UW System Administrative Policy 310 (formerly F38)

Banking

Original Issuance Date: December 17, 1997
Last Revision Date:         November 11, 2022

1. Policy Purpose

The purpose of this policy is to ensure that UW System institutions establish bank accounts with reputable, credit-worthy public depositories and UW System institutions appropriately monitor these accounts.

2. Responsible UW System Officer

Senior Associate Vice President for Finance

3. Scope

This policy applies to all UW System bank accounts.

4. Background

The State of Wisconsin Department of Administration is required to establish a state working bank.  Some UW institutions or office locations are not near a branch of the State working bank.  In those cases, the UW institution may establish a bank account at a local public depository.  Chapter 34, Wisconsin Statutes governs the selection of public depositories.

Signature authority over accounts established at these public depositories is also governed by State Statute. In accordance with sections 34.01(7) and 34.105(2), the UW System Board of Regents must designate by written authorization the person or persons who are authorized to make deposits to and sign checks drawn on accounts held in public depositories. In order to simplify the signature authorization procedure, the Board of Regents passed a resolution on September 19, 1969, empowering the UW System Vice President for Finance and Controller to authorize the persons who have signature authority on these accounts. The Secretary of the Board of Regents is authorized as needed to submit to the public depository certification that the designated persons have signature authority.

5. Definitions

Public Deposit:  Public moneys deposited in a public depository.

Public Depository:  A federal or state credit union, federal or state savings and loan association, state bank, federal or state savings bank, or national bank in Wisconsin that receives or holds any public deposits.

6. Policy Statement

  1. Designating a Public Depository
    1. Designation of a public depository is required for all UW institution bank accounts in which public deposits are made.
    2. UW System institutions must first give consideration to use of the State working bank contracted by the Department of Administration for all banking services.
    3. To evaluate whether the State working bank meets an institution’s business needs, an institution should consider the following factors:
      1. Proximity of a branch location of the State working bank to the UW System institution;
      2. Cost effectiveness and feasibility of utilizing a remote deposit solution to deposit checks within the State working bank; and
      3. Cost effectiveness and feasibility of utilizing an armored courier to transport checks and cash deposits from the UW System institution to the State working bank.
    4. If a UW System institution determines that the State working bank does not meet its business needs, the UW System institution should work with its procurement official to contract with a local public depository. The selected public depository must have received a score of 75 or higher on the most recent IDC Financial Publishing bank ratings.
  2. Signature Authorization
    1. Documented signature authority (i.e., signature cards) must be submitted by the UW System institution to the UW System Controller for review. The documentation must stipulate the account title and number, the public depository and the person(s) who are to have signature authority. Signature cards for all persons who will be authorized to sign on the account shall accompany the letter. The UW System Controller’s office will maintain these records.
    2. Appointment of signature authority shall be for an indefinite period unless the UW System institution stipulates a specific period in its signature authority.
    3. The UW System institution must notify the public depository and UW System Administration of all additions and/or deletions to the signature cards.
  3. Funds collected or received by a UW System institution must be deposited in or transmitted to the state treasury within seven (7) calendar days.
  4. UW System institutions must complete monthly reconciliations between their records and the public depository. A staff member who is not part of the cash receipt operation should complete the reconciliation, with a manager reviewing and approving it. The manager review must be documented and dated within 60 days of month end.

7. Related Documents

Chapter 34, Wisconsin Statutes
Section 20.906, Wisconsin Statutes

8. Policy History

Revision 3:         November 11, 2022
Revision 2:         August 3, 2022
Revision 1:         November 5, 2018
First Approved: December 17, 1997

9. Scheduled Review

July 2027