Ohio Admin. Code 113-2-01 - State entity custodial bank accounts

(A) Any state entity requesting a custodial bank account must do so in writing to the treasurer. Specific statutory authority to establish an account outside of the state treasury must be cited. In the absence of specific legal authority, written approval of the auditor of state and director of budget and management may be considered.

(B) The treasurer shall make a recommendation to the state board of deposit for award of the custodial bank account to a designated financial institution. Banking needs of the state entity will be taken into consideration during this process. The

(C) The designation may award of a custodial bank account shall remain in effect until the next designation mandated by section 135.12 of the Revised Code unless a state entity requests a change of financial institution, and such request is approved by a majority vote of the board of deposit.

(D) Within three business days of physical receipt (e.g., cash or checks) by a state entity or electronic deposit (e.g., checks scanned for deposit, ACH transactions, wires, revenue from financial transaction devices) into a state entity's custodial bank account established by the treasurer, every state entity shall report all amounts received by submitting to the treasurer the form obtained from the treasurer's website or a form otherwise approved by the treasurer.

(C)(E) The state entity shall provide to the treasurer a list of individuals who are authorized to provide investment instructions, including cash requirements and participation in the state treasurer's investment pool.

(D)(F) The state entity shall provide to the treasurer a list of three persons individuals who are authorized to provide investment instructions, including cash requirements and participation in the state treasurer's investment pool request withdrawals from the account. Withdrawal shall be by a payment instrument approved by the treasurer including but not limited to warrant, check, ACH, or wire transfer. Authorized individuals who will be signing checks drawn on the custodial bank account must also provide their signature on a form as specified by the financial institution.

(G) The state entity shall keep its list of authorized individuals current and shall immediately notify the treasurer in writing if an authorized individual's authority has been revoked for any reason. The state entity shall immediately notify the financial institution in writing if an individual authorized to sign checks has been removed for any reason.

(H) The list of authorized individuals and their account access will be subject to confirmation on at least an annual basis.

(E) Within three business days of receipt by a state entity or deposit into a state entity's banking account, every state entity shall pay to the treasurer, on forms approved by the treasurer and obtained from the treasurer's website, all moneys, checks, drafts, and incoming electronic funds transfers received by it for deposit into a custodial account.

(F)(I) Withdrawals shall be requested by an authorized individual on forms provided on the treasurer's website or forms otherwise approved by the treasurer. By executing the form, the authorized individual certifies that the withdrawal or expenditure of funds from a custodial bank account is for a proper and legitimate use of such funds. and shall be affected by the treasurer Relying upon the state entity's verification of cash availability in the account , the treasurer shall approve the request for withdrawal, including effectuation of the transfer by wire or ACH as indicated on the form by the state entity. Withdrawals shall be by check, ACH, or by wire transfer No transfer will be conducted without the state entity's designation of wire or ACH as the method of transmission.

(J) State entities may issue checks drawn on their custodial bank accounts, either directly through the financial institution or manually by the state entity. When writing manual checks, the state entity must take proper steps to secure the check stock.

(K) The state entity must transmit to the treasurer a report listing all checks being issued including date, check number, payee, and the dollar amount of each check, with grand total dollar amount at the bottom of the report.

(L) The state entity can view activity in the custodial bank account through the designated bank's web portal, including checks that have cleared and checks that have been returned.

(G) The state entity's authorized signers will certify that the withdrawal of funds from a custodial account is for a proper and legitimate use of such funds.

Notes

Ohio Admin. Code 113-2-01

Effective: 2/16/2023
Five Year Review (FYR) Dates: 11/30/2022 and 02/16/2028
Promulgated Under: 111.15
Statutory Authority: R.C. 113.08, R.C. 113.11
Rule Amplifies: R.C. 113.08, R.C. 113.11
Prior Effective Dates: 02/21/1986 (Emer.), 05/03/1986, 09/28/2000, 06/28/2007, 09/20/2012, 02/15/2018