8.10, Cash Receiving

8.10 Cash Receiving

last updated: 10/13/2008

Purpose: To provide policies and procedures for receiving and depositing monies on behalf of the University of Arizona.

Policy Owner: FSO - Bursar's Office

Reporting Misuses and Abuses: Mark Barton, Bursar

Policy| Collecting Receipts | Cashiering Functions
Direct bank deposits for off campus University departments | Drop Bag Depository
Foreign Checks | Value Added Inventory | Bank Card (Credit Card) Receipts | Jury Duty
Capital Equipment Refunds/Rebates | Invoicing Arizona State Agencies
Distribution of Deposit Form (DDF)| Distribution of Deposit Form Instructions
Autoposting Distribution Procedures

Policy

Request exceptions to this policy in writing and forward to the Financial Services Office for approval.
Responsibility for the collection of monies in connection with University activities is delegated to the Associate Vice President for Financial Services, who, in turn, delegates this responsibility to the University Bursar. The Bursar should be contacted regarding any deviations from policies and procedures stated herein. All funds received from any source, for any University activity, must be deposited with the University Bursar. "University activities" include, but are not limited to:
1. Revenue producing activities using University of Arizona facilities or personnel acting on behalf of the University.
2. Research or research related activities, both government and private, including:
  1. Grants, contracts, and/or drug studies.
  2. Fixed price contracts and/or indirect cost recovery funds.
3. Restricted and unrestricted gifts.
4. Income from investments.
Departments that are authorized to perform cashiering functions and require a change fund must have approval from the department head and their FSO Fund Accountant. To establish a change fund, a check request and promissory note must be completed. The custodian's signature indicates intent to comply with the policies and procedures set forth in this section. Change fund promissory notes expire June 30 each year and must be renewed by the custodian of the fund if the activity is to continue. When the change fund is approved, Accounts Payable will issue a check to the custodian. Departments who have been approved to order cash will deposit the check into their FRS account and order the necessary denominations.
The University Associate Vice President for Financial Services is authorized by the Arizona Board of Regents to conduct business with approved banks and to provide authorization for the opening and closing of all bank accounts.
Any University employee who is performing any part of a cashiering function is required to attend a Cash Handling and Receiving training session. Employees can register for the training session through ISW by clicking on the Training Icon. Sessions are offered once a month (except during Fall and Spring Opening of School). Special arrangements can be made for large groups within a department by contacting the Banking Coordinator.
Money losses resulting from fraudulent or dishonest acts committed by a University employee are covered under a Board of Regents blanket bond. However, responsibility for such acts rests with the department head who will be looked to with regard to the proper following of the herein set procedures. Criminal charges may be filed depending on the severity of the offense.
Each department is required to maintain supporting documentation when operating a change fund. Forms required include: Over and Short Ledger; Cash register tapes; Daily Balance Sheets; Monthly Verification of Cashier's Money (surprise cash count); and a Direct Deposit Log, with a validated University cash receipt copy attached. Contact the Bursar's Office for information.
Establishing a Direct Deposit Department
Definition of a Direct Deposit Department: A department that has been assigned a unique outlet/location number. It has daily or every other day deposits which are
1. picked up by a UAPD Police Aide
2. drops their secured deposit bag in the Bursar Night Deposit Vault
3. brings their secured deposit bag in to the Bursar Office
4. goes directly to our partnering bank branch
To be established as a Direct Deposit Department, the department must contact the Bursar’s Office Account Administrator. A Department Deposit Outlet/Location form will be sent to the department to complete and return. On this form the department will identify a specific deposit account where funds should be deposited. The Bursar’s Office will order deposit slips and endorsement stamps with the assigned outlet/location number.
Departments that have been identified as a Direct Deposit Department will be set up to have deposits directly auto-posted to the account identified on the Deposit Outlet/Location form. The department is provided an Excel spreadsheet template that will be completed when funds are to be moved from the identified account. When the spreadsheet has been completed, it is emailed to FSOoperatingfundsteam@fso.arizona.edu and a journal entry will be prepared.
The department will follow the Collecting Receipts and Cashiering Functions section of this Policy to process a deposit.
Collecting Receipts
All departments collecting receipts must follow the procedures outlined in this section. Departments authorized to perform a cashiering function must also follow the procedures outlined in Cashiering Functions.
All checks received for deposit must be made payable to The University of Arizona. University departments and individuals should advise their grantors/donors/
contractors to make all checks payable to the University of Arizona, identifying the appropriate unit. Checks should NOT be made payable to or identify individuals. For example: The University of Arizona, Physiology Department, or The University of Arizona, Grant # XXX, the Mailing Address is Bursar's Office, PO Box 3520, Tucson AZ 85722-3520.
