Policy #3

 

Financial Procedures Policy for Bank and Investment Accounts

(Adopted by the Council 7/20/12)

 

Scope

The policy governs all MSBA bank accounts including checking, investment and section investment accounts.

 

Reason for the Policy

This policy has been prepared to ensure that the MSBA maintains adequate controls over its funds through the creation of a formal process for establishing and maintaining MSBA bank accounts.

 

Existing Accounts

At the time of adoption of this policy, the MSBA maintains the following accounts:

1)     MSBA Checking Account –US Bank

2)     MSBA  First American Prime Obligation Fund –US Bank

3)     MSBA Investment Accounts -Bremer Bank

a)     Transaction Reserve Fund

b)     General Reserve Fund

1)     Equity Fund

2)     Fixed Income Fund

c)     Restricted Fund (Rent Subsidy)

3)     Section Investment Accounts

 

ACCOUNT TITLE

A/C TYPE

Anti-Trust

Saving

Anti-Trust

CD

Employee Benefits (3 Month)

CD

Family Law

Saving

Elder Law

Saving

Health Law (9 Month)

CD

 

 

Labor Employment (3 Month)

Saving

Labor Employment

CD

Probate & Trust

Saving

Tax Section (6 Month)

CD

Tax Law Section

Saving

Civil Trial Certification Council

Saving

Civil Litigation Section

Saving

Real Property

Savings

Real Property (6 Month)

CD

 

 

Alternative Dispute Resolution(6 Month) 

CD

Alternative Dispute Resolution(9 Month) 

CD

Tax Law Section

CD

 

Opening and Closing Accounts

The MSBA Council must authorize any new banking relationship or closing of any banking accounts.

 


 

Authorized Signers 

All MSBA accounts must have the Executive Director and at least one officer, generally the MSBA Treasurer, as authorized signatures.  The primary MSBA checking account shall have the Executive Director, Associate Executive Director, one additional staff person, and the four officers as authorized signatures.

 

A single signature is sufficient for MSBA checks up to and including $2,000.  Two signatures are required on all MSBA checks over $2,000.

 

The Custodian (US Bank Institutional Trust and Custody Division), will maintain a $30,000 balance in the MSBA primary checking account. The account will be automatically “swept” daily and any funds in excess of $30,000 will be electronically forwarded to/from the MSBA’s US Bank Prime Obligation Money Market account.  When additional funds are needed in the US Bank Prime Obligation Money Market account, the Director of Finance shall notify Bremer Bank to transfer the necessary funds to the US Bank Prime Obligation Money Market account. When additional funds are needed in the primary MSBA checking account, the Director of Finance shall notify US Bank representative to transfer the necessary funds to the MSBA checking account.  The notices shall be in writing or by email, and the Director of Finance shall notify by email, the Executive Director or the Associate Executive Director and Treasurer concurrent with US Bank and Bremer Bank.

 

Bank Account Internal Control and Reconciliation

Bank accounts for all MSBA financial accounts shall be sent directly from the bank to the Treasurer.  The Treasurer shall review the statements and make inquiries of the Executive Director, Associate Executive Director, or Director of Finance as the Treasurer deems appropriate, including but not limited to requesting the supporting documentation for any expenditures.  After completing the review, the Treasurer will forward all banking statements to the Executive Director who will review the statements as appropriate.  Upon completion of the Executive Director’s review, the statements will be forwarded to the Director of Finance who will reconcile the statements in accordance with best accounting practices.

 

 

Expenditure Approval Process:

Expenditures that are not included in the approved budget must be approved by the Council.

 

All expenditures, including invoices, check requisition forms; expense reimbursement forms and Credit Card transactions must be approved and properly coded by appropriate staff before they are submitted to the Accounting Department. The staff person with budget responsibility for the MSBA program and the supervisor overseeing the MSBA program must sign or initial the expense document.  The Associate Executive Director or the Executive Director will review the expense documents and approve all expenditures prior to payment processing.

 

Procedure for Cash Disbursements:

1)     Invoices and check requests are received and submitted into the accounting department.

2)     Checks and documentation are submitted to the Assistant to the Executive Director for signature.  In the absence of the Assistant to the Assistant to the Executive Director, the Associate Executive Director will sign the checks.  Any checks over $2,000 are then submitted to Associate Executive Director for second signature.

3)     The Accounting Assistant will voucher and print the checks.

4)     Checks and documentation are returned to the Accounting Assistant for mailing.

5)     Checks that are distributed to staff to be mailed or delivered to the vendor are tracked and reviewed by the Director of Finance at the time the check clears the bank.