Checking Accounts Maintained by Institutions
There are state agencies which have checking accounts that are not used as petty cash funds, or for the purpose of clearing checks or making change. Most often these accounts are not at the Bank of North Dakota. In order to be consistent in our handling of these accounts, the following guidelines for state agencies (colleges excluded) have been adopted.
1. Clearing checks, and cashing checks - Agencies may maintain checking accounts at the Bank of North Dakota, or for entities located outside of Bismarck, other state or federally chartered banks, for this purpose, provided they obtain approval from our office and the state treasurer. NDCC Ref. Section 54 06 08.1
2. Conference accounts - An agency hosting a conference for which the costs will be covered by registration and/or other fees charged to the participants, may have a checking account, at the Bank of North Dakota, after approval of the state auditor and the state treasurer. This applies to agencies only if they are off of ConnectND. Ref. OMB Policy #211
3. Gifts, donations, grants, bequests - Donations, gifts, grants, bequests given or made subject to certain limitations are received and accepted with the conditions attached. If the condition or stipulation of the grant or donation does not provide that the money shall be deposited in some specific place, it shall be deposited with the state treasurer in a special fund. Ref. 1963 Attorney General’s opinion to Ralph Dewing.
4. Personal funds of inmates, students, residents, etc. - Monies held by an institution in a fiduciary relationship are not considered public monies, and may be kept in checking accounts not authorized by the state auditor or state treasurer, and do not have to be at the Bank of North Dakota.
5. Income of store operations - Income obtained by operation of stores must be deposited with the state treasurer, unless the operation of the store is an extracurricular activity and is not operated by the State or its employees and public funds are not used in “stocking” the store, and the operation is a mutual operation by and for the benefit of the inmates (students, residents) of the institution. Ref. 1963 Attorney General’s opinion to Ralph Dewing.
6. Public monies in custody of state institutions - “Public monies” received by state institutions, which are not maintained in accounts for the purpose of #1, #2 #3, and #5 above, must be deposited with the state treasurer, who deposits those monies in the Bank of North Dakota. Ref. - NDCC Sections 21 04 02, 6 09 07 ND Constitution Article X, Section 12. The State treasurer has assigned the BND as its agent for the following entities: DOT, Highway Patrol, HFA, JSND, Mill, PERS, RIO, Roughrider, Voc Ed, SWC & WCB. This is current as of 12-2004, can be revoked.
7. Pursuant to NDCC chapter 21-04-06 depositories of public funds for North Dakota agencies are required to maintain their depositories in a financial institution within the State of North Dakota.
Click Here: Financial Institution Depository Request Form
54-06-08.1. Clearing accounts and cash balances maintained by state agencies. All departments, institutions, or agencies of the state may maintain, subject to approval of the state auditor and the state treasurer, in the Bank of North Dakota, or, if the state entity is located outside Bismarck, in another state or federally chartered financial institution, an account for clearing or cashing of checks and making change. To accommodate peak processing periods, the balance in an account at a financial institution other than the Bank of North Dakota may exceed the maximum amount of federal insurance coverage available if the excess in the account is secured by another form of security or security deposit; however, the balance may exceed the maximum amount of federal insurance coverage available only for the time it takes to clear the checks. Any check written on the account may be used only to transfer funds to the Bank of North Dakota or the state treasurer. A financial institution shall report to the state auditor in writing within thirty days after opening or closing an account for a state entity under this section. Subject to the approval of the state auditor, a state entity may maintain a cash balance reasonable for the conduct of business at the location of the entity.