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Administrative Procedure 8.701 Administrative Procedure 8.701



Title

Receipting and Depositing of Funds Received by the University

Header

Administrative Procedure Chapter 8, Business and Finance
Administrative Procedure AP 8.701, Receipting and Depositing of Funds Received by the University
Effective Date:  March 2016
Prior Dates Amended:  January 2005, May 2006    
Responsible Office: Office of the Vice President for Budget and Finance/Chief Financial Officer
Governing Board and/or Executive Policy: EP 8.201, Cash Management And Short-Term Investment of Operating Funds
Review Date:  August 2018

I. Purpose

To provide uniform procedures to effectively and efficiently manage the receipting, recording, depositing and safeguarding of funds received by the University in accordance with Federal and State laws and University policies.

II. Definitions

A. Bank deposit slip – A pre-numbered form used to deposit money to the University of Hawai‘i checking account.

B. Campus business office – The central business office on each campus.  On the Mānoa Campus, it is the University of Hawai‘i Cashier’s Office (UHCO).

C. Electronic Funds Transfer (EFT) – Transfer of funds by electronic means directly to UHGA.  The remitter initiates the transfer.  The amount is based on a drawdown request, letter of credit, previously established agreement, or an invoice.

D. Foreign cashier’s check – A cashier’s check drawn on a foreign bank and payable in U.S. dollars.  These checks shall be sent to the bank’s international banking division for exchange and collection.

E. Foreign personal check – Any personal check not drawn on a U.S. bank which does not have a U.S. bank’s routing and account numbers printed on it, even if the check is payable in U.S. dollars.

F. Receipt – A written or mechanically generated acknowledgement that a sum of money has been received.  Each receipt shall be pre-numbered and in duplicate.

G. Revenues – All monies received by the University.

H. University of Hawai‘i General Account (UHGA) – The University’s checking account where all revenues, regardless of the source of funds are deposited unless otherwise authorized by the Vice President for Budget and Finance/Chief Financial Officer.

III. Administrative Procedure

A. Applicability

This procedure applies to all personnel of University departments who handle the receipting of monies.  Campuses and departments shall prepare deposit forms and transmit collections daily to the campus business office or deposit directly to the bank when authorized.

B. General

    1. Internal control requires that someone other than the person executing the collection and cashiering function perform the depositing and reconciling function.

    2. A pre-numbered receipt shall be issued for all cash payments.

    3. Deposits may be sent to the campus business office or deposited directly to the bank.  Deposits made directly to the bank are generally necessary when the department is not on the main campus.  In all cases, advance written authority to make deposits directly to the bank shall be obtained from the Treasury Office.

    4. Cash or checks that are received by any University campus or department shall be deposited daily and recorded in the financial system.  Only the Treasury Office may make exceptions to this time limit.  Cash and checks, that are awaiting deposit shall be safeguarded and kept in a locked safe, a locked drawer, or a closed cash register drawer.

    5. All checks and legal tender (e.g., money orders, bank drafts, cashier’s checks, traveler’s checks) shall be made payable to the “University of Hawai‘i,” or applicable UH campus, e.g., “Kauai Community College,” and not to any of its departments or offices.

    6. Endorse all checks immediately upon receipt, utilizing the standard University of Hawai‘i Check Endorsement Stamp.

Pay to the Order of
University of Hawaii FO ###
0001-055569
For Deposit Only

    7. The University shall protect itself against possible loss by bad debt.  The following information shall be included on all checks:

        a. Individual’s name

        b. University ID number/Driver’s License Number

        c. Local Address and telephone number

If check payment for goods and services is made in person, require some form of photographic identification, such as a University of Hawai‘i ID or a driver’s license.  Initial the face of the check to show compliance with all requirements for information and identification.

    8. When it cannot be immediately determined as to which account monies should be credited, deposits should be made promptly to the campus suspense account pending a final determination.  The transfer to the appropriate account should be made as soon as possible upon final determination.

    9. Restrictions

        a. University revenues shall not be commingled with personal or private funds.

        b. Monies collected on behalf of the State shall be deposited to their respective accounts unless some other account is specified by the Vice President for Budget & Finance/Chief Financial Officer.

        c. Reimbursement of expenditures (REX) shall be deposited to the original account using the same object code.  Reimbursement of expenditures to general funds shall be recorded in the same fiscal year that funds were spent.  REX received after the published fiscal yearend deadline shall be deposited to the State general fund sub-fund group code AG000, object code 082X.

        d. Foreign Receipts

            (1) The University shall not transact business with certain foreign countries.  The Office of Foreign Assets Control (OFAC) under the U.S. Department of Treasury, publishes a list of foreign countries, government entities, companies, and individuals that are prohibited from doing business with the U.S.  The link to this website is:  http://www.treasury.gov/resource-center/sanctions/Pages/default.aspx.

            (2) The University does not accept foreign personal checks.

    10.    Procedures for Depositing Cash/Check Collections

        a. Count and take total of all cash/checks received daily.

        b. Prepare bank deposit slip.

        c. Place monies collected and the bank deposit slip in a sealed bank deposit bag.  Availability and usage of the disposable bank bags shall be coordinated with the Treasury Office.

        d. Departments located on the main campus shall forward the sealed bank deposit bag to the campus business office.

        e. Departments not located on the main campus authorized to deposit directly to the bank shall transmit the sealed bank deposit bag to the bank.

        f. Post an advance deposit (AD) or cash control (CTRL) for accounts receivable in the financial system.  Attach bank deposit slip and supporting documentation.

