Depository Training - University of Michigan



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Treasury Management

Depository Certification Training

Table of Contents

Section 1: Overview 3

Section 2: Deposit Preparation Procedures 4

2.1 Deposit Supplies 5

2.2 Cash 6

2.3 Coin (Ten pounds or more by weight) 7

2.4 Checks 7

2.5 Special Depository Situations 11

Section 3: Creating a Cash Receipt Ticket 12

3.1 Navigation 12

3.2 Important Information 12

3.3 Step-by-Step Instructions 12

Section 4: Cash Receipt Ticket Template 17

4.1 Important Information 18

4.2 Step-by-Step Instructions 18

Section 5: Making Deposits 24

5.1 Making Deposits Using an Automated Deposit Station 24

5.2 Making Deposits at a Bank of America Branch 28

5.3 Making Deposits Using Armored Car Service 28

Section 6: Post-Deposit Procedures 28

6.1 Deposit Verification: Business Objects 28

6.2 Reconciling Deposits to Statement of Activity 31

6.3 Adjustments 32

6.4 Discrepancy Handling 32

6.5 Return Item Handling 33

Section 7: Glossary of Terms 33

treasury.umich.edu

treasury@umich.edu

Section 1: Overview

Welcome to the Treasurer’s Office Depository training course!

The purpose of this course is to provide you with the knowledge and skills you will need in order to meet University of Michigan depository certification requirements and fulfill the responsibility of depositing funds into the University of Michigan’s general depository account.

Achieving depository certification is important because it ensures that all personnel who deposit funds for the University of Michigan Ann Arbor Campus understand the proper procedures for handling money, and it ensures that all funds received by the University are being put to the best possible use for the benefit of the entire University community. One of the most important elements of managing public funds is the concept of internal controls. The following section will introduce you to internal controls and help you understand how it applies to you in your role as depository staff.

Internal Controls

This section will familiarize you with the concept of internal controls as it relates to handling cash and checks within your department, which will assist your department in successfully passing internal audits. Internal controls provide important benefits to your department and to the University as a whole by improving the quality of accounting information, and it reduces the possibility of mismanagement, error and fraud. This in turn increases the probability that The University of Michigan will be able to provide effective service to the community, and it also reduces the possibility of losing public trust and suffering public censure or legal penalties.

The key responsibilities relating to internal control are:

(1) Segregation of Duties;

(2) Review and Approval of Transactions;

(3) Controlled Access to Resources;

(4) Supervision;

(5) Verification and Analysis of Financial Information; and

(6) Documentation of Internal Controls.

We will now cover each of these responsibilities within the context of the depository process.

1) Segregation of Duties: Segregation of duties is the cornerstone of internal control. It is a coordinated system of checks and balances in which tasks necessary to complete a transaction either are performed by different individuals, two or more individuals working in tandem, or the tasks are independently reviewed. In other words, responsibilities (such as receiving money, counting money, preparing deposits, reviewing deposits, and making deposits) should be assigned in such a manner that no one individual (including senior managers and directors) controls all aspects of processing a transaction. Maintaining segregation of duties within departments with small numbers of employees can be particularly challenging.

It is recommended, in some instances, to “partner” with other departments so that certain duties can be segregated. For example, two department supervisors may want to verify the other’s deposit.

2) Review and Approval of Deposits: To maintain control over depository activity, persons acting within the scope of their responsibility must review and approve deposits to ensure appropriateness and compliance with University policies. It is stated in several Standard Practice Guide sections that authorization authority should be granted to individuals of higher administrative authority that know enough about the transaction to ensure its accuracy and consistency with University policy. Under no circumstances may individuals approve deposits they prepared or approve transactions prepared by persons to whom they report functionally or administratively.

3) Controlled Access to Resources: Internal control systems should involve procedures to restrict access to and enhance control over resources. Resources include money, equipment, supplies, inventory, and the records that account for these assets. Maintaining accountability for the use and custody of resources involves assigning responsibilities to specific individuals.

