OSU FIS 1401-01: Deposits

Purpose

To ensure that all checks and cash and credit card payments received by the University are held securely and deposited in a timely manner according to the Oregon State Treasury rules.

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Policy

Checks should be restrictively endorsed on the day of receipt by stamping them with "For Deposit Only" and the bank number immediately upon receipt. Unless the total is less than $1,000 and, there is sufficient justification, deposits must be made daily. Similarly, credit card transactions should be settled daily. It is the process of settling a batch of credit card transactions that transfers the funds from the cardholder to the payee. Under no circumstance should deposits be held for longer than one week. If the deposit is not done the day the money comes in, the deposit must be secured in a safe or locking file cabinet. See FASOM 01.21C in compliance with ORS 279.261(1).

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Procedure

Business Affairs orders all the new endorsement stamps for the campus departments to ensure the required information and format is consistent. The cost of the stamp is charged to the department. Business Affairs also orders all new credit card merchant numbers from the State Treasury. Any costs associated with establishing a merchant are charged to the department.

The Name/Description Field on the deposit form is for indicating where/who the deposit is from or what the deposit is for, not the depositing department. It could include Name, Invoice Number, workshop, etc. as this is what appears in the description field in FIS Banner and Data Warehouse. See: Completing a cash receipt at: http://oregonstate.edu/fa/businessaffairs/cashiers/carecex.php

Generally, cash receipts should have an Index and an Account Code beginning with 0 (0xxxx series) or a Fund and an Account Code beginning with A or B (the Axxxx or Bxxxx series of accounts).

Do not use 09xxx “Internal Sales” or 79xxx “Internal Reimbursements on cash deposit transactions.

Do not use account codes beginning with 2XXXX, 3XXXX, or 4XXXX on cash receipts records forms (deposits) unless you can reference an original FIS “I” document number, or credit for the goods and services was received. The description includes the reason (i.e. refund, overpayment). If the vendor was overpaid and a refund was received, the refund must be credited to the Fund and Account Code to which the purchase was charged. An overpayment may be the result of returning prepayments, returned defective merchandise, or credit for early payment. Please note that this does not include employee reimbursement of personal expenses, because personal expenses are not allowable disbursements. Cash receipts which may be deposited as a reduction of expense is very limited under Oregon Executive Department rules.

Workshop/Conference registration deposits should be recorded in a 06xxx account code.

Departments holding workshops, conferences or issuing invoices that are not recorded as part of OSU Accounts Receivable should notify the Cashier’s office that they are expecting funds so that incoming checks and transfers can be readily identified and deposited to the proper fund/index/account.

Department deposits into OSUF and ARF are restricted to true gifts or proceeds from fund raising events in which the donor intends that the gift go to the foundation(s). For further information see the Gift, Grant and Contract Accounting Handbook. Only checks issued by OSU Foundation can be deposited to index. Deposits to FAxxxx indexes are made only in the Office of Post Award Administration.

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Additional Information

References:

Oregon State Treasury Cash Management Manual Cash Handling Handbook on the OSU Business Affairs website OSU Guideline for Electronic Commerce

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