Deosits Policy Final (EEK0474).DOCX



5080799465Overview of Proposed Revised Policy: Deposit of Incoming FundsThe Office of Business and Finance is recommending the revision and renaming of the Deposits – Cash and Checks policy. The proposed revised policy is named Deposit of Incoming Funds and combines Deposits – Cash and Checks, Check Acceptance, Unclaimed Funds, and Unidentified Funds into one comprehensive policy. (Check Acceptance, Unclaimed Funds, and Unidentified Funds will be retired as stand-alone policies.) This proposed policy revision is related to the Enterprise Project. The proposed revised policy:Combines the content of four policies (Deposits – Cash and Checks, Check Acceptance, Unclaimed Funds, and Unidentified Funds).Moves much of the granular detail contained in the four original policies to a supporting governance document entitled Requirements for Incoming Funds. (The draft Requirements for Incoming Funds are included herein after the policy.)Clarifies the Office of Treasurer’s responsibilities for setting requirements for receipt of funds, electronic funds, merchant processing and ecommerce, checks and cash, and unclaimed funds.Clarifies unit responsibilities related to acceptance, safekeeping, and timely deposit of incoming funds. Conforms to the university policy template and includes definitions.Requires policy waivers to be approved in advance.Identifies consequences for policy violations.Included documentsProposed policy revisionDraft Requirements for Incoming Funds00Overview of Proposed Revised Policy: Deposit of Incoming FundsThe Office of Business and Finance is recommending the revision and renaming of the Deposits – Cash and Checks policy. The proposed revised policy is named Deposit of Incoming Funds and combines Deposits – Cash and Checks, Check Acceptance, Unclaimed Funds, and Unidentified Funds into one comprehensive policy. (Check Acceptance, Unclaimed Funds, and Unidentified Funds will be retired as stand-alone policies.) This proposed policy revision is related to the Enterprise Project. The proposed revised policy:Combines the content of four policies (Deposits – Cash and Checks, Check Acceptance, Unclaimed Funds, and Unidentified Funds).Moves much of the granular detail contained in the four original policies to a supporting governance document entitled Requirements for Incoming Funds. (The draft Requirements for Incoming Funds are included herein after the policy.)Clarifies the Office of Treasurer’s responsibilities for setting requirements for receipt of funds, electronic funds, merchant processing and ecommerce, checks and cash, and unclaimed funds.Clarifies unit responsibilities related to acceptance, safekeeping, and timely deposit of incoming funds. Conforms to the university policy template and includes definitions.Requires policy waivers to be approved in advance.Identifies consequences for policy violations.Included documentsProposed policy revisionDraft Requirements for Incoming Funds0-11430000Deposit of Incoming FundsUniversity PolicyApplies to:Individuals and units that accept funds on behalf of the university.Responsible OfficeOffice of Business and FinancePOLICYIssued:06/01/1991Target revision date:07/01/2010The Office of the Treasurer (Treasurer’s Office) is responsible for establishing processes for the receipt, handling, and timely deposit of incoming funds. This includes and is not limited to electronic receipt of ACHs or wires, electronic receipt of merchant deposits through payment devices or e-commerce processing, use of remote capture check processing, bank lockbox processing, and establishment of deposit centers for the physical deposit of checks and cash. Purpose of the PolicyTo establish parameters for acceptance, safekeeping, and timely deposit of incoming funds in compliance with Ohio Revised Code (ORC) 9.38; identification of university unit recipients of funds in a university bank account; and claiming unclaimed funds. DefinitionsTermDefinitionACH, automated clearing houseElectronic method to receive and send funds from a bank account through a bank network by providing a bank account number and bank routing number.Deposit centerPhysical location established and managed by the Treasurer for deposits of checks and cash.Lockbox A bank collection service primarily for large volume of checks to be electronically scanned and deposited. Payments are sent to a specified bank P.O. Box and the bank deposits funds to a designated account. In some cases, the bank processes remittance coupons and may prepare a bank file to post payments to systems that can accept the file.Merchant depositsElectronic receipt of payment of credit and debit card funds.Unclaimed fundsFunds due the university from a vendor but were not received and deposited to the university’s bank account. Such funds were turned over to the State of Ohio