A2504 REVISED 021319.PDF

MARICOPA COUNTY INTERNAL POLICY
Policy Number: A2504
Policy Title:
Current Adoption 02-13-2019
ADMINISTRATIVE BANK ACCOUNTS Date:
Current 02-13-2019
Implementation Date:
Approved by: Board Agenda C-18-19-004-6-00
Number:
BOARD OF SUPERVISORS Original Adoption
Date: 05-2000
I. PURPOSE
To establish the procedures and guidance for all Departments on the appropriate usage, maintenance, and
reconciliation of Administrative Bank Accounts.
II. AUTHORITY
Arizona Revised Statutes (A.R.S.) § 35-301 which outlines the duties and liabilities of custodians of public
monies.
III. APPLICATION
This Policy applies to all Maricopa County appointed departments as well as the Flood Control District of
Maricopa County, the Maricopa County Library District, and the Maricopa County Stadium District (Special
Districts). The Board of Supervisors is authorized to jointly adopt policies applying to the Special Districts
under the Intergovernmental Agreement, C-06-18-393-6-00, approved on April 11, 2018.
This policy also applies to employees of County elected and judicial branch offices unless the elected official
has implemented a similar policy specific to his or her office
This Policy does not apply to any account established: under A.R.S. § 12-286 for the Clerk of the Superior
Court; the Minimum Accounting Standards (MAS) as established by Arizona Administrative offices of the
Courts; or Stadium District accounts that have been established in accordance with the Related Use
Agreements as defined in the Facility Use Agreement, except for the requirements of Section V., item B. Also,
the Policy does not include any bank accounts holding funds not meeting the description of Public Monies.
Bank accounts setup for the benefit and operation of an employee sponsored committee, association,
organization, or club must be established using a non-affiliated Department name and Taxpayer Identification
Number.
IV. DEFINITIONS
A. Administrative Bank Account: A County bank account established with the County’s servicing
bank, but separate from the Treasurer’s central servicing and Depository Bank accounts. Under
extenuating circumstances, it is possible to establish an administrative account outside of the
County servicing bank (for example, if a branch is not conveniently located nearby). Funds may be
deposited and/or withdrawn from an Administrative bank account. The following is a representative,
though not exhaustive, sampling of certain types of administrative accounts:
1. Bond Covenant Account A trust bank account established pursuant to the bond agreements.

Policy Title: Policy Number: A2504
ADMINISTRATIVE BANK ACCOUNTS Current Adoption
Date: 02-13-2019
2. Custodial Account A bank account maintaining funds held temporarily by the County in its
fiduciary capacity for individuals or governments, which are distributed per statute, court order
or at the owner’s request.
3. Escrow Account A bank account maintaining funds held in escrow, such as for the purchase of
real property pursuant to title company requirements.
4. Processing Account – A bank account used to facilitate the processing of payment functions
such as payroll clearing and direct deposit functions.
5. Third-Party Administrative Account A bank account maintaining funds held in trust for County
employees such as for payment of their worker’s compensation and healthcare- related
expenses.
6. Trust Account - A bank account maintaining funds held in trust by the County for individuals or
governments as required by State statute
B. Appointing Authority: An elected official, the single administrative or executive head of a
Department, or the designated representative authorized to act in this capacity.
C. Department – For the purpose of this Policy, “Department” refers to any division of the County
including elected and judicial branch offices, and Special Districts.
D. Depository Bank Account: A County bank account established pursuant to Maricopa County
Policy A2513.
E. Public Monies (for purposes of this Policy only): All public funds, arising from any source, or
accruing under the provisions of law to Maricopa County and/or Special Districts, and any funds
held by Maricopa County/Special Districts in trust for non-Maricopa County/Special District entities
or in a fiduciary capacity.
V. POLICY
A. It is the County’s policy to ensure all Public Monies are deposited into the County’s central servicing bank
account and managed by the Treasurer. In certain instances, it may be necessary to establish separate
bank accounts to facilitate certain required administrative procedures. These bank accounts will herein
be referred to as “Administrative Bank Accounts” and shall have the following requirements:
1. All Departments seeking to establish an Administrative Bank Account must request approval from
the County Board of Supervisors and/or Special District Board of Directors.
2. Administrative Bank Accounts shall be interest-bearing whenever possible and must be established
at the Treasurer’s Servicing Bank where practicable. Additionally, the accounts must be opened in
the name of the Department using the County’s tax identification number (TIN). Any exceptions must
be approved by the Board of Supervisors/Special District Board of Directors.
3. Expenditure disbursements made from Administrative Bank Accounts must follow proper
authorization, procurement code and competitive bid procedures established by A.R.S., County
policies, and/or applicable grant agreements; where required by law. A.R.S. §§ 41- 2501; 11-254.01.
See also Maricopa County Procurement Code.