4) Supervision: Provide qualified and continuous supervision to all staff to ensure that internal control objectives are achieved. Supervisors should assign tasks and establish written procedures for completing deposits, systematically review each staff member's work, approve work at critical points to ensure quality and accuracy, and provide documentation of supervision and review such as initialing examined work. Adequate and timely supervision is especially important in small departments, where limited personnel may inhibit a thorough segregation of duties.

5) Verification and Analysis of Financial Information: Depository staff members are responsible for ensuring that transactions are recorded accurately, in a timely manner, and within financial system guidelines. Accurate recording includes adequate descriptions of transactions and the correct use of M-Pathways chartfield strings.

6) Documentation of Internal Controls: Departments should prepare a written internal control plan. An internal control plan is a description of how a department expects to meet its various goals and objectives by using policies and procedures to minimize risks. Documenting policies and procedures will clearly communicate specific responsibilities to individual staff, facilitate training new staff, and enable departments to review and monitor their internal control system.

The remainder of this course serves as an introduction to the skills that are required in order to prepare deposits correctly. The subsequent sections of this course will cover deposit preparation procedures, creating cash receipt tickets and cash receipt templates, making deposits, and post-deposit procedures such as deposit verification and discrepancy handling procedures. You will be given an exam at the end of this course, which will assess your comprehension of the material. If you successfully pass the exam, you will be presented with a certificate that entitles you to make deposits for your department.

Section 2: Deposit Preparation Procedures

The section of the Standard Practice Guide that covers Departmental Cash Management (519.03) states that “All funds collected by any unit or department of the University are to be deposited into a University account on the date of collection. Where this is impractical and where the total deposit is less than $500, the deposit may be made within one day of collection.” This is essential to proper cash management, and any deviation from this practice costs the University money in lost revenue from overnight investments. Although it may not seem like holding onto a few hundred (or a few thousand) dollars for an extra day or two would have a significant impact on the University as a whole, the collective impact of a few days’ “float” by multiple departments can amount to several hundred thousand dollars in lost revenue for the University every year. This loss of investment revenue can also result from improper deposit preparation, which causes the deposit to be held up at the bank and the University may not be credited with the deposit for one or more days while the error is corrected.

This section will provide you with the correct procedures for preparing cash, coin, and check deposits. When you have completed this section, you will be familiar with the depository supplies such as Treasury-issued deposit tickets, check endorsement stamps and the various deposit bags that are to be used for making deposits. You will understand how to bundle and prepare cash deposits, prepare cash & coin deposits, prepare coin-only deposits, endorse checks and prepare check-only deposits, and fill out deposit tickets.

If your department needs to store cash and/or checks overnight it is important to restrict access to these funds. Cash and checks should be stored in a vault, safe, or a locked file cabinet. Access to the safe combination or keys should also be limited to those individuals with a business purpose for accessing the funds.

2.1 Deposit Supplies

You must use the Treasury-issued deposit supplies, which are no cost to depositing units. The online order form and instructions are available on the Treasury Depository Services website. The Treasury department provides all depositing units with the following materials:

• One or two check endorsement stamps (customized for each department / unit); additional stamps may be ordered by the department at the rate of $7.00 ea.

• Deposit tickets (customized for each department / unit)

• Deposit bags (bag sizes and configurations vary according to need)

o Clear, “Check Only” bags

o Small Cash/Coin bags

o Medium Cash/Coin bags

o Large Cash/Coin bags (armored car locations only)

o Large CoinLok bags (armored car locations only, or by special arrangement)

2.1.1 Deposit Tickets

Each unit will receive deposit tickets that are customized with the department name and a unique location code that is assigned to each unit by the Treasurer’s Office. You must include a deposit ticket with each deposit in order to receive proper credit for your deposit. The following is an example of a deposit ticket:

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Each deposit ticket number consists of your four-digit location code and a four-digit sequential number. Bank of America scans the ticket when processing each deposit, so it is important to avoid folding or otherwise manipulating the ticket – keep it as flat as possible.

(Deposit tickets with “LaSalle Bank” are still valid for depository use.)

2.2 Cash

For depository purposes, Cash is U.S. currency and coin only. Foreign currency/coin and severely damaged U.S. cash is not acceptable for deposit/no credit given.