and other government entities. The university claims these funds and deposits to the university bank account. WireElectronic method to receive funds or make payments directly into a bank account using the Federal Reserve network. Policy DetailsThe Treasurer’s Office has sole authority to claim unclaimed funds held by public entities on behalf of the university. PROCEDUREIssued:06/01/1991Target revision date:07/01/2020Deposit and Acceptance of Incoming FundsUnits are responsible to ensure that deposits of funds are made within the following timeframes (ORC 9.38):Within one business day for accumulations of more than $1,000.Within three business days for accumulations of $1,000 or less, assuming the funds to be deposited can be safeguarded until such time as so deposited, as defined in the Requirements for Incoming Funds [link to be added].The Treasurer’s Office sets requirements for receipt of electronic funds, processing checks using remote check capture, requirements for merchant payment devices, acceptance of e-commerce payments, opening bank lockbox, cash acceptance, and endorsement and deposit of checks and cash.Units and individuals must adhere to the Requirements for Incoming Funds [link to be added], which are reviewed every two years or more often as needed. In the case of merchant payments, units and individuals must adhere to the Payment Card Compliance policy and PCI Requirements, which are reviewed annually.Units and individuals that accept funds on behalf of the university must complete annual GL 3 Deposits training. PCI training for merchant deposits is also required annually. Financial training can be accessed at busfin.osu.edu/financial-training. Electronic Funds Units must request approval to receive electronic funds from vendors. The Treasurer’s Office is responsible for approving and assisting in setting up receipt of these electronic funds payments. The Treasurer’s Office is responsible to ensure units and central processing have the necessary information to claim and record electronic funds payments.The unit and Business and Finance are responsible to identify and claim the funds and to record these funds in the University Financial Management System (UFMS). Electronic funds payments not claimed by a unit within 12 months of receipt of the funds will be transferred into the university general fund.Merchant Processing and E-commerceThe Treasurer’s Office and the Office of the Chief Information Officer (OCIO) are responsible for payment card industry (PCI) compliance. Payment card devices and e-commerce must comply with the Payment Card Compliance policy and PCI Requirements. Merchant account setup and related payment processing must comply with the Payment Card Compliance policy and PCI Requirements.Units may purchase pre-approved payment card terminals through the Treasurer’s Office. Units must request approval for the use of other devices, which will be approved by the PCI Committee; see the Payment Card Compliance policy and PCI Requirements.Units must request approval for e-commerce websites and redirected online payment gateway processing, which will be approved by the PCI Committee; see the Payment Card Compliance policy and PCI Requirements.A centralized e-commerce platform and payment gateway provider will be piloted in early fiscal year 2020; governance will be determined and added to this policy as appropriate.Checks and Cash Remote deposit captureThe Treasurer’s Office is responsible for determining the use and location of remote check deposit scanners and permissions for devices to ensure funds are credited to the appropriate unit.Units must comply with Requirements for Incoming Funds [link to be added].Bank lockbox servicesUnits who want to use bank lockbox services must request such services from the Treasurer’s Office. The Treasurer's Office will work with units with sufficient volume of checks, and in most cases, checks will be sent directly to the bank for deposit using bank lockbox services.Units must comply with Requirements for Incoming Funds [link to be added].Deposit center (on campus)The Treasurer’s Office is responsible for establishing and managing deposit centers for the deposit of checks and cash and for determining the operating requirements and physical location on campus in consultation with the senior vice president for business and finance.Units are responsible to deposit funds within required timeframes. At the time funds are deposited with the deposit center, the funds are under the authority of the Treasurer.Deposit centers are responsible for and must safeguard funds in accordance with the Requirements for Incoming Funds. Bank branch (off campus)The Treasurer’s Office is responsible for managing the deposit of funds at designated bank branches to ensure funds are deposited to the appropriate university bank account