This policy governs the use of treasury management services for the University of Minnesota (system-wide) and its affiliated entities. The Office of Investment and Banking (OIB) is responsible for all treasury management services. All academic and administrative units, faculty, staff, and students operating under the tax identification numbers (TIN) of the University, and its wholly owned affiliated entities, are required to follow treasury management policies and procedures as established by the Treasurer of the University of Minnesota.
All individuals and units are prohibited from entering into contracts with organizations providing treasury management services, or vendors requesting specific treasury related terms and conditions, without first obtaining the explicit written permission of the Treasurer or OIB designee. Individuals and units are prohibited from obtaining a separate TIN for treasury management services, without explicit written permission of the Treasurer or OIB designee.
Common examples of treasury management services include:
- Opening a bank account
- Creating a change fund
- Establishing merchant card processing
See appendix to this policy for a complete list of treasury management services. Note: Petty cash funds are considered a treasury management service and are prohibited. All payments to vendors or reimbursement of expenditures to student, staff, and faculty must follow approved payment methods as described in Administrative Policy: Accounts Payable: Paying Non-Payroll Expenses.
Individuals who do not comply with this policy may be denied access or have current access to treasury management services revoked, and may be subject to disciplinary action up to and including termination.
Individuals and units engaged in any unauthorized treasury management services, will be investigated by OIB, who will evaluate the situation and take whatever action deemed appropriate to rectify the unauthorized activities. Such actions may include closing the financial account, discontinuation of the service, and may include a recommendation to terminate responsible parties.
Reason for Policy
Prudent treasury management practices provide a stable financial structure the University relies on to facilitate and meet all of its financial obligations. To ensure control over its financial assets, the University has instituted a centralized process for establishing and maintaining treasury management services. The centralization and standardization of treasury management services across the institution:
- provides for oversight and safekeeping of financial assets;
- ensures optimal levels of liquidity are maintained to meet daily operating cash flows;
- enables the institution to meet debt service requirements;
- guaranties excess cash balances are invested appropriately, in order to enhance the earnings power of the University’s financial assets; See Board of Regents Policy: Investment of Reserves;
- decreases the risk of fraud/loss;
- supports tax preparation;
- provides fiscal integrity for the purposes of financial reporting, including the annual external audit and financial statement preparation; and
- supports compliance with federal, state, and foreign regulations.