Policies

Policies And Procedures For Trust And Agency (T&A) Accounts

Policy Purpose

The Auxiliary Service Corporation (ASC) T&A Accounts provide bookkeeping and banking services to recognized campus organizations as a Fiduciary agent.

The ASC does not normally handle accounts consisting of funds generated through State mandated or approved fees (other than SAF funds), or generated by State paid staff on State time. Such income should normally be administrated through State University of New York Income Fund Reimbursable (IFR) accounts.

Persons Affected

Faculty, Staff

Procedures

ASC LIABILITY AND RESPONSIBILITY

1. ASC shall have no liability or responsibility for funds above that associated with custody of funds, and no liability for actions or agreements of persons or parties to whom it provides Trust and Agency Services.
2. As the designated agent, ASC will endeavor to maintain accounts consistent with the purposes and with scope and authorization set forth by the depositor. ASC reserves the right to refuse to pay out funds which, in its own recognizance, it feels are unauthorized or improper. However, ASC will not be liable for any funds used, by depositors, on signatures which may unauthorized or improper, provided the appropriate signatures have executed the withdrawal order.
3. ASC will:
   
   1. prepare a monthly statement of account activity.
   2. review transactions for accuracy and correctness.
   3. maintain adequate files for history and audit.
   C. ASC has no oversight responsibilities or authority in any Trust & Agency account(s) management decisions.
4. Administration of Agency Accounts shall be governed by SUNY Guidelines Document 7000, “Agency Account Guidelines” dated July 1, 2003.

CREATION OF T&A ACCOUNTS

1. A request for establishment of an ASC T&A Account shall be made on a “ASC Trust and Agency Account application Form”. The completed and signed application shall be reviewed by the ASC Director.
2. When appropriate, the ASC Director shall approve the account by signing the T&A Account Application and agreement Form at which time ASC shall establish the T&A account. IV.

MAINTENANCE OF T&A ACCOUNTS

1. If account purpose or funding source has in any way changed, or if authorized signature changes are necessary, the primary representative of the depositor must submit a T&A “Request for Change Form” noting all changes. Meeting minutes are required from organizations where applicable, verifying approval of revisions. Said form shall be approved by the ASC and then placed into effect.
2. Annually, at the end of each fiscal year (June 30), accounts with no activity or a zero balance may be closed upon recommendation of the ASC Director and approval of the ASC Treasurer and Chairperson.
3. Remaining balances in closed accounts shall be returned to the proper campus organization. If the proper campus organization no longer exists then the balance shall be considered abandoned property and be deemed donated to the College after deductions by ASC of appropriate administrative charges:
4. The primary representative of the depositor shall be certain that all designated account signatories understand and accept ASC Responsibility and Liability as stated in Section II.

DISBURSEMENTS AND RECEIPTS

1. ASC shall maintain a cash disbursement journal, as cash receipts journal and general ledgers for each account. The ASC Director is authorized to institute any other journals or records deemed necessary.
2. ASC shall maintain a file of all requisitions processed. Records are retained per ASC record retention policy, which is seven years.
3. The account shall be reconciled monthly. Authorized account signors will receive a summary of account activity monthly. However, if there is a possibility of the account being overdrawn, the account shall be reconciled after each transaction. No account shall be overdrawn unless specifically authorized by the ASC Director or Treasurer. ASC shall notify the account holder immediately if account is overdrawn and reserves the right to suspend further disbursements until account balance is restored.
4. Each disbursement shall indicate clearly the purpose, authorization, and approval by authorized T&A account signatory (ies). Supportive original documentation must accompany all ASC “Payment Request” forms. Disbursement must support purpose of account.
5. The ASC T&A account clerk shall verify signatures and check compliance with purposes and restrictions which appear in the account application prior to disbursement of funds. Discrepancies shall be reported to the ASC Director.
6. Although ASC officers may be authorized signatories of a T&A account, ASC officers may not sign the T&A account agreement.

PAYROLL

1. Payroll payments may be requested when an employer-employee relationship exists (as per IRS) and must be processed through the ASC bi-weekly payroll system and must be reviewed and approved by ASC in advance. Payroll or honorarium payments can NOT be made from T&A accounts directly to a SUNY employee. All honorarium/ independent contractor payments must be submitted on a Payment Request Form that specifies the recipient’s social security number, & mailing address.
2. ASC will prepare quarterly or monthly tax returns for T&A account employees processed through ASC payroll system.
3. The depositor shall be responsible for having an IRS Employer Identification Number, I-9 and W4 or 1099 data prepared. ASC shall not process payments for personal service without these forms.
4. All payroll check(s) have been issued from the ASC payroll system, the ASC Director shall sign and process a Payment Request Form which withdraws funds from the T&A account and replenishes the appropriate payroll account for the total amount of all payroll and related tax disbursements.
5. Any individual whose payroll is processed through ADP payroll system and payment is processed from a Trust & Agency account, for purposes of this Policy and Procedure agreement are not employees of the Auxiliary Service Corporation. All costs of the payroll processing shall be the responsibility of the Trust & Agency account that the individual is being paid through.

In addition, ASC will process the payroll via the ADP ASC company code. This procedure is not intended to make any representation that Trust & Agency employees are employees of ASC.

CHARGES

1. ASC administrative charges represent ASC’s corporate overhead such as ASC personnel and other corporate expenses.
2. ASC administrative charges shall be annually determined by the ASC Board of Directors in their annual ASC budget which they submit to SUNY Administration. Traditionally, each T&A account is charged a pro-rated portion of ASC’s corporate overhead. The current administrative charge is 8% of cash deposits, or $25 per year, whichever is greater.

Responsible Office

Laffin Hall
Telephone Ext. 2666

Policy History

Administration of Agency Accounts shall be governed by SUNY Guidelines Document 7000, “Agency Account
Guidelines” dated July 1, 2003.