ADMINISTRATIVE PROCEDURE

Discontinuing Use of a University of Minnesota Bank Account

CLOSING A DOMESTIC BANK ACCOUNT

CLOSING AN INTERNATIONAL BANK ACCOUNT

Closing a Domestic Bank Account

Sending Notification Letter of Intent to Close Account

The Department must draft a notice of closure letter and send it to Treasury Accounting and the Office of Investments & Banking, indicating the intent to close the account.

The letter should include:

  • Name of the study (if applicable)
  • University department name
  • Location number (checkbook series number/ reporting category)
  • Name and phone number of the contact person
  • Check number series destroyed
  • Signature of the individuals involved in the check destruction process

Destroy unused checks

The department must destroy any remaining checks for the account. One person  must destroy the checks in the presence of one witness. Both individuals are required to sign the notice of closure letter attesting to the destruction of the remaining check stock.

Departments should send the letter to Treasury Accounting  and the Office of Investments & Banking.

Final Reconciliation and Closure of the Account

Treasury Accounting  will work with the department to complete/clear any remaining reconciliation, escheatment and general ledger issues.

The Office of Investments and Banking receives the Notification letter and takes action to close the account. Closure of account is pursuant upon a 6-month time horizon should any outstanding checks exist.

Departments are responsible for providing a final outstanding check list to Treasury Accounting  The Department should provide the list immediately after sending the Notice of Closure letter. If checks are outstanding, departments must comply with the unclaimed property/escheating review process outlined in the Maintaining a UofM Bank Account procedure. Departments cannot cancel outstanding checks and reissue them through the Enterprise Financial System (EFS) without following the unclaimed property/escheating review process unless the payee reports a lost or stolen check outlined in the Maintaining a UofM Bank Account procedure.

Departments on reverse positive pay should continue to review the daily reverse positive pay file from the bank until all checks have been cleared or have been removed through the escheatment process.

Closing an International Bank Account

Getting Account Balance to Zero

In order to close an International Account, the account balance in the bank account must equal zero. The department will need to spend the remaining funds in the account or arrange for a wire transfer of the remaining balance back to a University of Minnesota domestic bank account in the United States. Call the Office of Investments & Banking (OIB) to make arrangements for the wire transfer (if necessary).

Sending Notification Letter of Intent to Close Account

After confirming the account balance is zero, the department must draft a notice of closure letter and send it to OIB requesting the account to be closed.

The letter should include:

  • Bank Name
  • Account Number
  • University department name
  • Study or Program name
  • Name and phone number of the contact person
  • Check series destroyed
  • Signature of the individuals involved in the check destruction process

Destroy unused checks

The department must destroy any remaining checks for the account. One person must destroy the checks in the presence of one witness. Both individuals are required to sign the notice of closure letter attesting to the destruction of the remaining check stock.

Final Reconciliation and Closure of Account

The department must perform a final reconciliation of the account and submit it to Treasury Accounting (TA). They should also forward a copy of the final bank statement to OIB and TA.

OIB will work with the international bank and the department to close the account. The department will be notified when the account is officially closed.

TA will review the final bank reconciliation and notify the department if there are any questions.

Document Feedback