3012.8 Reloadable Debit Card Account Procedure

Reloadable Debit Card Account Procedure used for UW–Madison research studies that pay participants with reloadable debit cards.

Procedure #3012.8; Rev.: 0 (Effective February 1, 2022)
Related Policy: UW-3012 Custodian Funds Policy
Functional Owner: Cash Management, Business Services
Contact: Custodian Funds Mailbox – cstdnfnd@bussvc.wisc.edu


Contents

  1. Procedure statement
  2. Who is affected by this procedure
  3. Procedure
  4. Definitions
  5. Related references
  6. Revisions

I. Procedure Statement

The University of Wisconsin–Madison conducts research studies that are 1 year or longer and the research participants are compensated with payment by reloadable debit card. Reloadable Debit Card Accounts are used for these research participant studies.

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II. Who is affected by this Procedure

This procedure applies to all Deans, Directors, Financial Officers, and staff involved with research participant studies that provide payments by reloadable debit card to research participants.

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III. Procedure

  1. Opening Reloadable Debit Card Account
    1. Custodian obtains the NR Number from the NR Number Generator. The NR Number from the NR Number Generator is required on some of the necessary forms for opening a reloadable debit card account.
    2. Custodian composes a Letter of Justification explaining the purpose of the study and how it is linked to the project.
    3. Custodian completes the following forms and obtains the necessary departmental approvals:
      1. Custodian Fund Request Form
      2. Custodian Fund Agreement Form
      3. Custodian Fund Budget Form
      4. Prepaid Administrative Website User Request Form (PDF)
        1. Client Program Name = Leave blank for now. We will eventually get this name from US Bank.
        2. Check “New User”
        3. Use wisc.edu email address (this will end up being the username)
        4. Roles are as follows:
          1. Custodian = Role Group 1.1
            • Also check boxes for “Report Viewer – Standard Reports” and “Report Viewer – Financial Reports” under the Add-on Features section
          2. Reconciler = Role Group 2.2
            • Also check boxes for “Report Viewer – Standard Reports” and “Report Viewer – Financial Reports” under the Add-on Features section
          3. Coordinator who enrolls participants = Role Group 2.2
          4. Coordinator who approves fund disbursements = Group Group 2.3
          5. Dean’s Office = Role Group 1.1
          6. Also check boxes for “Report Viewer – Standard Reports” and “Report Viewer – Financial Reports” under the Add-on Features section
    4. Custodian reviews and signs the Memorandum of Understanding (MOU) for Reloadable Debit Card Account – Custodian (PDF).
    5. Reconciler reviews and signs the MOU for Reloadable Debit Card Account – Reconciler (PDF) and provides it to the Custodian.
    6. Coordinators review and sign the MOU for Reloadable Debit Card Account – Coordinator (PDF) and provides it to the Custodian.
    7. Custodian routes the Letter of Justification and signed forms to the Dean/Director’s office.
    8. Dean/Director’s office verifies that the Custodian needs a Reloadable Debit Card Account by verifying that:
      1. The research study will be for 1 year or longer.
      2. The research study has an Institutional Review Board (IRB) Number or self-certification paperwork showing that no IRB approval or certification is necessary.
      3. Each payment to a research participant will be $249 or less.
      4. The payment(s) to the research participants will be made by reloadable debit card.
      5. At least 10 payments will be made per month.
    9. Dean/Director’s office verifies accurate funding information.
    10. Dean/Director’s office reviews the documentation and signs the necessary forms.
    11. Dean/Director’s office keeps a copy of the forms for internal records.
    12. Dean/Director’s office sends the original forms to Cash Management via inter-d mail or email to the Cash Management Office (cstdnfnd@bussvc.wisc.edu).
    13. Cash Management processes the request.
    14. Cash Management will notify the department and Dean/Director’s office when the US Bank reloadable debit account is set up and cards are ordered.
    15. The Custodian can check WISER using account code 6167, on the balance sheet, to see if the request has been processed. On the Transaction Search page in WISER, ensure the Show Balance Account checkbox is checked.
  2. Maintaining Reloadable Debit Card Account
    1. Reconciliations
      1. Reconciler completes and documents monthly account reconciliations between the US Bank Account Reconciliation Report and the Card Load Report on the US Bank Account Reconciliation Worksheet within 30 days of month end.
      2. Reconciler submits the monthly reconciliation, Account Reconciliation Report, and Card Load Report via the Custodian Fund System within 30 days of month end.
    2. Replenishments
      1. Reconciler obtains the research participant log, without HIPAA or sensitive information, and completes the Custodian Fund Accounting Form to replenish the Reloadable Debit Card Account at least every 90 days, based on activity.
      2. Reconciler obtains necessary departmental approvals for the Custodian Fund Accounting Form.
      3. Custodian routes the completed/signed Custodian Fund Accounting Form, along with the research participant log, reconciliation(s), Account Reconciliation Report, and Card Load Report from US Bank Prepaid Administrative Website to the Dean/Director’s office for review and approval.
      4. Dean/Director’s office reviews the documents and signs the Custodian Fund Accounting Form.
      5. Department keeps a copy of the forms for internal records. Department is the official record holder.
      6. Dean/Director’s office sends the original forms via inter-d mail or email to the Cash Management Office (cstdnfnd@bussvc.wisc.edu).
      7. Cash Management processes the replenishment request.
    3. Other
      1. Any errors on the account are to be reported by the Reconciler via email to Cash Management (cstdnfnd@bussvc.wisc.edu) and their Dean’s/Business Office within 30 days of month-end.
      2. Notify the Dean/Director’s office and Cash Management when there is a change in Custodian, Reconciler, and/or Coordinators and prepare applicable Custodian Fund forms.
      3. Respond to Cash Management’s periodic review request.
  3. Closing Reloadable Debit Card Account
    1. Custodian completes the Custodian Fund Accounting Form and obtains the research participant log.
    2. Custodian obtains the necessary departmental approvals for the Custodian Fund Accounting Form.
    3. Custodian routes the completed/signed Custodian Fund Accounting Form, research participant log, and card shred confirmation to the Dean/Director’s office.
    4. Dean/Director’s office reviews the documents and signs the Custodian Fund Accounting Form.
    5. Dean/Director’s office keeps a copy of the documents for internal records.
    6. Dean/Director’s office sends the original documents via inter-d mail or email to the Cash Management Office (cstdnfnd@bussvc.wisc.edu).
    7. Cash Management process the closing request.