2.2.1 Strapping Currency

Strap each currency denomination in “full money packs” whenever possible. A full money pack is a single strap containing 100 bills of the same denomination arranged face side up. For example:

Ones $100.00

Fives $500.00

Tens $1,000.00

Twenties $2,000.00

Fifties $5,000.00

Hundreds $10,000.00

Excess currency that cannot be strapped in 100-bill increments should be arranged by denomination in 50-bill increments, and then any notes in less than 50-bill increments must be arranged by denomination. Do NOT strap mixed denominations.

2.2.2 Coin (less than twenty-five dollars)

Quantities of coin less than twenty-five dollars should be placed in a plain envelope and included with the currency deposit. Be sure to include the amount of coin on the deposit ticket COINS line under CURRENCY and on the online Cash Receipt Ticket (CRT) if processed.

2.2.3 Currency/Coin Deposit Preparation

a. Count all currency and coin.

b. Complete the online CRT as detailed in Section 3 (if deposit is being applied to non-default or multiple chartfield combinations).

c. Complete a deposit ticket. Also see section 2.4.4 if including checks.

d. Enter your information in the fields on the front of deposit bag, including

o deposit type

o From: (your department name)

o Date

o To: Bank of America

o Currency/Coin amounts

e. Place the currency and the coin envelope (if applicable) in the bottom of the deposit bag.

f. Write the date and deposit amount on the deposit bag inside flap tape (top of bag). Remove the flap tape (white protective backing) to expose the adhesive seal on the deposit bag flap and seal the deposit bag. If you make a mistake, do not attempt to re-seal a deposit bag – discard the bag and use another bag. Keep flap tape with your records for tracking purposes. This tape flap has a unique serial number that is also printed on the deposit bag.

g. Insert the deposit ticket into the clear inner pouch inside the deposit bag so that the face of the deposit ticket is visible from the back of the bag. The inner pouch is not as deep as the area for cash/coins.

2.3 Coin (Twenty-five dollars or more)

Note: If you do not typically deposit this much coin and you have an occasion in which you receive more than ten pounds of coin, please contact the Treasurer’s Office to make special arrangements for depositing bulk coin.

Twenty-five dollars or more of coin (up to 50 pounds) must be deposited in a separate deposit bag designed specifically for coins (CoinLok bag). The Treasurer’s Office can provide a supply of these bags to units that receive bulk quantities of coin on a regular basis. CoinLok bags with less than 10 pounds of coin can be deposited into deposit stations (see Section 5). Departments with CoinLok bags that are too heavy (10-50 lbs) or not able to discreetly conceal the bag can request armored carrier service by contacting the Treasurer’s Office.

Departments that make bulk deposits of coin are not required to count their coin deposit; they can submit a “blind” deposit by including a blank deposit ticket with the CoinLok bag. The bank vault will count the coin and fill in the amount of the deposit for you. The funds are allocated to the unit’s default chartfields.

2.3.1 CoinLok Deposit Bag Preparation

a. Fill out the information on the deposit bag flap labeled “CUSTOMER RECEIPT”.

b. Tear the flap off and keep with your records. Note: The area at the top of the bag is labeled “PROCESSOR RECEIPT”; DO NOT remove this section of the bag.

c. Place the bulk coin (up to 50 pounds by weight) in a CoinLok deposit bag. Use as many CoinLok deposit bags as necessary for the quantity of coin, i.e., three bags for 120 pounds of coin.

d. Remove the protective backing to expose the tamper-evident adhesive seal on the deposit bag flap and seal the bag. If you make a mistake, do not attempt to re-seal a deposit bag. Discard the bag and use another bag.

e. A deposit ticket must be attached to each CoinLok deposit bag, i.e. three bags for 120 pounds of coin will need three deposit tickets.

f. Place the deposit ticket inside a separate “deposit bag pouch” so that the print is visible. Remove the paper backing to expose the adhesive, and attach the pouch to the deposit bag just above the white label that states, “IMPORTANT! DO NOT OVERFILL.”