    11. Procedures for Depositing a Foreign Cashier’s Check

        a. Place the foreign cashier’s check and a note to credit your campus/ department in a separate disposable money bag and send it to the bank via armored car.  The bank will note the appropriate campus/department in the credit memo description.  Do not commingle a foreign check deposit with your regular deposit.

        b. The bank will convert the foreign check at the current exchange rate, deposit the net amount, and issue a credit memo.

        c. When the credit memo is received, the Treasury Office will fax or email the credit memo to the department.  The department shall post an advance deposit (AD) or cash control (CTRL) for accounts receivable, in the financial system.  Attach the credit memo to the AD or CTRL.

        d. The University incurs a processing fee on each foreign item collected.  The University’s bank charges a minimum of $20.00 processing fee.  The remitter’s bank also charges a fee. The amount collected depends on the number of corresponding banks that the check needs to be processed through before reaching its final destination.  Therefore, it is recommended that departments not accept foreign cashier checks that are less than $100.00 if the processing fees will exceed the amount of payment.  Alternatively, the payer can remit payment by wire transfer or credit card, if the University department is a merchant.

    12. Procedures for Depositing Credit Card Collections
        
        a. All credit card terminals shall be settled daily to receive credit for transactions processed.

        b. Post a credit card receipt (CCR) in the financial system.  Attach a copy of the batch settlement report to the CCR.

        c. Prepare a separate University of Hawai‘i CCR each day for each merchant number.

        d. Retain daily batch settlement report and reconcile to the monthly merchant statement to ensure that the merchant was properly credited.

    13. Procedures for Receipting Electronic Fund Transfers

All incoming EFT from external agencies, companies, and organizations should include an invoice number and department name to facilitate identification of electronic fund transfers (EFT).

If the receiving department cannot be identified within ten (10) working days, the funds may be returned to the remitter.

        a. When the EFT is credited to UHGA, the Treasury Office will fax or email the remittance advice to the receiving department.  The remittance advice is the source for recording the deposit in the financial system.

        b. Post an advance deposit (AD) or cash control (CTRL) for accounts receivable, in the financial system.  Attach the remittance advice to the AD or CTRL.

    14. Procedures for Reconciling Deposits

        a. Reconcile deposits monthly with the Report FBSP090D (Income and Expense) and disposable bag receipt, credit card batch settlement report or EFT remittance advice.

        b. Correct discrepancies uncovered during the reconciliation by processing a General Error Correction (GEC).

    15. Procedures for Transmittal of Collections

        a. Collections by departments should be transmitted in sealed bank deposit bags via campus security guard for amounts greater than $1,000.  If the deposit consists of checks only, and the total is greater than $1,000, transmittal via campus security guard is left to the discretion of the department.

        b. The "Transmittal Receipt" form should be prepared in triplicate and used when transmitting sealed bank deposit bags to the campus business office via campus security guard.

    16. Procedures for Handling Counterfeit Currency

        a. All university employees authorized to handle cash are responsible for screening cash transactions for counterfeit currency. 

            (1) If a questionable bill is received, the department shall retain possession of the bill and contact campus security immediately.  Delay the customer if possible but if the customer decides to leave, do not try to stop him.  Do not return the bill to the customer.  Limit handling of the bill.  However, if the customer becomes aggressive and demands the bill back, give it back.  Maintaining personal safety is more important.

            (2) Place the currency in an envelope and notify the U.S. Secret Service immediately at 808-541-1912.  Complete the U.S. Secret Service Counterfeit Note Report before surrendering the counterfeit bill to them.  The counterfeit note report can be downloaded from: www.secretservice.gov/know_your_money.shtml.

        b. It is recommended that at least all $50’s and $100’s, and other denominations at random, be verified with a security pen by the cashier at the time it is received.

        c. Currency identified as counterfeit by the bank will be confiscated by the bank and the deposit reduced.  The department shall make an offsetting deposit with funds from the change fund.  The department shall process a Disbursement Voucher (DV) to replenish the change fund.  Detailed instructions and forms for reporting a change fund shortage can be found in A8.750, Establishment and Maintenance of Change Funds.

    17. Procedures for Depositing Receipts After Normal Business Hours

        a. Mānoa Campus

            (1) One week prior to the event, contact the Cashier’s Office to make arrangements to use the night depository.

            (2) At the end of the event, count and reconcile receipts, place cash receipts and bank deposit slip in the moneybag.

            (3) Contact Public Safety Office for escort to the night depository.

            (4) On the next business day, post the AD in the financial system.

            (5) Cashier’s Office will forward the moneybag to the bank via armored car.

        b. Other Campuses

            (1) Two weeks prior to the event, establish a night depository agreement with the nearest bank branch.  Contact Treasury Office for assistance.

            (2) At the end of the event, count and reconcile receipts, place cash receipts and bank deposit slip in the money bag.

            (3) Deposit money bag in night depository.

            (4) On the next business day, post the AD in the financial system.

IV. Delegation of Authority

There is no administrative specific delegation of authority.

V. Contact Information


VI. References

A. Link to superseded Executive Policies in old format https://www.hawaii.edu/policy/archives/ep/

B. Link to Administrative Procedures in old format https://www.hawaii.edu/policy/archives/apm/sysap.php

VII. Exhibits and Appendices

None

Approved

    Signed    
    Kalbert Young    
    February 29, 2016    
    Date    
    Vice President for Budget and Finance/Chief Financial Officer

Topics

receipt; deposit; electronic funds transfer

Attachments

None