102-01 Deposit Slips, Timing, Account Codes

Fiscal Operations Manual
Section 100: Revenue (External) - Depositing & Recording
Effective: 01/01/2003
Revised: 1/12/2012

As a State of Oregon entity, Oregon State University falls under rules of the Oregon State Treasury. Proceeds from any activity sponsored by OSU, evidenced in part by the use of OSU letterhead, and/or using state resources such as employee time and effort, state facilities, state vehicles, etc. are deemed to be State of Oregon revenue and must be deposited into an OSU fund.

Units receiving checks are responsible for their safekeeping and timely deposit. Units should do the following:

• Immediately, place a restrictive endorsement on the check.
• Deposit all checks received with the Cashiers Office within one business day of receipt. Deposits should be made more frequently if the unit lacks secure safekeeping for holding funds.
• Unless the total is less than $1,000 and, there is sufficient justification, deposits must be made daily. Under no circumstance should deposits be held for longer than one week.
• Exceptions may be made where a valid business reason exists to provide for deposits of at least one time per week. These valid business reasons must be filed with the OUS Division of Internal Audit. Contact OSU Cashier's Office for assistance. All checks received and held overnight must be in a secure area.

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.

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 Receipts Record.”

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 are very limited under Oregon Executive Department rules.

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.

See:

• Cash Handing Manual on OSU Business Affairs’ website
• Office of the State Treasurer, Finance Division, Cash Management Manual
• OUS Fiscal Policy Manual Treasury Management, Section 105.100
• FIS Ex003-17: External Receipts Account Code Guidance
• FIS 1401-06:  e-Commerce

Deposits to OSU Foundation (OSUF) and Agriculture Research Foundation (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). All checks made out to OSU must be deposited at OSU. Deposits from OSU Foundation to OSU must be recorded in specified funds (FSxxxx, FExxxx, 438xxx, 8xxxxx or 9xxxxx). Deposits from ARF to OSU must be recorded in FAxxxx funds. When a check is written to OSU, but there is evidence from the donor that the intent was to gift the dollars to the OSUF or ARF, contact the intended foundation. There are procedures in place within Business Affairs to move the dollars from OSU to OSUF or ARF in these cases. For further information see the Grant, Contract, Gift Accounting Policy & Procedure Manual.

102-02 External Income (University Fee Book)

Fiscal Operations Manual
Section 100: Revenue (External) - Depositing & Recording
Effective: 01/01/2003
Revised: 11/20/2012

Each institution within OUS has authority to establish fees charged to non-students for services and goods provided by the institution’s departments and units (including Experiment Stations and Extension Offices).

At OSU each winter term, information is collected from all OSU departments and units that intend to provide a service and charge a fee in the following fiscal year. A compendium of these fees entitled the University External Fee Book, is made available to the public for review per ORS Chapter 183. A public hearing is held on the OSU campus each year in May during which interested parties have an opportunity to comment upon all submissions to the fee book.

At OSU, most of the service activity which charges fees externally occur in Designated Operations 05xxxx or Auxiliary 1xxxxx funds.

For more information about fees charged to non-students, refer to:

• FIS 1403-10: Sales of Goods and Services
• FIS 1403-01: Recharge Activities
• FIS 1403-03: Designated Operations

Reference: OAR 580-040-0010 for more information on the Oregon Administrative Rule granting the right to charge fees.

102-03 Service/Testing Income

Fiscal Operations Manual
Section 100: Revenue (External) - Depositing & Recording
Effective: 01/01/2003
Revised: 10/25/2010

Each department should establish an invoice numbering system that identifies the department and the INDEX for the deposit. All outgoing invoices from OSU should contain both the unique departmental invoice number and the applicable index.

Payments to OSU for services rendered or costs incurred must be treated as income (i.e. payment from a grass seed producer for OSU seed testing services). Account codes to use are in the series 06XXX.