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IV. Definitions

  • Custodian: UW–Madison employee who is responsible for monitoring the cash advance for research participant studies.
  • Coordinator: UW–Madison employee responsible for registering and funding cards to the appropriate recipient and responsible for ensuring all payments are logged and accounted for.
  • Reconciler: UW–Madison employee who is responsible for performing and submitting monthly reconciliations and replenishments.

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V. Related References

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VI. Revisions

Procedure Number 3012.8
Date Approved February 1, 2022
Revision Dates N/A

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3012.7 Petty Cash Procedure

Petty Cash Procedure

Procedure #3012.7; Rev.: 0 (Effective June 29, 2018)
Related Policy: UW-3012 Custodian Funds Policy
Functional Owner: Cash Management, Business Services
Contact: Custodian Funds Mailbox – cstdnfnd@bussvc.wisc.edu


Contents

  1. Procedure statement
  2. Who is affected by this procedure
  3. Procedure
  4. Definitions
  5. Related references
  6. Revisions

I. Procedure Statement

The University of Wisconsin–Madison maintains a series of funds, including petty cash, to assist in situations where use of the accounts payable process or a University Purchasing Card is not appropriate. Petty cash is used by departments for handling small purchases that cannot be effectively handled by a University Purchasing Card or check. Petty cash is not common on campus and is generally set up for less than $100.

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II. Who is affected by this procedure

This policy applies to all Deans, Directors, Financial Officers and staff associated with petty cash.

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III. Procedure

  1. Opening Petty Cash
    1. Custodian obtains the NR Number from the NR Number Generator. The NR Number from the NR Number Generator is required on some of the necessary forms for opening petty cash.
    2. Custodian composes a Letter of Justification explaining the purpose of the petty cash.
    3. Custodian completes the Custodian Fund Request Form and Custodian Fund Agreement Form.
    4. Custodian and Reconciler review and sign the Memorandum of Understanding (MOU) for Petty Cash (PDF).
    5. Custodian routes the Letter of Justification, Custodian Fund Request Form, Custodian Fund Agreement Form, and MOU for petty cash to the Dean/Director’s office.
    6. Dean/Director’s office reviews the documents and signs the necessary forms.
    7. Dean/Director’s office keeps a copy of the forms for internal records.
    8. Dean/Director’s office sends the original forms to via inter-d mail or email to the Cash Management Office (cstdnfnd@bussvc.wisc.edu).
    9. Cash Management processes the request.
  2. Maintaining Petty Cash
    1. Perform and document weekly reconciliations by reconciling to the authorized advanced level.
    2. Replenish petty cash at least every 90 days or sooner, based on activity.
    3. Notify the Dean/Director’s office and Cash Management when there is a change in Custodian and/or Reconciler and prepare applicable Custodian Fund forms.
    4. Respond to Cash Management’s annual review request.
  3. Closing Petty Cash
    1. Contact Cash Management via the Custodian Funds email address (cstdnfnd@bussvc.wisc.edu).

