General University Reference Utility
Policy FN01 PROCESSING CASH REVENUES
Policy Steward: Office of the Corporate Controller
To assure that the University's cash revenues (coin, currency, checks,
money orders, credit cards, wires, EFTs and ACH payments, etc.) are properly accounted for, safeguarded,
deposited, and reported in a timely manner. Other forms of revenue such as interest on University deposits, and proceeds from other University
investments are beyond the scope of this policy.
All transactions resulting in cash revenue to the University from the
sale of products and materials, from the collection of a fee for a service
(including tuition), or from monetary gifts must be documented in a manner as
- The University must possess a record of the
transaction. That record must be generated by the individual
initially accepting possession of the cash revenue on behalf of the
University at the time the revenue is received. Suitable evidence of the
transaction must reflect the date and amount of the transaction, the reason for
the revenue, the form of payment (cash, check, coupon, etc.), the identity of
the area, and the employee accepting the revenue on behalf of the University.
This documentation must either be prenumbered or otherwise controlled so that
information regarding a transaction cannot be easily misplaced or modified
without possible detection.
- Cash revenue received by mail for an unidentified purpose must be
taken to the respective Financial Officer for determination of the proper
recipient. Since, in such a case, the proper recipient is unknown and,
therefore, no individual has accepted possession of the revenue on behalf of
the University at that time, no record of the transaction can be made at that
time. Once the correct recipient has been identified by the Financial Officer,
it is the responsibility of that recipient to generate the necessary
- The person (or organization) paying must receive an acknowledgment
that the cash revenue was received by the University if:
- paid in cash -OR-
- the revenue is in payment of goods or services provided by the
- the revenue is a gift -OR-
- the person paying requests that an acknowledgment of payment be
- Suitable acknowledgment must indicate:
- the date and amount of the transaction,
- the reason for the revenue,
- the form of revenue (cash, check, etc.),
- the identity of the area accepting the revenue on behalf of the
- (for transactions made in person) the identity of the person
accepting the revenue on behalf of the University.
- It is not necessary to issue an acknowledgment for:
- unearned revenue (utility commissions, grant payments, etc.)
unless other University policies or legal obligations require such,
- revenue for areas where individual transactions average under $2
each and total no more than $250 per month,
- revenue from coin-operated machines,
- revenue received by mail in response to a billing by the
- If payment is made in person, AND if the payment is in cash OR
the person paying requests that an acknowledgment of payment be issued, then
written acknowledgment must immediately be given to the person making
the payment. If payment is received by mail then the acknowledgment can be
issued at a later date.
- When payment is made by one party to the account of another, then
both parties must receive an acknowledgment of the transaction.
- For transactions where an item is purchased and that item could also
serve as the acknowledgment (e.g. athletic or entertainment tickets,
visitor/daily parking permits, etc.), no acknowledgment is necessary providing
the item indicates:
- the value of the item,
- the purpose of the item,
- the identity of the area providing the item.
- (Roll tickets sold at the door to an event are acceptable for use in
this case despite the lack of such information if the value of the ticket is $10 or less.)
Supporting documents and procedures must be used which minimize the risk
of misappropriated or misplaced cash revenue, ensure the timely deposit of
those revenues, and ensure the timely and accurate reporting of those deposits
to University budget records. Revenues must be fully traceable from the point
of transaction to their appearance in University budget records and depository
accounts. It is the responsibility of the Financial Officer of each area to
determine the adequacy of documentation and local procedures based upon the
constraints of this policy.
Refer to Financial Guideline No. 03
for additional general information. Refer to Policy FN03 and Financial Guideline No. 1 for specific
information for processing gifts of cash and grants from non-governmental
sources. Refer to FN02 for specific
information regarding charge sales. Refer to FN07 for specific information regarding credit
REPORTING CASH RECEIVED:
All cash received by any department or area of the University must be
deposited as quickly as possible with a Bursar-designated depository bank (or
with the Bursar for student account and Bursar Accounts Receivable payments),
and reported in a timely manner. For deposits directly affecting a student
account receivable, the entry to the student account via the Integrated Student
Information System (ISIS - both credit and non-credit activity) is sufficient
notification at University Park. For ISIS deposits at non-University Park
locations, a copy of the bank-validated copy of the deposit slip must be
forwarded to the Financial Reporting department within three business days
after the end of the month. In all other deposit situations, a Report of
Cash Receipts (ROCR)
must be prepared in accordance with the appropriate instructions. For additional details, see Procedure
#CR2005 "Depositing Cash Revenues."
