6.14 Adding/Changing/Closing Accounts

Purpose:	Provides general guidelines for establishing, modifying, and closing FRS accounts.
Policy Owner:	Financial Management

Adding a New Account

1. Accounts should be requested as follows, based on the type of account.
   1. Grant and Contract Accounts (3-00000 through 4-99999): Contact Sponsored Projects Services. A Grant Proposal Routing Form will be used.
       

   2. Gifts: Prepare a Gift Report, and forward to the Development Office. Gifts include scholarships, financial aid, endowments and gifts restricted to research purposes. If an appropriate account is not already available, attach a New Account Proposal Form.
       

   3. Construction: Contact Facilities Management Business Services. These are normally projects in excess of $5,000.
       

   4. Allocated indirect cost for research: Contact the Vice President for Research, or designee.
       

   5. Allocated indirect cost, investment income and state-funded program changes: Contact the Budget Office
       

   6. All other accounts: Complete a New Account Proposal Form. Forward to the Financial Services Office.

    

2. If checks are received before an account is established, complete a Distribution of Deposit Form (DDF) and use the undistributed receipts account, 028910-2535. Take the DDF and check to the Bursar's Office. Attach a copy of the Distribution of Deposit Form used to deposit the funds to the New Account Proposal Form.

   EXCEPTION: Process Gifts in accordance with section 8.12.

3. The Financial Services Office or Sponsored Projects Services will review the proposal in accordance with Account Policies and contact the requesting department if additional information or clarifications regarding the proposal are needed.

    

4. Requesters will be notified by the fund accountant when a new account has been established or, if not established, why the account request was denied.

   Changing an Existing Account

5. Responsible Persons and Approvers:
    
   1. Responsible persons and approvers must be University employees.
       

   2. All signatures on FSO documents are verified using the CatCard database; therefore, digitized signatures of the responsible person and approvers must appear in the database.  (For questions or concerns regarding the CatCard database, contact the CatCard Office at 626-9162.)
       
   3. Complete the FRS Account Update Memo.  Print, obtain appropriate authorizing signatures, and forward to FSO Computing Services, University Services Annex, West Bldg. 300A - Room 200, PO Box 210300.
       

   4. Obtain signatures as follows:
       
      • Deleting Approvers: Must be approved by the Responsible Person or higher (Dean, Director, or Department Head).
         

      • Adding Approvers: Must be approved by the Responsible Person. The Responsible Person is ultimately responsible for the activity on their accounts and must endorse the people who can approve transactions.  NOTE:  In cases where more than one Responsible Person's signature is required, the Dean's or Department Head's signature will be accepted.
         

      • Corrections or changes to the Responsible Person: Must be authorized by the Dean, Director, or Department Head.

         

6. Department: When changing the department assigned to an account, complete the FRS Account Update Memo. Print and obtain the department heads’ signature for both departments (i.e., the department losing the account - “From” and the department gaining the account - “To”).  Forward to FSO Computing Services, University Services Annex, West Bldg. 300A - Room 200, PO Box 210300.
   
   NOTE: If the change crosses colleges, then the respective deans' signatures are also required.
    

7. Other changes: Corrections or changes may be requested to the following account attributes: Account Name, Address, and Long Description. To request a change:
    
   1. Complete the FRS Account Update Memo

      NOTE: If similar changes are required for a large number of accounts, attach a copy of the FRS Authorized Signers Report for your department. The report is located in the Information Services Web.
       

   2. Obtain appropriate signatures to authorize and/or approve the requested changes.
       
   3. Forward to FSO Computing Services, University Services Annex, West Bldg. 300A - Room 200, PO Box 210300.

   Closing an Account

8. Close accounts when the original purpose for an account no longer exists and all reporting and administrative requirements are fulfilled. Examples: discontinued programs, completed grants.

    

9. Use an RBC, an RFAA, an e-mail or memo to notify Financial Services Office or Sponsored Projects Services to close an account. The document should request that the account be closed and be signed by the responsible person or an approver.
   
   
   
10. Once the request is received, the Fund Accountant will notify you of any accounting entries needed to eliminate balances before the account can be closed.
    

    Account Policies

11. Authority: The Assistant Vice President, Financial Services, has general responsibility for creation, modification, and closure of all accounts within FRS. Sponsored Projects has been delegated limited authority to establish, maintain and close certain accounts, for example, grant and contract accounts, indirect cost accounts, patent royalty accounts, and restricted gift accounts. Sponsored Projects will adhere to the standards and practices of the Financial Services Office, and will coordinate and provide information as required for all reporting requirements of the Financial Services Office and those required by the contracting or granting agency.

     

12. Compliance: Proper accounting information will be maintained to comply with the accounting and reporting requirements of Federal law, State Statute, Board of Regents policies and as required under the terms of specific agreements with external entities and administrative Policies of the University.

     

13. Establishment, Modification and Closure: Departments are responsible for requesting and maintaining accounts to record accurate, timely, and complete information on the financial transactions of the University. Accounts will be established as required by budgetary and accounting purposes for proper management of the University of Arizona and closed when no longer required. Accounts will not be established, modified, or closed if the account request violates existing standards.

     

14. General Requirements: All Account Proposals must be in writing and signed by the Department Head, Dean/Director or Vice President from the initiating organizational unit as well as the responsible person.

     

15. Fund Organization: Accounts will be organized into fund groups according to National Association of College and University Business Officers (NACUBO) and American Institute of Certified Public Accountants (AICPA) standards. Further subdivisions of fund groups for administrative purposes may be made.

     

16. Appropriate Purpose: All activities must be consistent with the fund group to which the account belongs. Accounts should be used to record individual sources of funds, for example state appropriations would be recorded separately from grants and contracts.

     

17. Separate Purpose: Each account within an organizational unit should have a separate purpose. Multiple accounts for the same purpose should only be established within an organizational unit if required for cost determination.

     

18. Review: Accounts will be reviewed by the Assistant Vice President, Financial Services, or by the Budget Office for budgetary and reporting purposes. In addition, existing accounts will be reviewed annually to determine which accounts will continue, be closed or modified. Departments will be contacted to discuss proposed changes or closures of accounts.