All checks made payable to The University of Arizona, or its administrative subdivisions (for example, College of Medicine, Faculty of Fine Arts, University Animal Care, Department of Accounting, University of Arizona Press), must be deposited into a University account, unless it is clearly the intent of the payer as supported by relevant documentation that another organization is appropriate. In that instance, the Bursar or designee will endorse such checks to the appropriate organization. Once checks have been deposited into University accounts, funds will not be transferred from the University unless there is clear evidence of error. If a transfer is necessary, prepare a memo signed by the Department Head and attach documents supporting the transfer.
Banks and University cashiers cannot cash checks made payable to The University of Arizona.
Upon receipt of funds:
1. Verify the cash or checks.
2. Endorse checks with a restrictive endorsement.
3. Provide the payer with evidence (such as a receipt or event ticket) that the funds were received.
4. Place all items immediately in a locked drawer or cash box. Negotiable items should never be left unsecured.
5. Log receipts.
6. Process and deposit the monies DAILY.
Receipt of monies should be divided between two individuals.
- One person opens the mail and records the receipts in a log. When currency and/or coin is received in US mail, a second staff member should be asked immediately to verify the funds received in the envelope.
- Another person prepares an Electronic Distribution of Deposit Form (eDDF) and takes the monies to the Bursar's Office. For online instructions, log into ISW - eForms V2. Direct Deposit departments will complete the Excel spreadsheet template and mail it to FSOoperatingfundsteam@fso.arizona.edu. If funds do not need to be moved to another FRS account, an Excel spreadsheet is not necessary.
Completed cash receipts and the log should be compared with the deposit records to verify the deposit of all monies received.
Locking deposit bags for securing monies are available from the Bursar's Office Supervisor. Call 621-1783 for more information. UNDER NO CIRCUMSTANCES SHOULD MONIES (cash or check) BE FORWARDED BY CAMPUS MAIL.
Payments received directly by the department or individual must be processed DAILY in one of four ways.
1. If authorized, make a direct deposit via a secured tamper free deposit bag directly into the University's depository account.
  - On campus with UAPD Police Aide assistance in delivery to the bank. (Deposits must be ready prior to scheduled pick-up time)
  - On campus using the Deposit Vault at the University Services Building (NE corner of Bursar's Office entrance on the first floor.)
  - Off campus going directly to a branch of the bank that the University does business with.
1. Via lock box processing services offered by the bank. Contact the Program Coordinator for Banking Services / Bursar Representatives for details.
2. If monies received are restricted or unrestricted gifts, take the monies, a completed Gift Report, a screen print of the eDDF, and supporting documentation to the University Gift Office. NOTE: If the Gift is greater than $1,000, complete an online Gift Report/DDF per 8.33, University Development Fund Policy and Procedure.
3. A departmental representative can bring all other payments, such as, sponsored grants and contracts, drug studies, income from investments, consulting or contracted services performed by departments or individuals on behalf of the University to the Bursar's Office. These payments must be accompanied with the eDDF number included on the adding machine tape brought to the Bursar's Office. A validated receipt with the eDDF number in the reference field will be returned to the department.
  NOTE: If cash exceeds $500.00, the department will request a Police Aide from the University Police Department to escort the departmental representative to a Bursar's Office teller.
Payments received by the Bursar's Office are deposited daily.
1. Checks received from departments or individuals, including the Gift Office, with a properly completed eDDF, will be credited to the appropriate University FRS account.
2. Checks received via the US Postal Service will be credited either to the appropriate University FRS account or if an FRS account cannot be determined to an undistributed receipts clearing account. (Sponsored grants or contracts will be referred to Sponsored Projects Services.)
  1. When the FRS account is known: Depending on the volume of payments received and the departments preference, the Bursar's Office will either:
    - Total the checks for each account number and object code, enter the amount as one line item on the eDDF for data entry into FRS and send the department the validated cash receipt and a copy of the eDDF; or,
    - List each payment separately on the eDDF and send the validated cash receipt and a copy of the eDDF to the department.
  2. When the FRS account is not known: The Bursar's Office sends a copy of the check, the supporting paperwork and a journal entry form preprinted with the Bursar's Office clearing account number to the referenced department or individual. The department completes the journal entry with the appropriate account number and object code and returns to the Bursar's Office. The Bursar's Office processes the journal entry transferring the monies from the Bursar's clearing account to the department's FRS account.
The department head should review the overall financial status of the department to ensure that no significant errors are occurring. The responsible person for the account should, at a minimum, review the subsidiary ledger FRS reports FBM090 and FBM091, to ensure that expected revenues are being deposited and expenses are reasonable.
Cashiering Functions
Obtain authorization for all cashiering functions from the Bursar's Office. Never establish a change fund by withholding receipts from deposits to University accounts. Refer to paragraphs #3-6 to establish a change fund.
