In addition to regular attendees:

· All Long Term Operating Advance (LTOA) and Foreign Bank Account requests must be discussed with your tub's Financial Dean (or equivalent) prior to any communication with or processing by central OFS.

· All Long Term Operating Advances (LTOA) must be authorized by a tub's Financial Dean (or equivalent).

· All foreign bank accounts must be tied directly to an LTOA that has been authorized by a Financial Dean (or equivalent).

Ø LTOA must be funded by wire transfers.

Ø Local units must maintain original receipts to support expenditures.

Ø The suggested minimum amount for account set-up is $10,000, however tubs may set higher limits.

Background/Risk

Authorization is a revision to current LTOA policy and procedures while tying foreign bank accounts to LTOA is new. There are compelling reasons why these changes are necessary.

· Lack of an appropriate authorization procedure for LTOA

Some local units created LTOA accounts without the authorization of their Financial Dean. While the outstanding issues regarding those were resolved the capability to create unauthorized advance accounts still existed because the LTOA object code (0500) is not restricted - it can be used in Web Voucher transactions that can be approved at the local level. This policy revision changes procedures to ensure the appropriate approvals and checks are in place.

· Number of Foreign Bank Accounts

There are currently a significant number of foreign bank accounts set up throughout the University. In addition there is no documented policy and procedures regarding the establishment of such foreign accounts. This new policy provides improved control by tying every foreign bank account directly to an LTOA that has been authorized by a Financial Dean.

Basic Responsibilities

Tub

· Authorizes LTOA and assigns responsible individual

· Opens and closes the foreign bank account

· Reconciles the account

· Maintains original receipts

Central Travel Office

· Authorizes LTOA web voucher

Central Cash Management

· Provides legal authorization to open foreign bank account

· Wires funds to the bank

· Closes bank account when LTOA is closed

Central Office of Sponsored Research

· Reviews expenditures related to sponsored activity

For more detailed processing instructions please see Long Term Operating Advance Authorization Form. (Short Term Operating Advances are also detailed in the policy section of this site.)