Departmental Funds Receipting

Transcription

1 Departmental Funds Receipting Authority: History: Source of Authority: Vice Chancellor Business Affairs Effective November 1, 1990, entitled Cash Receipts ; updated May 26, 1999, updated November 2, 2002; updated July 1, 2006; updated December 21, 2011 and renamed Department Funds Receipting ; supersedes former Administration Policy No. CSH1.10, Cash Receipts ; updated June 14, 2016 Office of State Controller, University Cash Management Plan Related Links: Responsible Office: Cashier s Office I. Purpose University departments that receive funds must be committed to strong internal controls of receipts to prevent mishandling of funds and safeguarding against loss. Internal controls related to university receipts are the business practices established to ensure all funds received are deposited in the bank and recorded in the Banner Finance System accurately and timely. Establishing and following written procedures that include separation of duties and month-end reconciliations are the key business processes used to ensure the safeguarding of university receipts. Strong internal controls also protect employees from being falsely accused of mishandling funds (theft, embezzlement) by defining crosschecking roles for funds handling responsibilities. II. Policy A. Funds 1. University funds may be received in the form of: a. Coins, currency, checks, money orders, and traveler s checks b. Electronic funds transfers, ACH and wires Departmental Funds Receipting Page 1 of 9

2 c. Credit and debit card transactions Refer to Credit Card Merchant Services Policy for implementation guidelines and compliance requirements 2. International payments must be received in U.S. dollars. B. General Statement 1. The Associate Vice Chancellor Finance & Controller (AVCF&C) has the authority to establish banking arrangements for the university. No school, department, or activity of the university is permitted to open a bank account without written approval from the AVCF&C. 2. All departments receiving cash in any form are responsible for complying with the cash receipting requirements of this policy. In addition, departments receiving cash as a part of their normal operation are responsible for maintaining a receipting process consistent with university policy, which may include additional procedures with key internal controls tailored to the specific unit. 3. Departments are periodically reviewed for compliance to this policy. The departmental head is responsible for implementing and maintaining internal controls by establishing written departmental procedures and must ensure compliance with the university departmental funds receipting policy. Departments not in compliance may lose the privilege of collecting funds. 4. The following sources should be utilized to further understand this policy: Source Policy Description Contains general policy and procedures for Departmental Funds Receipting Procedure Contains specific processing guidelines and requirements for implementing and maintaining a receipting process for receiving funds Cashier Interprets and explains policy Provides training on receipting procedures - Finance Training Course RCT201 Deposit Transmittals Controller Approves departmental requests for funds receipting privileges C. Application and Approval for Funds Receipting Privileges Departmental Funds Receipting Page 2 of 9

3 1. All departments intending to receive funds as a part of their normal operation must submit an electronic request form to the Controller for approval of departmental funds receipting privileges. This form is located on the Forms page on the Controller s home web page (see Related Links above). Each receipting purpose must be approved and the Finance Training Course RCT201 Deposit Transmittals successfully completed before the department may collect any funds. 2. A new request form for departmental funds receipting privileges must be submitted when receipting purposes, fund numbers or department personnel change. 3. Funds receipting privileges must be renewed annually. Expiration notifications are sent requesting a new form be submitted to the Controller for renewal. D. Separation of Duties Departments must have written procedures that document the funds handling process and ensure that adequate staff is available to enable separation of duties from the individuals receiving, depositing and reconciling departmental funds. E. Recording of Funds Receipted 1. All university departments and activities shall record all cash receipts as soon as the funds are received. 2. Departments and activities that receive cash receipts as a part of their normal day-to-day operations must establish an audit record. The audit record may require a log or receipt book. 3. When the use of receipt books is appropriate, departments must use official UNCW receipt books purchased through the Cashier's Office. The Cashier's Office requires departments to keep unused receipt books in the Cashier's Office for safekeeping. F. Reconciliation of Funds Monthly departmental reconciliations must be performed by someone other than the person receiving the funds and the person preparing the deposit. Reconciliations involve comparing each copy of the validated university deposit to the revenue and/or expenditure detail transactions posted in the Banner Finance reports. Prompt followup and resolution within 60 days for any discrepancies is required. These steps are necessary to ensure that all funds deposited into the University s bank are properly recorded in the general ledger system and would detect data entry errors in the Banner fund/account as well as bank errors or employee theft Departmental Funds Receipting Page 3 of 9

