Policy 1508: Cash Collection and Deposit
Subject Area: Cash
Responsible Office: Finance & Administration Central Accounts Receivable Office
Sponsor: AVP for Finance & Administration
Originally Issued: July 1998
Revised: August 2009, January 2010, May 2024
Refer Questions To: Yolanda Peoples, Director of Accounts Receivable
Statement of Policy:
It is the policy of The University of Chicago (“UChicago”) that appropriate internal controls and accepted best practices be utilized in the handling, receiving, safeguarding, transporting, depositing, and accounting of all UChicago’s cash by a financial operating unit.
Who Needs to Know This Policy:
This policy applies to any member of UChicago’s faculty and staff and UChicago affiliates that function as a financial operating unit with the responsibility for any part of the handling and collection of UChicago’s cash.
Policy and Procedures:
The purpose of this policy is to provide guidance and a process on accounting, collecting, safeguarding, and depositing all UChicago’s cash. The Central Accounts Receivable Office (“Central A/R”) is UChicago’s primary deposit managing agent. Ideally the collection of cash should be centralized; however, due to the nature of UChicago’s structure it is not always practicable. This document is intended to ensure proper handling of UChicago’s cash in all forms.
Required Authorization:
Prior to undertaking any new cash handling operation or activity the UChicago Accounts Receivable Office/AVP for Finance and Administration should be consulted. Please submit your completed request and business plan via email to accountsreceivable@uchicago.edu subject line “NEW CASH HANDLING ACTIVITY –EXEC NAME – DEPARTMENT NAME”
Approval for the new cash handling activity will be granted if Central A/R determines that entity’s business plan demonstrates how this new operation or activity will be accounted for and how deposits will be managed.
Responsibilities of Individual Departments
UChicago entities are responsible for compliance with the policies and agreed upon procedures (“AUP”) outlined in this document and for developing and maintaining detailed written departmental operating procedures. Central A/R is available for consultation and review of departmental procedures. Departments are responsible to assure all designated employees complete training on approved cash management policies and AUPs.
All cash handling units must respond within one business day to any receipting inquiries from Accounting, Bursar, or Central A/R.
Segregation of Duties
There must be a segregation of duties to safeguard UChicago’s cash. The responsibilities of receiving cash, recording cash, depositing cash and the reconciliation of the deposit should be separate and performed by different UChicago employees.
The following responsibilities should be distributed among personnel so no one individual is responsible for all aspects of the cash collection cycle:
- Opening Mail
- Endorsing Checks
- Preparing Deposits
- Bank Reconciliation
- Billing and Collections
- Posting and Recording Payment in the approved financial system(s) of record
All financial operating units with cash handling responsibilities must maintain an “AUP” that follow the Cash Collection and Deposit Policy and the Accounts Receivable Policy.
Proper Cash Handling, Deposit, Receipting, and Documentation
UChicago is taking steps to minimize and eventually eliminate cash and coin on campus. UChicago’s preferred method of receiving funds is via ACH. All departments are expected to implement processes moving in this direction. If a unit finds a “critical” business need where it will not be able to eliminate cash and coin a representative from the unit should reach out to Central A/R via email accountsreceivable@uchicago.edu to Central A/R for a discussion of available options. This request should clearly demonstrate the business need to accept cash and coin and reasons why all other campus available options will not work. Approvals will be granted on a case-by-case basis.
When accepting cash on behalf of UChicago the following must be performed:
- Record the cash transaction in a UChicago approved financial system in real time and provide a receipt to the customer.
- Place all cash in a secured location (refer to Safeguarding of Funds section below)
- Convert all cash and coin weekly to a cashier’s check at Maroon FCU by filling out Maroon Currency Transaction Form – University Departments.
- Note: The cashier’s check must be made payable only to The University of Chicago and deposited to an approved depository UChicago bank account accompanied by a Currency Report of Money Received (ROMR).
Proper Cash Handling, Deposit, Receipting, and Documentation
All checks, money orders, cashier’s checks, foreign checks, and EFT (ACH/Wires) for your entity must be deposited and receipted to reflect in the approved UChicago financial system as soon as received and by one of the approved ways listed below:
Depositing & Receipting
- EFT (ACH/Wires):
- Are deposited directly into an approved UChicago bank account and must be receipted via Non-Currency Report of Money Received Submission (ROMR) directly into ACCTS and electronically submitted to FAS system.
- Checks, money orders, cashier’s checks & foreign checks are deposited and receipted as follows:
- Units equipped with RDC Scanners the financial instruments are scanned to an approved depository account at Northern Trust and/or JP Morgan Chase and receipted via Currency Report of Money Received (ROMR) directly into ACCTS and electronically submitted to FAS system.
- Units not equipped with an RDC Scanner must deliver all deposits to Central A/R accompanied by a Currency Report of Money Received (ROMR) directly into ACCTS and electronically submitted to FAS system.