Under no circumstance is cash revenue to be forwarded via
interoffice mail. Adequate transfer of accountability must be recorded (name,
date, and deposit amount) if the deposit is not made directly by the person
preparing the Report of Cash Receipts and/or the person making entry to
the Integrated Student Information System. Refer to procedure #CR2004 "Accountability for Transfer of Items of
Value (Except Equipment)" for the proper methods of transfer.
At University Park, cash revenue received in payment of previous charge
sales (invoiced through the Bursar's Office) must be immediately forwarded to
the Office of the Bursar so that the customer's account may be credited. No
transaction records or acknowledgment are made, nor is a Report of Cash
Receipts prepared by the initial recipient of the payment (the Bursar's Office
shall be responsible for the reporting of the revenue). Refer to
At non-University Park locations, cash revenue received in payment of
previous charge sales (invoiced through the location's Finance/Business Office)
must be immediately forwarded to that Finance/Business Office so that the
customer's account may be credited. No transaction records or acknowledgment
are made, nor is a Report of Cash Receipts prepared by the initial
recipient of the payment (the Finance/Business Office shall be responsible for
the reporting of the revenue). Refer to Policy
All cash revenue must be deposited daily when $500.00 or more has been collected, however, not less frequently than once a week regardless of the amount collected. Revenue must be deposited either (1) in person at a bank with which the University transacts business, or (2) utilizing the University’s service administered by the Corporate Controller’s Office. Revenue must be deposited at a bank before the end of the second business day that total revenues warrant a deposit. Weekly revenue should be deposited on Friday and not held over a weekend.
- At University Park, departments may make deposits by (1) taking them to the Office of the Bursar, (2) taking them to a Bursar-designated bank, or (3) utilizing the Bank Deposit Bag Tracking System.
- Bursar Deposits
The Bursar will not count bank deposits
for departments, but may temporarily hold a deposit bag for delivery directly to the designated depository. Secure deposit bags may be
purchased from General Stores for the proper depository. Deposit slips are
available from the Bursar. Responsibility for and transfer of the bags is
traced through signatures on an
Transfer Form, or an established log. The validated deposit
slip is returned to the depositing departments via U. S. mail.
- Bank Deposits
Deposits made in person to one of the Bursar-designated depositories
will be made with a deposit slip provided by the respective area's Financial
Officer. The deposit slip must identify the campus or department making the
deposit. A bank-validated copy of the deposit slip notated with the IBIS
document number of the corresponding "ROCR" (Report
of Cash Receipts) on which the deposit was reported must be retained in the
departmental files for the current fiscal year plus two years. Reference the
procedure "Depositing Cash Revenues" (#CR2005).
- Bank Deposit Bag Tracking System
Auxiliary & Business Services (ABS), in conjunction with the Corporate Controller’s Office, has established a daily courier
service to transport cash deposits. This service utilizes a deposit bag tracking system. Approved depositors are provided with a supply of prenumbered, barcoded deposit bags. This procedure is to assure that the University’s cash receipts are properly safeguarded and deposited in a timely manner. For details, refer to the procedure "Bank Deposit Bag Tracking" (#CR2007)
- At non-University Park locations, the deposit
is made with the bank deposit slip to the regular University depository account
for that location. The deposit slip must identify the campus or department
making the deposit.
- For deposits not requiring a Report of Cash Receipts
due to ISIS reporting, a bank-validated copy of the deposit slip must be
retained in the departmental files for the current fiscal year plus two years.
A copy of the bank-validated copy of the deposit slip must be forwarded to the
Financial Reporting department within three business days after the end of the
month. The clerk number, cycle date of posting, and ISIS batch number (if
applicable) must be noted on deposit slips. Reference the procedure "Depositing
Cash Revenues" (#CR2005).
