Effective Date: December 8, 2009
Last Reviewed: December 8, 2009
The Vice President for Finance and Treasurer has the overall responsibility for management of the College’s financial assets and liabilities. These responsibilities include banking services; cash and investment management; and capital financing and debt management.
The assignment of duties for daily cash management exists both in the Vice President for Finance and Treasurer’s Office, Controller’s Office and Student Accounts at Stonehill College.
This policy is intended to define distinctions between functional responsibilities for these offices. This policy and related procedures also document the various bank accounts that Stonehill utilizes for processing cash transactions. These include disbursement checking accounts as well as other bank accounts, reserve fund accounts, and endowment cash accounts.
The Vice President for Finance and Treasurer’s Office will oversee and manage the working capital of Stonehill College and provide for safe and prudent investment of all college cash reserves. This includes daily deposits and disbursements of funds, forecasting the College’s cash position, funding cash deficits, and investing cash surplus. It also includes ultimate control for all College cash accounts and all related banking services.
Overview of Cash Accounts
Stonehill College currently has separate bank accounts to manage the various types of cash activities. The College does not allow for any discretionary cash accounts to be maintained outside of the Finance and Treasurer’s Office.
1) The College uses operating bank accounts to handle daily deposits, and weekly disbursements, such as payroll, accounts payable and medical payments.
2) The College has also established designated operating accounts for the purpose of holding excess medical funds manager donor designated gift for construction projects.
3) The College has established short-term investment accounts to hold funds available for investment to the endowment, and reserve funds (undesignated) to be used by Trustee approval. 4) The College also maintains a separate bank account for Perkins Loan funds and limited smaller accounts for miscellaneous purposes.
Cash Deposits are generated from Students Accounts, Development, or various departments on campus. The College cashier processes all student deposits and posts the activity to the student’s account and subsequently to the general ledger. The Cashier delivers the cash activity to the Controller’s Office daily.
The Development Office is responsible for processing all donor gifts received by mail or hand delivered. These gifts are recorded in the Development database system, reconciled and delivered to the Controllers’ Office daily with a cash report. The Controller’s Office records the activity in the general ledger.
Various college departments that collect miscellaneous cash (i.e. Athletics, Residence Life) are required to deposit the funds through the Controller’s Office, who then records the activity in the general ledger. No outside bank accounts are authorized to be set-up for departmental miscellaneous funds or Student Government Funds. A reconciliation of all daily cash deposits are performed by the Controllers’ Office and bank deposits (through a secured night deposit bag) are made daily by Campus Police at the College’s local bank, (times vary as to not establish a set pattern).
Accounts Payable disbursements are made on a weekly basis by the Controller’s Office, and approved by the Vice President for Finance Office. Once the checks are finalized and approved, the amount of the weekly check register is maintained in the Finance Office for cash management purposes.
Payroll disbursements are made on a weekly and bi-weekly basis. Once the payroll is processed, the Payroll Manager informs the Vice President Finance Office of the net payroll amount for an account transfer. Because the majority of staff/faculty use the direct deposit option for payroll an ACH amount is debited from our account automatically for the total direct deposit. The remaining checks are cleared on a daily basis (based on when employees cash their checks) and reconciled each month.
Wire Transfers – Vendor Payments
A request for an outgoing wire or ACH payment is initiated by completing a Request for Payment Form (signed by the requesting person or Department Head). Supporting invoice documentation must be attached to the wire request form. The form should specify the purpose and intent of the transfer, the amount to be transferred, the date funds are due, the account to be debited/credited and must be signed and dated by the originating department. The Vice President for Finance and Associate Vice President for Finance are the only authorized persons to approve the request prior to its initiation. Vendor wire transfers are usually limited to foreign entities.
Investment Manager Wire Transfers
Wire Transfers to Investment Managers are required when 1) the College selects new investment managers, based upon approval from the Investment Committee, for its endowment holdings, or 2) The College previously approved investments (mainly Limited Partnerships) require funding to be “called” for the investments obligations. Wire Transfers from Investment Managers are required when 1) the College liquidates an investment, based upon approval from the Investment Committee, or 2) Available Endowment Cash is insufficient to fund the quarterly endowment distribution. Wire Transfers for Investment Manager’s activity require that an Investment Wire Form be completed with the required information and justification for the transfers. The Investment Wire Form requires the signature of the Associate Vice President for Finance and final approval by the Vice President for Finance to authorize the transfer.