2.4 Checks

For depository purposes, domestic checks, money orders and travelers cheques are considered checks and not cash. The term “domestic” refers to items issued by a U.S. financial institution or agency in U.S. funds. Please refer to section 2.4.5 for handling foreign items. Checks should be deposited with cash deposits, although not with CoinLok bags. Review checks that they are:

• Written to the university, not to an individual

• Not stale dated – older than 6 months (or older than stated expiration on check)

• Not future dated – dated in the future

Note: The legal amount of a check is the amount written with words, not numbers (i.e., One hundred dollars and 00/100 cents, not $100.00). Sometimes the two amounts will be different; ALWAYS use the check legal amount!

2.4.1 Endorsing Checks

All checks must be “restrictively” endorsed using the U-M Treasury-issued endorsement stamp on the back of the check in the endorsement area at the time the item is received. Failure to endorse a check properly will delay the deposit from posting to the account.

(Stamps with “LaSalle Bank” are still valid for endorsement use.)

2.4.2 Calculating Checks

A calculator tape listing the amount of each check and a total deposit amount must be included with the checks in the deposit (unless you list each check individually on the deposit ticket). The calculator tape should be paper clipped with the checks. It is recommended to keep a copy of the calculator tape for your departmental records. Copies of the checks are not required but may be helpful in the event of future research or reconcilement. If paper photocopies of checks are made, the numbers across the bottom of check (MICR line) must be obscured to reduce fraud/identity theft.

2.4.3 Identification Labels

The bank previously supplied customized preprinted self-adhesive identification labels for check deposits, not cash deposits. The bank discontinued providing these labels in 2011 and they are no longer required on check deposits. Residual labels can be used until exhausted or shredded.

2.4.4 Deposit Preparation

a. Calculate all checks using a calculator with tape. (A list using Excel is also appropriate)

b. Complete the online CRT as detailed in Section 3 (if deposit is being applied to non-default or multiple ChartField combinations).

c. Complete a deposit ticket. Also see section 2.2.3 if including cash or coins.

h. Enter your information in the fields on the front of deposit bag, including

o deposit type

o From: (your department name)

o Date

o To: “Bank of America”

o Check deposit amount.

d. Insert the following items in the deposit bag:

a. The restrictively endorsed checks

b. Calculator tape totaling your deposit

c. The deposit ticket – see next letter “e” below

e. Insert the deposit ticket into the clear inner pouch inside the deposit bag so that the face of the deposit ticket is visible from the back of the bag. The inner pouch is not as deep as the area for checks/cash/coins.

f. Write the date and deposit amount on the deposit bag inside flap tape (top of bag). Remove the flap tape (white protective backing) to expose the adhesive seal on the deposit bag flap and seal the deposit bag. If you make a mistake, do not attempt to re-seal a deposit bag – discard the bag and use another bag. Keep flap tape with your records for tracking purposes. This tape flap has a unique serial number that is also printed on the deposit bag.

[pic]ALERT: The University has a “No Foreign Checks Accepted” policy. Work with the Treasurer’s Office to put alternative collection/payment methods in place.

2.4.5 Foreign Checks, Money Orders and Travelers Cheques

Foreign checks include items drawn on a non-U.S. financial institution. Non-Canadian drafts are extremely labor-intensive to collect the funds from foreign banks, and are expensive to process. Processing varies for the different types of items: Canadian checks in U.S. funds, Canadian checks in Canadian funds, and all other countries’ checks.

Canadian checks in U.S. funds

These checks are not drawn on a U.S. financial institution or agency but should specifically indicate payment in U.S. Dollars. These particular checks are processed with domestic checks as described in Section 2.4.4.

Canadian checks in Canadian funds

a. Place each individual check in a “Canadian Funds Check Envelope” (envelopes can be obtained from the Treasury Depository Services order form website). Envelopes with “LaSalle Bank” or “Standard Federal Bank” are still valid.

b. Call the Bank of America Vault customer service number, 1-800-523-7860 Option 1 to get the daily conversion rate. Enter the daily conversion rate provided into the “Check Rate” field on the envelope.

c. Calculate and write the value in U.S. funds on the envelope.

d. Also write the U-M unit’s name and location code in the “Name of Depositor” field, and the U-M depository account number (located on the bottom of the deposit tickets and ends with 20059) on this envelope.

e. Process this envelope with the domestic checks as described in Section 2.4.4.