4 G. Deposit of Funds 1. Deposit Processing Funds Received for: Deposit Process Departmental Operations All departments depositing university funds must prepare a PDF deposit transmittal form (located on the Forms page on the Controller s home page; see Related Links above). a. Departments that HAVE approval for funds receipting must use the approved deposit transmittal for those that HAVE funds receipting privileges and if the receipt type is: 1) Cash and check receipts - must print and bring the deposit transmittal along with the cash/checks and adequate documentation to support the total deposit to the Cashier s Office located in Warwick. 2) Point of sale credit card receipts must print and bring the deposit transmittal and supporting credit card slips and settlement slip with adequate documentation to support the total deposit to the Cashier s Office located in Warwick. 3) Web credit card transactions -must only be submitted electronically. The deposit transmittal and batch settlement documents must be submitted by to the Cashier s Office. Training documents are provided for this process. b. Departments that DO NOT HAVE approval for funds receipting: 1) Must use the deposit transmittal approved for those WITHOUT funds receipting privileges. 2) Submit an electronic deposit transmittal for Departmental Funds Receipting Page 4 of 9

5 External Invoices Including contract and grant invoices Financial Aid or Scholarships the deposit. Do NOT sign this transmittal. In addition to the electronic deposit transmittal, they must also print and bring the transmittal with the supporting receipts and adequate documentation to the Cashier s Office. Hand deliver funds received to the Controller s Office for deposit processing. The Controller s Office will deposit the funds with the Cashier's Office. Hand deliver funds received to the Office of Scholarships and Financial Aid. OFSA will deposit the funds with the Cashier s Office. Cash Gifts Hand deliver funds to the University Advancement Office for all cash gifts to the university, including funds received for the purpose of scholarships, tuition remission, or monetary awards to students where UNCW determines the recipient. All gift deposits must be made by University Advancement Services. (See Policy ; see Related Links above.) Inadequate documentation will result in delays in processing receipts and fund availability for expenditures. Refer to the Departmental Funds Receipting Procedures for required timeliness of deposits. (See Related Links above). 2. Transporting of Funds Funds must not be sent via campus mail or U.S. mail. All deposits shall be hand- carried to the appropriate office as indicated in Section G.1 Deposit Processing above. Upon request, the University Police will assist with escorting of funds when an appropriate safety need exists. 3. Check Endorsement All checks and money orders should be made payable to the university and stamped for endorsement when received. Official endorsement stamps are available for purchase from the Cashier s Office Departmental Funds Receipting Page 5 of 9

6 Checks, that are not made payable directly to the university and are made payable to a third party (parent or student), should have the third party signature on the back of the check, made payable to the university and endorsed with the university stamp. Deposits will not be accepted by the Cashier s Office unless properly endorsed. International checks are not accepted. 4. EFT, ACH and Wires a. Domestic Accounts Contact the Cashier Supervisor for explicit instructions to receive EFT, ACH and wires from U.S. accounts including payments for invoices and grants. These funds are sent via the State Treasurer s Office of North Carolina and require that the instructions provided are adhered to closely in order to receive the funds promptly. The Cashier Supervisor is available to assist in preparing documentation to send to vendors required for electronic payment. Tuition payments must include the student name and ID number on the electronic advice. All other payments must include the specific use of the funds or a contact person at UNCW who is aware of the incoming electronic payment. When the electronic funds are received at UNCW, the Cashier Supervisor will contact the appropriate department requesting a deposit transmittal to complete receipt processing. b. International Accounts 1) Departments expecting international payments must contact the Cashier s Office for specific processing instructions regarding EFT, ACH and wire deposits. 2) International payments made to a student account are processed using Travelex s bank to bank transfer program. 5. Required Frequency of Deposits a. Departments are required to deposit funds received from any source with the Cashier's Office at least once per week. b. Deposits must be made daily for: 1) all credit card deposits regardless of amount 2) departmental funds received that total over $ per day Departmental Funds Receipting Page 6 of 9

