Procedure CR2005 - Depositing Cash Revenues
Office of the Corporate Controller
Policy Steward facilitating procedure: Associate Vice President for Finance and Corporate Controller
Table of Contents:
- CHECK ENDORSEMENTS
- DEPOSITING OF MONIES RECEIVED
- DEPOSITING PROCEDURES
- Deposit Bags
- Deposit Ticket Control
- Cash Handling Practices
- Deposit Preparation
- Preparing the Report of Cash Receipts
- Bank Processing
- Approving the Report of Cash Receipts
- Deposits to Fund 0206
- PROCESSING REVENUES FROM CHARGE SALES
- TRANSPORTING REVENUES
- CHECKS DRAWN ON FOREIGN BANKS
- PROCESSING RETURNED CHECKS
- AUDIT COORDINATION - FINANCIAL AND PROCEDURAL
- RECORD RETENTION, DISPOSITION AND DESTRUCTION
- CONTACT INFORMATION
- CROSS REFERENCES:
Currency, coins, checks, money orders and traveler's checks (hereafter referred to as “cash receipts”) are received regularly into the University system from various sources. These receipts, in turn, must be deposited by the receiving departments to University accounts at banks approved by the Corporate Controller’s Office. Checks, money orders and traveler's checks must be restrictively endorsed when received in accordance with Policy FN01 before being deposited.
Cash receipts such as checks, money orders, and traveler's checks must be restrictively endorsed immediately upon receipt to further limit the negotiability of the items. For efficiency an endorsement stamp must be used. All endorsements must possess the standard University endorsement information, as specified in the "Check Endorsement" section of Policy FN01. 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 bank; and
- 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.
- Write the PSU USER ID of the employee making the deposit below the endorsement stamp on the back of the check.
All endorsements must be made on the reverse side of the check, within 1½ inch of the edge and on the same end of the check as the "Pay to the order of" which appears on the front side of the check.
Once properly endorsed, the checks, money orders, and traveler's checks will be deposited as discussed in "Depositing of Monies Received."
General - In accordance with University Policy FN01 and this procedure, all cash receipts that are received by any department or area of the University must:
- be deposited daily when $500.00 or more has been collected, but not less frequently than once a week regardless of the amount collected.
- 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 a Friday and not held over a weekend.
- be properly safeguarded prior to deposit.
- be reported in a timely manner.
A Report of Cash Receipts (IBIS form "ROCR ") must be prepared for all deposits, except (1) revenues received for Charge Sales involving the UP Invoice (see "Processing Revenues From Charge Sales”, below) and (2) those deposits directly affecting a student account receivable.
NOTE: For deposits directly affecting a student account receivable (both credit and noncredit activity), the entry to the student account via the Integrated Student Information System (ISIS) is sufficient notification. (Transactions entered in this manner simultaneously update the student's account and the appropriate general ledger accounts.) However, for non-University Park locations, a copy of the bank-validated copy of the deposit ticket must be forwarded to the Financial Reporting department within three business days after the end of the month. The clerk ID number, posting date, and ISIS batch number (if applicable) must be noted on deposit slips. Bank-validated copies of the deposit ticket must be retained in the departmental files for the current fiscal year plus two years.
General - Monies must be deposited with appropriate authorized depositories in accordance with Policy FN01. At University Park, there are multiple designated depository banks for local deposits. The Bursar will designate one of these banks to each department as that department's depository. Departments have 3 options for depositing funds:
- Departments may themselves take deposits directly to the designated depository.
- While they are no longer counted, deposits may still be dropped off at the Bursar’s Office, where they will be temporarily held for courier delivery directly to the designated depository.
- Departments may make the appropriate arrangements with the Corporate Controller’s Office to utilize the Controller’s courier system to have deposits picked up and taken to the designated depository (see FN01, “Depositing Cash”).
