Wayne State University

Aim Higher

Old Main

05-7 Receipt, Deposit, and Management of University Funds

1.0  Purpose

For purposes of this policy, funds are defined as cash, checks, merchant card charges and electronic funds transfers, and any transactions that result in the generation of funds.

1.1     The Board of Governors has provided, in Section 2.3 of the University By-Laws, that:

The Treasurer shall have the general supervision of and responsibility for the collection, the custody of, and the accounting for all moneys belonging to the University, and it shall be his/her duty to demand and receive all such moneys when due from the State Treasurer, or any other person or persons.

The Treasurer shall have general supervision of and responsibility for proper management of all operating funds, including working capital, for the conduct of University operations, of all gift funds made to and trusts created for the benefit of the University and all investment of University funds.

1.2      It is the purpose of this University Policy to designate the places and manner of deposit of such funds to carry out the Board of Governors' authority to establish and maintain relationships and accounts with banks and other financial institutions for the management of University funds, including all financial transactions that result in the generation of funds, to regulate organizations that are raising moneys for or under the name of the University, and to control the use of the University's identity in the course of raising these moneys.

2.0  Receipt and Deposit of Funds

2.1    The Treasurer shall designate the University Cashier’s Office as the  University’s office of deposit except as specified in Section 2.4 and  Section 2.6.

2.2     In general, all outside parties should be directed to transmit all funds to the University Cashier’s Office and other offices specifically designated by the Treasurer.

2.3     All University funds that are received by any officer, employee, agent, or any other person must be promptly deposited with the University’s office of deposit.  Prompt deposit is defined as deposit within 48 hours of receipt, except for circumstances in which the recipient of money has been authorized in writing by the Treasurer to be exempted from this requirement.  In order to obtain such an exemption, the recipient must give specific, significant and substantive reasons which, in the Treasurer’s judgment, warrant an exception.

2.4     The Treasurer may designate, in writing, subsidiary cashier facilities, which report through the University’s Central Cashier’s Office, where the volume of activities justifies such an action. Each additional cashier’s facility shall be subjected to the direction and supervision of the University Central Cashier’s Office and meet all of the following conditions:

a.   Designate an agent of the Treasurer to receive funds and handle any other financial transactions on behalf of the Treasurer that may be conducted at that site;

b.   Maintain adequate security for the receipt and holding of all funds;

c.    Establish and maintain procedures and processes, approved by the Treasurer’s Office, for the prompt transfer of funds received to the University’s Central Cashier’s Office or a designated depository bank.

2.5     The Treasurer is responsible for the establishment and regulation of electronic fund transfer programs, including the use of third party merchant card processes, direct deposits to employees, vendors and students, vendor payments, automatic debit charges to third parties and receipt of funds via electronic fund transfers.

2.6     Where appropriate for major and unique University-wide programs, the Treasurer may designate other units to receive funds from outside the University (e.g., Development, Sponsored Programs Administration).

2.7      All unrestricted revenues, including money received for sales, services and rental income are to be credited to a General Fund account. The Treasurer must grant specific approval for the crediting of classes or categories of deposits, or individual deposits to other funds.

2.8      Petty cash funds shall be handled in accordance with the Administrative Policies and Procedures Manual (APPM).

3.0  Bank and Other Financial Institution Relationships and Accounts

3.1     The Treasurer of the University is the sole person authorized to establish  bank relationships and/or accounts, of any type, in the name of the University or any organization acting for or under the name of Wayne State University, including Wayne State University Foundation and Housing Authority.

3.2     All petty cash funds maintained in bank accounts shall be handled pursuant to the procedures detailed in the Administrative Policies and Procedures Manual (APPM).

4.0  Receipt of Funds Raised By Outside Organizations for The University

4.1     Except as otherwise agreed to by the Treasurer, the University shall  receive all funds raised for, on behalf of, or under the name of the  University or any of its schools, colleges, departments, programs, or other  activities.