- For deposits requiring an "ROCR" (Report
of Cash Receipts), a bank-validated copy of the deposit slip (notated with
the IBIS document number of the corresponding Report of Cash Receipts on
which the deposit was reported) must be retained in the departmental files for
the current fiscal year plus two years. Reference the procedure "Depositing
Cash Revenues" (#CR2005).
All checks and money orders received in payment of goods or services
must be made payable to THE PENNSYLVANIA STATE UNIVERSITY and not to the area
selling the materials or services. All checks, money orders and travelers
checks must be restrictively endorsed immediately upon receipt to further limit
the negotiability of the items.
Also, it is the department's responsibility to collect amounts due the
University whenever checks accepted by the department are returned by the bank.
Therefore, it is required that the department to which the check will be
credited identify itself on the back of the check as part of its endorsement.
Reference the procedure "Processing Returned Checks" (#CR2002).
The check endorsement must include the following:
- The verbiage "DEPOSIT ONLY - THE PENNSYLVANIA STATE UNIVERSITY," (or
"Penn State University").
- The name of the designated depository bank,
- University's General Ledger Code for the Bank,
- The University's account number with the designated depository
- The department number and fund number of the department to which the
check will be credited. This information is necessary for the processing of
returned checks. If the payment will be credited to multiple budgets, select a
single budget to which a returned check may be charged.
- The USER ID of the employee making the deposit should also be included on the back of the check.
Endorsement stamps must be obtained through your Financial Officer, and
must incorporate the 5 items listed above.
Reference the procedure "Depositing Cash Revenues" (#CR2005).
DEPOSITING CHECKS DRAWN ON FOREIGN BANKS:
Checks which are payable in foreign currency require special
consideration and may not be deposited in the same manner as checks drawn on U.
S. banks. Such checks must be converted from the foreign currency to U. S.
- At University Park, it is the responsibility of the Bursar to
have the check converted through the University's banking institutions.
- At non-University Park locations, the Financial Officer
assumes the responsibility for currency conversion.
Note that conversion costs are expensive and if the foreign check is for
less than $50 U. S. dollars, it may be better to return the check and request
payment in U. S. funds. Please see Procedure #CR2005 for full details.
Cash receipts are not to be withheld from deposits in order to create
change or petty cash funds for sales operations. If such funds are needed, they
are to be requested in accordance with University Policy FN04, and the
instructions contained in GURU.
Cash receipts are not to be intermingled with petty cash funds, nor are
they to be used for making purchases normally made from petty cash funds (see
Policy FN04). Also, cash receipts are not to
be used for making personal cash advances to employees, or for cashing
It is the responsibility of each department or non-University Park
location to make whatever provisions are necessary to properly safeguard the
cash receipts of their area.
Any amount of cash on hand that exceeds $1,000 must be maintained in an approved safe (fireproof, bolted to the floor or immovable). Amounts of $1,000 and under must be
maintained in a file safe or reinforced file cabinet with a pad lock and bar
that secures all drawers. Cash should not be retained in desk drawers or
standard file cabinets since they are easily accessed with nominal forcing or
readily available keys.
CASH OVER OR CASH SHORT:
FOR NON-ISIS DEPOSITS -
Cash over or cash short must be reported on a Report of Cash
Receipts. In addition, if the overage or shortage exceeds $20.00, the
ROCR must be approved by the budget executive or budget administrator.
See the "ROCR"
FOR ISIS DEPOSITS -
Cash over or short must be reconciled by preparing a
JVDP, Journal Voucher - Departmental (Financial) that debits 0752 (Over/Short account) and credits
the Bank for shortages -OR- debits the bank and credits 0752 for overages. If the
overage or shortage exceeds $20.00, the JVDP must
be approved by the budget executive or budget administrator.
REPORTING WIRE, EFT AND ACH PAYMENTS:
It is the responsibility of the area that receives payments by wire, EFT or ACH to assure the payment is recorded to the General Ledger (debiting the appropriate depository bank and crediting the appropriate buget/fund). Wire, EFT and ACH payments must be reported on a Report of Cash Receipts (ROCR) or through the appropriate Integrated Student Information System (ISIS) reporting channels.
