Treasury Management Services
- Chief Investment Officer
- Director of Treasury Operations
- Stacy Hebdon
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.
|Primary Contact||Stacy Hebdon Treasury Directoremail@example.com|
|Secondary Contact||Bonnie Anderson Treasury Analystfirstname.lastname@example.org|
|Service Questions||Office of Investments and Bankingemail@example.com|
|Accounting Questions||Accounting Servicesfirstname.lastname@example.org|
- ACH Service
- Electronic money transfer that allows money to be “pulled” (debit transaction) or “pushed” (credit transaction) between bank accounts. Often utilized for online bill pay or direct deposit transactions. Transfer of funds takes place through the Automated Clearing House (ACH) network via a batch process. A fee is charged to send and receive ACH payments. An ACH is a low cost payment method as compared to a wire.
- Armored Courier
- A service used to transport cash or other valuables.
- Bank Accounts
- An account created by the deposit of money and subject to the withdrawal of funds.
- A financial service provided by a financial firm acting as an intermediary in the buying and selling of investment securities.
- Cash Vault Services
- A cash service center that offers a secure and efficient method for handling cash related banking needs.
- Certificate of Deposit
- Investment vehicle that allows investment of funds at a set interest rate for a specific time period.
- A person who has delegated responsibility for financial assets.
- Custody Services
- An organization that holds securities on behalf of a client.
- Direct debit ACH transfer from a bank account.
- Escrow Services
- A financial arrangement where a third party holds and regulates the payment of funds between two parties involved in a transaction. Payments are kept in a secure account and released when all the terms and conditions of the agreement are finalized.
- Foreign Exchange
- The conversion of funds from one currency into another currency.
- Line of Credit
- A formal agreement by a financial institution to lend money to an individual or organization.
- Lockbox Service
- A payment processing service offered by a commercial bank to simplify collections and processing of accounts receivables, by having customers mail payments directly to a post office box accessible to the bank.
- Merchant Processing
- A financial service that allows a business to accept credit or debit card transactions.
- Remote Capture Service
- Allows a user to scan checks and transmit the check image to a bank for deposit.
- Stored Value Card
- Type of bank debit card with a specific dollar value pre-loaded onto the card.
- Wire Transfer Service
- Domestic or internal method of payment via electronic funds transfer. Settlement of funds is final and irrevocable. A fee is charged to send and receive wire transfer payments. This is a high cost payment method.
- Zero Balance Account
- A checking account in which a zero balance is maintained by automatically transferring monies from a concentration account in an amount equivalent to the value of the checks presented for payment each day. A zero balance account is utilized by organizations in order to eliminate excess cash balances.
- Officer of the Board of Regents
- Responsible for all treasury management functions on behalf of the University enterprise, to include University-wide policies regarding all treasury management services
- The Office of Investments and Banking (OIB)
- Responsible for all of the University’s treasury management services as delegated by the treasurer
- Responsible for managing the University’s daily financial liquidity and investment of the working capital investment portfolio: Temporary Investment Pool (TIP)
- Serves as liaison between the University and banks and will provide or make arrangements for banking services to University units and training in various aspects of money management
- Administers and controls all University bank accounts
- Polls financial institutions and closes unauthorized bank accounts when discovered
- Accounting Services
- Ensures all bank accounts are subject to regular reconciliation and investigates irregular or unusual items
- Reconciles the general ledger change fund balances monthly, and maintains contact information for individuals serving as the fund custodian
- Provides for all accounting functions related to legacy zero balance accounts (ZBA) utilized for research and contingent purposes
- Accounts Receivable & Billing
- Oversees all merchant card operations and PCI DSS compliance
- Office of the General Counsel (OGC)
- Reviews all treasury management service contracts
- Provides advice and consultation concerning the University’s legal rights and duties and recommends appropriate actions and terms
- Global Programs and Strategy Alliance (GPS)
- Coordinates consultative services to units conducting activities outside of the United States in order to facilitate compliance with U.S. and foreign regulatory requirements
- Tax Management Department
- Oversees or advises units on all tax related issues that may arise from financial business activities both domestic and international on behalf of the University and wholly owned affiliated entities
- Refers to all colleges, departments, divisions, institutes, programs, faculty, staff, and students.
- Has responsibility for ensuring compliance with this policy and procedures
- Reporting and Notifying Individuals of Information Security Breaches
- Accepting and Depositing University Revenue
- Accepting Revenue via Payment Cards
- Managing Billings to and Receivables from External Customers
- Selling Goods and Services to University Departments
- Selling Goods and Services to External Customers
- Accepting and Managing Gifts
- Accounts Payable: Paying for Non-Payroll Expenses
- Paying Human Subjects and Maintaining Confidentiality and 1099 Reporting
- Managing Program Income Earned on Sponsored Projects
- Reconciling and Verifying General Ledger Accounts and Other Financial Information
Other Related Information:
- October 2019 - Comprehensive Review: 1. Title Revised to Treasury Management Services 2. Consolidates information from three policies into one (Accessing UWide Banking Services, Utilizing University of Minnesota Bank Accounts, Establishing Change and Misc. Payment Funds) 3. Removes the option for units to have petty cash funds locally. 4. Includes a new appendix listing the available treasury management services. 5. Removes the gendered pronouns.
- June 2008 - Policy updated due to new Enterprise Financial System. Establish Payment Card Accounts and Documenting and Depositing Sales procedures updated due to EFS. Bankcard Merchant Rates updated.
- March 2007 - Added examples of banking and related financial services to policy statement. Reason updated to say that Board of Regents and Presidents delegate banking authority to treasurer (formally said President only). Definitions corrected, and clarified.
- November 2006 - External Sales office now has responsibilities for establishing, monitoring and terminating bankcard accounts rather than the Office of Asset Management. Responsibilities and contacts sections updated to reflect this. Bankcard Merchant Application Form and Bankcard Internet Merchant Application form have been consolidated into one form.
- May 2004