102-04 Workshop Income

Fiscal Operations Manual
Section 100: Revenue (External) - Depositing & Recording
Effective: 01/01/2003
Revised: 10/25/2010

Income for workshops for OSU credit (registered students) should be deposited using 01703 account code in an 001xxx fund. Non-credit workshop income should be deposited using account code 06410 in an 05xxxx fund.

102-05 Gift, Grant, and Contract Income

Fiscal Operations Manual
Section 100: Revenue (External) - Depositing & Recording
Effective: 01/01/2003
Revised: 3/1/2013

Funds are received at the University in one of six ways in this category.

1) The Office of Post Award Administration (OPAA) receives a check in the mail for a gift to the University. OPAA is responsible for determining which college or unit the gift is for and the purpose of the gift.

Gifts cannot be deposited into Education & General (E&G) funds. Checks received as gifts directly by an OSU unit should be routed to OPAA for deposit. Special indexes have been established for each unit for the deposit of gifts. These indexes all begin with “M”. Gifts cannot be deposited into an “FS” or “FA” index as those indexes are only for deposits from the OSU Foundation (OSUF) or the Agricultural Research Foundation (ARF). Any donations by OSU employees must be made to OSUF or ARF directly to avoid possible conflict of interest issues.

OSU will assess a fee on all cash and equivalent donations received by OSU at the same rate charged by OSUF as their Gift Acceptance Surcharge. The current rate is 5%.Donations, regardless of restrictive use, will be charged the gift fee. The fee will be collected from the fund to which the donation has been added, and used to support university operations.

The fee will not be charged on:

• Interest earnings posted on gift funds; nor residual funds from fixed price sponsored agreements that have been moved to gift funds at the conclusion of the project.
• Endowment earnings.
• Restricted grant, contract, or cooperative agreement funds.

Cash contributions received from outside sources specifically for the purpose of collaboration or support of an externally funded sponsored program may be set up in a separately identified restricted fund or an “M” gift index. The determination will be made at the time of the receipt of the contribution. A gift fee is not applied to these funds.

Tangible property (In-kind gifts) donated to the University must be booked as revenue, per OUS policy 55.100. See PRO 207: Gift.

2) Grants and Contract funds are invoiced by OPAA. When the checks are received, they are processed by the accounting staff in OPAA.

3) Agencies with grants often make payments on invoices or electronic letter of credit draws via ACH transfer. The payments are made electronically to the State Treasurer, who makes the information available on a secure web page. The daily ACH transfers are retrieved and printed by OPAA and given to the appropriate individual to record in FIS Banner.

4) The OSU Cashiers Office is notified by the State Treasurer’s Office of funds received by wire transfers. They notify OPAA by email so the payment can be recorded in FIS Banner.

5) Funds from other OUS institutions via inter-institutional journal vouchers are not recorded through the cashiering system. They are processed directly into FIS Banner.

6) Project income generated from a grant or contract activity is deposited into the grant/contract project index. A revenue account code, different from that of the sponsor, is used. If you have project income, consult with the OPAA Accountant responsible for that agency assignment.

Reference: Grants, Contract & Gift Accounting (GCG) Policy & Procedures Manual

102-06 Surplus Sales

Fiscal Operations Manual
Section 100: Revenue (External) - Depositing & Recording
Effective: 01/01/2003
Revised: 10/25/2010

The Surplus Property Unit within Business Services handles sales of surplus furniture, equipment, and supplies. External revenue comes in the form of proceeds from sales to the general public through public auctions, OSUsed Stores, and contact bids held on campus in the Property Services Building. Revenue also comes from sales to state government agencies, local governments, and qualified non-profit organizations that are registered with the Department of Administrative Services in Salem.

Surplus Property takes a portion of the proceeds for their services, and the remainder of the proceeds is forwarded to the owning departments or agencies with which OSU has inter-governmental agreements. All payments to outside agencies take place at the end of each month during the month-end closing process.

