This page covers policies and procedures regarding Departmental Deposits.
All checks and cash received by departments must be delivered to the Bursar’s Office for processing no later than the following work day.
Departments will process their payments as follows:
- Checks must be endorsed with the endorsement stamp (see Guidelines for Departmental Cash Collections and Receipts) on the date of receipt to prevent being negotiated if lost or stolen (SAM 8034.1).
- Run an adding machine tape to get check totals and number of checks per batch.
- Summarize the deposit on the Departmental Deposit Tally Sheet.
- Deliver the batch to the Bursar’s Office. Make sure an employee from the Bursar’s Office signs the Departmental Deposit and/or places the OneStep endorsement on the sheet.
The Bursar’s Office will process departmental payments as follows:
- Check the information written on each check with the special attention to the following:
- The written amount must be the same as the numeric amount
- If there is a discrepancy, deduct the amount from the Departmental Deposit Tally Sheet total and explain the deposit discrepancy on the space provided on the back of the Departmental Deposit Tally Sheet.
- Total up checks (run twice on adding machine tape and keep tapes for end-of-day balancing) and compare with total on tape provided by the department.
- Enter transaction as a departmental deposit. Validate the department’s detail report sheet and attach a receipt.
Guidelines For Departmental Cash Collections and Receipts
Authorized staff must open mail in as timely a manner as volume allows and shall restrictively endorse all checks, warrants, money orders and other negotiable instruments.
The endorsement shall contain:
FOR DEPOSIT ONLY
Wells Fargo Bank, N.A.
Dept ID _____________
Receipted by: ____________
Please contact the Bursar's Office for the bank account information.
Coordinate with the Bursar’s Office for the standard endorsement verbiage.
Payments received in the mail MUST be logged, batched and forwarded with supporting documentation to the Bursar’s Office for processing.
Some controlled method of accounting should be used to record the receipt of payments by the department when automated cashiering or Point of Sale systems are not in use.
Individual who make a payment in person, must be issued a pre-numbered receipt and a duplicate copy of the receipt should be maintained by the department.
Cash collections during business hours should be directed, if possible, to the Bursar’s Office for receipt processing.
Internal Control Rules
Internal control rules that should be followed are:
- The designee responsible for the collection and receipt of payments is the only person who can have access to the money collected.
- The individual who authorizes departmental refunds cannot be the same individual who collects the money.
- The designee who is responsible for cashiering records and money must assure funds are properly safeguarded in a safe or vault. Department heads should aid in this process.
- If the staff is someone “other than” the designee the designee must verify the money with the cashiering totals. Signatures of both parties are required.
- Collections of checks should not be held for accumulation.
- Offices that do not have a safe or vault must lock cash in a secured file cabinet or other mechanism providing comparable safekeeping.
Transferring Funds to the Bursar’s Office Location:
Departmental deposit forms must be prepared and should include the following information whenever applicable:
- Total Amount Deposited
- Currency and coins (if applicable)
- Departmental CRS No. to be credited and the amount credited to each account
- Brief description of reason for payments, Overages/Shortages, invoice numbers or other source documents
- Name of individual making the deposit
- Indication of whether the item(s) are taxable or nontaxable sales
Sorting Currency, Checks and Credit Card Transmittal Slips – Deposits should be organized using the following method:
- Currency should be sorted by denomination
- Checks, money orders, traveler’s checks and cashiers checks should be sorted by type. An adding machine tape should be included with the total and number of items, initialed by the preparer and dated
Collection Record Agreement
The department understands and agrees to abide by the following terms:
- Student ID's will be recorded on each individual check or money order.
- Two party checks will not be accepted.
- Personal checks will not be submitted in lieu of cash payments.
- All checks will be immediately endorsed.
- Deposits will be made on a daily basis, if possible. (If for any reason a deposit cannot be made, deposit will be kept in a safe or vault.)
- Endorsement stamp and collection record will be locked in a safe location (for non automated systems).
- Designated employee must be fingerprinted.
Internal Control and Security
- Entry to the Cashiering area/station is to be restricted to known, authorized personnel.
- Safe combinations, alarm codes and office keys shall be restricted to a minimum number of employees.
- Safe combinations, alarm codes and office keys should be changed periodically (at least, once a year) and in particular when there is a change in office personnel having said access.
- A log shall be maintained of those entrusted with vault combinations and security gate keys. Indicate changes in personnel and include dates that the combinations are changed.
- Vault access is to be restricted at all times. If access is necessary by any other person other than those designated, a designated employee MUST accompany that person (i.e. Armored Courier Service, safe repair, etc).
- Test hold-up and burglar alarms annually.
- For departments with change/petty cash funds, an internal count must be performed at least, once a week by a supervisor or authorized personnel.
- Use locked or tamper-free deposit bags for courier service and/or for transmitting to the Bursar’s Office for deposit.
- Never forward money via campus mail.
- No checks are to be cashed, no IOU’s allowed under any circumstances.
- Have robbery prevention and safety procedures in place and periodically practiced.
- Immediately report to appropriate campus officials loss or suspected loss of cash or checks.
Responsibilities of a Designated Staff Performing Collections
- Count change fund before opening a batch (if applicable) or collecting receipts.
- Each transaction shall have a unique pre-numbered receipt. This information shall be stored and maintained.
- All money received shall be accompanied by supporting documentation which indicates the account(s) to be credited. These forms are to be retained for audit purposes either by the Bursar’s Office, Accounting Department or Internal/External Auditor’s Office.
- All checks, money orders, traveler’s checks, and cashier’s checks shall be immediately endorsed. The student identification number or receipt number shall be referenced on the check.
- Count all monies and balance receipts at the end of the business day, preferably when the office is not open to the public. A log must be maintained with the following information:
- Staff name and ID preparing the deposit
- Total amount of collections
- Receipt range (press-numbered)
- Official receipt issued by the Bursar’s Office (after transmitting the deposit to the Bursar’s Office)
- All cash/checks received is to be maintained in a secured cash drawer.
- Retain copies of voided receipts or reversed sale receipts.
- The cashier must lock the drawer when leaving their station for lunch and breaks.
- All deposits will be prepared and logged daily.
- Ensure that procedures are in order for transfer of accountability when collections are given to the supervisor or other authorized personnel.
- All personnel are responsible for immediately reporting any suspicious, threatening or unsafe actions to the supervisor or Office Manager.
Separation of Duties
A key element in a system of internal control is separation of duties.
Duties are to be separated to the extent possible in every area that handles cash. Appropriate controls must be in place at all times. There is to be a system of checks and balances in which different individuals perform tasks for adequate control. Cash item handling, record keeping and reconciliation will be assigned to different people, even for agencies with automated accounting processes. A second person will verify reconciliation and deposit of cash items.
When complete segregation of duties is not possible, it is the appropriate departmental director or designee's responsibility to scrutinize all documents to ensure that the amount deposited includes everything that was collected.
Additional reference can be found on the Cash Management Policy and Procedures document.