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IV. Definitions

  • Custodian: UW–Madison employee who is responsible for monitoring the petty cash.
  • Reconciler: UW–Madison employee who is responsible for performing and documenting weekly reconciliations.

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V. Related References

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VI. Revisions

Procedure Number 3012.7
Date Approved June 29, 2018
Revision Dates Jan. 19, 2021 – Changed Procedure Number to 3012.7 from 200.7

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3012.6 Change Fund Procedure

Change Fund Procedure

Procedure #3012.6; Rev.: 0 (Effective June 29, 2018)
Related Policy: UW-3012 Custodian Funds Policy
Functional Owner: Cash Management, Business Services
Contact: Custodian Funds Mailbox – cstdnfnd@bussvc.wisc.edu


Contents

  1. Procedure statement
  2. Who is affected by this procedure
  3. Procedure
  4. Definitions
  5. Related references
  6. Revisions

I. Procedure statement

The University of Wisconsin–Madison maintains a series of Custodian Funds, including Change Funds. Change Funds are used by departments that oversee retail operations and cash registers, which require coin/currency handling.

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II. Who is affected by this procedure

This policy applies to all Deans, Directors, Financial Officers, and staff associated with Change Funds.

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III. Procedure

  1. Opening a Change Fund
    1. Custodian obtains the NR Number from the NR Number Generator. The NR Number from the NR Number Generator is required on some of the necessary forms for opening a Change Fund.
    2. Custodian composes a Letter of Justification explaining the purpose of the change fund.
    3. Custodian completes the Custodian Fund Request Form and Custodian Fund Agreement Form.
    4. Custodian completes the Bank Deposit Slip Order Form for revenue.
    5. Custodian completes the Plastic Bank Bag Order Form.
    6. Custodian completes the following if a cash vault location is needed to order different currency for the Change Fund:
      1. Bank Account Website Access Form (US Bank SinglePoint)
    7. Custodian and Reconciler review and sign the Memorandum of Understanding (MOU) for Change Funds (PDF).
    8. Custodian routes the Letter of Justification and signed forms to the Dean/Director’s office.
    9. Dean/Director’s office reviews the documents and signs the necessary forms.
    10. Dean/Director’s office keeps a copy of the forms for internal records.
    11. Dean/Director’s office sends original forms via inter-d mail or email to the Cash Management Office (cstdnfnd@bussvc.wisc.edu).
    12. Cash Management processes the request.
  2. Maintaining a Change Fund
    1. Perform and document daily reconciliations by reconciling to the authorized advanced level.
    2. Follow the coin request procedures to replenish the Change Fund.
    3. Notify the Dean/Director’s office and Cash Management when there is a change in Custodian and/or Reconciler and prepare applicable Custodian Fund forms.
    4. Respond to Cash Management’s annual review request.
  3. Closing a Change Fund
    1. Contact Cash Management via the Custodian Funds email address (cstdnfnd@bussvc.wisc.edu).

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IV. Definitions

  • Custodian: UW–Madison employee who is responsible for monitoring the Change Fund.
  • Reconciler: UW–Madison employee who is responsible for performing and documenting daily reconciliations.

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V. Related References

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VI. Revisions

Procedure Number 3012.6
Date Approved June 29, 2018
Revision Dates Jan. 19, 2021 – Changed Procedure Number to 3012.6 from 200.6

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3012.5 Administrative Bank Account Procedure

Administrative Bank Account Procedure

Procedure #3012.5; Rev.: 1 (Effective June 29, 2018)
Related Policy: UW-3012 Custodian Funds Policy
Functional Owner: Cash Management, Business Services
Contact: Custodian Funds Mailbox – cstdnfnd@bussvc.wisc.edu


Contents

  1. Procedure statement
  2. Who is affected by this procedure
  3. Procedure
  4. Definitions
  5. Related references
  6. Revisions

I. Procedure statement

The University of Wisconsin–Madison maintains administrative bank accounts for departments within the Division of Business Services. For example, UW–Madison’s main deposit bank account is considered an administrative bank account.

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II. Who is affected by this procedure

This procedure applies to all Deans, Directors, Financial Officers, and staff associated with Administrative Bank Accounts.