The cashiering function should maintain a separation of duties. This specific separation of duties may be difficult for some units because of a limited number of employees. This problem should be brought to the attention of the Coordinator for Banking Services/Bursar Representatives who may recommend an alternate procedure to maximize security and control. Separation of duties should include:
1. Designating an individual to receive payments, whether by cash, checks or credit cards. This individual should be someone other than the cashier and is responsible for opening the mail and recording receipts in a log before presenting the monies to the cashier. When currency and/or coin is received in US mail, a second staff member should be asked immediately to verify the funds received in the envelope. The mail receipts log should be compared with the cashier's records to verify the deposit of all monies received.
2. Separating the cashiering function from the accounts receivable function.
3. Separating the cashiering function from the cash disbursement function.
4. Periodically rotating the duties of employees connected with the cash receipts function.
To ensure the safekeeping of undeposited monies:
1. Maintain all monies (cash, check and credit card receipts) received in a secured lock drawer or locked cash box, housed in an area not accessible to anyone other than the responsible employee.
2. Lock all drawer and cash boxes during the cashier's absence.
3. Restrict safe combinations and keys to drawers or cash boxes to a minimum number of employees.
4. Control combinations and duplicate keys by two individuals other than the person holding the keys or combinations. This procedure is referred to as a dual control system.
5. Change safe combinations and locks periodically and when indicated by employee turnover.
6. Count all monies and balance to receipts DAILY.
7. The custodian of the fund should conduct a surprise count of cash on hand monthly.
Whenever practical, use cash registers. Cash register controls should consider the following:
1. Locked in totals.
2. Visible amount of sale.
3. Bell signaling sale and opening of drawer.
4. Receipt given to payer.
5. Over and under ring voucher signed by payer and supervisor.
6. Voided receipts returned for audit purposes.
Direct bank deposits for off-campus University departments
The Assistant Vice President for Financial Services may approve a department's request to make direct bank deposits if:
1. The department is trained and capable of performing the functions required for direct deposit.
2. Facilities in the department provide adequate and maximum security.
After receiving authorization to make direct bank deposits, the department works with the Bursar's Office to set up the operation. A direct bank deposits avoids duplication of work, offers a more timely depositing of funds, and better control over departmental deposits. Reports of deposit are received directly from the bank and verified by a duplicate yellow deposit slip or other evidence of deposit by the Bursar's Office. Follow Autoposting Distribution Procedures to distribute deposited funds.
Depository Vault
The Bursar's Office offers a depository vault service to University departments on and off campus. The depository vault, located at the Bursar's Office at the University Services Building (northeast corner), provides a 24-hour drop service and is housed in a fireproof vault with built-in alarm devices and is opened under dual control. Two designated employees open the vault and log the deposit bags. This process is performed daily at approximately 2:15 pm to enable the department to deposit these funds into the bank on the same day the bag is dropped. Deposits dropped after 2:00 pm, are sent to the bank on the following day. University departments are urged to use this service to make daily deposits.
Foreign Checks
University departments accepting checks drawn on a foreign bank in US dollars must process these items on a separate Electronic Distribution of Deposit Form (eDDF). These items may require special handling by the University teller and the bank. If a check is drawn on a foreign bank in US dollars, excluding Canada, the bank will assess collection fees that will be charged to the department. Items under the equivalent of US$250.00 should not be accepted for collections since the bank will not accept it for processing. Please call the Bursar's Office Representative Area at 621-1783 for information.
Departments can avoid collection fees by requiring that checks be drawn against a US correspondent bank.
Processing Procedures
Rates of Exchange:
1. You may obtain exchange rates from Wells Fargo by methods which vary depending upon the foreign currency and amount of the Foreign Item for which such rates are required. On a daily basis Wells Fargo will prepare and distribute (fax) to the Bursar a 'Rate Sheet' for Foreign Items under the equivalent of US$15,000. Please call the Bursar's Office at 621-1783 for the daily foreign rate change under US $15,000.
2. Wells Fargo will post immediate credit to your account for Foreign Items presented to Wells Fargo which are drawn on banks in the countries listed in Attachment I and in the currencies listed in Attachment I. Foreign Items drawn on banks in countries or in currencies not listed in Attachment I may be handled by Wells Fargo on a collection basis.
3. Exchange Rates for Foreign Items that equal or exceed the equivalent of US$15,000 and that are drawn on banks in the countries listed in Attachment I and in currencies listed in Attachment I should be obtained by telephoning Wells Fargo in Phoenix at 1-800-711-9050.
Processing Foreign Items given immediate credit:
Items lost in transit : Should a Foreign Item be lost in transit between Wells Fargo and the foreign clearing bank, Wells Fargo will send you a photocopy of the item which may be used to obtain a replacement Foreign Item from the foreign drawer. Many foreign banks are not required to pay on photocopies. If a replacement Foreign Item is not paid by a foreign clearing bank, the amount of the item will be charged back to you. Since Wells Fargo may not receive prompt payment from foreign clearing banks because of delays in foreign mail service and/or lack of prompt replies by such banks, charge backs for lost Foreign Items which are replaced will only be made sixty (60) calendar days after a reasonable time has elapsed for the replacement Foreign Item to clear. You will have the ultimate responsibility for obtaining reimbursement for all returned and unpaid Foreign Items.
Returned Foreign Items: All Foreign Items will be accepted by Wells Fargo for deposit subject to final payment. All returned items will be charged back to the account in which they were deposited at Wells Fargo's current selling rate of exchange at the time of return. Usually this results in the amount deposited with respect to a returned Foreign Item being different than the amount charged back for such returned item, which difference may be substantial if the deposited item is for a large amount and there is a large fluctuation in the exchange rate, and will require that you make the appropriate adjustment with your customer. There is no reclamation period for returned Foreign Items.
Foreign Items sent for collection:
1. Foreign Items drawn on banks in countries not listed on Attachment I and checks in currencies not listed on Attachment I will be accepted by Wells Fargo only on a collection basis. These items are not available for immediate credit.
2. Wells Fargo will follow normal banking procedures for banks of its size in similar circumstances with respect to handling and tracing Foreign Items sent for collection or clearing. Wells Fargo will send out special tracers by wire or telephone with respect to Foreign Items at your request and your expense.
3. Wells Fargo will not request payment advice by wire from a foreign clearing bank unless your collection letter requires such payment advice and you agree to pay Wells Fargo's expenses in connection with such request.
4. When Wells Fargo receives payment for a Foreign Item from a foreign clearing or collecting bank, Wells Fargo will deposit the amount of such payment into your account at Wells Fargo after first deducting from such payment the amount of any charges of Wells Fargo and the foreign clearing or collecting bank. Wells Fargo will notify you of such deposit in writing by U.S. Mail, unless you and Wells Fargo have agreed to other notice arrangements..
Misdirected Foreign items and foreign items with incorrect amounts: Foreign Items received for immediate credit, but which are not drawn on banks in the countries listed on Attachment I or are not in a currency listed on Attachment I will be returned to you. Foreign Items whose amount has not been correctly determined by you may have their amounts adjusted and your account credited or debited for the difference between the two amounts, or at Wells Fargo's discretion returned to you. Once you have corrected the amounts of these items, the items can be sent back to Wells Fargo for clearing. Wells Fargo reserves the right to return unprocessed any Foreign Items that are not eligible for clearing.
Value-Added Inventory
The department is responsible for the control of value added inventory, for example, tickets, UA CatCards, and photocopy cards. Since the inventory location may be decentralized, adhering to the following guidelines for controlling all inventories is the department's responsibility.
Written procedures must be developed for the control of inventory at each location, and must be approved by the Coordinator for Banking Services/Bursar Representatives. These procedures must include the following:
1. Sales are deposited daily.
2. A control log is maintained and validated against University cash receipts by the person in charge of the inventory.
3. Cash deposits are matched against deposits shown on the FRS Report of Transactions (FBM091 - SL).
4. Reports are prepared as necessary, for example, immediately after each event in the case of ticket stock. The information in these reports must be sufficient to determine the inventory converted to value and must include at least the following information:
  1. Total items available.
  2. Numbers of items sold by individual price.
  3. Number of complimentary tickets issued and signed for (ticket stock).
  4. Number of unsold items.
5. Ticket Stock also requires that a list of individuals authorized to receive complimentary season tickets is prepared and approved by the unit director. The director or designee approves individuals authorized to receive complimentary single event tickets. Employees in the ticket sales functions may not be authorized to approve single event complimentary tickets. Individuals receiving complimentary tickets must sign for them.
Bank Card (Credit Card) Receipts
Point of Sale (POS) machines, Dial Pay Merchants, and E-Commerce systems will be settled daily. Funds are received electronically and deposited directly into the University MasterCard/Visa account on behalf of the department. All revenue (credit) and refund (debit) transactions will be auto-booked to the departmental FRS account based on the merchant number. In order to transfer funds to another FRS account, the department completes an Excel Spreadsheet referred to in the Autoposting Distribution Procedures. Departments should reconcile their FRS accounts monthly to verify that receipts, refunds and transfers have been posted correctly.
Bank Card (Credit Card) Security - To insure all receipts are maintained and properly secured per Payment Card Industry standards, refer to FRS Policy 8.14 - Merchant (Bank Card/Credit Card) Acceptance Policy and Procedures.

