NDSU departments are not allowed to setup or maintain their own bank and/or investment accounts.  Monies collected by departmental personnel are usually considered “public monies” under the law.   Public monies must be properly deposited in the NDSU’s Customer Account Services department.   If a department has a special bank or investment account they must inform the Accounting Office and make full disclosure.

• Refrain from establishing separate bank and investment accounts.
• Generally, make department expenditures from University accounts, rather than foundation accounts.

There are a number of not-for-profit foundations that are affiliated with NDSU, such as the NDSU Development Foundation, NDSU Research Foundation, NDSU Research and Technology Park, and NDSU Teammakers.   These foundations may internally designate monies for use by NDSU departments.

It is recommended that NDSU departments process their expenditures through funds on the university’s books, rather than the separate foundation.

Monies held by an affiliated foundation that are to finance an NDSU department’s expenditures should be transferred from the foundation to NDSU.   Departments would need to request this transfer.   When the monies are deposited in NDSU’s Customer Account Services department they should generally be coded with a revenue Oracle/PeopleSoft account number depending on the original source of the revenue.  The most common account codes are as follows:

• Account 478007  (Gifts from Related Foundations)
• Account 478015  (Capital Gifts from Related Foundations)
• Account 472040  (Royalties)

There may be some instances where it is more appropriate to expend the Foundation monies through the Foundation’s books.   This may be more appropriate due to legal or policy compliance reasons.    For example, since alcoholic beverages may not be paid for from university funds, private foundation funds may be used, upon approval of the Foundation.

Periodically, the Accounting Office will send a letter to local banks to verify that there are no unauthorized bank or investment accounts.

Departmental personnel are often asked to serve as advisors to student organizations and may be involved in assisting, or advising the club in financial matters.  Student club/organizations may need to open a bank account, as authorized by their bylaws, officers, or advisors.

Banks will require that the club/organization provide a federal employer identification number in order to open a new bank account. Since the club/organization is not legally a part of the NDSU, or the state of North Dakota, the University's federal employer identification number must not be used to open a bank account. The club/organization must obtain its own federal employer identification from the Internal Revenue Service by filing form SS-4 Application for Employer Identification Number.  This form is available through the IRS web site www.irs.gov.

It is advisable to maintain good internal accounting controls over receipts and, especially, disbursements from the bank account. Segregating duties or having two people involved in the transactions is advisable.  In addition, requiring two signatures on checks and rotating duties can also help.

NDSU Policy 502 - Bank and Investment Accounts