Note: Additional information on the steps of the deposit process can be found The University of Chicago Receivables (Cashiering) Deposit Process
Stale dated checks
Checks that have expired based on the information on the face of the check, should not be deposited to any UChicago bank account, and the unit should reach out to the remitter to get a replacement check issued. Any unit depositing stale dated checks will be responsible for all fees associated with the returned item.
Unidentified Checks
When you receive a check payable to University of Chicago that does not belong to your department do not cash it. These checks will be managed by Central A/R and should be forwarded to their office.
Note: Photocopies of checks should never be used to replace an original check for deposit.
Central A/R will exercise due diligence to identify the correct department of all unidentified checks received and will record and deposit checks in accordance with established process. Any funds not claimed one year from date of receipt will no longer be available for the unit to be claimed and will be made available for general university operations.
If you have any questions please contact Yolanda Peoples, Director of Accounts Receivable yolandapeoples@uchicago.edu or accountsreceivable@uchicago.edu
Special Handling Checks
Units that receive foreign checks should contact Yolanda Peoples, Director of Accounts Receivable via email yoandapeoples@uchicago.edu or accountsreceivable@uchicago.edu. All fees associated with foreign checks will be charged to the unit.
Reconciliation
All cash handling units must ensure that all funds are properly deposited into an approved depository bank and recorded properly to ensure accurate real-time reconciliation of their bank account(s). Deposits made to the bank are reconciled against the department receipts and/or approved financial system.
Safeguarding of Funds
All forms of cash (currency, checks, money orders, and negotiable instruments) must be physically protected behind two sets of locks including any combination listed below:
- Locked Safes/Vaults
- Locked Cash Drawers
- Locked Cash Registers
- Locked Cashier Cage
- Locked Metal Boxes
- Locked File Cabinets
- Locked Door
It is the responsibility of each cash handling department to ensure that all necessary processes are in place to properly safeguard the cash receipts within their area. Generally, any amount of cash on hand that exceeds $500 must be maintained in a file safe or reinforced file cabinet that secures all drawers.
Reminder: Where cash acceptance is approved and continued the unit will be responsible for converting the cash and coin into a cashier’s check and deposit through the UChicago’s check depositing process.
UChicago cash in all forms meant for deposit must not leave UChicago facility unless being transported for deposit.
GLOSSARY
UChicago – The University of Chicago and all University Affiliates, and includes the schools, colleges, institutions, and other administrative units of the University, all University Affiliates, and the Global Network University sites, as defined in the Developing University Policies and Procedures.
Cash – All negotiable instruments checks, currency, money, orders, and credit card receipts. UChicago cash received from tuition, contracts, and grants, UChicago services, state and federal appropriations, gifts and other sources of revenue and expense reimbursement, whether restricted or unrestricted as to purpose or use. All checks made payable to the University or any subdivisions of UChicago are considered UChicago funds.
Cash Handling Units – A cash handling unit is defined as any department that consistently makes deposit to the University’s depository account. The Accounts Receivable office is the liaison for all cash handling units, the depository bank, and Financial Accounting and Reporting.
Central Accounts Receivable Office (Central A/R) – UChicago’s primary cash handling agent.
Depository Bank – The designated bank(s) to which UChicago school/department/unit has been assigned to deposits all funds.
Financial operating unit – A UChicago business unit that generates revenues, expenses.
General Ledger – The portion of UChicago’s financial system where transactions are recorded. FAS (Oracle Cloud in the future state) is UChicago’s general ledger that stores all activity posted within the system.
Postdated – To affix or assign a date later than the current date to a document or check.
Reconcile – To balance to a separately maintained set of data.
Reconciliation – An accounting process that uses two sets of records to ensure both are accurate and in agreement.
Restrictively Endorsed – The act of placing restriction or constraint on a check by affixing the signature, name, and account number to whom the transaction is to be credited and the bank to be deposited (Ex. For Deposit Only)
Revenue – The amount charged by an organization for the provision of goods or services. (Ex. Tuition revenue is charged to students for the provision of classes).
Stale dated – A check that is dated in the past usually six months or more or a check with instructions written on the face that expressly states an expiration date (Ex. Void after 180 days).
Void – A transaction that has been deleted or replaced by another.
CONSEQUENCES OF NON-COMPLIANCE
If the above policy is not followed, disciplinary actions will be considered up to and including losing cash collections and deposit privileges for the unit.
RELATED POLICIES
- Policy 2708: Managing University Records
- Agreed Upon Procedure RDC Scanner
RELATED DOCUMENTS
- Non-Currency ROMR
- Currency ROMR
- Maroon Currency Transaction Form – University Departments.
CONTACTS
Direct any general questions about the Cash Collections and Deposit Policy to Yolanda Peoples, Director of Accounts Receivables at yolandapeoples@uchicago.edu or accountsreceivable@uchicago.edu.