Bank Accounts

Policy

FIACCT 19-02_00 Bank Accounts – Trust Accounts

Effective: April 1, 2002
Revised: March 1, 2008

Purpose

This policy outlines state policies and procedures for trust bank accounts.

Definitions

Trust Bank

Accounts Bank accounts that contain monies held and disbursed by state agencies in behalf of non-state entities or individuals. These accounts must be approved by the State Treasurer and monitored by the Division of Finance. They are recorded in FINET in the balance sheet account range of 0300–0399, as assigned by the Division of Finance.

Policy

A. The agency is responsible for obtaining State Treasurer approval before opening any trust bank accounts.

B. The agency is responsible for opening trust bank accounts only at qualified depositories approved by the Money Management Council.

C. The agency is responsible to ensure that the State Treasurer is a signer on all of its trust bank accounts.

D. The agency is responsible for providing the State Treasurer and the Division of Finance with any requested information regarding its trust bank accounts.

E. The Division of Finance is responsible for maintaining a list of all trust bank accounts for the State Treasurer and for monitoring purposes.

F. The Division of Finance is responsible for establishing the proper coding for agencies to use to record the activity of each trust bank account on FINET.

G. Each agency is responsible for reconciling their own trust bank accounts on a monthly basis, posting the activity to FINET as directed by the Division of Finance, and submitting the reconciliations to the Division of Finance on a quarterly basis.

H. The Division of Finance is responsible for reviewing all agency trust bank account reconciliations on a quarterly basis.

I. The agency is responsible for closing trust bank accounts as needed and for informing the State Treasurer and Division of Finance of any such action.

Procedures

Responsibility

Action

Setting up Trust Bank Accounts

Agency

  1. Obtain approval from the State Treasurer before opening any bank account.
  2. Open trust bank accounts only at qualified depositories approved by the Money Management Council. Obtain a listing of qualified depositories from the State Treasurer.
  3. Ensure that the State Treasurer is a signer on the bank account by sending the signature card for each new trust bank account to the State Treasurer for signature by their office. Return the signature card to the bank.
  4. Contact the Trust and Agency Accountant, Division of Finance (801-538-3171) to establish the proper coding to use to record the trust bank account activity on FINET.
  5. Complete a monthly reconciliation and posting of activity to FINET. Submit a copy of the reconciliations to Division of Finance on a quarterly basis. See the Trust Bank Accounts – Reconciliation policy in this section of the manual.

State Treasurer

  1. Approve all state bank accounts.
  2. Act as a signatory on all trust bank accounts opened by the agencies.

Division of Finance

  1. Monitor and review bank reconciliations on all trust bank accounts on a quarterly basis.
  2. Maintain a complete listing of all trust accounts, including agency name and person responsible for reconciling each account.
  3. Provide a current copy of the list to the State Treasurer at yearend.4. Establish the proper coding for agencies to use to record trust bank account activity on FINET

Closing Trust Bank Accounts

Agency

  1. Complete a final reconciliation showing a FINET and bank balance of zero.
  2. Close the bank account and notify the State Treasurer and the Division of
    Finance that the account has been closed.

Division of Finance

  1. Review the final bank reconciliation to verify that all transactions have been recorded in FINET and that the balance is zero.
  2. Update the trust bank account list showing the account closed and send a copy of this list to the State Treasurer.

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