At non-University Park locations, deposits are made to the regular University depository account approved by the Corporate Controller’s Office for use at that location, or appropriate arrangements are made with the Finance/Business Office to pick up/deliver deposits.
Due to volume and the timing of events, Intercollegiate Athletics has implemented Procedure IA2005 detailing University approved depositing procedures for their respective divisions.
- For departments taking deposits directly to the bank – “Canvas” deposit bags may still be used for those areas who purchased/used them prior to 04-01-97. Pre-numbered, disposable deposit bags may be purchased from General Stores for the proper depository.
- For deposits dropped off at the Bursar’s Office - Pre-numbered, disposable deposit bags may be purchased from General Stores for the proper depository. Canvas bags may not be used. Responsibility for and transfer of deposit bags will be traced through signatures on an Accountability Transfer Form, or an established courier log. These forms are available on GURU.
- Departments utilizing the Corporate Controller’s Office Courier Service, pre-numbered disposable deposit bags will be provided as part of the service. Neither canvas bags nor General Stores disposable bags are permitted
At University Park, the Bursar will maintain a supply of deposit ticket books for University Park and forward the books to departments when requested. At non-University Park locations, a supply will be obtained from the designated local bank by the Financial Officer at that location.
Once obtained from the applicable source, Financial Officers will distribute deposit ticket books to those departments under their fiscal purview, thus maintaining the appropriate fiscal control over those departments making direct deposits.
Cash handling typically involves the following steps, in order of their occurrence:
- Receipt/collection of cash receipts.
- Reconciliation of cash receipts to their formal record of receipt.
- Deposit preparation and transporting to depository.
- ROCR preparation and submission for approval.
- ROCR approval.
In keeping with sound cash handling practices, adequate separation of duties must be observed. Ideally, steps 1-5 should be done by different individuals; however, manpower restraints may limit the extent of this separation. Nonetheless, to better insure that adequate checks and balances are implemented, handling should be set up in such a way that no TWO successive cash handling steps are done by the same individual. In extreme cases when this arrangement cannot be followed, it is the responsibility of area management and/or the Financial Officer/designee to regularly monitor the process to minimize the potential for abuse.
In preparing a deposit for the bank, the individual must prepare a deposit ticket. The deposit ticket must be completed in full, with coin, cash and a summary of checks/money orders/traveler’s checks being listed. The individual making the deposit must identify the department name and IBIS document number of the corresponding ROCR on the deposit slip, as well as the bag number of the deposit bag being used (disposable plastic bag or canvas bag, as applicable). Additionally, the deposit ticket should indicate a department name so that the deposit ticket can be returned to the area making the deposit. The bank deposit slip is to be attached to the ROCR and given to the approver.
The cash receipts and completed deposit ticket will then be placed in a deposit bag for transporting to the appropriate depository as specified in “Transporting Revenues.” More than one deposit may be included in a deposit bag, but each deposit (1) must be clearly identified (i.e., deposit ticket and related monies bound together) and (2) must have a separate ROCR.
In addition to preparing the bank deposit slip, an ROCR must also be prepared for each deposit and processed per the IBIS Online Documentation available from the Administrative Information Systems Support Center.
Once deposits are received by the designated depository, the depository will check that cash receipts agree to what is recorded on the deposit ticket. If they agree, the funds are deposited, and the deposit ticket is validated and forwarded to the appropriate department/ROCR approver.
If there is a discrepancy in the cash amount of the deposit, the depository will make the appropriate adjustment and issue a debit or credit memo, as applicable. If there is a cash discrepancy, depositories have been instructed to contact the Director of Financial Officers (or designee) to report the discrepancy. (NOTE: if the Director of Financial Officers cannot be reached, the Financial Reporting Office will serve as the back-up contact area.) The appropriate Financial Officer/designee (but not the individual who initially prepared the deposit) will then be contacted, and the discrepant deposit (cash receipts and deposit ticket) will be picked up. The discrepant deposit will be reviewed and checked by the Financial Officer/designee, and the appropriate department notified. As evidence of their review/corrective action, the Financial Officer/designee will initial and date the corrected deposit ticket. The IBIS document and deposit ticket will then be corrected, and the deposit returned to the depository, with the funds being deposited and deposit ticket validated/mailed to the appropriate department approver.