102-07 Refundable Deposits

Fiscal Operations Manual
Section 100: Revenue (External) - Depositing & Recording
Effective: 01/01/2003
Revised: 10/25/2010

Refundable deposits include deposits for Horse Center space rental, rental units of the Agricultural Experiment Stations, and Facilities Services key deposit.

Deposits should not show as revenue. The amount received should be posted to the Fund and Account B4xxx. This is a liability account that shows the money does not belong to the University. This account code does not have to be at a zero balance at the end of the fiscal year.

When refunding a deposit, charge the same Fund and Acct B4xxx. If the complete amount is not refunded, a JV will need to be completed to move the unreturned amount into revenue (i.e. 06993 Deposits).

102-08 Travel Paid by Outside Source

Fiscal Operations Manual
Section 100: Revenue (External) - Depositing & Recording
Effective: 01/01/2003
Revised: 10/25/2010

Outside entities may reimburse the campus, pay a service provider directly, or reimburse an employee for travel expenses related to OUS business. If the service provider is paid directly, or if reimbursement is made to an employee, documentation should be maintained in the campus travel records. Documentation should include the traveler's name, identity of the outside source, travel destination, travel dates and OUS business purpose. If reimbursement is made to the campus, it should be accounted for as a reduction of expense. The cash receipt record attached to the check/payment must indicate the Banner document number and account code of the original cost being reimbursed.

To reimburse the university when the traveler is paid directly by an outside entity, the traveler must deposit the check in his/her account and then write a check payable to Oregon State University. When depositing this check at OSU, the original source of the funds should be indicated on the OSU deposit slip.

Any OUS business travel expenses that will subsequently be paid by an outside source (such as a conference organization) should be originally paid using general (E&G) funds. These costs should not be placed on grants or contracts, because an awarding agency could be invoiced for the costs in error. Both the original expenses and payment by an outside source must reside on the same E&G funded index. If the cost is inadvertently paid on grant funds, the cost must be moved to an E&G fund source.

102-09 Attendee-Paid Funds for Recognition Event

Fiscal Operations Manual
Section 100: Revenue (External) - Depositing & Recording
Effective: 01/01/2003
Revised: 10/30/2012

An Agency Fund, with an associated Index, may be established for the purpose of processing income and expenses connected with university recognition events where the participants/attendees of the event are required to pay for the benefit received (such as a meal). Examples of such events would be retirement dinners and scholarship recipient recognition luncheons. The fund cannot be used for departmental social functions or fundraising activities.

The Agency fund can be established for a college or an administrative unit. Funds will not be established for a department or individual event. The FOAPAL Element Request Form must contain the following: the responsible person with their phone number, the funding source in the event of a deficit (the funding source can not be university funds), and how any remaining balance is to be disbursed, if the fund is inactive for five(5) years. Per OUS policy, if the fund is inactive for five (5) years, the balance will be sent to the State Land Board and the fund terminated.

The fund must maintain a $0 or positive cash balance and is not interest bearing. Deficits can be covered by personal funds and OSU Foundation or Agricultural Research Foundation funds (if allowed per foundation policies). Only those costs allowed by Oregon State University or OUS System policy may be paid on these funds. The unit is responsible for obtaining all approvals through Risk Management necessary for the event.

Payments to the fund should be in cash or with checks payable to Oregon State University. Income should be processed as Account Code 08001 Miscellaneous Other Revenues. Generally, costs should be paid with Account Code 28613 Public Relations.

For further information about Agency funds see: FIS 513.

102-10 Cash Handling on Behalf of a Third Party

Fiscal Operations Manual
Section 100: Revenue (External) - Depositing & Recording
Effective: 01/01/2003
Revised: 10/25/2010

In unusual circumstances, an OSU employee may be asked to provide cash handling duties for a third party.  OSU cash handling standards apply in these circumstances and every effort should be made to provide employees who are acting as cashiers with protection from risk. 

Prior to engaging in cash handling for a third party review the procedures below with the third party to ensure that they can comply.

