Checking Accounts

Checking Accounts - Page Contents

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• Definition
• Summary of Policy
• Security and Custody of Assets
• Procedures for Processing Reconciliations
• Tips
• Reference Links

Definition 

Official University checking accounts are authorized by the Treasurer of Regents of the University of California. The checking accounts established for local use by the UC Cooperative Extension offices are special UC Revolving Fund bank accounts. The checking account is a payment mechanism only.  All University purchasing policies apply when using the checking account for payment.

Summary of Policy

• Treasurer of The Regents maintains central control over all UC cash transactions.
• Banks accounts can only be established by the Treasurer.
• Accounts are initially established by a cash advance from the campus revolving fund. As cash is disbursed from the account, through the reconciliation process, the account is reimbursed from this same campus revolving fund.
• Authorized uses of the checking account are: 
  1) General low-value petty cash type purchases; 
  2) Out of pocket  reimbursements for purchases (must comply with the purchase order requirements of UC Davis - may not exceed $500)
  3) Small dollar value invoices
  4) Entertainment expenses - see TIPS below; 
  5) Registration fees; 
  6 )Utility/communication bills; 
  7) Casual farm labor; 
  8) Incentives to pay participants involved in a grant study.
• In most instances, signature authorization on the checks will be limited to three individuals: County Director, office manager, and one other academic (back-up to County Director).

Security and Custody of Cash Assets

• Blank check stock must be kept under lock and key with access restricted to authorized agents.
• Inventory of the numerical sequence of the blank checks should be regularly conducted in order to identify missing checks.
• If determined that blank checks have been stolen, immediately report the sequence of check numbers that are missing to the Regional Office so that the bank can be notified.
• Original checks voided for any reason must be sent in to the Regional Office with the bank reconciliation/reimbursement.
• Do not sign and issue blank checks.

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Procedures for Processing Reconciliations

• The Revolving Checking Account Reimbursement Request form is used to summarize the account activity, is signed by the preparer and the County Director, and should be forwarded to the Regional Office with supporting documentation on a bi-weekly basis. Account balances are recommended to have an average of two-weeks receipts.
• The Checking Account Reimbursement Request packet has four parts in the following order: 
  1) the completed Checking Account Reimbursement Request form;  
  2) the duplicate checks and any voided checks;  
  3) the original receipts/invoices and supporting documentation;
  4) one complete set of copies of the original receipts/invoices and supporting documentation.
• The check duplicates should be in numerical order and should include any voided or returned check. Receipts/invoices and supporting documents are grouped next in check number order. Each page oforiginal, itemized receipts must be clearly identified with it's matching check number. A receipt smaller than a half page must be taped to an 8-1/2"x11" sheet. Multiple receipts for one check may be taped to the same page, spaced so that they can be clearly read.

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Tips

• When reimbursing for meals purchased, an Entertainment Expense form must accompany the receipt.  For the name on the Entertainment Form, put "Reimburse Checking Acct, Ck # "(see Entertainment section for policy on use).
• In order to comply with University policy in processing entertainments expenses, Entertainment Expenses must be submitted on a separate Checking Account Reimbursement Request.
• Casual farm labor - An original signed Casual Labor Form must be submitted as a receipt for the check. A signed I-9 Form (Employment Eligibility Verification) must be included.  (This can be a copy of a form completed earlier, provided the documents used have not expired.)
• Incentives to pay participants involved in a grant study require a log of participant signatures and dates as receipt of payment.

Items that ABSOLUTELY MAY NOT be paid from the checking account:

• Travel costs except for registration fees.
• Any item containing an Evidence of Lost Receipt, the Evidence of Lost Receipt must be approved by the Regional Director prior to payment.
• Honoraria require Regional Director approval; submit with a Check Request form - see Honorarium Section.
• Long Term Rental of equipment requires a Purchase Order Request.
• Vehicle Rental (including buses or vans), requires a Purchase Order Request.
• Facility rental requiring a contract, except where University standard liability language is accepted and the County Director is authorized to sign.
• Memberships require prior Regional Director approval; submit with aCheck Request.
• Any payment to UC Regents; should be processed by a transfer of expense through the Regional Office.
• Business Services requiring a contract or consultant agreement.
• Labor (except for Casual Farm Labor).
• Furniture
• Animals
• Equipment (single items over $5,000)
• UC Purchasing Excluded Items list (controlled items that need a PO exclusively)
• Donations to other entities - special policies exist covering donations to other entities, contact the Regional Office
• If you have a question on any other item, please call your Regional Office before writing the check.

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Reference Links

UC Davis Policy & Procedure Manual, Section 330-43 Official University Bank Accounts: https://ucdavispolicy.ellucid.com/documents/view/439/active/

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