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III. Procedure

  1. Opening an Administrative Bank Account
    1. Contact Cash Management via the Custodian Funds email address (cstdnfnd@bussvc.wisc.edu) to discuss the process of setting up an Administrative Bank Account.
    2. The following forms will be required once the set up process is determined with Cash Management:
      1. Custodian Fund Request Form
      2. Custodian Fund Agreement Form
      3. New Bank Account Form
      4. Bank Account Website Access Form (US Bank SinglePoint) for Custodian and Reconciler.
      5. US Bank Authorized Signature Form obtained from Cash Management and signed by the signer of the account.
      6. Memorandum of Understanding (MOU) for Administrative Bank Account – Custodian
      7. MOU for Administrative Bank Account – Signer
      8. MOU for Administrative Bank Account – Reconciler
  2. Maintaining an Administrative Bank Account
    1. Reconciler completes and documents monthly bank reconciliations.
  3. Closing an Administrative Bank Account
    1. Contact Cash Management via the Custodian Funds email address (cstdnfnd@bussvc.wisc.edu).

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IV. Definitions

  • Custodian: UW–Madison employee who is responsible for monitoring the administrative bank account.
  • Signer: UW–Madison employee responsible for ensuring all disbursements are logged and accounted for.
  • Reconciler: UW–Madison employee who is responsible for performing and documenting monthly reconciliations.

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V. Related References

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VI. Revisions

Procedure Number 3012.5
Date Approved June 29, 2018
Revision Dates August 2, 2018 – Removed requirement to obtain NR number
Jan. 19, 2021 – Changed Procedure Number to 3012.5 from 200.5

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3012.4 Transaction Balance Account Procedure

Transaction Balance Account Procedure

Procedure #3012.4; Rev.: 1 (Effective June 29, 2018)
Related Policy: UW-3012 Custodian Funds Policy
Functional Owner: Cash Management, Business Services
Contact: Custodian Funds Mailbox – cstdnfnd@bussvc.wisc.edu


Contents

  1. Procedure statement
  2. Who is affected by this procedure
  3. Procedure
  4. Definitions
  5. Related references
  6. Revisions

I. Procedure statement

The University of Wisconsin–Madison maintains Transaction Balance Account (TBA) bank accounts for campus departments with a large volume of deposits. Thus, a TBA is a deposit bank account used for tracking a specific department’s deposits. The total daily deposit amount for a TBA is transferred to the UW-Madison’s main deposit account at the end of each day.

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II. Who is affected by this procedure

This procedure applies to all Deans, Directors, Financial Officers, and staff associated with Transaction Balance Accounts.

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III. Procedure

  1. Opening Transaction Balance Account
    1. Custodian composes a Letter of Justification explaining the purpose of the account.
    2. Custodian completes the following forms and obtains the necessary departmental approvals:
      1. Custodian Fund Request Form
      2. Custodian Fund Agreement Form
      3. Bank Deposit Slip Order Form
      4. New Bank Account Form
      5. Bank Account Website Access Form (US Bank SinglePoint)
    3. Custodian e-mails the Cash Management Office (cstdnfnd@bussvc.wisc.edu) to obtain a US Bank Authorized Signature Form.
    4. Custodian signs the US Bank Authorized Signature Form.
    5. Custodian and Reconciler review and sign the Memorandum of Understanding (MOU) for TBA Bank Accounts (PDF).
    6. Custodian routes the Letter of Justification and all signed forms to the Dean/Director’s office.
    7. Dean/Director’s office reviews the documents and signs the necessary forms.
    8. Dean/Director’s office keeps a copy of the forms for internal records.
    9. Dean/Director’s office sends the original forms via inter-d mail or email to the Cash Management Office (cstdnfnd@bussvc.wisc.edu).
    10. Cash Management processes the opening request.
    11. Cash Management will notify the department when the US Bank TBA is set up.
  2. Maintaining Transaction Balance Account
    1. Reconciler completes and documents monthly bank reconciliations.
  3. Closing Transaction Balance Account
    1. Contact Cash Management via the Custodian Funds email address (cstdnfnd@bussvc.wisc.edu).

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IV. Definitions

  • Custodian: UW–Madison employee who is responsible for monitoring the transaction balance account.
  • Reconciler: UW–Madison employee who is responsible for performing and documenting monthly reconciliations.

