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 eight 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. 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)

Transaction balance accounts (TBAs) are deposit bank accounts for tracking specific department deposits which are transferred to UW-Madison’s main deposit account. TBA accounts are used by large campus departments that have a high volume of deposit activity.

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 lasting more than one year.

Temporary Funds

Funds used for research participant studies lasting less than one year. Temporary funds are opened for three months or less.

Reloadable Debit Card Accounts

Reloadable debit card accounts used for research participant studies lasting for more than one year.

Common tasks and roles

Tasks

Common tasks for each custodian fund depend on the fund type. All the necessary tasks, including instructions and required forms, are laid out in each custodian fund’s corresponding procedure.

Open a custodian fund

Steps to open a custodian fund will vary based on fund type, but generally the first step would be to request a NR number.

See the corresponding custodian fund’s procedure 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 corresponding custodian fund’s procedure for more information.

Close a custodian fund

At the end of a custodian fund’s allowed timeframe or use, there are various required steps to close the fund.

See the corresponding custodian fund’s procedure for more information.

Roles

The Accounting Services – Cash Management team will process custodian funds requests and help oversee all custodian funds, but each fund type has School/College/Auxiliary Business office individuals who serve in required roles to monitor and maintain fund. There is at least a Custodian role for each fund, but not all roles are required for each fund type.

Everyone in these roles must be a UW–Madison employee.

Custodian

Responsible for monitoring the custodian fund.

Reconciler

Responsible for performing reconciliations and, if necessary, replenishments.

Coordinator

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

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

Guide for Maintaining a Custodian Fund

Policies and procedures

Forms and related documents

Guides 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).