The UC Santa Barbara Associated Students 75th Senate made plans to explore alternatives to Montecito Bank & Trust and adopt a new financial system software at their Aug. 20 meeting. Many senators argued that the systems in place at the association needed updating to increase efficiency and transparency.
Many Senators argued that the system in place within the associations needed updating to increase efficiency and transparency. Courtesy of Associated Students
This was the Senate’s second meeting this summer and was held over Zoom.
Currently the association holds accounts with the Montecito Bank & Trust, and “A Resolution To Explore Alternatives To Montecito Bank & Trust” raised the point that Associated Students (A.S.) is given a budget of over $18 million from student fees each year which must be “allocated responsibly” by the association. It states that responsibility cannot be met if accounts are kept with the Montecito Bank & Trust, which reportedly provides “abysmal” benefits in terms of certificate of deposit (CD), current account rates on interest-bearing accounts and rates of return.
“These fees cannot be allocated responsibly if they are kept in accounts that are accumulating less than market-rate interest returns, as well as being placed in a banking institution that lacks the highest quality services and newest systems that the Association can afford,” the resolution reads.
At the meeting, Senators third-year philosophy and political science double major Dan Siddiqui and third-year history and global studies double major Enri Lala, who co-authored the resolution, said that alternative banking institutions should be explored by Associate Director for Finance and Budget Michael Cea and Executive Director Marisela Márquez.
The request came with a set of requirements — that the bank offers the highest market CD and current account rates for money deposited leading to the high returns on their money, that it is nationally insured for higher level operating systems and that it has “modern and sophisticated” operating systems.
The senators also requested that the Senate and the “Temporary Committee for Financial Transparency & Efficiency” receive regular reports about the progress of findings. The Resolution passed with unanimous consent.
Siddiqui also co-authored “A Resolution To Adopt The MIP Microix Cloud Financial System Software.” A.S. is technologically behind in terms of the way finances are handled, according to the resolution. The resolution asserts that through adopting a digitized financial system such as the MIP Microix Cloud platform, students will be able to sign requisitions, Boards, Coalitions and Units may manage their budgets and the Senate may view the transactions of all A.S. entities online.
“It would really just help to fix a lot of the critical issues that the association has been facing and get us back up to date with other A.S.’ in the [University of California] system,” Siddiqui said.
According to the resolution, in addition to improving efficiency, the cloud could improve transparency and accountability if adopted for the association by Cea and Márquez, an integral part of managing student funds.
“The transition to a cloud-based financial management system will improve efficiency, accountability, and accessibility for student leadership, enabling authorized signers to electronically approve requisitions and monitor budgets and expenditures in real-time,” the resolution read.
After some pushback from fellow senators regarding the $98,000 price tag on the financial changes and the lack of information in the presentation regarding the costs, the Senate eventually voted to refer the resolution to the finance committee for further review.