• A locking cash box should be used and each cashier should have their own cash box.
• Reasonable measures should be taken to ensure that proper security is maintained on cash drawers including, but not limited to, funds being attended at all times or locked and secured in an area not easily accessible by the public.
• Counting the funds in the cash box should be done at each transfer of custody and should be done in dual custody with an OSU and third party representative present.
• If credit or debit cards will be accepted, ask the third party to provide documentation on their credit card security procedures and review those together.  If timing allows, review these procedures with Business Affairs Cashier’s prior to the event.
• If checks will be accepted, the third party must provide an endorsement stamp so the checks can be restrictively endorsed as soon as they are received. If no endorsement stamp is provided, write “For deposit only” on the reverse of the check to reduce the risk of fraud.
• Tools for documenting the sales or transactions should be obtained from the third party in the format they prefer for tracking and reconciling. A log, tally sheet, ticket journal, or receipt book should be used. If the third party does not provide these types of forms, the OSU employee must still perform the documentation noted below.
  • Keep a copy of an event program, advertisement, notification, etc. as a record of the date, time, and sponsor of the event.
  • Maintain a list of all OSU employees and third party individuals who will have access to the cash and cash equivalents.

Prior to the event, record the starting balance of the fund. The starting fund in the cash box should be counted in dual custody to verify the initial amount of the fund.  Document the starting balance on a voucher, log, or tally sheet which both parties sign and date to acknowledge that the count was completed and both people are in agreement on the starting amount of the fund.

During the event, record each transaction that affects the change fund.  This log should be complete and accurate so as to provide the detail required to balance and reconcile the change fund at the end of the event.

At the end of the event, complete a count of the ending change fund in dual custody with a representative of the third party.  Document the ending balance on the voucher, log, or tally sheet used for the starting balance and have both parties sign and date to acknowledge that the count was completed and both are in agreement on the ending amount of the fund.

Once the dual custody count of the ending cash fund is completed, the funds in the locked cash box can be transferred back to the third party. If the cash and cash equivalents cannot be immediately handed over to the third party, the cash box should be secured in a locking cabinet, office, etc.  Be aware this requires a second dual custody count at the point when the funds are handed over.  This must be done so both parties again agree on the balance of fund at the point of transfer.

Both the OSU employee and the third party should receive full copies of all documentation.

For additional information see the Cash Handling Handbook.

102-11 Contracting with a Third Party for University Business

Fiscal Operations Manual
Section 100: Revenue (External) - Depositing & Recording
Effective: 01/01/2003
Revised: 10/25/2010

The University or an individual department may need to engage a third party to assist in the processing and management of cash, cash equivalents, credit cards, and ACH transactions. Third parties may provide:

• Lockbox services
• Web/Internet interfaces to internal and external clients
• Processing of currency, coin and other cash equivalents
• Processing of electronic bank account payments, such as ACH
• Credit and debit card processing

Relying on third parties to process University cash, cash equivalents, credit/debit card, and ACH transactions requires extreme care in the selection and ongoing management of such third parties. Accordingly, the following polices are necessary to safeguard University assets:

• Business Affairs, in conjunction with the State Treasury, must approve any third party relationship where the third party is in possession of University assets to process University cash, cash equivalents, credit/debit card, and/or ACH transactions.
• Before a department enters into any such relationship, Business Affairs must review the third party’s cash handling procedures, security standards, and references.
• At least bi-annually, Business Affairs will review third-party relationships whereby the third party processes cash, cash equivalents, credit/debit card, and/or ACH transactions.  The review will include, with the department, an assessment of cash handling/processing and adequacy of services provided.
• Third parties that assist the University or individual departments with management of cash and cash equivalents must provide documentation of regulatory compliance (including, but not limited to, Payment Card Industry Data Security Standards and State statutory or regulatory privacy requirements). They must also provide accurate and timely handling of cash, cash equivalents, credit/debit card, and/or ACH transactions and transactional data as is established for the University and state agencies.

For additional information see the Cash Handling Handbook