7 6. Verification of Deposit The department remains responsible for all funds to be deposited until the deposited receipts are counted and verified by the Cashier's Office. Once the deposit has been verified, an official numbered receipt is sent via to the department. If a discrepancy is found when the cash receipts are counted, the Cashier's Office will notify the department immediately by telephone. H. Safeguarding of Un-deposited Funds The department head is responsible for the safekeeping of all un-deposited receipts held by the department or activity and must ensure that such items are placed in a locked safe or other adequately secured container at all times when the items are unattended. I. Loss or Theft of Un-deposited Funds 1. Failure to adhere to the provisions of this policy in the event of a loss or theft of funds and other valuables could result in the department having to cover the loss from department funds. Such losses may not be charged to state or federal funds. 2. All losses or thefts must be reported immediately to both the University Police Department and the Controller J. Improper Use of Receipting Funds Privilege Receipting funds may never be used for any of the following: 1. Personal transactions, including but not limited to, loans or "borrowing" (via IOU's) and cashing of personal checks) 2. Making change 3. Petty cash K. Subject to Audit All departmental receipting and cash handling are subject to audit. III. Glossary Terms A. ACH (Automated Clearing House) - Electronic funds transfer system governed by the NACHA OPERATING RULES which provide for the interbank clearing of electronic payments for participating depository financial institutions. The Federal Reserve and Electronic Payments Network act as ACH Operators, central clearing facilities through which financial institutions transmit or receive ACH entries Departmental Funds Receipting Page 7 of 9

8 B. Cash Cash receipts include currency, coin, checks, money orders, credit/debit cards, and electronic funds transfers. C. Chargeback The procedure by which a Sales Draft or other indicia of a card transaction (or disputed portion) is returned to the Bank. D. Convenience Fee - A fee that is added to on-line or credit card payments. E. Credit Card Number A unique number used in a financial transaction that identifies a particular credit card account (customer). F. Deposit Transmittal Form which accompanies the physical transfer of all university funds to the Cashier s Office for processing of the bank deposit and posting to the general ledger. G. Discount rate An amount charged a merchant for processing its qualifying daily Credit Card transactions. H. E-Commerce The buying and selling of products or services over electronic systems such as the Internet and other computer networks. I. EFT (Electronic Funds Transfer) - Any transfer of funds that is initiated by electronic means, such as an electronic terminal, telephone, computer, ATM or magnetic tape. J. Encryption - Process of transforming data into a type that prevents casual observers from deciphering. K. MSA Master Services Agreement L. Merchant Account - A special account number that numerically identifies each merchant, outlet, or line of business to the Processor for accounting and billing purposes. M. Merchant Identification Number - Unique merchant identification number that is used in conjunction with all transactions by the approved merchant. N. Payment Card Industry (PCI) Data Security Standards (PCIDDS) The compliance requirements that have been established by the leading card associations with the objective of improving the safekeeping of cardholder information and the prevention of system breaches. O. Payment Gateway An e-commerce application service provider that authorizes payment transactions. P. POS ( Point of Sale) terminal or machine - A device placed in a merchant location which is connected to the Processor s system via telephone lines and is Departmental Funds Receipting Page 8 of 9

9 designed to authorize, record and settle data by electronic means for all sales transactions with Processor. Q. Transaction Fee Service costs charged to a merchant on a per transaction basis Departmental Funds Receipting Page 9 of 9