Bank Accounts

Policy

FIACCT 19-01_00 Bank Accounts – Depository Bank Accounts

Effective: April 1, 2002
Revised: October 1, 2009

Purpose

This policy outlines policies and procedures for depository bank accounts.

Definitions

Depository 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

Policy

A. The State Treasurer is responsible for opening and closing all depository bank accounts.

B. The State Treasurer is responsible for assigning a FINET bank code, setting up the bank code in the BANK table in the FINET system, and providing information to Finance regarding these accounts.

C. The Division of Finance is responsible for setting up the beginning balance for a new bank account in the ABAL table in the FINET system after the BANK table has been set up.

D. The State Treasurer is responsible for maintaining a listing of all depository bank accounts.

E. Each department is responsible for reconciling their own depository bank accounts to FINET on a monthly basis and submitting the reconciliation to the Division of Finance.

Procedures

Responsibility

Action

Setting up Depository Bank Accounts

State Treasurer

  1. Set up department depository bank accounts upon request based on need.
  2. Assign a bank account code in FINET and add them to the BANK table. Inform departments and Finance of these bank account codes.
  3. Provide State Finance with a new listing of depository bank accounts when accounts are set up or closed, as well as providing the department name and individual assigned to do reconciliations.

Departments

  1. Obtain and use bank deposit slips and endorsement stamps.
  2. Receive assignment of bank account codes from the State Treasurer that will be used on accounting transactions.
  3. Request that the State Treasurer set up additional department depository bank accounts, if needed. Contact the Financial Manager at 801-538-1042. Departments are prohibited from opening depository bank accounts for deposit of state collections.
  4. Complete monthly reconciliations of each bank account and submit it to Finance. See the Depository Bank Accounts – Reconciliation policy in this section of the manual.

Finance

  1. Enter beginning balance of new bank accounts in the ABAL Table.
  2. Provide the departments with a monthly FINET bank reconciliation report for reconciling.
  3. Monitor and review monthly bank reconciliations on all depository bank accounts.

Closing Depository Bank Accounts

State Treasurer

  1. Inform the Financial Manager at the State Treasurer’s Office (801-538- 1042) that a bank account is no longer in use and request that the account be closed.
  2. Complete a final reconciliation showing that the FINET and bank balances are zero.

Departments

  1. Contact the financial institution associated with the bank account and request that the bank account be closed.
  2. Update the depository bank account list and send a copy of this list to Finance along with notification of the closure of the account.
  3. After verifying with Finance that reconciliations are complete and that the FINET balance is zero, remove the bank code from the Bank Account Table in FINET.

Finance

  1. Review the bank reconciliation to verify that all transactions have been completed and that the balance of the bank code in the ABAL Table is zero.
  2. Delete the bank code from the ABAL Table in FINET.

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