and credited to the appropriate unit. Units are responsible to deposit funds within required timeframes. Unclaimed FundsThe net amount of recovered unclaimed funds will be deposited into the university’s unidentified items fund until the applicable unit(s) has been identified. If the applicable unit(s) cannot be identified within 12 months of recovery, the net amount of recovered unclaimed funds will be transferred into the university general fund. Such unclaimed funds are transferred at fiscal year-end for the previous year.Units do not have the authority to claim unclaimed funds.WaiversWaivers must be approved in advance and documented by the Office of Business and Finance. Waiver requests must be applied for at busfin.osu.edu/policies-forms. Consequences of Policy ViolationsThe university may require successful completion of training.The university may enforce corrective action, up to and including termination, in accordance with applicable policies or rules.All policy violations must be tracked as an exception in accordance with the Fiscal Stewardship policy. [The current Internal Controls policy is under review and will be renamed Fiscal Stewardship.]The university may seek restitution, as appropriate.Criminal charges may be filed, as appropriate.Responsibilities Position or OfficeResponsibilitiesThis table will be completed after university feedback has been received and integrated.Resources Governance DocumentsFiscal Stewardship, busfin.osu.edu/sites/default/files/111_internalcontrols.pdf [currently named Internal Controls]ORC 9.38, Deposit of public moneys, codes.orc/gp9.38 Payment Card Compliance, busfin.osu.edu/sites/default/files/515_creditcard.pdf PCI Requirements, busfin.osu.edu/sites/default/files/quick-start-guide-pci-requirements.pdf Requirements for Incoming Funds [link to be added]TrainingGL 3 Deposits training, busfin.osu.edu/financial-training [Will be updated prior to new UFMS implementation]PCI training, busfin.osu.edu/financial-trainingContactsSubjectOfficeTelephoneE-mail/URLPolicy questionsTreasurer’s Office, Office of Business and Finance614-292-6261busfin.osu.edu/treasurerHistoryIssued:06/01/1991Revised:01/01/2013Edited:05/01/2014Target revision date: 07/01/2020Policy renamed to Deposit of Incoming Funds (formerly Deposits – Cash and Checks) and now incorporates Check Acceptance, Unclaimed Funds, and Unidentified Funds, which are being retired as stand-alone policiesThese Requirements for Incoming Funds support the consistent implementation of the Deposit of Incoming Funds policy by establishing required practices for handling incoming funds. These requirements are designed to be read and followed in conjunction with the policy. All individuals and units that receive funds on behalf of the university must comply with these requirements.DefinitionsArmored carrier serviceA security service that picks up checks and cash from designated university locations and delivers funds to the bank. Also delivers change orders for cash drawers to designated locations.Cashier’s checkA check purchased, issued and guaranteed by the bank that is drawn on bank funds. Acceptable with proper ID. Certified checkA check drawn on an individual’s bank account that is stamped “certified” and signed by a bank officer. Acceptable with proper ID.Check receipt logSpreadsheet or similar log that records receipt of checks including date of receipt, amount of check, and payor’s name. Counter checkA non-personalized, non-encoded check available at most banks. Unacceptable.Currency strapFor large volume of currency deposits, a denominational paper strip used to bind a sum of bills of identical denomination.Custom deposit slipDeposit slip ordered through the Treasurer’s Office encoded with the university’s bank account number, routing number and the unit’s unique identifier to automatically post journals to the unit’s worktag. Deposit bagA designated university deposit bag to insert checks and cash for depositing funds via armored carrier service.Deposit logLogbook signed by the unit representative and the deposit center office to record the exchange of custody when depositing checks and cash at a designated center. eCommerceMethod of processing merchant electronic payments on the Internet or using software connected to the Internet.Electronic receiptsElectronic receipts are a streamlined method to receive and deposit funds and, in some instances, to electronically post payments to the General Ledger. This includes incoming ACHs and wires, merchant receipts using a terminal or ecommerce or scanning checks using a remote deposit scanner. Foreign checkA check written on a foreign bank (e.g., a Canadian bank). If a foreign check is received in the mail, contact the Treasurer’s Office for assistance with deposit. Unacceptable for in-person paymentMerchant processingElectronic method to process