Once the appropriate department approver receives the validated deposit ticket, they will review it against the corresponding ROCR (using the IBIS document number), then APProve the ROCR per IBIS documentation (refer to the AIS website). The approver must check the date of deposit per the ROCR against the bank’s validation date per the deposit ticket. These two dates must agree.
Approval paths should be set up to insure that there is adequate separation of duties, including proxy situations. To prevent approvers from mistakenly approving a ROCR using a previously processed deposit slip, approvers must record the date they approve a particular ROCR onto the corresponding deposit slip.
If an advance is being settled, the department receiving the settlement should deposit the funds. These funds should be included in the deposit to the depository, and when completing the corresponding ROCR (per “Preparing the Report of Cash Receipts,” above), general ledger fund 0206 should be credited. The name of the individual settling the advance, original advance amount and amount being returned should be noted on the ROCR as well. Because 0206 is being credited, the IBIS system automatically routes a copy of the ROCR to the Bursar’s Office so that the advance can be properly adjusted on Bursar records.
A bank-validated copy of the deposit ticket will be maintained in the department's files for the current fiscal year plus two years.
When an invoice has been prepared and processed through the Bursar, revenues for payment of these previously charged sales must be immediately forwarded to the Office of the Bursar so that the customer's account may be credited (revenues may NOT be forwarded via interoffice or U.S. Mail). An ROCR is not prepared by the department for these receipts since the department has already been credited for the sale via an Invoice. (Refer to Policy FN02.)
Unlike the University Park Invoice, revenues for payments of previously charged sales involving the non-University Park Invoice are handled the same as other revenues. Issuance of the invoice will not have previously credited the department; therefore the revenue must be accounted for on a ROCR, as documented in "Depositing Procedures."
Once properly prepared, deposits will be transported as documented in procedure CR2004, "Accountability for Transfer of Items of Value (Except Equipment)". Under no circumstances may cash receipts be transported for deposit via interoffice or U.S. Mail.
The Monthly Budget Report, and/or IBIS System reports must be checked each month by the authorized department representative to verify that all deposits made to authorized depositories have been properly recorded.
For ISIS deposits, the Bursar and authorized department representatives (as applicable) will use the daily transaction Activity Report for verifying and reconciling such deposit activity.
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 foreign currency to U.S. Dollars.
Under no circumstances should foreign checks be transported for conversion via interoffice or U.S. Mail.
The area receiving the foreign check must deliver the check within 24 hours to the Bursar with a memo requesting that the check be converted to U.S. dollars.
The Bursar will deliver the foreign check to one of the University's banking institutions, accompanied by a “Foreign Conversion Request Memo.” Once the banking institution converts the check to US dollars, the Bursar’s Office or Financial Reporting will be able to access the information online at the bank’s website. The Bursar’s Office will monitor the website for the conversion to take place and then advise the department of the USD amount and date the check is credited to the bank account. The Bursar’s Office will also forward a copy of the original department’s copy of the “Foreign Conversion Request”, indicating the converted amount, to Financial Reporting.
When the original department receives their copy of the “Foreign Conversion Request Memo” from the Bursar, they will process an ROCR for the identified dollar amount (net of any fees) per the IBIS Online Documentation available from the AIS Support Center (refer to the AIS website).
The area receiving the foreign check must forward the check within 24 hours to that location's Financial Officer. (Checks may NOT be forwarded via interoffice or U.S. Mail.) Prior to turning over to the Financial Officer, the department will prepare a memo in duplicate requesting conversion, along with the specific budget/fund/object code to which the converted check should ultimately be credited. Copies of both the memo and the foreign check will be held, pending conversion and notification of settlement by the Financial Officer.
