A long-running theft at the University of Toledo shows what can happen when policies and procedures about how and where to deposit money are disregarded or not clearly defined. After looking at what happened at Toledo, we'll review WSU policies and procedures designed to counter a similar occurrence here.

WTOL 11 - Audit released on former UToledo employee found guilty of stealing more than $22K in 2019

The employee:

1. Was a fiscal specialist at the university's Minority Business Development Center and Eberly Center for Women.
2. Had an account at the UT Federal Credit Union, where he was the account holder. However, the account was in the university's name.
3. Would divert money like class fees, office rentals, and donations into the account.
4. Diverted more than $30,000 to the account with at least $22,238 used for personal expenses. 

An appalling use of public dollars.

Keith Faber, Ohio Auditor of State

Faculty, staff, or student organizations sometimes have accounts at financial institutions for member dues or proceeds from fundraising projects. Such arrangements are permissible because no university money is involved.

Suppose a faculty, staff, or student organization opens an account at a financial institution. In that case, the organization must not use the university's name or federal ID number to open the account. Their unauthorized use can falsely imply that it's an official university account.

The best practice is for faculty, staff, and student organizations to use a Financial Operations safekeeping account. You may also hear the terms "club account" or "service fund" used for a safekeeping account.

WSU requires recognized student organizations to use a safekeeping account to receive and expend student fee allocations.

Key passages:

Funds received by the university must not be deposited in checking, savings, or any other accounts at financial institutions.

WSU Financial Operations administers safekeeping accounts for the convenience of faculty, staff, or student groups. These groups are encouraged to use safekeeping accounts for nonpublic monies.

The use of the university's federal identification number or name (such as "Wichita State University" or "WSU") by faculty, staff, or student groups on financial institution accounts is prohibited.

Safekeeping accounts are not intended for use by a university department in the conduct of its business.

The WSU Accounts Receivable Team in Financial Operations has been at the forefront of working with university departments to implement payment solutions. They also provide detailed guidance for how to process deposits and use safekeeping accounts. 

Examples of receipts that are to be deposited in university restricted fee accounts include amounts collected for educational programs, sales of goods or property, services rendered, admission to events, and grants from private or public sources (examples are not all-inclusive). 

A safekeeping account allows faculty, staff, and student groups to deposit monies generated by membership fees or fundraisers for the group. Safekeeping accounts are used for nonpublic money only.

WSU Accounts Receivable has a dedicated email address for your questions: wsuaccountsreceivable@wichita.edu

They also have online cash handling tutorials in the Employee Training, Resources & Professional Development section in myWSU. The tutorials are useful for beginners and as a periodic refresher.