BP 11122023 129pm - Flipbook - Page 13
SECTION 4: BANKING
BANKING
Only one bank operating account should be established at each entity. All savings should be
deposited in either an Archdiocesan deposit and loan (D&L) account or common fund account.
Approximately two and a half times the average monthly expenditures should be kept in the
operating account with excess funds transferred to D&L account maximizing interest earnings.
Bank accounts should be established in the name of the entity using the proper Federal Employer
Identification Number (EIN), not an individual’s name and social security number. The mailing
address should be the parish, mission, campus, or school, not a private residence.
Entity ministries and clubs/organizations should not have a separate checking account since it
complicates the accounting process, increases the risk of errors and requires additional oversight.
Receipts and disbursements for such program activities should be deposited in the general
operating bank account. The financial activity for each ministry should be tracked separately in
the general ledger using an exchange account or project codes. See Section #8 Accounting.
Authorized Check Signer Policy: The pastor, administrator, director or principal should be
authorized to sign checks for all bank accounts. An additional designee (e.g., parochial vicar,
deacon, assistant principal, finance council chairperson or other individual in position of
authority) should be selected, in the event of an emergency. Where someone other than a priest
is authorized to sign checks, permission for the specific named individual shall first be obtained
from the Archdiocesan Finance Office. Permission shall be granted only after appropriate
internal controls are in place. Authorized signers should be added and deleted in a timely
manner when there is a change in leadership.
Accountants and other individuals who maintain edit access to financial records, reconcile bank
accounts, etc., should not have check-signing authority, as these are conflicting duties and
unauthorized disbursements could go undetected.
Blank or partially-written bank checks should never be signed.
The use of rubber signature stamps for check signing is strictly prohibited.
Bank endorsement stamp: Bank endorsement stamp should be used for depositing checks that
are not scanned for deposit. The stamp should list: entity name, for deposit only, bank name, and
bank account number. The stamp should be stored in a secure location.
Electronic Banking Processes: Strong internal controls should be established for electronic
banking processes. Only individuals authorized by the Leadership should be given authority to
complete electronic transactions. Segregation of duties should be maintained. The electronic
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