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V. Related Reference

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VI. Revisions

Procedure Number 3012.4
Date Approved June 29, 2018
Revision Dates August 2, 2018 – Removed requirement of Custodian to obtain NR Number.
Jan. 19, 2021 – Changed Procedure Number to 3012.4 from 200.4

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3012.3 Contingent Checking Account Procedure

Contingent Fund Procedure

Procedure #3012.3; Rev.: 0 (Effective June 29, 2018)
Related Policy: UW-3012 Custodian Funds Policy
Functional Owner: Cash Management, Business Services
Contact: Custodian Funds Mailbox – cstdnfnd@bussvc.wisc.edu


Contents

  1. Procedure statement
  2. Who is affected by this procedure
  3. Procedure
  4. Definitions
  5. Related references
  6. Revisions

I. Procedure Statement

The University of Wisconsin–Madison maintains a series of funds, including Contingent Checking Accounts, to assist in situations where use of the accounts payable process or a University Purchasing Card is not appropriate. Contingent Checking Accounts are used to pay authorized vendors by check when the purchasing card cannot be used and when the accounts payable process is not an option.

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II. Who is affected by this Procedure

This procedure applies to all Deans, Directors, Financial Officers, and staff associated with Contingent Checking Accounts.

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III. Procedure

  1. Opening Contingent Checking Account
    1. Custodian obtains the NR Number from the NR Number Generator. The NR Number from the NR Number Generator is required on some of the necessary forms for opening a Contingent Checking Account.
    2. Custodian composes a Letter of Justification explaining the purpose of the study and how it is linked to the project.
    3. Custodian completes the following forms and obtains the necessary departmental approvals:
      1. Custodian Fund Request Form
      2. Custodian Fund Agreement Form
      3. Custodian Fund Budget Form
      4. New Bank Account Form
      5. Check Order Form
      6. Bank Account Website Access Form (US Bank SinglePoint)
    4. Custodian e-mails the Cash Management Office (cstdnfnd@bussvc.wisc.edu) to obtain a US Bank Authorized Signature Form. Custodian then provides the Signers with the US Bank Authorized Signature Form.
    5. Signers sign the US Bank Authorized Signature Form and provides it to the Custodian.
    6. Custodian reviews and signs the Memorandum of Understanding (MOU) for Contingent Funds – Custodian.
    7. Signers review and sign the MOU for Contingent Funds – Signer and provides it to the Custodian.
    8. Reconciler reviews and signs the MOU for Contingent Funds – Reconciler and provides it to the Custodian.
    9. Custodian routes the Letter of Justification and signed forms to the Dean/Director’s office.
    10. Dean/Director’s office reviews the documents and signs the necessary forms.
    11. Dean/Director’s office keeps a copy of the forms for internal records.
    12. Dean/Director’s office sends the original via inter-d mail or e-mail to the Cash Management Office (cstdnfnd@bussvc.wisc.edu).
    13. Cash Management processes the opening request.
    14. Cash Management will notify the department when the US Bank checking account is set up and funds are deposited.
    15. The Custodian can check WISER using account code 6167, on the balance sheet, to see if the request has been processed.
  2. Maintaining Contingent Checking Account
    1. Reconciliations
      1. Reconciler completes and documents monthly bank reconciliations between the US Bank SinglePoint bank statement and the check register on the Bank Reconciliation Worksheet within 30 days of month end.
      2. Reconciler submits the monthly bank reconciliation and check register to Cash Management via the Custodian Funds System and their Business Office within 30 days of month end.
    2. Replenishments
      1. Reconciler obtains the expense log, invoices, and completes the Custodian Fund Accounting Form to replenish the Contingent Checking Account at least every 90 days, based on activity.
      2. Reconciler obtains necessary departmental approvals for the Custodian Fund Accounting Form.
      3. Custodian routes the completed/signed Custodian Fund Accounting Form, expense log, and invoices to the Dean/Director’s office for review and approval.
      4. Dean/Director’s office reviews the documents and signs the Custodian Fund Accounting Form.
      5. Dean/Director’s office keeps a copy of the forms for internal records.
      6. Dean/Director’s office sends the original forms via inter-d mail or email to the Cash Management Office (cstdnfnd@bussvc.wisc.edu) for processing.
      7. Cash Management processes the replenishment request.
    3. Other
      1. Any errors on the bank account are to be reported by the Reconciler within 30 days of month end to Cash Management via e-mail to cstdnfnd@bussvc.wisc.edu and your units’ Business Office.
      2. Reconciler is to ensure stop payments are placed for 24 months on all checks older than 90 days old by using US Bank SinglePoint.
      3. Respond to Cash Management’s periodic review request.
  3. Closing Contingent Checking Account
    1. Custodian completes the Custodian Fund Accounting Form and obtains the expense log.
    2. Custodian obtains the necessary departmental approvals for the Custodian Fund Accounting Form.
    3. The remaining checks are shredded by two individuals and the Check Shred Confirmation statement is signed by both individuals.
    4. Custodian routes the completed/signed Custodian Fund Accounting Form, expense log, and check shred confirmation to the Dean/Director’s office.
    5. Dean/Director’s office reviews documents and signs the Custodian Fund Accounting Form.
    6. Dean/Director’s office keeps a copy of the forms for internal records.
    7. Dean/Director’s office sends the original forms via inter-d mail or email to the Cash Management Office (cstdnfnd@bussvc.wisc.edu).
    8. Cash Management processes the closing request.

