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CSU POLICY

Section 3000 Policies

Policy Number:  3101.01

Policy Title: Centralized Management of Cash and Investments

Policy Effective Date: April 1, 2011

Last Revision Date: July 1, 2011
(see revision history)

POLICY OBJECTIVE

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.

POLICY STATEMENT

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 funds of the CSU are deposited and from which such funds are 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 funds, escrow services, use of facsimile (e.g., mechanized or stamp) signatures, credit/debit card and other services to facilitate the collection or disbursement of funds.
• 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 funds are 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 funds against CSU checking accounts.

Campuses must periodically review their need for maintaining each centralized CSU bank account.

APPLICABILITY AND AREAS OF RESPONSIBILITY

 

REVISION HISTORY

• April 1, 2011 (Initial Issuance Date)

RESOURCES AND REFERENCE MATERIALS

Useful Guidelines:

• E.O. 731 – Designation of Chief Financial Officer

Related Principles:

 

Sound Business Practices:

 

Laws, State Codes, Regulations and Mandates:

• Senate Bill 1386
• Ed Code 89721