payment card transactions, including credit and debit cards, using ecommerce, a terminal, or other devices.Money orderAn item purchased and completed at a bank, post office or other business. Acceptable with proper ID.Personal checkA written order payable on demand and drawn on a bank by a depositor. A personal check is written against an individual’s bank account and is not guaranteed as opposed to a cashier’s check, certified check, money order, or traveler’s check. Acceptable with proper ID.Red bookLogbook located at Deposit Centers to record exchange of custody and date of pick-up by the armored carrier of deposit bags. Remote deposit capture check scannerElectronic method to send checks directly to the bank using a bank approved device.Returned checksFunds received that could not be deposited by the bank due to payor’s account having non-sufficient funds (NSF), account was closed, stale date on the check, customer stopped payment. Contact the Bursar’s Office for collection of funds. Starter checksA non-personalized check that a person receives from a bank when they establish a new checking account. These are for the person’s use prior to receiving encoded checks from the bank. Acceptable by mail. Unacceptable in-person.Stale-dated checkCheck presented at the bank usually six months after the date of the check. Terminal transactionsMethod of processing merchant transactions, including credit and debit card payments, using a merchant bank approved device.Third party checksA check signed on the back made payable to a person or organization other than the one accepting or cashing the check (e.g., paycheck). Unacceptable.Traveler’s checkA special check supplied by banks or other companies that bear the purchaser’s signature; must be countersigned in the cashier’s presence and are equivalent to cash. Acceptable with proper ID.Unclaimed fundsFunds due the university from a vendor but were not received and deposited to the university’s bank account. Such funds were turned over to the State of Ohio and other government entities. The university claims these funds and deposits to the university bank account. Type and Preferred Method of Funds AcceptedType of funds accepted include ACH and wire, payment cards including debit and credit cards, checks including personal and vendor checks, cashier’s checks, certified checks, money orders, traveler’s checks and cash.Methods of acceptance include the following: electronic bank to bank fund transfers, payment card terminals and related devices, ecommerce, checks mailed or presented in-person, and in-person payments of cash.Electronic receipt of funds is the preferred method as it is a more secure and efficient method of processing deposits and posting payments to the General Ledger. This includes ACH and wires, debit and credit cards payments using terminals or ecommerce, check processing using a remote deposit scanner, and checks mailed to a bank lockbox to be scanned and in some cases, provide a bank file to upload payment data to unit’s system. Cash acceptance has a risk or loss and theft and is a less automated method of deposit and posting to the general ledger. ACH and Wire Process to Receive Funds and Journal PaymentsUnits must contact the Treasurer’s Office to obtain the university banking information for vendor payments to be electronically deposited to the university’s bank. Units must complete an Electronic ACH/Wire Request Form, available upon request from the Treasurer’s Office, and submit to the Treasurer’s Office.Bank Reconciliation will notify the appropriate unit to record receipt of funds, and if applicable, the application of payment to the receivable. Merchant Credit and Debit Card (See Payment Card Compliance policy, PCI Requirements, and the Business and Finance PCI Compliance Website for details)Payment card terminal and payment devices – Units must contact the Treasurer’s Office to purchase pre-approved terminals and devices and to establish a merchant account. E-commerce – Units that set up ecommerce websites to accept payments must contact the Treasurer’s Office to establish a merchant account. Centralized e-commerce – Units must contact the Treasurer’s Office to set up an ecommerce centralized website. Bank Lockbox – Setting Up a Lockbox ServiceUnits with sufficient check volume must contact the Treasurer’s Office to set up a lockbox with the bank. Checks and other documents are mailed directly to a designated bank’s P.O. Box.Bank services provided include scanning and depositing checks, scanning documents, processing or scanning remittance coupons, or providing files with pertinent payment information. File transmissions may also be available for units with significant volume.Checks and Cash Received at the UniversityMethods and Location for Depositing Checks and CashRemote Check ScannerUnits may use a remote