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Policy Title: Policy Number: A2504
ADMINISTRATIVE BANK ACCOUNTS Current Adoption
Date: 02-13-2019
4. Any bank account opened with Public Monies that does not comply with this policy is in violation of
this policy which may be considered a misappropriation of funds. Such account will be closed
immediately and any such violation shall be reported to the County Attorney or Attorney General as
appropriate.
B. All requests for an Administrative Bank Account shall be submitted first to the County Manager, or
designee(s), by completing the “Request for Administrative Bank Account” form (see Attachment A) and
a memo, where needed, outlining the following:
1. The operational need that cannot be met under the Department’s current banking/warrant issuing
procedures;
2. Affirmation that the account is consistent with legal, operating, reporting and internal control
requirements of the County;
3. Acknowledgment that the account must, unless an exception is granted, be established at a branch
of the County’s servicing bank. If an exception is sought, the name of the preferred bank to hold the
account must be disclosed;
4. Statutory authority for the creation of the account, where applicable; and,
5. A list of persons to act as signers and/or custodians on the account, including job title.
C. The County Manager’s or designee(s)’ recommendation of approval shall be forwarded to the Board of
Supervisors and/or Special District Board of Directors in open meeting. Upon Board approval, the
“Request for Administrative Bank Account” form will be returned to the requesting Department for further
processing.
D. The County Manager or designee(s), shall maintain a copy of the Board-approved form and a record of
all Administrative Bank Accounts. This record will include the Department name, account number,
account type, purpose of account, account custodian, and authorized signers. County Manager or
designee(s) will transmit this information to the Treasurer for record keeping.
E. The following activity is strictly prohibited within Administrative Bank Accounts:
1. Payments to employees for wages or reimbursement costs - these payments should be made
through the County’s payroll system or other approved method.
2. Establishing lines of credit or overdraft agreements for any Administrative Bank Account. There
should be sufficient funds in the account to cover checks issued at all times. Overspending and
carrying deficit cash balances in any Administrative Bank Account is strictly prohibited.
3. Making loan payments or processing advances from Administrative Bank Accounts unless
specifically approved by policy. Advancement transactions related to active or potential criminal
matters by law enforcement agencies are permitted, however.
F. Upon final Board approval, it is the responsibility of the Department to:
1. Work with the Department of Finance (“Finance”) to establish the new account with the Treasurer’s
Servicing Bank whenever possible and ensure the new account is opened in the name of the County
Department using the County’s TIN;
2. Ensure Finance, Internal Audit, Budget, and the Treasurer are authorized to view the account detail,
electronic and/or hard copy back-up data, for any Administrative Bank Account at any time.
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Policy Title: Policy Number: A2504
ADMINISTRATIVE BANK ACCOUNTS Current Adoption
Date: 02-13-2019
3. Ensure that the authorized signers and custodians listed on the bank’s new account paperwork
agrees to the information provided on the “Request for Administrative Bank Account” form; all
changes to authorized signers or the custodian must be authorized by the County Manager and the
Treasurer, or designee(s) (see Attachment C ).
4. Work with Finance and the Treasurer to ensure that the appropriate internal controls regarding cash
handling procedures are used to manage the bank account. At a minimum, the Department should
separate the following major duties and functions among different employees:
a. Cash handling – checks, warrants, drafts or money orders received must immediately be
stamped “for deposit only”. Cash receipts should be deposited daily, if significant, or at least
every week; maintain validated deposit slips for each bank deposit;
b. Recordkeeping (i.e. posting transactions);
c. Reconciling bank accounts;
d. Approving cash disbursements; and
e. Preparing checks.
5. Adopt appropriate procedures for handling dishonored checks received but later returned unpaid by
the bank because of nonsufficient funds (NSF), stop payment, closed account, etc. At a minimum,
the Department should reverse the deposit from the account, set up a separate ledger/list of
dishonored checks, and adopt the best practices outlined within Finance’s Recommended
Procedures for Dishonored Checks.
6. Adopt appropriate procedures, in accordance with applicable IRS codes and regulations, for the
reporting of payments made from Administrative Bank Accounts to independent contractors for
services provided (i.e., Form 1099).
G. If the account is maintained in the Financial (Accounting) System as a balance sheet account, the
Department must process a journal voucher to record all transaction activity (i.e., deposits and
disbursements) on the County’s financial system. Proper accounting string information is required.
H. A monthly bank reconciliation must be performed with 30 days of month end. All reconciliations, including
back-up support for all receipts and disbursements from the account, must be retained in accordance
with record retention policies. These records are subject to review upon request by any department listed
under item F. 2. Authorized signers shall not perform any bank reconciliation or any other record keeping
function. At least one authorized signer must review and approve the bank reconciliation on a form similar
to Attachment B.
I. Annual Reports - The applicable year-end forms, detail of accounts, and bank reconciliations must be
submitted to Finance as required in the fiscal year-end closing package.
J. Failure to comply will all requirements listed herein shall result in the closure of the Department’s
Administrative Bank Account.
