Jeannine

Any bank account that has the school or town tax ids on them, should be under your control. If you choose to, you can pass the bank statements  along to the person who needs to reconcile it.

I don't know how long they have existed, but no bank should open an account today with the tax id of the school or town, which has not been authorized at a Board meeting and contain the appropriate set of minutes from that meeting.  Banks have been tighte
ning up on this over the past few years.

I would do one of two things.  Force the users of the account to use their social security numbers as the bank suggested and to use a non-interest bearing account.  If that is not desireable, then I would discuss the matter at a Board meeting and clear up
 any misunderstanding(s) about the use of the town or school tax ID numbers.   These accounts should be looked at annually by the auditors because little balances doesn't mean that large amounts haven't been processed through the account(s) during the yea
r.

Today, a reputable bank should not open an account without the proper paperwork.

Cheryl A. Lindberg
Treasurer
Town of Norwich



>
>
>
>
>At a number of seminars lately we have
>been told
>that Treasurers should make sure that there are no accounts out there
>that use
>the Town (in my case School) tax ID number that we do not have control
>of.
>I spoke with my banker yesterday, as I
>knew that
>the school had 5 or 6 accounts that I don't control.  My local
>auditors do
>audit them, but the contracted firms do not.
>
>He told me that in order to remove the
>school ID,
>the ss# of one of the signers would have to be used, which would then
>cause
>problems for them.
>
>How do other people handle this??
>I am not
>really too worried by these accounts, as they are usually controlled by
>the
>principal and are not very big, but I guess I should protect
>myself.  The
>audit firms no they exist, but also are not too worried about
>them.
>
>Thanks
>Jeannine Bennett
>
>