All other foreign checks (Do Not Accept)

The University of Michigan does not accept checks of any kind issued from foreign banks located outside the U.S. and Canada. This includes payments from students, vendors and other affiliates, regardless of whether payment is issued in U.S. dollars or foreign currencies.

Accepting checks issued from foreign banks (non-U.S. / non-Canadian) presents unique challenges in the collection of the funds. Unlike domestic checks that are cleared through the United States Federal Reserve, foreign-issued checks must be presented and cleared through a variety of channels depending on the banking system associated with the country of origin. Impacts of the more complex foreign check clearing process include:

• Increased cost for clearing (up to $100.00 per item).

• Foreign checks require a labor intensive clearing process.

• Delays in clearing (as long as 12 weeks), because laws vary by country.

• Foreign exchange risk can be encountered on some currencies.

The University is sensitive to the strategic partnerships held with our vendors and academic affiliates abroad as well as our diverse student population. The Treasurer’s Office is available to assist students, faculty, and staff in making the determination of the most cost effective payment alternative. Suggested payment alternatives include wire transfer through the SWIFT payment network and credit card payments for non-tuition & fee payments.

Foreign check samples:

[pic]

Sample 1: No MICR line; drawn on foreign bank in US Dollars

[pic]

Sample 2: No MICR line; hand-written; drawn on foreign bank in US Dollars

[pic]

Sample 3: Drawn on foreign bank in US Dollars

2.5 Special Depository Situations

2.5.1 General Accounts Receivable

Checks received by a department related to centrally processed accounts receivable invoices should be forwarded directly to Accounts Receivable office for deposit and correct application against the invoice. If a department is unsure of the source of the invoice, they may contact Accounts Receivable at 647-1939 for assistance with the determination.

Mailing Address

The mailing address for Accounts Receivable is 3003 S. State Street, 5000 Wolverine Tower, 48109-1287.

2.5.2 Gift Processing

Cash and Currency Gifts (non-check)

Do NOT send cash gifts to the Office of Gift Administration. Instead, please deposit these gifts according to your department’s operating procedures for depositing funds. Forward a copy of the online CRT ticket along with a completed gift processing form and any related correspondence to the Office of Gift Administration.

Check Gifts

Checks received directly by a department are to be forwarded along with any related correspondence to the Development Office through a Development Office gift drop box. Drop boxes are located at the Central Cashier's Office, Hospital Cashier's Office, and Pierpont Commons. The checks should be stamped or handwritten: "For Deposit Only by the Regent's of the University of Michigan". Please do not use the depository endorsement stamp for gift checks as they are processed by a different bank.

2.5.3 Reimbursements for PCard Activity

Checks received to reimburse PCard activity/purchases, i.e., travel reimbursements, may be deposited:

1. Restrictively endorse the check.

2. Prepare your deposit per the check deposit process in Section 2.4.4.

3. Complete the online CRT as detailed in Section 3.

a. In the description field (30 character limit) provide appropriate detail about the reimbursement.

b. Print an extra copy of the CRT confirmation page.

c. Highlight the relevant chartfield line.

d. Attach a copy of the CRT confirmation page to the PCard statement.

Section 3: Creating a Cash Receipt Ticket

This section will familiarize you with the online application that enables you to create cash receipt tickets automatically, and make direct updates to the general ledger.

3.1 Navigation

Wolverine Access Home page>University Business>Treasury Management>Cash Receipt Ticket

• Use your uniqname and UMICH (Kerberos) password to log into Treasury Management through the Wolverine Access Gateway Web site ().

3.2 Important Information

Each deposit location has a default ChartField combination that is used to record monetary deposits. Use the online Cash Receipt Ticket (CRT) only when you want to:

• Split the deposit between the default ChartField combination and one or more additional ChartField combinations.

OR

• Record the entire deposit using one or more ChartField combination(s) different from the default combination.

