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Business and Financial Policies and Procedures

14.2 Open or Close Bank Accounts

Policy Statement

The Comptroller is the signer on all bank contracts and accounts, as authorized under the General Rules Concerning University Organization and Procedure. The Comptroller delegates Cash Management to maintain and manage the services associated with each bank account. The Comptroller or delegate must approve all requests to close a bank account.

The University of Illinois also maintains bank accounts for Merchant Card Services. Merchant Card Services works under a State of Illinois contract, and all bank activity is acquired through the State of Illinois. The Comptroller is the signer for all bank accounts opened for the University of Illinois at the bank the State of Illinois has contracted.

These bank accounts are subject to audit at any time by the Office of University Audits. To open or close University Extension accounts, consult 14.3 Manage University Extension Bank Accounts.

Procedure

To open a non-University Extension bank account:

  1. Plan ahead. Allow at least 60 days for your request to be approved. Banking in other countries is different from U.S. banking, so you will need extra time to open a bank account in another country.
  2. Send the request to your campus OBFS chief business officer.
  3. If your department needs a bank account, forward your request to Cash Management, who will review to determine if a new bank account is needed or activity can be directed to an existing account. If a new account is needed, the request will be made to the bank and be signed by the Comptroller.
  4. Two authorized persons must sign all checks or authorizations for withdrawing funds.

To close a bank account:

  1. Send the request to your campus OBFS chief business officer for approval.
  2. If your campus OBFS chief business officer approves, he or she will forward the request to Treasury Operations, Cash Management for processing. They transfer any remaining funds to the University's primary bank account and notify the bank of the University's action.
  3. University Accounting and Financial Reporting (UAFR) credits the funds to your unit's CFOP.
  4. Destroy all unused checks and deposit tickets in the presence of another person.
  5. UAFR will notify your unit if there are any transactions that have not yet been recorded in Banner. UAFR will continue to monitor these transactions until they are resolved.

Related Policies and Procedures

14.3 Manage University Extension Bank Accounts
14.4 Manage Foreign Bank Accounts

Last Updated: June 19, 2017 | Approved: Senior Associate Vice President for Business and Finance | Effective: November 2010

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