check scanner to electronically deposit checks to the bank with approval from the Treasurer’s Office. The Treasurer’s Office will assist with setting up the remote scanning device, software and permissions with the university’s bank.The scanner must be connected to a dedicated computer per guidelines established by the OCIO. (Insert link). Units must enter the deposit ticket number when preparing the deposit in Workday and on the remote scanner software application. Units whose deposits are automatically journaled will be provided a unique identifying number by the Treasurer’s Office; this number must be input when create the deposit. The deposit total along with the unique identifier are automatically journaled to the unit’s worktag. Units are restricted to one deposit per day per unique identifying number. Original checks that have been scanned should be retained for ten business days in a locked safe, or locked drawer/cabinet and then destroyed using a cross-cut shredder. Custom Deposit Slip - Deposit Center and Bank Branch DepositChecks and Cash may be deposited to designated deposit centers or bank branch using a custom deposit slip. Units not located on the Columbus campus must request approval from the Treasurer’s Office to make deposits to the unit’s nearest university bank’s branch.Custom deposit slips that identify the university’s bank account, routing number and the unit’s unique identifier may be ordered from the Treasurer’s Office.Requirements for Checks Received by UnitsEndorsement of ChecksEach unit must restrictively endorse the back of the checks immediately upon receipt to prevent the negotiation of the check if it is stolen.Endorsement stamps must be ordered from the Treasurer’s Office. If a check is received while out of the office, the check may be endorsed by writing “For Deposit only to The Ohio State University” on the back of the check. The endorsement stamp will have identifying information for the unit in order for the funds to be traceable to the unit making the deposit. Check LogCopies of checks are prohibited as they include customer’s bank routing and account number.Check log is required for internal and external audit documentation.Check log is used by internal and external audit to establish the date checks are received to insure compliance with the Ohio Revised Code. Check log must include the following: date unit received check, bank name from customer’s check, check number, amount of check, and total amount of the deposit to the deposit center or branch. Payor’s name is optional. Types of Checks Accepted and ProhibitedPersonal checks, cashier’s checks, certified checks, traveler’s checks and money orders are accepted for purchase of good or services along with proper identification.Starter checks are acceptable when mailed in but unacceptable for in-person payment for goods and services. Third party checks and bank counter checks are not accepted. Foreign checks are not accepted for in-person payments. If received in the mail, there are special processing requirements. Do not deposit the check. Contact the Treasurer’s Office for assistance. Checks presented in-person for purchase of goods or services.Review Checks for CompletenessUS Bank - verify bank is in the United States by looking at the bank address printed on the check; US bank routing numbers begin with 8000 and have watermarks.Name, Address, Phone - verify that account holder’s name, address, and phone number is current and correct. Encoded check - confirm customer’s check is encoded on the bottom with bank routing, check number and pre-printed check number.Examine check for the current date. Postdated checks must be refused. Checks that bear a date more than 60 days old must be refused.Signature: If the item is a personal check or traveler’s check, the signature must be compared to an ID card. The amount written in numerals must agree with the amount written in words and equal the amount of the purchase.Traveler’s checks should be treated as cash and must be countersigned in the cashier’s presence and payable to The Ohio State University, OSU, or Ohio State. Minimum ID RequiredState issued Driver License, or State issued ID, passport, or current student/staff/faculty ID. Ask for consent prior to documenting. If the payor consents, record the driver license number, student/staff/faculty ID, or passport number on the front of the check. If the payer does not consent, refuse acceptance of the check.Photo: Observe the photo and determine whether it is a reasonable match to the payer presenting the check.Address verification - verify the address on the check matches the address on the ID. If it does not match, write the correct address on the check. In the case of Ohio State students, faculty, and staff, address verification is not required.Safeguarding Checks and Cash prior to