3012.4 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

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Contents

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

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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

• UW-3012 Custodian Funds Policy
• Custodian Fund Request Form
• Custodian Fund Agreement Form
• Bank Deposit Slip Order Form
• New Bank Account Form
• Bank Account Website Access Form (US Bank SinglePoint)
• Memorandum of Understanding (MOU) for TBA Bank Accounts (PDF)

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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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