[pic] You must enter the eight-digit number shown on the bank deposit ticket in the Deposit Ticket Number field to create an online Cash Receipt Ticket. This number is a combination of the four-digit Location Code and a random sequential number.

[pic] The total dollar amount shown in the Deposit Total field must equal the total deposit amount on the bank deposit slip for accurate tracking purposes. If you split the deposit between your default ChartField combination and one or more additional ChartField combinations, you must enter a row showing the amount to be deposited to the default ChartField combination.

3.3 Step-by-Step Instructions

|3.3.1 – Cash Receipt Ticket Home Page | | |

|[pic] | |Type the eight-digit Deposit Ticket Number. |

| | |Click [pic]. |

| | |Note: You will receive an error message when you click Add if: |

| | |The initial four digits of the Deposit Ticket Number are an |

| | |invalid Location Code. |

| | |The value entered in the Deposit Ticket Number field was already |

| | |used. |

| | |Verify the number and re-enter to correct the error. If number |

| | |was already used, then shred deposit ticket, write void on the |

| | |yellow deposit ticket copy and create a new deposit ticket. |

|3.3.2 – Cash Receipt Ticket Page | | |

|[pic] | |Type the appropriate ChartField values in the following fields: |

| | |Account |

| | |Fund |

| | |Department |

| | |Program |

| | |Class |

| | |Proj/Grt |

| | |OR |

| | |Click [pic] to look up and select a ShortCode value to populate |

| | |the corresponding ChartField combination. |

| | |Type an appropriate value in the Account field. |

| | |Note: You do not see the selected ShortCode value on the Cash |

| | |Receipt Ticket page. The ChartField values that correspond to |

| | |the ShortCode appear in the appropriate fields. |

| | |Use the horizontal scroll bar or press the Tab key on your |

| | |keyboard to move to the remaining fields for the Cash Receipt |

| | |Ticket. |

| | | |

|[pic] | |Type the Amount to be deposited for the ChartField combination. |

| | |Type an appropriate explanation for the Cash Receipt Ticket row |

| | |in the Description field. |

| | |Click Add a new row [pic] to enter the additional line(s), if |

| | |necessary. |

| | |Note: The ChartField values and the Description from the current |

| | |line will copy down to the added line(s). |

| | |Scroll to the left of the Cash Receipt Ticket page to continue |

| | |adding lines or to process the Cash Receipt Ticket. |

|Cash Receipt Ticket Page (continued) | | |

|[pic] | |To insert multiple lines enter the number you wish to add in the |

| | |Lines to Add box and click [pic]. |

| | |Note: The ChartField values and the Description from the last |

| | |line will copy down to the added lines. |

| | | |

|[pic] | |Verify that the Deposit Total equals the dollar amount on the |

| | |bank deposit ticket. |

| | |Click [pic] to process the Cash Receipt Ticket. |

| | | |

| | |NOTE: once you click the Commit button, you cannot alter any |

| | |information! |

| | | |

|3.3.3 – Cash Receipt Ticket Confirmation | | |

|[pic] | |Click CRT Printable Page. |

| | |Note: A new window opens to display the printable version of the |

| | |CRT, which can be printed and kept with financial records for |

| | |reconciliation purposes. |

|Cash Receipt Ticket Printable Page | | |

|[pic] | |Click Print. |

|Print Dialog Box | | |

|[pic] | |Click [pic]. |

|Cash Receipt Ticket Printable Page | | |

|[pic] | |Click Close. |

| | |NOTE: If you fail to print this page and close the Web page, you|

| | |cannot obtain a copy. |

| | |If you have FINODS query access, the next business day you can |

| | |print an Excel version of the CRT. |

| | |FINODS query name: M_GL_CRT_BY_DEPOSIT_TICKET |

| | |Instructions: |

| | |

| | |.pdf |

|Cash Receipt Ticket Confirmation | | |

|[pic] | |Click Return to CRT Home to go to the Cash Receipt Ticket Home |

| | |page. |

3.3.4 – Temporarily Saving and/or Deleting an Online CRT

You have the option to save an online Cash Receipt Ticket (CRT) before committing the deposit total. Clicking “Save” allows you to save your work and continue working within the application. Clicking “Save for Later” allows you to close the online CRT and return to it at a later time to continue entering data or to commit it.

