing UMB Funds into an account that has not been approved by the STO.
4. Funds in Special Bank Accounts are subject to the same regulations, policies, and procedures (e.g. procurement, travel, etc.) that apply to funds held in the general UMB bank account.
5. Financial Services Standard Operating Procedure – Establishing and Managing Special Bank Accounts for UMB Funds (link) establishes required standards, procedures, and responsibilities to ensure the safeguarding and proper accounting of funds in a Special Bank Account.
6. Special Bank Accounts may be closed at the discretion of the Chief Business and Finance Officer (CBFO), or designee.

Applies to:

• UMB Employees and Students
• Authorized Affiliate Employees who manage UMB Funds

Definitions

Authorized Affiliate Employee - Person employed by an entity that has a relationship with UMB authorized by the Board of Regents or by law, e.g., faculty practice plan organizations, University of Maryland Baltimore Foundation (UMBF) and other affiliated foundations, recognized incorporated alumni associations, recognized affiliated business entities, University of Maryland Medical System/University of Maryland Medical Center, and other University System of Maryland institutions.  An Authorized Affiliate Employee is responsible for the administration and reporting of UMB resources.

Special Bank Account – A bank account established to accommodate the business needs of a UMB unit.  Examples include working fund, lockbox, and student, research, and fundraising activities.  Special Bank Accounts are limited to checking accounts.

UMB Funds- All funds administered by UMB, regardless of fund source.  UMB funds include State appropriated general funds, tuition, fees, and other income, as well as auxiliary funds, revolving/discretionary funds, Designated Research Initiative Funds, gifts, contract or grant revenues, and other restricted funds.

Scope and Exceptions

Scope

This policy applies to all UMB Funds. 

This policy does not apply to bank accounts opened by an affiliated entity such as a separate corporation created to do business in a foreign country.

Exceptions/Request Process

Exceptions to this Policy must be approved in writing by the CBFO.   Requests may be submitted to the University Controller using the Policy or Procedure Exception Form available on the Financial Services website.  Alternatively, a request may be submitted in the form of a memo to the CBFO.  Requests must be signed by the Dean/Vice President or the Dean’s/Vice President’s designee (i.e. Associate Dean/AVP). 

Roles and Responsibilities

Financial Services is responsible for establishing procedures to promote compliance with this policy.

Operational Units are responsible for establishing internal controls over the custody, authorization, verification, and reconciliation of all Special Bank Account funds under their jurisdiction, including Special Bank Accounts administered by students.   

Employees and students who do not comply with this policy and related procedure may be subject to disciplinary action and/or criminal action.

An Authorized Affiliate Employee who does not follow this policy and related procedure is subject to disciplinary action, will lose the privilege of being an Authorized Affiliate Employee, and will have UMB fiscal authority terminated.

Downloads

See UMB Financial Services Procedure – Establishing and Managing Special Bank Accounts for UMB