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University of OttawaProcedure – CASH RECEIPTS AND DEPOSITSEffective date – May 1st, 2016 PURPOSEThis document describes the procedures related to the acceptance, handling, safeguarding, deposit and recording of cash receipts received by Faculties and Services. DEFINITIONSIn this Procedure, the following definitions shall apply:Cash receipts: Funds received from customers or other sources, such as but not limited to cheques, cash, debit and credit cards, bank drafts, wires, and direct deposits.Refunds: Monies going back to the University client that was originally paid to the University.Point of sale (POS) terminal: Terminals that record credit and debit card transactionsEcommerce transactions: All transactions that were recorded through an on line purchasing system.NSF (Non-sufficient funds): A cheque that was drawn on an account with insufficient fundsStale-dated cheque: A cheque that is more than six months old.Depositor: A person who makes a deposit.Approver: A person who reviews and approves a deposit in the financial systemCASH RECEIPTSAll receipts of funds by Faculties/Services on behalf of the University must be handed over to Financial Resources at least once a week, or each time a total of 500$ in cash has been accumulated, together with the appropriate documentation and recorded in the Financial system at the same time. When unusually large amounts of funds are handled, deposits must be made more frequently, e.g. several times weekly, as required by circumstances. It is recommended to use an escort when making large cash deposits.When a currency, other than Canadian, is accepted in payment of an account, any deficiency vis-à-vis par value in Canadian currency at time of deposit by Financial Resources will be charged to the budget of the Faculty, Service, Research or Trust account or other account as appropriate. Conversely, any surplus will be credited automatically to the Faculty, Service, Research or Trust account or other account as appropriate. Cash Receipts may not be used to replenish the petty cash (see Policy No. 26). Receipts of funds of a nature which are not readily negotiable for immediate credit to the University (i.e. in currencies other than US or Canadian) should not be accepted due to the risks related to receiving these funds and the associated fees.DEPOSITSThe University of Ottawa Deposit Slip must always be used when forwarding funds to Financial Resources for deposit. The Deposit slip is to be completed in duplicate with details printed thereon.When a deposit includes a number of individual cash receipts, they must all be itemized on the deposit slip showing the source and amount of each remittance and, when applicable, the related receipt number. A separate list must be prepared if space on the slip is insufficient. This is important to ensure there is no discrepancy in the transmission of such funds from the Faculty/Service to Financial Resources. Each deposit must be approved by an authorized approver in Banner and on the deposit slip.Deposits of cash and cheques (including money orders, traveller’s cheques, and bank drafts) should always be brought to Financial Resources by hand; they must not be sent through the mail. The Faculty/Service agent must sign the Financial Resources Deposit Officer’s log of deposits received, when handing over a cash and cheque deposit. Deposits of Canadian funds should be made using a Canadian deposit slip and inserted in an envelope on which 14-24 (bank account number) and the total of the deposit should be indicated. The University of Ottawa Deposit Slip must be handed in at the same time.Deposits of American funds should be made using an American deposit slip and inserted in an envelope on which 76-60 (bank account number) and the total of the deposit should be indicated. The University of Ottawa Deposit Slip must be handed in at the same time.Separate deposits should be prepared for credit and debit cards and sent to Financial Resources daily by email at Deposit-pettycash@uottawa.ca, mail or by hand along with the University of Ottawa Deposit Slip, the settlement report, the total report and the detail report from the POS terminal. There is no need to sign the Financial Resources Deposit Officer’s log for these deposits.Duplicate copies of deposit slips must be retained by Faculties and Services for verification and as a permanent record of deposits. Any discrepancy noted should be reported immediately to the Financial Resources Deposit Officer.University of Ottawa records must be maintained for a set period of time. This includes copies of deposits, receipts, refunds, etc. (See Procedure 20-4 – Records Retention Periods).Debit and Credit card information and the receipts originating from these transactions must be treated with the same level of security as any other confidential information. Failure to do so may result in unauthorized use of a client card for which the University of Ottawa may be held accountable. The protection of cardholder information must be considered a priority.No credit card numbers should be stored in any way or form. If a credit card number is taken by phone, it should be destroyed as soon as the electronic approval of the transaction is received. Only the approval number of the transaction can be stored as a back-up for that transaction, along with all other information needed for your file (name, amount, date, etc...). POINT OF SALE TERMINAL (POS)Each POS terminal must be closed daily and a deposit must be done for each merchant number. The transactions must be entered in the system and approved the same day. The University of Ottawa Deposit Slip along with the settlement report, the total report and the detail report should be scanned and sent by email to Deposit-pettycash@uottawa.ca the same day. ACCEPTANCE OF CHEQUESFinancial agents are expected to exercise due caution when accepting cheques in payment for goods and services. The following rules and procedures are to be observed:The date must be verified to ensure the cheque meets the CPA standards. This can be done by reviewing the date field on the cheque. If the date format is MMDDYYYY or DDMMYYYY or YYYYMMDD, the cheque meets the CPA standards.The date must be verified to make sure the cheque is neither postdated nor stale-dated.The amount on the cheque in numbers and in letters must agree.The name, address and telephone number of the payer should be either written on the cheque or available on file.Cheques are to be made payable to the University of Ottawa for the amount applicable to the goods and services. It is not permitted to accept personal cheques for larger amounts and to refund the difference in cash. If the payer is a student, the student number is to be noted on the back of the cheque.The cheque must be signed.Only cheques, bank drafts and money orders in Canadian and American currency are accepted for deposit. Cheques are to be endorsed