- Do advisors, officers or other users of these accounts understand and follow the requirements to maintain this checking account privilege? Agency accounts are generally used for disbursing funds which belong to a student organization, club or academic organization with which the unit has some affiliation, and for which BYU is providing depository and disbursement services. Refer to the Electronic Handbook for policy regarding the use of such accounts. In particular, these accounts may not make use of BYU's sales- and income-tax exempt status or tax identification numbers. Any payments to individuals may be subject to payroll tax regulations and require formal reporting to the government by the issuing organization. BYU does not provide such reports nor assure compliance with regulations.
- Identify any agency accounts in use by the department, the name, account number and advisor's name.
- Identify the location of the checkbook, statements and related documentation.
- Inquire if the organization has an off-campus bank account. If yes, refer to Mark Madsen in Financial Services, D-148 ASB, at 422-7809.
- Interview the advisor(s). Determine if they are informed regarding all financial matters of the organization. Evaluate the nature of the organization and the funding. Provide periodic instruction in proper financial procedures to the advisor and authorized check signers.
- Determine that the checkbook balance is reconciled to the monthly statement provided by Financial Services
- Does the organization keep a file containing the check register, deposit slips with source of income, canceled checks, reconciled statements and supporting documents with check numbers and dates?
- Are blank checks kept in a secure location?
- Are these records retained for two years?
- Does the account have a deficit balance?
- From a review of the checkbook and a sample of paid checks verify the following:
- Two signatures are present on checks unless otherwise authorized.
- Checks are not written payable to cash
- The payee and the check signer are not the same person.
- Funds are not used for salaries or wages.
- Departmental funds are not commingled with, or used for, agency accounts.
- Some detail of the expenditure is noted on the check and in the check register.
- Do checks have adequate and original supporting documentation?
- From a review of deposits verify the following:
- A receipt is being issued to each individual from whom monies are received.
- Deposits are properly documented and deposited timely. (See Departmental Deposits and Collections policy above).
Questions or concerns regarding agency accounts should be directed to Mark Madsen at D-148 ASB, at 422-7809.