[pic] You must complete (i.e., commit) a saved online CRT the same day that you make the corresponding deposit or the deposit will be credited to the default ChartField combination for the deposit location.

[pic] After you have saved an online CRT, the Deposit Ticket Number is recorded in the system. If for some reason you decide the CRT is not needed, you can delete it prior to committing.

[pic] After an online CRT has been committed, it cannot be deleted or reused for a different deposit.

This step-by-step procedure assumes that you know the basic data entry steps to create the online CRT. It begins with saving an online CRT and demonstrates locating it to reopen it for additional entry or to commit the deposit.

|Cash Receipt Ticket Page | | |

|[pic] | |Click [pic] to save your work and remain in the CRT to continue |

| | |adding lines. |

| | |Click [pic] to save your work and return to the Cash Receipt |

| | |Ticket Home page. You can return to the CRT at a later time to |

| | |continue entering data or to commit it. |

|Cash Receipt Ticket Home Page | | |

|[pic] | |Click the desired Deposit Ticket Number in the Complete Cash |

| | |Receipt Ticket group box. |

| | |Note: The Complete Cash Receipt Ticket group box only appears on |

| | |the Cash Receipt Ticket Home page if you have saved an |

| | |uncommitted CRT. |

|Cash Receipt Ticket Page | | |

|[pic] | |Once you have saved a CRT, the option to Delete the CRT is |

| | |available. |

| | |Click [pic] to delete the CRT and return to the Cash Receipt |

| | |Ticket Home page. |

| | | |

| | | |

| | | |

| | | |

Section 4: Cash Receipt Ticket Template

This section applies primarily to departments that make deposits using multiple chartfield combinations. Although your department may not utilize this function, it is important to understand how the application works in the event that you begin using it in the future due to a job change or reorganization within the University.

4.1 Important Information

A Cash Receipt Ticket Template (CRT Template) is a form that allows you to create an online CRT with minimal data entry. A CRT Template looks similar to the online CRT, but the template does not contain the Amount field.

[pic] It is recommended that you create a CRT Template for deposit situations that routinely require that the deposit amount be recorded with a ChartField combination different from the default combination for the deposit location. If the situation does not occur regularly, follow the steps outlined in the Create an Online Cash Receipt Ticket step-by-step procedure.

The system associates your Operator ID (i.e., uniqname) with each CRT Template you create. You can use and maintain only your own CRT Templates.

4.2 Step-by-Step Instructions

|4.2.1 – Cash Receipt Ticket Home Page | |

|[pic] |Type a name for your CRT template in the Template Name field. |

| |Note: The template name should refer to the deposit activity for your|

| |deposit location. Do not enter a specific Deposit Ticket Number. |

| |Click [pic]. |

|4.2.2 – Cash Receipt Ticket Template | |

|[pic] |Type the appropriate ChartField values in the following fields: |

| |Account |

| |Fund |

| |Department |

| |Program |

| |Class |

| |Proj/Grt |

| |OR |

| |Click [pic] to look up and select a ShortCode value to populate the |

| |corresponding ChartField combination. |

| |Type an appropriate value in the Account field. |

| |Note: You do not see the selected ShortCode value on the Cash Receipt|

| |Ticket Template page. The ChartField values that correspond to the |

| |ShortCode appear in the appropriate fields. |

|Cash Receipt Ticket Template | |

|[pic] |Type an appropriate explanation for the deposit activity in the |

| |Description field. |

| |Click Add a new row [pic] to enter an additional line(s), if |

| |necessary. |

| |To insert multiple lines enter the number you wish to add in the |

| |Lines to Add box and click [pic]. |

| |Click [pic]. |

4.2.3 – Updating a Cash Receipt Ticket Template

To modify an existing CRT Template, open the template using the link in the Update Cash Receipt Ticket Template group box on the Cash Receipt Ticket Home page. This group box only appears on the Cash Receipt Ticket Home page when you have a saved CRT Template.