For questions, additional detail, or to request changes to this policy, please contact the Office of the Corporate Controller.
Effective Date: September 28, 2015
Date Approved: August 19, 2015
Published: September 28, 2015
Most recent changes:
- September 28, 2015 - Major revisions have been made to the RECORDING TRANSACTIONS, REPORTING CASH RECEIVED, DEPOSITING CASH, CHECKS RECEIVED, CHECK ENDORSEMENT, SAFEGUARDING CASH and REPORTING WIRE, EFT AND ACH PAYMENTS sections, to reflect current operations.
Revision History (and effective dates):
- September 12, 2013 - Editorial change- addition of policy steward information, in the event that there are questions or requests for changes to the policy.
- October 14, 2011 - Policy expanded to include wires, EFTs and ACHs as University cash revenues that must be properly accounted for, safeguarded,
deposited, and reported in a timely manner. A new section entitled REPORTING WIRE, EFT AND ACH PAYMENTS has been added, defining the appropriate responsibilities in reporting such payment types.
- August 15, 2008 - Editorial changes, revising references to procedure CR2005 with the correct name; revised the "Cash Over or Cash Short" section to clarify the current process and documents for handling these situations.
- July 21, 2005 - Additional editorial changes to eliminate "General Forms Usage Guide" references, and to add the correct links for the forms referenced in the policy.
- March 30, 2004 - University Police provide expanded courier services
for deposits at University Park. Sealable plastic bank deposit bags are
required for that service.
- January 17, 2003 - Sample endorsement stamps changed due to change in
- June 3, 1997 -
- Bursar no longer double counts departmental deposits;
departmental deposits go directly to bank.
- At University Park, Police Services no longer provides an escort
to a bank or takes deposits to Bursar.
- Instructions for handling ISIS over/shorts has been changed.
- March 31, 1994 - Title of policy changed from "Cash Sales and
Receipts" to "Processing Cash Revenues". Substantial re-write that includes the
new section RECORDING TRANSACTIONS, an expanded REPORTING CASH RECEIVED, and an
increase in the threshold requirement for daily deposits from $200 to
- May 1, 1992 -
- An increase in the threshold requirement for daily deposits from
$100 to $200.
- Added retention periods for the bank-validated copy of the
deposit slip which is maintained in departments.
- Changes to the locations at which deposits are to be made.
- Created standards for endorsements stamps which now may also be
ordered from local sources in addition to the Bursar.
- January 21, 1991 -
- Policy designation changed from "CS-1 Cash and Sales" to "FN01
Cash Sales and Receipts."
- Defined what is included by the term "cash."
- Added provisions for deposits involving ISIS.
- Allows deposits to Bursar-approved banks in downtown State
College, and downtown banks at campuses.
- Introduced the Accountability Transfer Form.
- Introduced Police Services courier service for deposits.
- Added the section CHECKS ENDORSEMENTS which delineates
- Added provision for dealing with foreign currency conversion
- Added requirement for safeguarding cash on hand that exceeds
- January 23, 1987 -
- Report of Cash Receipts form replaced by IBIS form.
- Department name must appear on deposit slips as well as location
making the deposit.
- August 30, 1985 - Added provision for depositing checks drawn on
- December 14, 1984 - Editorial changes involving wording for when
monies must be deposited, and changing the "Hetzel Union Building" to
- September 21, 1984 - All checks and money orders must now be
immediately endorsed upon receipt.
- May 30, 1984 - Changes the endorsement of all checks and money orders
to limit the negotiability of those items.
- February 15, 1984 - "Radnor Graduate Center" changed to "King of
- August 17, 1982 - Added instructions for the handling of Renumbered
- June 4, 1982 - Entire policy revised.
- June 27, 1979 -
- Expanded the scope of deposits from the "sale of materials or
services" to include "the collection of fees and other receipts."
- Added the use of signatures for transferring the responsibility
for locked deposit bags by couriers.
- Specified wording of the restrictive endorsement of checks.
- March 29, 1978 - New Policy CS-1 (Cash and Sales).