Upon receipt of the memo and foreign check, the Financial Officer will have the check converted through that location's designated depository bank. Once converted, the Financial Officer will notify the department of the amount (net of any fees).
Upon notification by the Financial Officer, the original department will prepare and process an ROCR per the IBIS Online Documentation available from the AIS Support Center (refer to the AIS website).
Student accounts paid with foreign checks must wait to post the payment amount until the Bank completes the conversion to U.S. dollars. Any amount over or under the student's obligation will appear as a debit or a credit to the student's account. Any fees or other charges from the banking institution incurred by the University due to the conversion of a foreign check, where the check was submitted to satisfy a student account, will be borne by the respective student.
In all other cases, if the fees for converting a foreign check are not deducted from the converted proceeds of the check, the service fees will be posted to budget number 00-001-21UP 9220 via a Journal Voucher prepared by the Financial Reporting department.
The resolution of returned checks is the responsibility of the department originally receiving the check. Refer to the procedure titled CR2002 "Processing Returned Checks."
The Financial Officer is responsible for ensuring that procedures pertaining to the accountability and safeguarding of all cash receipts, cash funds, and other assets are established and followed in accordance with approved University policies and procedures. Regular audits relating to advances, cash, travel, equipment accountability, and other expenditures provide a means to protect University assets. The Financial Officer is responsible for working with Internal Audit when audits are being performed in the administrative area, as well as performing an annual audit that is submitted to the Assistant Controller.
Record retention must be managed in accordance with Policy AD35 - University Archives and Records Management, and records schedules approved by the Records Management Advisory Committee, Office of General Counsel, and Office of the President. These retention requirements are the University's retention criteria, either derived or based upon federal, state, and local statute or regulations, industry standards, and business needs. Retention beyond recommended time periods require justifiable reasons and warrant review by the Records Management Officer or designee. All documents must be maintained in such a manner so as to provide ease of access for review, and to provide a suitable audit trail for all transactions.
- Documents subject to a Legal Hold (see AD35, Legal Hold). A legal hold will remain in effect until it is released in writing by the Office of General Counsel.
- Documents under audit or review, either internally or externally. The retention period extends until released by the Corporate Controller's Office. The Financial Officer will be notified regarding any accounts which are under audit; the Financial Officer will be responsible for contacting the department.
Additional questions may be directed to the University Archivist or the Records Management Officer.
For questions, additional information, or to request changes to this procedure, please contact the Associate Controller.
- Policy AD22 - Health Insurance Portability and Accountability Act
- Policy AD35 - University Archives and Records Management
- Policy FN01 - Depositing Cash Revenues
- Policy FN02 - Charge Sales and Billing
- Procedure CR2002 - Processing Returned Checks
- Procedure CR2004 - Accountability for Transfer of Items of Value (Except Equipment)
- Procedure IA2005 - Food and Beverage Sales at Intercollegiate Athletic Facilities
- Blue/White Shredding Program
Date Approved: 9/21/15
Most recent changes:
- Revision 6 - Dated 06/15/15 (revised to reflect current operations)
Revision History (and effective dates:)
- Revision 5 - Dated 4/25/02 (Revised to reflect current operations and changes in handling Foreign Checks)
- Revision 4 - Dated 1/12/98 (Revised to reflect current operations, per changes in deposit handling)
- Revision 3 - Dated 2/10/94 (Revised per addition of Non-credit Registration & Record verbiage)
- Revision 2 - Dated 9/21/92 (Revised per University-wide use of Electronic ROCR)
- Revision 1A - Dated 6/20/89 (Minor revision)
- Revision 1 - Dated 6/8/89 (Complete revision with Title change)
- Original - Dated 12/17/84 (Making Deposits Directly to Branch Bank on Campus)