Section: GENERAL ACCOUNTING
|Section 3000 Policies|
Policy Number: 3101.01
Policy Title: Centralized Management of Cash and Investments
Policy Effective Date: December 16, 2013
Last Revision Date: December 16, 2013
(see revision history)
It is the policy of CSU that all money in the possession of, or controlled by, 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 systemwide 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’s cash is deposited and from which such cash is disbursed.
- Designate the name of 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 centralized banking services including but not limited to internet payment services, lockboxes, electronic transfers of cash, escrow services, use of facsimile (e.g., mechanized or stamp) signatures, credit cards, debit cards.
- Designate representatives of CSU who may sign checks or other orders for the payment/transfer of money.
Campus Chief Financial Officers (CFO) must ensure that cash is deposited in and disbursed from CSU’s approved centralized bank(s). A campus cannot initiate a new banking relationship without prior review and approval from the EVC/CFO or his/her designee. Campuses must periodically review their need for maintaining each of their bank accounts and subaccounts.
To open or close accounts and to change signatories on accounts within CSU’s central bank, campuses must mail a letter to the Chancellor’s Office’s Assistant Vice Chancellor / Controller, Financial Services (AVC FS) or Senior Director of Financing & Treasury in the absence of the AVC FS (per Delegation of Authority signed January 28, 2013) for approval. The campus letter must be on campus letterhead, signed by the campus Vice President of Business and Finance, and state what actions are being requested. The letter must be accompanied with completed bank account and/or signatory forms.
Campuses must maintain updated and valid signature cards of each person authorized to sign checks, drafts, or other orders for payment of money and authorized to approve/release electronic transfers of cash from CSU’s approved centralized bank(s).
Third Party Vendors
Campuses may engage a third party to assist in the receipt and disbursement of cash, cash equivalents, or electronic transactions. When campuses engage a third party to assist in the handling of CSU cash (e.g., tuition fees, campus mandatory and academic fees, financial aid, or enterprise operating revenues), that third party may not hold CSU’s cash longer than is required to process the handling of the cash which is generally no longer than one business day.
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 or negated by a daily remittance schedule. If a third party retains CSU’s cash for longer than one business day, the campus CFO must periodically review and affirm the rationale for doing so.
If campuses engage an associated auxiliary organization to assist in the receipt and disbursement of cash, cash equivalents, or electronic 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: December 16, 2013
APPLICABILITY AND AREAS OF RESPONSIBILITY
RESOURCES AND REFERENCE MATERIALS
Sound Business Practices:
Laws, State Codes, Regulations and Mandates:
- Ed Code 89721
- Title V – Section 42500 – Functions of Auxiliary Organizations
- E.O. 731 – Designation of Chief Financial Officer 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.
- E.O. 1059 – Utilization of Campus Auxiliary Organizations
COGNIZANT OFFICE(S)CO Manager:
Ms. Colleen Zenger
Senior Financial Manager, Treasury Operations
CSU Office of the Chancellor
Ms. Gay Kvilhaug
Ms. Nancy Suarez
Director, 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)