Department/Unit Procedure for Establishing/Creating Custodian Fund
Go back to Custodian Fund User Guide
1. Establish and verify that PI needs Custodian fund- Is the payment to individual human subject $250 or greater? Yes – PIR process.
- Is the payment to individual human subject paid by cash, gift card or anything other than a check? Yes – Continue with Step 2 - Custodian Fund Temporary advance.
- Is human subject study less than one year? Yes – Continue with Step 2 - Custodian Fund Temporary advance or use the PIR process.
- Is human subject study a) 1 year or longer b) participant will receive check at time of service c) will have at least 10 participants per month? – If Yes to all continue to Step 2 - to open a custodian fund replenishable bank account. Takes 1-2 months to open.* If No complete Step 2 through Step 5 for completing a Custodian Fund Temporary advance or use the PIR Process.
*While waiting for bank account to open, use the custodian fund temporary advance or PIR process to make payments to human subjects
2. Obtain accurate funding information, Verify approved IRB (Institutional Review Board)
3. PI/Delegate completesCustodian Fund Request Form:
Custodian Fund Request Form/Instructions
4. PI/ Delegate completes Custodian Agreement Form:
Custodian Fund Agreement Form/Instructions
5. PI/Delegate completes Custodian Fund Budget Information Form:
Is custodian fund period more than a year and will the individual human subject be paid by check? If YES, continue to 6, if no, go to Step 8.
6. For advances with a time period of one year or longer and payments to individual human subject will be made by check, a replenishable US Bank account needs to be created.
PI will need to fill out:
- New Bank Account Form (be sure to complete the Security section)
- Check Order Form
- Bank Account Website Access Form
- Letter of Justification explaining purpose of study and how it links to the project.
- US Bank Authorized Signature Form obtained at Dean’s Office or requested through the Cash Management inbox.
7. When opening a bank account all employees involved will sign and forward the Memo of Understanding to the Dean's Office and keep a copy for their records.
- Memo of Understanding - Custodian
- Memo of Understanding - Signers
- Memo of Understanding - Reconciler/Replenisher
- Memo of Understanding - Department
- Memo of Understanding - Dean's Office
- Memo of Understanding - Cash Management
8. Department verifies accuracy of all elements on each form
9. Enter information on Custodian Fund Advance Tracker
10. File department copy and send original documents to the Dean’s/Division Office.
11. For Custodian Fund Temporary Advances, a check will be sent to the address indicated on the custodian request form. For Custodian Fund Replenishable Request, the check will be deposited into the authorized US Bank account.
12. Check WISDM using account code 6167 to see if the request has been processed, make sure that you are looking at the balance sheet, and be sure to wait 10 business days from submission date. Contact your Dean’s/Division’s Office for any additional questions. See procedure below to review and verify custodian fund advances in WISDM.
- i.Review outstanding custodian funds on WISDM (monthly). Log into WIDSM, use the Main Menu drop down box, choose “Other”, and then click on “Transaction Search”.
- ii.Choose fiscal year range beginning with 2006 and ending with current year and month. Fill in the following boxes:
- “Dept” – Select “starts with” from drop down menu and enter your Department ID number.
- “Account” – enter 6167.
- “Show Balance Account” – Check the box as yes (Check = yes).
- Click submit. WISDM will display all custodian funds. This information can be viewed and sorted in Excel.
- Monthly, reconcile bank statements and list the following: outstanding checks, amounts yet to be replenished, bank balance to check book balance, check book balance to custodian fund level.
- Replenish bank account(s) quarterly. See maintenance procedure.
- Quarterly, review custodian funds for end dates, custodian agreement changes, outstanding custodian funds, and amount expensed against original custodian fund request.