Treasury Services: Banking, Debt Issuance and Credit Card Acceptance
Overview
The university maintains centralized management for all its Treasury Services. The Treasurer’s Office has the exclusive authority to manage the university’s banking services, including:
- The opening and closing of accounts;
- The issuance of debt on behalf of the Regents of the University of Michigan, including bonds, commercial paper, loans, lines of credit, letters of credit and other similar financing obligations;
- Establishment of merchant accounts for the acceptance of credit card payments; and
- Depository services for deposits of cash and checks, electronic payments (e.g, wire transfer and EFTs), check writing, and other financial services for the convenience of the university community.
Authorizations
As delegated by the Executive Vice President and Chief Financial Officer under Regental Bylaw 3.01, and detailed in the Delegation of Authority SPG 601.24, the Treasurer has overall responsibility for the administration and oversight of all banking services for the University and for the issuance and management of the University’s debt.
Scope of Treasurer’s Office Activities
Banking Services
The Treasurer’s Office has overall responsibility for the administration and oversight of all banking services for the university. This includes the exclusive authority to establish bank accounts in the name of the Regents of the University of Michigan or University of Michigan and under the university’s tax identification number. In managing the university’s bank relationships, the Treasurer has the authority to:
- Open, close and manage all bank depository depository and disbursement accounts, along with selecting account features (e.g. positive pay and controlled disbursement) for those accounts, and negotiate bank fees;
- Establish all lockbox services;
- Manage the university’s consumer banking relationship;
- Approve all lease and license agreements for automated teller machines (ATMs) and cash dispensing machines (CDMs) located on university property;
- Authorize individual wire transfers and ACH transfers, repetitive transfer templates, balance reporting and other bank‐related services;
- Authorize, complete and sign forms and related documents on behalf of the university, certifying bank account information; and
- Sign in the name of the Regents of the University of Michigan checks, drafts, notes and other orders for the payment of funds drawn upon university depository and disbursement accounts.
Debt Obligations
The Treasurer’s Office has overall and exclusive responsibility for issuing and managing the University’s debt, including bonds and commercial paper, loans, lines of credit, letters of credit and similar financing obligations, issued in the name of the Regents of the University of Michigan, which also includes any debt allocated to or in support of the clinical enterprise. This includes:
- Debt obligations of the university that must be authorized by the Regents of the University of Michigan, or its delegate, prior to issuance.
- Debt obligations include bonds, commercial paper, loans, lines of credit, letters of credit, swaps and similar financing obligations.
- Certain lease arrangements if deemed capital leases, or other leases that impact the University’s debt capacity, that would fall under the Treasurer’s Office delegated authority for debt issuance.
- Debt obligations of the university that must be authorized by the Regents of the University of Michigan, or its delegate, prior to issuance.
Acceptance of Credit Cards
Through the university’s merchant services program, units may accept credit cards for payments and donations from students, faculty, staff, alumni, donors and others. The Treasurer’s Office is the delegated U‐M authority for negotiating a single‐source, university‐wide contract with a merchant acquirer (credit card payment processor). In addition, the Treasurer’s Office serves as the administrator for the merchant services program, which includes the development and oversight of policies for the acceptance of credit cards and is authorized to review and approve all requests to facilitate the acceptance of credit card payments in any payment channel including platforms which may have a dedicated merchant acquirer separate from the aforementioned university-wide contract.
- Merchants are responsible for safeguarding cardholder data in all formats and complying with the requirements of the Payment Card Industry Data Security Standard (PCI‐DSS) which are located at www.pcisecuritystandards.org (http://www.pcisecuritystandards.org), as well as policies established by the Treasurer’s Office which are located at www.treasury.umich.edu (http://www.treasury.umich.edu).
- Departments and units are required to report a suspected breach or unauthorized disclosure of credit card data in accordance with Information Security Incident Reporting (SPG 601.25).
- Treasurer serves as the Know Your Customer contact for all University departments, but not legally separate entities associated with the University.
Other Treasury Services
- The Treasurer’s Office has overall responsibility for investment management of the university’s working capital portfolio to include unexpended debt proceeds.
- The Treasurer’s Office has responsibility for claiming assets held by any state as unclaimed property in the name, or derivation thereof, of the Regents of the University of Michigan or the University of Michigan.
- The Treasurer’s Office Office has responsibility for overseeing the university’s Human Subjects Incentive Program as outlined in SPG 501.07 Research subject fees.
SPG 501.06 was decommissioned on August 22, 2017. Policy on credit card acceptence in now in SPG 519.01.