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IV. Definitions

  • Custodian: UW–Madison employee who is responsible for monitoring the bank account activity.
  • Signer: UW–Madison employee responsible for writing and signing checks to the appropriate recipient and responsible for ensuring all checks are logged and accounted for.
  • Reconciler:  UW–Madison employee who is responsible for performing and submitting monthly reconciliations.

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V. Related References

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VI. Revisions

Procedure Number 3012.3
Date Approved June 29, 2018
Revision Dates Jan. 19, 2021 – Changed Procedure Number to 3012.3 from 200.3

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3012.2 Temporary Fund Procedure

Temporary Fund Procedure

Procedure #3012.2; Rev.: 0 (Effective June 29, 2018)
Related Policy: UW-3012 Custodian Funds Policy
Functional Owner: Cash Management, Business Services
Contact: Custodian Funds Mailbox – cstdnfnd@bussvc.wisc.edu


Contents

  1. Procedure statement
  2. Who is affected by this procedure
  3. Procedure
  4. Definitions
  5. Related references
  6. Revisions

I. Procedure statement

The University of Wisconsin–Madison conducts research studies that are less than 1 year and the research participants are compensated with payment by cash or gift cards. Temporary Funds are used when the research participant study will be for less than 1 year. Thus, it is not feasible to set up a UW–Madison checking account.

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II. Who is affected by this procedure

This procedure applies to all Deans, Directors, Financial Officers, and staff involved with research participant studies that provide payments by cash or gift card to research participants.

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III. Procedure

  1. Opening a Temporary Fund
    1. Custodian obtains the NR Number from the NR Number Generator. The NR Number from the NR Number Generator is required on some of the necessary forms for opening a Temporary Fund.
    2. Custodian completes the following forms and obtains the necessary departmental approvals:
      1. Custodian Fund Request Form, including the justification on the form explaining the purpose of the study and how it is linked to the project.
      2. Custodian Fund Budget Form
      3. Custodian Fund Agreement Form
    3. If 133 or 144 funds will be used to purchase gift cards, the Custodian or Dean/Director’s office needs to obtain written approval from Research and Sponsored Programs (RSP).
    4. Custodian routes the signed forms and if applicable written approval from RSP to purchase gift cards and/or the exempt self-certification paperwork from the Institutional Review Board (IRB) to the Dean/Director’s office.
    5. Dean/Director’s office verifies that the Custodian needs a Temporary Fund by verifying that:
      1. The research study will be for less than 1 year.
      2. The research study has an IRB Number or self-certification paperwork showing that no IRB approval or certification is necessary.
      3. Each payment to a research participant will be $249 or less.
      4. The payment to each research participant is by cash or gift cards.
    6. Dean/Director’s office verifies accurate funding information.
    7. Dean/Director’s office reviews the documentation and signs the necessary forms.
    8. Dean/Director’s office keeps a copy of the forms for internal records.
    9. Dean/Director’s office sends the original forms via inter-d mail or email to the Cash Management Office (cstdnfnd@bussvc.wisc.edu).
    10. Cash Management processes the request. Custodian Fund Requests will be processed no sooner than 15 business days before the beginning date indicated on the Custodian Fund Request Form. Accounting Services will either mail a check to the address indicated on the Custodian Fund Request Form or the check will be available for pick-up. See UW-3007 Check Distribution Policy for more information.
      1. Note: Once Cash Management receives the request, it takes 7 to 15 business days for a request to route through the system before a check is issued.
    11. The Custodian can check WISER using account code 6167, on the balance sheet, to see if the request has been processed. On the Transaction Search page in WISER, ensure the Show Balance Account checkbox is checked. Further instructions on checking the status of a Temporary Fund Request: Checking Status of Temporary Fund Request (Training Video)
  2. Maintaining a Temporary Fund
    1. Maintain a research participant log.
    2. Maintain security of cash and/or gift cards.
  3. Closing a Temporary Fund
    1. The following steps represent the overall process for closing a Temporary Fund:
      1. Custodian completes the Custodian Fund Accounting Form and obtains the research participant log.
      2. Custodian obtains the necessary departmental approvals for the Custodian Fund Accounting Form.
      3. If the full amount of the Temporary Fund is not used, the Custodian writes a personal check to the University of Wisconsin – Madison for the remainder of the Temporary Fund that was not distributed to research participants.
      4. Custodian routes the completed/signed Custodian Fund Accounting Form, research participant log, and if necessary the personal check to the Dean/Director’s office.
      5. Dean/Director’s office reviews the documents and signs the Custodian Fund Accounting Form.
      6. Dean/Director’s office keeps a copy of the documents for internal records.
      7. Dean/Director’s office sends the original documents and if necessary a personal check from the Custodian to the Cash Management Office. Ensure the personal check is restrictively endorsed “For Deposit Only” on the back of the check.
      8. Dean/Director’s office sends the original documents and if necessary a personal check from the Custodian to the Cash Management Office. Ensure the personal check is restrictively endorsed “For Deposit Only” on the back of the check. Documents can also be sent via email to the Cash Management Office (cstdnfnd@bussvc.wisc.edu).
    2. The following steps represent the overall process for closing a Temporary Fund remotely:
      1. Custodian completes Custodian Fund Accounting Form and supporting documents then prints to pdf. These together would be the “Closing Documents.”
      2. Custodian sends Closing Documents to the Department for approval.
      3. The Department reviews the Closing Documents then forwards them over to the Dean/Director’s Office stating in the email the Closing Documents have been reviewed and are approved.
      4. Dean/Director’s Office reviews the Closing Documents. Once approved, the Dean/Director’s Office sends an email to the Custodian saying the Closing Documents have been reviewed and approved.
      5. The Custodian then writes a check for the unused funds and sends it to 21 N Park St. The Custodian should include the NR number of the Temporary Fund on the check.
      6. The Custodian can include the Closing Documents and the approvals if they have the ability to print them out or the Dean/Director’s office keeps a copy of the documents for internal records.
      7. Dean/Director’s office sends the Closing Documents via e-mail to the Cash Management Office (cstdnfnd@bussvc.wisc.edu).
      8. If the Custodian cannot include the closing documents, they can send the check for the unused funds to 21 N Park St. and closing Cash Management will just need to be notified about this closed out Temporary Fund so that we can match up to it when the check comes through in our daily check deposit.
      9. Cash Management processes the closing request.