immediately by the Faculty or Service with the following rubber stamp impression:FOR DEPOSITCREDIT UNIVERSITY OF OTTAWANATIONAL BANK OF CANADA 10051-006(Department as applicable)The purpose of this rubber stamp impression is to restrict immediately the negotiability of the cheque. It also identifies the origin of the cheque.The document or deposit record number must be indicated on the back of the cheque.A postdated cheque is a promise to pay and in this respect resembles a promissory note. It is not a tender for payment and a receipt should not be written for it until it is due. Postdated cheques ordinarily are not to be accepted in exchange for goods or services. If a postdated cheque is accepted, it must be kept by the faculty/service for deposit until the date of the cheque is current.All cheques related to research funds should be forwarded to Financial Resources. Deposits in research funds are exclusively done by the Research, Trust and Endowment sector. DISHONOURED CHEQUESA photocopy of a cheque which has been refused payment by the bank on which it is drawn, for one reason or another, will be returned to the Faculty/Service by Financial Resources for collection of the payment owed. The original of the refused cheque, if required, will be available in Financial Resources.All returned cheques are subject to an administrative charge. The only exceptions to this administrative charge are postdated cheques, donations and stop payments.The full amount of the dishonored cheque and the administrative charge will be debited from the receivable account of the Faculty/Service which accepted this payment form.ISSUANCE OF OFFICIAL RECEIPTS All cash receipts must be receipted immediately. Official University of Ottawa receipts must be issued when cash is received and when the payer requests it for other forms of payments. Where practicable, the use of POS receipts, Cash Register receipts, as well as Debit and Credit card receipts are preferable. Where these methods of payments are not used, manual University of Ottawa pre-numbered receipts should be used.Booklets of pre-numbered official receipts are available on request from Financial Resources for use in acknowledging the acceptance of cash remittances of all kinds. If a Faculty or Service would like to use their own official receipts, these must meet the following criteria:University of Ottawa is clearly imprinted on the receipt,Each receipt is uniquely numbered,Total amount received is displayed,Name of payer,Transaction Date is displayed,Description of good or service is provided.When using manually created receipts, other than the Financial Resources receipts, a minimum of 2 copies are required. Entries will be made only in ink (e.g., ball-point pen) and the receipt form must be correctly completed, in particular to ensure that the date entered is the actual date the receipt was issued. One copy is given to the payer and the second copy should be kept with the deposit documentation at the Faculty or Service.REFUNDS Refunds should be issued using the original method of payment (i.e. using same credit card or debit card as originally used; by cheque if original payment was received by cash or cheque). In the cases of refunds related to a direct deposit received, please communicate with Accounting service for instructions on how to proceed. Each refund issued by the University must be approved individually by the supervisor of the person issuing the refund or the Banner approver for the unit.USE OF CASH REGISTERSCash registers must be closed daily and reconciliations between the daily sales total amount and the receipts for the day should be done. All differences must be fully accounted for. The cash register tape will be retained by the Faculty or Service. The funds should be remitted to Financial Resources the following day. ELECTRONIC FUNDS AND WIRE TRANSFERS Incoming electronic and wire fund transfers from any organization can be received by the University of Ottawa’s banking institution on a daily basis. It is very important to request from the paying organization that an email be sent to directpayment@uottawa.ca with every payment to make the source of payment easily identifiable. Details such as the reference number of the invoice or purpose of the transfer should be provided by the paying organization and the contact person at the University. CONTROLS Each Faculty or Service within the University of Ottawa is responsible for implementing internal controls in order to protect the funds, account for them properly and timely as well as to ensure a proper segregation of incompatible duties.Faculties and Services are responsible for: Preparing a reconciliation of the daily sales from the POS terminal with the general ledger accounts.Prepare reconciliations on a timely basis.Ensure that approvals and verification are done by someone who is not involved in the deposit preparation process or its capture in the financial system.The approver must compare the details on the deposit slip with the information in Banner. He/she must also ensure that the total amount of money sent to Financial Resources corresponds to the total on the deposit slip. Each deposit must be approved by an authorized approver in Banner and on the deposit slip.Financial Resources is responsible for: Approving in Banner the deposits completed by the faculties and services.Reviewing outstanding deposits not received in Financial Resources to ensure timely clearing.Ensure that all deposits received are sent to the bank.Preparing and approving monthly bank reconciliations on University bank accounts.SAFEGUARDING OF FUNDSTo help ensure a safe handling of cash receipts, each Faculty/Service within the University of Ottawa is responsible for implementing internal controls in order to protect the funds as well as to ensure the safety of staff handling the cash.Cash receipts must be safeguarded at all times. Physical access must be restricted to authorized personnel.All cash receipts must be stored in a locked drawer, locked box or vault.At the end of each day, any funds not deposited should be stored in a fire-proof vault, when binations and keys should be given to as few people as is necessary and should be changed periodically, at least annually, or when someone leaves the Faculty or Service.TAXESThe University must remit 100% of taxes collected on its revenue. There is no tax rebate for tax collected on revenues.HST must be deposited in two different accounts (one for the provincial component and one for the federal component). REVIEW, AMENDMENT AND IMPLEMENTATION The Associate Vice-President, Financial Resources is responsible for the review, interpretation and implementation of this procedure and for any exceptions or amendment made to it. OTHER UNIVERSITY POLICIES OR PROCEDURESThe following University policies may be associated with this Procedure: Policy 26 - Petty Cash ................
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