Jury Duty
Deposit all Jury Duty payments at the Bursar's Office. Prepare an Electronic Distribution of Deposit Form (eDDF).
Jury duty payments are classified into two groups: payment for service and jury mileage reimbursement.
1. Payment of services only: The employee endorses the check over to the University. Bring the check to the Bursar's Office with the eDDF number.
2. Payment of services and jury duty mileage reimbursement: The employee writes a personal check to the University for the amount received for payment of services. Attach the employee's personal check, a copy of the jury duty check, including the stub with the eDDF number listed on the copy of the Jury Duty check. Bring the check and copy of the Jury Duty check to the Bursar's Office. (The employee is entitled to the Jury Duty mileage.)
The account you will use depends on the account from where the employee is paid. If the employee is paid from:
1. State, Sponsored or indirect cost accounts for departments not part of AHSC: Deposit into account 100010-0830, even if the employee is only PARTIALLY paid from one of these accounts.
2. State, sponsored or indirect accounts for AHSC departments: Deposit into account 140000-0830.
3. All other accounts: Deposit into the account where the largest portion of the employee's salary is charged; use object code 0830.
Capital Equipment Refunds/Rebates
When depositing monies to capital object codes (7xxx), include the equipment's Purchase Order or A-Tag number on the Distribution of Deposit Form. This information is required to ensure that the equipment is recorded correctly in the Fixed Assets (FFX) system.
Invoicing Arizona State Agencies
In order to reduce the number of Arizona Department of Administration vendor numbers/mail codes and to identify and expedite deposit of payments received from the State, Arizona State agencies (for example, Department of Transportation, Department of Economic Security) will be invoiced with a standardized invoice number. An Arizona State agency will not issue a warrant to the University without this invoice number. When an Arizona State agency asks for an invoice number, the department will provide a 14-digit invoice number with the following information in the following order:

The Arizona State agencies will mail warrants as follows:

Warrants made out to	Mail to
The University of Arizona	Mail Code 230 - Bursar's Office University Services Bldg. PO Box 3520 Tucson, Arizona 85722-3520
Medical Student Loans Board	Mail Code 855-College of Medicine Student Affairs 1501 N. Campbell Ave. AHSC Rm 2212, University of Arizona Tucson, Arizona 85724
University Physicians, Inc., University Medical Center and U of A Foundation	As directed by these organization

Warrants received by the Bursar's Office will be deposited into the account number and object code indicated by the invoice number. All supporting documents will be forwarded to the department.

Electronic Distribution of Deposit Form (eDDF) Instructions

Account and Control/Code: Record the six-digit FRS account and the four-digit subcode to which the deposit should be distributed. If the deposit is being made to a general ledger account (an account starting with zero), use an account control. If the deposit is being made to a subsidiary ledger account, a detail level object code must be used. If the receipt represents a reduction of an expense, contact your fund accountant for assistance in determining the appropriate subcode.
Amount: Record the dollar amount to be distributed to each account and subcode.
Description: Record an appropriate description (maximum twenty alpha-numeric characters).
Reference 2 (optional)
Cash/Checks: Record the amounts included in this deposit received from each of the sources indicated (cash, checks, direct deposit). The amounts from each source will automatically total. This total should equal the total deposit.
Comments (optional): Use this field to write any additional information.

AUTOPOSTING DISTRIBUTION PROCEDURES:

Funds are deposited to the account identified on the Department Deposit Outlet/Location form filed with the Bursar's Office. Funds that must be moved to another account will follow the steps below.

1. Create an Excel file using the format as indicated below (template provided).

A Microsoft Excel file should be forwarded to FSOoperatingfundsteam@fso.arizona.edu for uploading into FRS. All cells in the Excel file must be in the following format:

Column	Contents	Size & Formatting
A	Debit Account	Text, 6 characters, numbers only
B	Debit Object Code	Text, 4 characters, numbers only
C	Reference 1	Text, 7 characters, letters and numbers
D	Description	Text, 20 characters, letters and numbers
E	Amount	Numeric, 0.00 - 999999999.00
F	Reference 2	Text, 7 characters, letters and numbers
G	Credit Account	Text, 6 characters, numbers only
H	Credit Object Code	Text, 4 characters, numbers only
I	Tran Date	Text, 6 characters, format MMDDYY, numbers only

2. Once the spreadsheet is completed, email it to FSOoperatingfundsteam@fso.arizona.edu

3. UAPD Police Aide will pick up deposit bag. Record information on the Aide’s log. Keep pink deposit slip for your records.

FRS Departmental Manual ·FSO Homepage ·UAInfo ·8 Cash & Noncash Receipts

maintained by: Theresa Couch
last reviewed: 12/03/07