Custodian Funds

Used to manage departmental cash flows and pay research participants.

Funds are administered by a UW–Madison employee known as a custodian, who is responsible for monitoring the fund. There are two categories of funds: Business and Research. Within these two categories of Custodian Funds, there are a total of seven types of Custodian Funds.

Business-related

Administrative Bank Accounts

Accounts used by departments within Business Services to generally manage deposits and payables for the University. A Custodian, Reconciler, and Signer are required. For example, UW-Madison’s main deposit bank account is considered an Administrative Bank Account.

Contingent Checking Accounts

Accounts used to pay authorized vendors by check when the purchasing card cannot be used or the Accounts Payable process is not an option.

Transaction Balance Accounts (TBAs)

Deposit bank accounts for tracking specific department deposits which are transferred to UW-Madison’s main deposit account.

Change Funds

Funds used to operate retail operations and cash registers. Change Funds are often used by campus departments when change is a need for retail operations. A Custodian and Reconciler are required.

Petty Cash

Set up for handling small purchases that cannot be effectively handled by a purchasing card or check.

Research-related

Replenishable Checking Accounts

Checking accounts used for Research Participant Studies that are for more than one year.

Temporary Funds

Funds used for Research Participant Studies that are for less than one year. Temporary Funds are opened for three months or less.

Common tasks and roles

Tasks associated with Custodian Funds

Open a Custodian Fund

Tasks will vary according to the type of custodian fund, but generally the first step would be to request a NR number. See the procedures for the various types of custodian funds for more information.

Maintain a Custodian Fund

Task will vary according to the type of custodian fund, but common tasks include reconciling and if necessary replenishing. See the procedures for the various types of custodian funds for more information.

Close a Custodian Fund

At the end of a custodian funds allowed timeframe or use, there are procedures required to close the custodian fund which are outlined in the procedures for the various types of custodian funds.

Roles

The Cash Management team in the Accounting Services Department will process Custodian Funds requests and help oversee all Custodian Funds. The following roles are may be involved. There is at least a Custodian for each type of Custodian Fund, however, not all roles are required for each type.

Custodian

A UW–Madison employee responsible for monitoring the custodian fund.

Reconciler

A UW–Madison employee responsible for performing reconciliations and if necessary replenishments.

Coordinator

A UW–Madison employee responsible for enrolling participants and for loading participant payments to reloadable debit cards the appropriate recipient. The Coordinator is also responsible for ensuring all payments are logged and accounted for.

Signer

A UW–Madison employee responsible for writing and signing checks to the appropriate recipient. The signer is also responsible for ensuring all checks are logged and accounted for.

Training

Tools

Access Custodian Funds System and NR Number Generator

If you need to maintain or make a change to your current Custodian Fund use the guide below.

Guide for Maintaining a Custodian Fund

Policies and procedures

Forms and related documents

Guide and worksheets

Memorandums of Understanding (MOUs)

When opening a Custodian Fund, each role will need to understand the responsibilities involved, which are documented in a Memorandum of Understanding (MOU).