For the protection of the RSO and its members, it is strongly recommended that the group create a bank account if it has any form of income (e.g., dues or fundraising). While setting up a bank account should be in accordance with the RSO’s constitution, it is suggested that the RSO consider using a bank that requires two signatures on all monetary transactions, and that no more than three people be allowed to sign those transactions. Requiring two signatures protects the organization from unauthorized spending or misuse of members’ money. These signatures should be changed during officer transition.
In order to set up a bank account, an RSO will need to obtain an Employer Identification Number (EIN) and a letter from OSI confirming its registration that will be provided to the bank of their choice. The Banking Letter Request will be managed by KoRT and will ask for the name of the of the two signatories (the current President and Treasurer) and the Faculty/Staff Advisor listed as a viewer of the account. The form will be found on KoRT’s Knight Connect page. A student should never open a bank account under his/her Social Security Number.
Organizational funds may be spent on things like office supplies, publicity, conference travel, and events, but may not be spent on anything illegal under University, local, state, and national law (this includes alcohol). Misuse of funds is a violation of the Golden Rule and is subject to disciplinary action at both the University and local level. In an effort to prevent misuse, the organization should set up an official process (in writing) detailing the expenditure of money. For example, the organization may create a form that an organizational member or officer would complete when he or she receives approval to spend the organization’s money or is requesting a reimbursement. The form should include: vendor information, what is to be purchased, cost, quantity, reason for purchase, organizational vote count that approved of the expenditure, and the signature of at least two of officers (typically the president and treasurer, unless one of these officers is requesting the reimbursement). Regardless of the process created, the organization should maintain a notebook of income and expenditures for record-keeping.