Establishing and Closing University Bank Accounts

Scope

This policy applies to all Indiana University (IU) departments, employees, and third‑party vendors acting on behalf of the university that seek to establish, maintain, modify, or close bank or other financial accounts used to conduct university business. 

This policy applies to all bank accounts, financial accounts, and money transfer services that use the university’s name, tax identification number, or that receive, hold, or disburse university funds, regardless of where the account is held or how transactions are initiated. 

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Policy Statement

Bank and other financial accounts used to conduct university business are established with the authorization of the Board of Trustees of Indiana University. In accordance with the resolution passed by the Board of Trustees at its meeting on June 20, 1991, the university treasurer is authorized to open bank accounts on behalf of IU. 

Accordingly, the opening or closing of any bank or financial accounts must be approved by the Office of the Treasurer prior to their establishment or closing.  Bank accounts may only be opened or closed by the Office of the Treasurer. 

• University departments and employees must not deal directly with any  financial institution regarding the opening or closing of a bank, or other financial account. Only the university treasurer or an authorized delegate has the authority to enter into or modify banking and other financial account agreements on behalf of IU.  This includes money transfer services such as PayPal, Venmo, Zelle and others. 

• Academic departments and administrative offices within IU that wish to open or close a bank or other financial account must complete the Bank Account Request Form.  

• Accounts will be non-interest bearing unless an exception is authorized by the university treasurer. Any interest earned must be deposited into the University General Fund account unless approval to do otherwise has been granted by the university treasurer. 

• Requests will be reviewed by Treasury and are subject to approval by the university treasurer. If approved, Treasury will open or close accounts in accordance with university requirements.  

• All accounts are subject to audit by the State Board of Accounts and/or Internal Audit. 

• Treasury may conduct periodic reviews of all accounts to verify they are still required and being managed in compliance with university policy. 

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Reason for Policy

All funds belonging to Indiana University must be deposited in an Indiana University bank account.

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Definitions

Financial Institution: Any domestic or foreign bank, credit union, brokerage house, or related institution. 

Money Transfer Service: A business or institution authorized to facilitate the electronic movement of funds between individuals, entities, or accounts across jurisdictions such as PayPal, Venmo, Zelle and others. 

University Bank Account: Any account (checking, savings, depository, money market, etc.) opened by Treasury at a financial institution that meets any of the following criteria:  

• Uses the name Board of Trustees of Indiana University, Indiana University, or any associated abbreviation thereof 

• Uses the university’s federal  tax identification number 

• Receives the deposit of or disburses university funds 

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History

This policy was established on June 20, 1996.

This policy was revised to add a Scope section on November 18, 2016.

This policy was fully reviewed, and non- substantive updates were made on December 21, 2021.

This policy was revised and posted for review on May 6, 2022. The revisions were made effective on February 9, 2023.

This policy was revised and posted for review in May 2026.

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