TREASURY HOLDING ACCOUNTS

Binding City Policy

BCP-FIN-2.11

Policy

The OMF Bureau of Financial Services Treasury Division will maintain Treasury Holding Accounts (formerly called Trustee Accounts) for use by and as a service to City bureaus.  Treasury Holding Accounts (THAs) may be established by a bureau only for the exclusive purpose of holding non-City funds that cannot otherwise be recognized as bureau revenue within the City's financial system.  THAs will be non-interest bearing accounts unless otherwise required by law.

Non-City funds may include:  prepaid but refundable deposits provided by private parties; employee directed contributions or collections for a specific purpose or cause; private fee deposits that may be recognized only for a specific purpose or cause; or private fee deposits that may be recognized only upon completion of a specific program or project.

THAs shall not be used for funds that may be recognized as budgeted or non-budgeted City revenue.

Establishing an Account

To establish an account, a bureau must submit a completed THA application to the Treasury Division.  The City Treasurer may delegate some or all of the application and account maintenance requirements to participating City bureaus.  See application requirements.

Updating and Changing an Account

Bureau representatives are required to update their THA application data when any changes are being made to the account.  Such changes include, but are not limited to, change in the Commissioner in Charge or change in authorized signatories.

Bureaus must submit a new THA application to change the purpose of the account and may do so only if the use of funds is not otherwise restricted by the funding source or party. 

If the purpose for which the THA has been established is no longer applicable, the bureau is responsible for closing the THA and refunding all balances of the THA to the initial funding source or party, or following applicable policies and procedures to transfer revenue to the appropriate City fund.

Responsibility

The Chief Administrative Officer will develop and issue procedures for Treasury Holding Accounts.  The City Treasurer will provide technical support to bureaus in establishing and closing all THAs.

HISTORY

Ordinance No. 181829, passed by City Council May 14, 2008 and effective July 1, 2008.