Printed on: 07/15/2026. Please go to policy.umn.edu for the most current version of the document.
University of Minnesota  Administrative Policy

Treasury Management Services

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Policy Statement

This policy governs treasury management services for the University of Minnesota and its wholly owned entities. The Office of Investment and Banking (OIB) is responsible for the administration of all treasury management services. All academic and administrative units, faculty, staff and students operating under a university tax identification number (TIN), including those of wholly owned entities, must comply with treasury management policies and procedures established by the University Treasurer.

Common examples of treasury management services include:

  • Contracting for armored courier services
  • Establishing a change fund
  • Opening a checking, savings or brokerage account
  • Contracting with traditional financial services or fintech providers for receipt or payment services (e.g. wires, ACH, instant payments, lockbox, image deposits, debit card products)
  • Establishing a line of credit
  • Contracting for merchant card processing services.

For questions about whether a service falls within the scope of treasury management, contact OIB prior to execution. Non-compliance with this policy may result in revocation of treasury management access and disciplinary action up to and including termination. Unauthorized treasury activities will be investigated by OIB, which may take corrective action including closing accounts, discontinuing services and recommending termination of responsible parties.

Reason for Policy

This policy implements the following policies:

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;
  • 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.

Contacts

SubjectContactPhoneEmail
Primary ContactStacy Hebdon, Treasury Director612-624-5558[email protected]
Service QuestionsOffice of Investments and Banking612-624-5558[email protected]
Accounting QuestionsAccounting Services612-624-1617[email protected]
Responsible Individuals
Responsible Officer Policy Owner Primary Contact
  • Chief Investment Officer
  • Director of Treasury Operations
  • Stacy Hebdon
    Director of Treasury Operations

Definitions

ACH Service

An 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. Funds transfer occurs through the Automated Clearing House (ACH) network via a batch process. A fee is charged for sending and receiving ACH payments. An ACH is a low-cost payment method 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.

Brokerage

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

An investment vehicle that allows funds to be invested at a set interest rate for a specific time period.

Custodian

A person who has delegated responsibility for financial assets.

Custody Services

An organization that holds securities on behalf of a client.

E-Check

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.

Fintech

Refers to technology services such as software, platforms, etc., applied to financial services to deliver more efficient payments, banking, investing, borrowing or general management of treasury operations.

Payments are held in a secure account and released upon finalization of all terms and conditions of the agreement.

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 the collection and processing of accounts receivable, 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

A type of bank debit card with a specific dollar value pre-loaded onto the card.

Wire Transfer Service

Domestic or international electronic funds transfer with final, irrevocable settlement. Fees apply to send and receive. Wire transfers are a higher-cost payment method.

Zero Balance Account

A checking account maintained at a zero balance by automatically sweeping funds from a concentration account each day to cover checks presented for payment, eliminating excess idle cash.

Responsibilities

Treasurer

  • Officer of the Board of Regents
  • Responsible for all treasury management functions on behalf of the University enterprise, including 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 its banking partners; arranges banking services for University units and provides money management training
  • 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 general ledger change fund balances monthly and maintains fund custodian contact information
  • Manages all accounting functions for legacy zero balance accounts (ZBA) used for research and contingent purposes

Accounts Receivable & Billing

  • Oversees all merchant card operations and PCI DSS compliance

Office of the General Counsel (OGC)

  • Provides review of 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)

  • Provides consultative services to units operating outside the United States to support compliance with U.S. and foreign regulatory requirements

Tax Management Department

  • Oversees or advises units on tax matters arising from domestic and international financial activities on behalf of the University and its wholly owned affiliated entities

Unit

  • Encompasses all colleges, departments, divisions, institutes, programs, faculty, staff and students.
  • Responsible for ensuring compliance with this policy and its procedures

Related Information

Other Related Information:

History

Amended:

June 2026 - Comprehensive Review. Edits made for clarification, but no significant changes in policy.

Amended:

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.

Amended:

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.

Amended:

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.

Amended:

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.

Effective:

May 2004