4.2     From time to time the Treasurer may, in consultation with, or at the request of the Vice President of Development and Alumni Affairs, formally designate persons, organizations, or other entities to assist in raising or receiving funds. All such payments shall be payable to "Wayne State University" and shall be deposited promptly and directly with the Treasurer in accordance with this University Policy, and be in accordance with any and all other sections of this policy as applicable.  

4.3     When the Treasurer designates a person, group, organization, or other  entity which is not under the authority of the University to raise funds or  receive related funds pursuant to Section 4.2, he/she shall notify the Vice  President for Development and Alumni Affairs.  The Treasurer, in  consultation with the Vice President for Development and Alumni  Affairs, shall review and approve in advance a budget of all the direct and  indirect costs to be incurred by such person, group, organization or other  entity raising or receiving funds.  The Treasurer will communicate to the  concerned person, group, organization or other entity the following:

a.   This University Policy and procedures covering receipt of funds and all related matters;

b.   The requirement to obtain approval of the actual disbursement of the costs referred to above through the appropriate University accounts, and retain documents that identify and support these costs.  

5.0  Use of The University's Identity

5.1     No outside person, group, organization or other entity is authorized to use the University's name, seal, or other identification, including abbreviations, truncations, or other shortened forms that can be perceived to convey the impression that the person or organization is a duly authorized representative of Wayne State University in soliciting, raising, receiving, holding or otherwise handling funds or financial transactions.

5.2     Written permission to use the University's identity in soliciting and raising  funds, receiving, holding or otherwise handling funds must be obtained in  advance from the appropriate University official after the appropriate  approvals in Section 4.0 are obtained.  

6.0  Investment of Funds

6.1     The Treasurer of the University will establish investment programs for  surplus funds. Investment programs established under this University  Policy shall follow investment policies established by the Board of Governors and shall be consistent with the University's affirmative action  commitments.

6.2     Gifts whose principal is to be maintained and whose income or some share of income is to be used for donor-specified purposes are to be placed in the Endowment Fund and handled in accordance with the applicable Board of Governors Statute.

7.0  Allocation Of Investment Earnings And Interest Charges

7.1     In accordance with the Board of Governor’s Statute, a percent of the market value of the Endowment Fund’s participative units shall be distributed for the purposes specified by the statute and/or donor or, in the case of funds functioning as endowments, the distribution will be for purposes specified in provisions approved by the university.

7.2     The Treasurer will establish a program for the distribution of investment income which shall approximate the interest rate paid by banks on regular savings accounts.  Participation in this program requires the approval of the Treasurer.  This program is only for Designated and Expendable Restricted Fund gift accounts.

7.3     The Treasurer will establish a program for the distribution of investment income which shall approximate the interest rate yield earned on the University cash pool.  Participation in this program requires the approval of the Treasurer.  This program is for the payment of interest on account cash balances for the following types of accounts:

a.   Where required by law, sponsor or agency agreements.  If these agreements require the use of an interest rate other than the yield on the University cash pool, the Treasurer shall use that interest rate as the basis for the distribution of investment income, or;

b.   Where approved by the Treasurer, for certain large non-general fund accounts that carry and maintain large cash balances.  These non-general fund accounts may include Designated and Expendable Restricted fund gift accounts that would otherwise be eligible to participate in the distribution of investment income program in Section 7.3(a).

7.4     Unallocated investment income that is earned on non-general fund accounts and not distributed in accordance with Sections 7.2 and 7.3 of this Policy will be allocated to the Reserve for Non-Recurring Projects, which is an account established in accordance with the university’s by-laws.

7.5     The Treasurer shall establish a program to charge interest on cash account deficits for Auxiliary funds and other programs or funds as applicable.

8.0  Duration

8.1     This University Policy is revocable at any time at the discretion of the President and without notice.

9.0  Effective Date

9.1      This University Policy is effective upon issuance.

9.2      Executive Order 84-2 is hereby revoked, effective immediately.

 

Signed by President Irvin D. Reid September 25, 2005.