Establishing and Maintaining Bank Accounts at Financial Institutions Policy

Policy Statement

Adelphi University’s Finance Office establishes all University accounts with banks and other financial institutions using University funds.

Reason for Policy

The University must institute consistent financial controls for establishing and maintaining all bank accounts to enable appropriate stewardship of its assets, cost-effective business practices, and accurate financial reporting.

Who Is Governed by this Policy

Faculty and Staff

Policy

Overview

Adelphi University’s Finance Office establishes all University accounts with banks and other financial institutions using University funds. Only Adelphi funds may be used to establish these accounts, and any account established with these funds must be owned by the University. Bank accounts comprise all domestic, international, and subsidiary bank accounts. Students are not authorized to open bank accounts in the name of the University.

Establishing Bank Accounts

All requests to establish bank accounts must be approved by the Chief Financial Officer (CFO).

Maintaining Bank Accounts

The University has established appropriate controls for maintaining the account, namely, designating personnel authorized to maintain the account, segregating the duties of check signer, payment approver, bank reconciler, and general ledger entry, restricting access to account information and blank checks, and documenting these procedures.

Definitions

Authorized Check Signer(s): Individual(s) designated with authority to sign checks within specific dollar limits. This individual must not be responsible for general ledger entries, or be a bank account reconciler, a payment approver, or a custodian of blank or voided checks.

Bank Account Reconciler: Individual designated to retain voided checks and supporting documentation for payments made from a bank account, review transactions and bank fees, void stale checks, account for voided checks, and perform reconciliations for bank accounts. This individual must not be responsible for general ledger entries, or be a payment approver, a check signer, or a custodian of blank checks.

Bank Account Reconciliation: Process of confirming that the bank statement is valid and accurate, that transactions are reflected properly in the general ledger account, and that the ending balance on the general ledger account is accurate. Any differences should be identified, reconciling items investigated, and balances adjusted appropriately.

Individual Responsible for General Ledger Entry: Individual who records all bank fees paid on and payments made from bank accounts to the general ledger having received appropriate supporting documentation from the check signer and reviewed the transaction for appropriateness. This individual must not be a bank account reconciler, a payment approver, a check signer, or a custodian of blank or voided checks.

Payment Approver: Individual designated to approve payments to be drawn from bank accounts. This individual must not be responsible for general ledger entries, or be a bank account reconciler, a check signer, or a custodian of blank or voided checks.

Segregation of Duties: Process of safeguarding assets by assigning the authorizing, recording, and reconciling of transactions to different individuals.

Unit Business Administrator: Individual, such as a director or manager, with direct responsibility for the financial activities of a unit.

Forms

This policy does not have forms associated with it at this time. Upon periodic policy review this area will be evaluated to determine if additional information is needed to supplement the policy.

Related Information

This policy does not have related information at this time. Upon periodic policy review this area will be evaluated to determine if additional information is needed to supplement the policy.

Document History

• Last Reviewed Date: April 11, 2023
• Last Revised Date: April 11, 2023
• Policy Origination Date: Not Known

Who Approved This Policy

Michael Rhattigan, Chief Financial Officer