DepositSafeguard checks and cash in a safe or locked drawer/cabinet until funds are delivered to a Deposit Center or bank. If funds are kept overnight, funds should be kept in a safe or a locked drawer/cabinet in a locked office. Combinations and keys to safes should be changed periodically and when personnel changes have occurred within a unit.Access to safes or locked drawers/cabinets should be restricted to the custodian supervisors.Preparing Deposits of Checks and Cash Verify deposit totals prior to depositing. It is a best practice for two people to independently verify the deposit count. An adding machine tape is recommended; a second adding machine tape should be run to verify the total. Checks must face in the same direction and be bundled with a rubber band. All currency must face in the same direction, sorted by denomination. Deposit bags are available from Stores.A deposit bag must contain one deposit slip and one copy of the adding machine tape.Inspect the bag for holes or tears before using. Do not separate bags at perforation even if you do not have coins and currency for some deposits. This will be considered tampering.For security purposes, any deposits using damaged bags will be refused by the Deposit Center, armored carriers, or the bank.When placing the custom deposit slip in the bag, the deposit slip must face the back of the deposit bag with the total deposit amount clearly visible from the outside.Retention of supporting documentation of deposit of checks and cash is required to establish compliance with ORC provision. Deposit LocationsDeliver Checks and Cash to Deposit Center Columbus CampusDeliver the deposit bag to a Deposit Center. To determine the nearest location, contact the Treasurer’s Office.Enter the bag(s) numbers, total number of bags, and depositor’s name and unit into the Deposit Log. Sign and obtain a receipt from the Deposit Logbook. Return the custody receipt to the custodian. An armored car courier will pick up the deposit from the Deposit Center and take the deposit to the bank.Deposit Center ProceduresAll deposit centers must have a Deposit Log to document receipt of a unit’s deposit bag. Provide the top receipt for each unit drop-off and retain the bottom copy.All deposit centers must have a Red Book to document the exchange of custody of the deposit bags with the armored carrier. Deposit Centers must safeguard deposit bags, armored carrier Red book and university Deposit Log in a safe. Retain Deposit Log and Red Book for four years.If a receipt must be voided, signatures from both the depositing unit and deposit center must be on the voided receipt. Armored Car Pick-up at Deposit Centers and LocationsThe armored carrier service will scan the deposit bags at each pick-up.Deposit Center or unit must ensure the armored carrier handheld scanner information is accurate prior to signing.Off Campus DepositsUnits not located on the Columbus Campus must be approved in advance by the Treasurer’s Office to make deposits directly at the nearest bank branch.Deposits must include a custom deposit slip ordered through the Treasurer’s Office.Deposits must be taken to the branch designated and obtain a receipt of the deposit from the teller. ATM deposits and night drops are not permitted except for special events after banking hours.Unclaimed FundsRequesting Funds Process Unclaimed Funds are university funds held by the State of Ohio or other state entities or its agencies. The vice president of financial services or designee has the authority to request these funds. The Treasurer’s Office completes the necessary request form and submits it to the government entity.The Treasurer’s Office coordinates with state entities to determine funds due to the university.When payments are received; funds are deposited into the university general funds.Semi-annually the Treasurer’s Office requests funds from government entities and notifies units of funds received.Units that can identify these funds will notify the Treasurer’s Office and make the journal entry to their worktag. Returned Checks Funds received by the bank that cannot be deposited will be returned to the Bursar’s office Checks are returned if the payor has insufficient funds in their bank account, payment was stopped, account was closed, or check was stale-dated. Suspicious Activity Identifying and Reporting Suspicious activityUnits that encounter an individual suspected of suspicious payment activity should not detain the suspect.University Police should be contacted immediately.Document a good physical description of the individual and the direction the individual is traveling.Retain the items for University Police for evidence.Internal Audit must be contacted. ContactsSubjectOfficeTelephoneE-mail/URLIssued:Target issue date: 07/01/2020 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download