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IV. Definitions

  • Custodian – UW–Madison employee who is responsible for monitoring the cash advance for research participant studies.

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V. Related References

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VI. Revisions

Procedure Number 3012.2
Date Approved June 29, 2018
Revision Dates Jan. 19, 2021 – Changed Procedure Number to 3012.2 from 200.2
May 2, 2023 – Remote option for Temporary Fund closure is added.

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3012.1 Replenishable Checking Account Procedure

Replenishable Checking Account Procedure

Procedure # 3012.1; Rev.: 0 (Effective June 29, 2018)
Related Policy: UW-3012 Custodian Funds Policy
Functional Owner: Cash Management, Business Services
Contact: Custodian Funds Mailbox – cstdnfnd@bussvc.wisc.edu


Contents

  1. Procedure statement
  2. Who is affected by this procedure
  3. Procedure
  4. Definitions
  5. Related references
  6. Revisions

I. Procedure statement

The University of Wisconsin–Madison conducts research studies that are 1 year or longer and the research participants are compensated with payment by check. Replenishable Bank Accounts are used for these research participant studies.

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II. Who is affected by this procedure

This procedure applies to all Deans, Directors, Financial Officers, and staff involved with research participant studies that provide payments by check to research participants.

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III. Procedure

  1. Opening Replenishable Checking Account
    1. Custodian obtains the NR Number from the NR Number Generator. The NR Number from the NR Number Generator is required on some of the necessary forms for opening a Replenishable Checking Account.
    2. Custodian composes a Letter of Justification explaining the purpose of the study and how it is linked to the project.
    3. Custodian completes the following forms and obtains the necessary departmental approvals:
      1. Custodian Fund Request Form
      2. Custodian Fund Agreement Form
      3. Custodian Fund Budget Form
      4. New Bank Account Form
      5. Check Order Form
      6. Bank Account Website Access Form (US Bank SinglePoint)
    4. Custodian e-mails the Cash Management Office (cstdnfnd@bussvc.wisc.edu) to obtain a US Bank Authorized Signature Form. Custodian then provides the Signers with the US Bank Authorized Signature Form.
    5. Signers sign the US Bank Authorized Signature Form and provides it to the Custodian.
    6. Custodian reviews and signs the Memorandum of Understanding (MOU) for Replenishable Checking Account – Custodian (PDF).
    7. Signers review and sign the MOU for Replenishable Checking Account – Signers (PDF) and provides it to the Custodian.
    8. Reconciler reviews and signs the MOU for Replenishable Checking Account – Reconciler (PDF) and provides it to the Custodian.
    9. Custodian routes the Letter of Justification and signed forms to the Dean/Director’s office.
    10. Dean/Director’s office verifies that the Custodian needs a Replenishable Checking Account by verifying that:
      1. The research study will be for 1 year or longer.
      2. The research study has an Institutional Review Board (IRB) Number or self-certification paperwork showing that no IRB approval or certification is necessary.
      3. Each payment to a research participant will be $249 or less.
      4. The payment(s) to the research participants will be made by check.
      5. At least 10 checks will be written per month.
    11. Dean/Director’s office verifies accurate funding information.
    12. Dean/Director’s office reviews the documentation and signs the necessary forms.
    13. Dean/Director’s office keeps a copy of the forms for internal records.
    14. Dean/Director’s office sends the original forms to via inter-d mail or email to the Cash Management Office (cstdnfnd@bussvc.wisc.edu).
    15. Cash Management processes the request.
    16. Cash Management will notify the department and Dean/Director’s office when the US Bank checking account is set up and checks are ordered.
