Banking Services

1. Policy
   Salt Lake Community College is committed to selecting banking service providers that comply with state statutes and administrative rules and serve the best interests of the college. Procedures will be established for selecting these providers and authorizing college employees to manage banking relationships and transactions.
2. References
   
   1. Utah State Money Management Act, Utah Code Annotated §§ 51-7-1—24.
   2. Commercial Banking Services, Utah System of Higher Education R. 543.
   3. Rules of the Money Management Council, Utah Administrative Code R. 628.
3. Definitions
   
   1. Banking Services Provider: a financial institution that meets the college’s financial and operational needs.
   2. College Funds: all money or funds owned, held, or administered by the college.
   3. Qualified Depository: a banking institution authorized to operate in Utah, federally insured, certified by the Utah Department of Financial Institutions, and meeting the Utah State Money Management Act requirements.
   4. Third-Party Payment Processor: a company that provides services to facilitate financial transactions between businesses and their customers. These services include processing credit card payments, managing online transactions, and handling other forms of electronic payments. Examples include Stripe, PayPal, and Square.
4. Procedures
   
   1. General Guidelines
      1. Deposits: All college funds must be deposited through the Cashiering Office within three banking days of receipt into qualified depository bank accounts compliant with federal and state laws, under the oversight of the Controller’s Office.
      2. Account Approval: The establishment of a banking services account must be approved by the president, the board of trustees, or the vice president for Finance and Administration.
      3. Authorized Signatories: The vice president for Finance and Administration, or a designee, is authorized to sign checks and agreements related to college bank accounts. Authorization must be documented in writing.
      4. Bank Statements: All bank statements must be sent to the Controller’s Office. No statements should be sent directly to any department without first being received by the Controller’s Office.
      5. Reconciliation: Monthly bank statement reconciliation must be performed by an employee independent of cash receipting and disbursing functions, under the oversight of the Controller’s Office.
      6. Evaluation: An internal evaluation of the banking services provider’s competitiveness and ability to meet the college’s needs will be conducted at least every five years. New requests for proposals may be solicited at any time.
   2. New Accounts
      
      1. Prohibition: College departments, clubs, and organizations are prohibited from establishing bank accounts using the college’s name or taxpayer identification number.
      2. Request Process: Requests to open a bank account must be submitted to the vice president for Finance and Administration, who will determine the need and make a recommendation to the president for approval.
      3. Third-Party Payment Processors: The college generally does not allow the use of third-party payment processors (e.g., Stripe, PayPal, Square). Rare exceptions can be made with the approval of the Controller’s Office, ensuring compliance with all relevant procedures and guidelines.
   3. Criteria for Selecting a Banking Services Provider
      
      1. General Guidelines
         
         1. Compliance: The provider must qualify to receive public funds under the State Money Management Act and the State Money Management Council rules.
         2. Cost: The provider must offer the required services at a reasonable and competitive cost, considering conversion costs if changing providers.
         3. Local Presence: The provider must have a local office and support staff accessible to the college.
         4. Insurance: Deposited funds must be held in Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration (NCUA) insured accounts. Providers must be qualified to handle uninsured funds if balances exceed insurance limits.
         5. Electronic Services: The provider must offer compatible electronic data reports and interface services for prompt reconciliation of accounts and transactions.
         6. Access Authorization: Access to banking accounts must be restricted to authorized personnel only. Authorization must be documented and reviewed regularly.
         7. Multi-Factor Authentication (MFA): All access to banking accounts must require multi-factor authentication to enhance security.
      2. Additional Services
         The banking services provider must also offer:
         
         1. Short-term investment services, including Delivery Versus Payment (DVP) transactions, safekeeping of securities, and repurchase agreements.
         2. Assistance with the purchase and transfer of various money market investments.
         3. Electronic funds transfers, including international and domestic wire transfers, Automated Clearing House (ACH) transfers, or other electronic transfers through the banking system.
         4. Daily account activity reports.
         5. Financial consultation and participation in federally insured student loan programs.

Date of last executive cabinet review: March 18, 2025

The originator of this policy and procedure is the Controller’s Office. Questions regarding this policy and procedure may be directed to the originator by calling 801-957-4676.