512: Use of Foreign Banks
Fiscal Operations Manual
Section 500: Financial Accounting and Analysis
Foreign programs frequently present special challenges. International vendors often require immediate payment for goods and services in local currency. The solution has been to provide funds to foreign personnel in advance. The program director is then responsible for the funds.
Occasionally, providing an advance to a foreign program includes depositing funds in a foreign bank. Approval must be obtained in advance from OSU Office of Business Affairs, the OUS Controller’s Division and the State Treasurer.
Authorization should be requested by letter to the Director of Business Affairs for approval and forwarding to the OUS Controller’s Division. The request should include the following:
- A brief description of the need to use a foreign bank
- The source of funds and the degree of liability assumed by the University
- A statement of whether the government insures funds deposited in the foreign bank, or whether such protection can be obtained
- A summary of reasonable and prudent measures that will be taken to protect the funds
- The amount to be deposited
- An estimate of the average balance
- For further information on the use of foreign banks, see OUS Fiscal Policy Manual Section 105.200: Foreign Programs and Payments (specifically .170 Foreign Programs and Payments)