Policy
FIACCT 19-00_00 Bank Accounts – Overview
Effective: April 1, 2002
Revised:
Reviewed: October 1, 2009
Purpose
This policy outlines policies and procedures state agencies follow for opening, closing, and recording of all bank accounts.
Background
The State Treasurer is required by UCA 67-4-1 to direct the safekeeping and investment of state monies. The State Division of Finance is required by UCA 63A-3-203 to exercise accounting control over state departments and agencies. In order to accomplish this, it is important that the State Treasurer approve all state bank accounts before they are set up. It is also important that all state bank accounts are closed promptly when they are no longer needed or used. All state bank accounts must also be recorded in FINET and reconciled to the bank on a regular basis.
Definitions
State Bank Accounts
Bank accounts that are owned, held, or administered by a state agency, regardless of the source of the funds. This includes all types of depository, checking, or savings accounts maintained in any type of financial institution. It also includes accounts held and/or administered by the State for others, including trust accounts. For purposes of this policy state bank accounts are divided into three types: (1) depository, (2) imprest, and (3) trust accounts, as defined below. Deposits in lieu of surety bonds and other similar accounts are not considered state bank accounts.
Depository Bank Accounts
Bank accounts used by state agencies to deposit money that is transferred into the State Treasurer’s main bank account. The deposits are recorded in FINET with a Cash Receipt (CR) document in balance sheet account 0010 (Cash) using a FINET bank code that represents the account on FINET. These accounts must be approved, opened, and tracked by the State Treasurer’s Office.
Imprest Bank Accounts
State Bank Accounts used by state agencies for petty cash and travel
advances. These accounts must be approved by the State Treasurer’s Office, and tracked by the State Division of Finance. These accounts are recorded in FINET in the balance sheet account range of 0400–0499, as assigned by State Finance.
Trust Bank Accounts
State Bank Accounts used by state agencies for petty cash and travel
advances. These accounts must be approved by the State Treasurer’s Office, and tracked by the State Division of Finance. These accounts are recorded in FINET in the balance sheet account range of 0400–0499, as assigned by State Finance.
Deposits in Lieu of Surety Bonds
& Other Similar Accounts
Bank accounts or time certificates of deposit that are controlled by a state agency in the name of both the state agency and a private individual or corporation. These accounts are opened in lieu of posting a surety bond as required by statute or for other similar purposes. Because these deposits are not state bank accounts, State Treasurer approval is not required.
Policy
A. Agencies must obtain approval from the State Treasurer’s Office before opening any state bank accounts. Contact the Financial Manager at 801-538-1042.
B. Agencies must notify the State Treasurer’s Office promptly when a state bank account is no longer needed so it can be closed. Contact the Financial Manager at 801-538-1042.
C. Depository Bank Accounts are monitored by the State Treasurer. See FIACCT 19-01.00 for more detailed policies and procedures.
D. Imprest Bank Accounts are monitored by the Division of Finance, Accounting Operations. For detailed
policies and procedures see FIACCT 05-23 –Agency Cash Funds.
E. Trust and Agency Bank Accounts are monitored by the Division of Finance, Financial Reporting. See
FIACCT 19-02 – Trust Accounts for more information.
F. Deposits in lieu of surety bonds and similar accounts are monitored by the state agency. See the FIACCT 19- 03 – Deposits in Lieu of Surety Bonds & Similar Accounts for more information.