Texas Tech University and the Center for Campus Life do not regulate student organization bank accounts. Therefore it is important to provide some internal financial controls to prevent fraud. These tips and recommendations should not replace the advice from a Certified Public Accountant, or other financial advisor.
For personal and other financial planning information please consult Red to Black, located in Student Union Building 201. You can also email Red to Black at email@example.com.
The Center for Campus Life has provided some tips to prevent the mishandling of your organization's fund:
- Require two signatures for checks, purchases, or other expenses.
- Debit Cards are discouraged.
- If used, ask your student organization advisor to maintain the card and only use for purchases that cannot be made with a check.
- Separate financial responsibilities, where it requires more one person to complete
- A reconciler, is a person who checks bank statements, and should not be able to sign off on student organization purchases. This should be done each month.
- The purchaser should not be able to collect and reconcile bank statements from the student organization
- The person that takes custody of the money in every circumstance, should not reconcile or make purchases (without a second approval).
- It is suggested that two officers, and/or an advisor approve purchases that would require reimbursement for other student organization members.
- Use your student organization mailbox, or advisor's mailstop as an address to mail
all bank statements.
- This ensures that bank statements will not be sent to individuals and lost during any transition process. To fill out an application for a student organization mailbox click here.
- Use your student organization's bank account instead of your personal bank account.
- Any organization can open a bank account, and student organizations wishing to open a bank account will need to obtain an EIN from the Internal Revenue Service.
- Also could prevent fraud, as the bank statements go to the correct location.
- Update your bank account information yearly.
- Officer transitions will require most student organization to update their bank accounts on a yearly basis.
- Remove officers no longer in the organization, and add officers who take new leadership positions in the student organization. If the officers have signature privileges, the new officers and the advisor will need to update the signature cards soon after the transition.
- Student Organizations are responsible to apply for tax exempt status if desired.
- Organizations are required to pay taxes on purchases that are made with an off-campus bank accounts and cannot use the Texas Tech tax exempt number.
- Keep good financial records.
- Financial records should at least go back five years.You can keep track of your financial records using TechConnect if you like by using the Treasury tab on the left hand side.