Section: GENERAL ACCOUNTING
|Section 3000 Policies|
Policy Number: 3101.01
Policy Title: Centralized Management of Cash and Investments
Policy Effective Date: April 1, 2011
Last Revision Date: June 8, 2012
(see revision history)
It is the policy of the CSU that all money in the possession of, or controlled by, the CSU will be deposited in the centralized Bank(s) designated by the Executive Vice Chancellor/Chief Financial Officer (EVC/CFO) of the CSU.
Unless otherwise authorized by executive order, decisions regarding the administration and management of all CSU cash and investments are the responsibility of the EVC/CFO or his/her delegates.
The EVC/CFO will develop and publish CSU-wide cash management policies and procedures, and provide general coordination and guidance to campuses.
The EVC/CFO or his/her delegates has authority to:
- Select the commercial and custodial banks, into which CSU cash is deposited and from which such cash is disbursed.
- Designate the name of the CSU to all bank accounts, and assume direct ownership of such bank accounts in order to administer them, including opening, amending and closing such accounts.
- Make arrangements for internet payment services, lockboxes, electronic transfers of cash, escrow services, use of facsimile (e.g., mechanized or stamp) signatures, credit/debit card and other services to facilitate the collection or disbursement of cash.
- Designate representatives of the CSU who may sign checks or other orders for the payment/transfer of money.
The Chief Financial Officer (CFO) of each campus of the California State University must ensure that cash is deposited in the CSU approved central depository bank(s). No individual campus can initiate a new banking relationship without prior approval from the EVC/CFO or his/her designee.
Campuses must submit requests to open or close accounts and sub-accounts to the Chancellor’s Office Cash Management Office (CMO) for review, and to the Assistant Vice Chancellor / Controller, Financial Services (AVC FS) in the Chancellor’s Office for approval. All requests must be approved by the campus CFO.
The campus must maintain updated and valid signature cards of each person authorized to sign checks, drafts, or other orders for payment of money or to approve/release electronic transfers of cash against CSU checking accounts.
Campuses must periodically review their need for maintaining each centralized CSU bank account.
Campuses may engage a third party to assist in the receipt and disbursement of cash, cash equivalents and ACH transactions. When campuses engage such third parties to assist in the handling of CSU cash such as tuition fees, campus mandatory and academic fees, financial aid, or enterprise operating revenues, such third parties may not hold the cash longer than is required to process the handling of such cash, generally no longer than one business day. For all other CSU cash, such third parties may retain custody of CSU cash for periods longer than one business day only when the operating efficiencies gained by use of the third party would be eroded and/or negated by a daily remittance schedule. When third parties will retain CSU cash, the campus CFO must review and affirm the rationale for such terms outlined in the arrangement as it is entered into and upon periodic renewal.
If campuses engage associated Auxiliary Organizations to assist in the receipt and disbursement of cash, cash equivalents and ACH transactions, such arrangements may include the retention of CSU cash, when necessary, so long as the terms of the arrangement are in compliance with Executive Order 1059 and Title 5.
Benjamin F. Quillian
Executive Vice-Chancellor/Chief Financial Officer
Approved: June 8, 2012
APPLICABILITY AND AREAS OF RESPONSIBILITY
RESOURCES AND REFERENCE MATERIALS
In the context of this policy, enterprise operating revenues are defined as parking fees, housing fees, student body center fees, continuing education fees, health center facility fees and related reserves.
Sound Business Practices:
Laws, State Codes, Regulations and Mandates:
COGNIZANT OFFICE(S)CO Manager:
Mr. Robert Eaton
Senior Director, Financing and Treasury
CSU Office of the Chancellor
Ms. Gay Kvilhaug
Ms. Maribeth Bradberry
Ms. Nancy Suarez
Director, Student Financial Services
Ms. Jan Burnham
Student Financial Services
Ms. Gina Curry
Director & University Bursar
Ms. Cora Wong
Director, Student Financial Operations
Ms. Caryl Vickers-Harper
Assistant Director & University Cashier
SAR (Students Accounts Receivable)