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Policy Title: Policy Number: A2504
ADMINISTRATIVE BANK ACCOUNTS Current Adoption
Date: 02-13-2019
Attachment A
REQUEST FOR ADMINISTRATIVE BANK ACCOUNT
Department Name
Fund # Date
Account Contact Name Phone
Description of why an Administrative Bank Account is needed:
Type of Administrative Bank Account being requested (based on the definitions in Section IV.B)
and reason the account type is needed:
Name of Maricopa County/Special District Employees to be authorized signers (minimum of 2
required):
Name of Maricopa County/Special District Employee to act as Custodian:
Type of Account Requested: Anticipated Account Activity:
Checking Account Number of Deposits per Month
Savings Account Average Monthly Deposit $
Investment Account Number of Withdrawals/Checks per Month
Interest Bearing (Y/N) Average Monthly Withdrawals/Checks $
Explanation of Source of Funds (e.g., fines, fees, charges for services, bonds,
restitution/wards/inmates/probationers monies held in trust, etc.):
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Policy Title: Policy Number: A2504
ADMINISTRATIVE BANK ACCOUNTS Current Adoption
Date: 02-13-2019
For Department of Finance Use Only
Financial reporting of deposits & investments held in Administrative Bank
Account
Fund classification:
See
Special Revenue [ ] Debt Service [ ] Capital Project [ ]
Enterprise [ ] Internal Service [ ] Agency [ ]
Advantage Fund Number (N/A for Agency Funds):
Balance Sheet Account 1006/1013 (N/A for Agency Funds)
attached Memo for additional information.
REQUIRED APPROVALS
Department or Office Approval
Appointing Authority Approval ___________________________ Date ______________
Completed by County Manager (or designees)
County Manager Approval _____________________________ Date ______________
Completed by County Treasurer
County Treasurer Approval _____________________________ Date ______________
Completed by Clerk of the Board of Supervisors/Board of Directors
Date of Board of Supervisors/Directors Approval _________ Agenda # _____________
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Policy Title: Policy Number: A2504
ADMINISTRATIVE BANK ACCOUNTS Current Adoption
Date: 02-13-2019
Attachment B
I hereby certify that all the activity and transactions reported above for this bank account are: 1) for a valid
public purpose; and 2) done in accordance and compliance with applicable authorization, purchasing,
procurement, and competitive bid guidelines and procedures established by A.R.S. and County policies.
Furthermore, I certify that monies are available for payment for such transactions, and that if the available
monies are from a federal grant, contract, or trust agreement, these transactions and purchases are
authorized under the terms of such grant, contract, or trust agreement.
By_____________________ ____________
Authorized Signer Signature Date
The above bank reconciliation example was obtained from the June 2008 Uniform Accounting Manual for
Arizona Counties (UAMAC) published by the State of Arizona Office of the Auditor General.
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Policy Title: Policy Number: A2504
ADMINISTRATIVE BANK ACCOUNTS Current Adoption
Date: 02-13-2019
Attachment C
NOTICE OF CHANGE TO THE CUSTODIAN OR AUTHORIZED SIGNER OF AN
ADMINISTRATIVE BANK ACCOUNT
DATE:
TO: County Manager (or his designees)
FROM: <Custodian or Authorized Signer>
<Department Name>
SUBJECT: Notice of Change to the Custodian or Authorized Signer of the Following Administrative Bank
Account: <Banking Institution Name, Account Name and Number
This request is to notify the County Manager of the following change in custodian or authorized signer for the
above-indicated Administrative Bank Account:
New Authorized Signer or Custodian: Previous Authorized Signer or Custodian:
<Name> <Name>
<Title> <Title>
<Work location address> <Work location address>
<Work phone number> <Work phone number>
__________________________ _________________________________
Signature Signature
REQUIRED APPROVALS
Department or Office Approval
Appointing Authority Approval ____________________________ Date ____________
Completed by County Manager (or designees)
Approval _____________________________________________ Date ____________
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Policy Title: Policy Number: A2504
ADMINISTRATIVE BANK ACCOUNTS Current Adoption
Date: 02-13-2019
Revision History
Version Revision Date Description of Revision
1 05/2000 Initial version. County Manager adopted.
2 05/26/2010 Rescinds and supersedes the previous A2504 and requires departments and
elected offices to submit new requests for approval for each current account
to the County Manager by June 28, 2010. (C-06-10-475-6-00, C-06-10-476-
6-00, C-06-10-477-6-00, and C-20-10-049-6-00)
3 06/20/2012 Review and update language. Establish administrative bank accounts for HR,
Payroll, and Employee Records. (C-49-12-097-6-00, C-49-12-098-6-00, C-
49-12-099-6-00, and C-49-12-100-6-00)
4 02/13/2019 Review, update language, cite authority. Update to current policy formatting.
(C-18-19-004-6-00)
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