    17. The Custodian can check WISER using account code 6167, on the balance sheet, to see if the request has been processed. On the Transaction Search page in WISER, ensure the Show Balance Account checkbox is checked.
  2. Maintaining Replenishable Checking Account
    1. Reconciliations
      1. Reconciler completes and documents monthly bank reconciliations between the US Bank SinglePoint bank statement and the check register on the Bank Reconciliation Worksheet within 30 days of month end.
      2. Reconciler submits the monthly bank reconciliation and check register, and all supporting documentation via the Custodian Fund System and their Dean’s/Business Office within 30 days of month end.
    2. Replenishments
      1. Reconciler obtains the research participant log, without HIPAA or sensitive information, and completes the Custodian Fund Accounting Form to replenish the Replenishable Checking Account at least every 90 days, based on activity.
      2. Reconciler obtains necessary departmental approvals for the Custodian Fund Accounting Form.
      3. Custodian routes the completed/signed Custodian Fund Accounting Form, along with the research participant log, reconciliation(s), bank statement(s), list of outstanding check(s), and stop payment report from US Bank SinglePoint to the Dean/Director’s office for review and approval.
      4. Dean/Director’s office reviews the documents and signs the Custodian Fund Accounting Form.
      5. Department keeps a copy of the forms for internal records. Department is the official record holder.
      6. Dean/Director’s office sends the original forms via inter-d mail or email to the Cash Management Office (cstdnfnd@bussvc.wisc.edu).
      7. Cash Management processes the replenishment request.
    3. Other
      1. Any errors on the bank account are to be reported by the Reconciler via e-mail to Cash Management (cstdnfnd@bussvc.wisc.edu) and their Dean’s/Business Office within 30 days of month end.
      2. Reconciler is to ensure stop payments are placed for 24 months on all checks older than 90 days old by using US Bank SinglePoint.
      3. Notify the Dean/Director’s office and Cash Management when there is a change in Custodian, Reconciler, and/or Signers and prepare applicable Custodian Fund forms.
      4. Respond to Cash Management’s periodic review request.
  3. Closing Replenishable Checking Account
    1. Custodian completes the Custodian Fund Accounting Form and obtains the research participant log.
    2. Custodian obtains the necessary departmental approvals for the Custodian Fund Accounting Form.
    3. The remaining checks are shredded by two individuals and the Check Shred Confirmation statement is signed by both individuals and provided to the Custodian.
    4. Custodian routes the completed/signed Custodian Fund Accounting Form, research participant log, and check shred confirmation to the Dean/Director’s office.
    5. Dean/Director’s office reviews the documents and signs the Custodian Fund Accounting Form.
    6. Dean/Director’s office keeps a copy of the documents for internal records.
    7. Dean/Director’s office sends the original documents via inter-d mail or email to the Cash Management Office (cstdnfnd@bussvc.wisc.edu).
    8. Cash Management processes the closing request.

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IV. Definitions

  • Custodian: UW–Madison employee who is responsible for monitoring the cash advance for research participant studies.
  • Signer: UW–Madison employee responsible for writing and signing checks to the appropriate recipient and responsible for ensuring all checks are logged and accounted for.
  • Reconciler: UW–Madison employee who is responsible for performing and submitting monthly reconciliations.

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V. Related References

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VI. Revisions

Procedure Number 3012.1
Date Approved June 29, 2018
Revision Dates Jan. 19, 2021 – Changed Procedure Number to 3012.1 from 200.1

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