Cash Management - Banking Relationships

The Treasurer's Office oversees the university's banking relationships. This includes:

• Campus Depository Accounts
• Wire Transfers and Foreign Currency Drafts
• Lockbox Processing
• Calendar Year 2012 Bank Holidays

Campus Depository Accounts

A depository bank holds an account into which all funds collected by a particular campus or University Hospital are deposited. There is a depository bank for each campus. All balances in the account are transferred daily to the concentration account.

• Columbia campus - Boone County Bank
• University of Missouri Healthcare - Boone County Bank
• Kansas City campus - Commerce Bank
• Missouri University of Science and Technology - US Bancorp
• St. Louis campus - US Bancorp

Wire Transfers and Foreign Currency Drafts

• In order to provide clear policies and procedures, and prevent fraud, the Treasurer's Office has asked that the following steps be followed whenever a wire transfer or foreign draft is requested.
  • The Accounting offices should select authorized approvers per business unit.
  • The Accounting offices should inform the Treasurer's Office and provide a name, address and phone number for each approver.
  • Each authorized approver will provide a signature specimen to the Treasurer's Office.
  • All vouchers for wires or foreign drafts will be routed to the appropriate Accounting office for fiscal approval.
  • Vouchers must have the approver's signature before the wire or draft is initiated.
  • A "Wire Transfer Authorization" form must be fully completed for each wire.
  • An addressed envelope, with mail bar code, should be attached to the voucher for any foreign draft request. Any copies of invoices, registration forms, etc., that should be sent to the payee should be in the envelope with a copy attached to the voucher.
  • If there is any question as to the authenticity of the signature, or any question on the routing information provided, the authorized signer will be contacted for verification.
  • The Treasurer's Office must be notified on a timely basis of changes in personnel and responsibilities of the authorized signers.

Lockbox Processing

Since cash concentration is an important part of the banking services required by the University, it is important to collect the funds in an effective and efficient manner. Lockbox services are an integral part of the collection service. With a lockbox, a bank or third party receives mail at a specified lockbox address (P.O. Box), preferably one with a unique ZIP code, processes the remittances, and deposits them in the payee's account. The University uses a retail lockbox for collection of student fees, student loans, residential life payments, University Physicians payments and accounts receivable payments. Wholesale lockbox is used for certain types of payments to University Hospital and accounts receivable payments.

1. Retail lockbox - A retail lockbox is characterized by a remittance, which is part of the invoice sent to the consumer. The consumer is asked to send the return document with the check. The return document has a scan line, which contains information such as the payers' account number, total amount due, minimum amount due and the due date. The scan line is read by automated processing equipment to capture data, which is used to update a company's/individuals accounts receivable. A retail lockbox is oriented toward processing remittances at the lowest possible cost.
2. Wholesale lockbox - A smaller volume of transactions, but higher dollar payments characterizes a wholesale lockbox. A remittance document is not utilized and key information, such as customer number, invoice number and dollar amount is manually input into a file by the bank.

Calendar Year 2012 Bank Holidays