Centralized Club Banking
Upon ratification, the officially elected executive members who have signing authority of their club must contact the VP Student Affairs for instruction on opening a centralized bank account. This process is mandatory for all clubs.
Solution & Benefits to Centralized Banking
The ULSU has moved to a centralized club banking structure to address the above issues, where all clubs are required to set their club account with the same bank (BMO).
- Centralized banking creates a hassle-free system for clubs and the ULSU.
- There are no bank fees to eat away your funds.
- Clubs will receive free cheques.
- If outgoing executives forget to sign over the account information to the incoming executive, then the ULSU can step in and provide the necessary information so you can access your funds. This happens every year.
- There will be solid security measures in place. The VP Student Affairs will know who the Club Executives are at the beginning of each year as part of the ratification process and will not give your confidential information away to a random person.
- Ensures that clubs who have disbanded or broken apart leaving ULSU monies in the bank, allows the ULSU to access these funds to be used for club funding for existing clubs.
NOTE: If it has come to the attention of the VP Student Affairs that a club is not being responsible with the funding provided by the ULSU and are in violation of ULSU policy, bylaws or insurance regulations, then the ULSU could step in and place a freeze on the account. If this were to happen, a meeting would be set up with the club in question to inform them of the happenings, and allow the club to explain their actions especially if it was a misconception. If the club was found in violation, ULSU monies would be seized and the club would be de-ratified. These measures would be put in place to provide a backup system for students who trust that their fees are being handled in a responsible and accountable manner. This is a benefit to the club members and also to the students-at-large who pay their ULSU fees, which is ultimately where the club funding originates.
Once ratified, a new club is required to set up a BMO bank account. Clubs that have an existing BMO account must ensure that incoming club executives bring documentation obtained from the VP Student Affairs to BMO annually, to update signing authority.
The ULSU has background signing authority to all club accounts. This means that the bank requires two club executives or any two ULSU signing authorities to carry out a transaction. Please note that the ULSU will only intervene under extreme circumstances of violation on the clubs’ part or if a club was abandoned leaving an open account, or to pass along the account information to the incoming club executives.
The ULSU has chosen the BMO as the central bank for use in this system. Branch details are as follows:
606 4th Ave South, Lethbridge, AB T1J 0N7
Hours of Operation: Monday – Thursday: 9:30am-4:30pm, Friday: 9:30am-5pm
Main Contact: Lainey Blood - ph: 403-382-3250
What Clubs need to take with them to the BMO:
- A letter from the ULSU confirming that you are a ratified club in good standing and further allowing the ULSU to have background signing authority. This letter must have two ULSU signatures of either the VP Operations & Finance, the General Manager or the President.
- The banking form completed with two signatures of the outgoing and incoming club executives who have signing authority.
- Each club must also supply the bank with their completed club banking form.
As for club accounts themselves, BMO does offer a Community Account, which is for a group of 20 transactions a month or less, which a majority of ULSU clubs would fall under. Details for the Community Account are as follows:
- No monthly fee
- No minimum balance
- Free cheques
- Paper statements every quarter
All other accounts, namely those with projected transactions of more than 20/month, would be set up at BMO on a one-by-one basis.
There is an opt-out process for those clubs that have an established record of outstanding financial accountability and compliance, and might be tied to University departments. These clubs already have built in checks-and-balances in place. To opt-out, clubs are required to present their case at a meeting of the General Assembly. The responsibility is placed on the individual club to present their proven track record and external checks and balances sufficient enough that they do not need to be a part of the ULSU Centralized Club Banking Structure. Once the General Assembly has made their decision, that decision will be final and the club will be expected to comply with the outcome.
A club will be considered opted out on a continual basis unless a change in affiliation has occurred.