|Cash Receipt Ticket Home Page | |

|[pic] |Click the desired CRT Template name in the Update Cash Receipt Ticket|

| |Template group box. |

|Cash Receipt Ticket Template | |

|[pic] |If applicable, change the ChartField values in the any of the |

| |following fields: |

| |Account |

| |Fund |

| |Department |

| |Program |

| |Class |

| |Proj/Grt |

| |If applicable, click [pic] to look up and select a new ShortCode |

| |value and type an appropriate value in the Account field |

| |If applicable, click Add a new row [pic] and enter an additional |

| |line(s) or click Delete Row [pic] to remove a row. |

| |Note: Click OK to close the verification message that appears after |

| |deleting a row. |

| |Click [pic] to save your changes to the CRT Template. |

4.2.4 – Deleting a Cash Receipt Ticket Template

Because a CRT Template is associated with your uniqname when you create it, only you are able to delete your CRT Templates.

|Cash Receipt Ticket Home Page | |

|[pic] |Click the link for the CRT Template you wish to delete from the |

| |Update Cash Receipt Ticket Template group box. |

|Cash Receipt Ticket Template | |

|[pic] |Click [pic]. |

|Delete CRT Template? Message | |

|[pic] |Click [pic] to delete the CRT Template. |

|Delete CRT Template Verification Message | |

|[pic] |Click [pic] to close the message. |

4.2.5 – Entering an Online CRT Using an Existing Template

Creating an online CRT from an existing CRT Template minimizes the data entry of the ChartField distribution for the deposit.

[pic] You may change the ChartField values, add new rows, or delete rows that are defaulted into the online CRT from the template. Changing the data for the online Cash Receipt Ticket does not change the information on the template. For instructions to update a CRT Template, see the Update a Cash Receipt Ticket Template step-by-step procedure.

The Look Up Template Description page automatically displays a Search Results list that shows the templates you created by their name. You do not need to conduct a search for the template if the link is visible in the Search Results list when the page opens.

|Cash Receipt Ticket Home Page | |

|[pic] |Type the eight-digit Deposit Ticket Number. |

| |Click [pic]. |

|Cash Receipt Ticket Page | |

|[pic] |Click [pic]. |

|Look Up Template Description Page | |

|[pic] |Select the desired template from the Search Results list. |

| |OR |

| |Type the full or partial template name in the Search by field and |

| |click [pic] to locate and select the desired template. |

|Cash Receipt Ticket Page (continued) | |

|[pic] |Verify that the ChartField values are correct or change the values, |

| |if applicable. |

| |Type the Amount to be deposited for the ChartField combination. |

| |Use the horizontal scroll bar or press the Tab key on your keyboard |

| |to move to the remaining fields for the Cash Receipt Ticket. |

| |Complete any remaining data entry. |

| |Click [pic] to process the Cash Receipt Ticket. |

| |Print the Cash Receipt Ticket Confirmation page for your records (not|

| |shown). |

4.2.6 – Copying an Existing Template to Another User

Copying Cash Receipt Ticket templates to another user(s) can save time and also ensure consistency in the chartfields to which multiple depositors allocate deposits.

[pic] You should copy your template(s) to someone in your department who serves as your backup in the event of your absence.

This step-by-step procedure assumes that you have already created a CRT Template. It begins with copying a template to another user.

|Cash Receipt Ticket Template | |

|[pic] |Click Copy Template to Another User. |

|Enter User Uniqname and Template Name | |

|[pic] |Type in the user’s Uniqname, or use the lookup function to find the |

| |user. |

| |Click [pic]. |

|CRT Template Copy Verification Message | |

|[pic] |You will receive a confirmation message that the template has been |

| |copied. Click OK to close the message. |

Section 5: Making Deposits

This section covers three different depository processes: making deposits using an automated deposit station, making deposits at a Bank of America branch, and making deposits using an armored carrier/courier service. (UMHS Depositing locations can drop off Treasury deposit bags at the Hospital Cashier’s Office.) Your department will typically use only one of these methods depending on the nature of your depository activity. However, it is important to have a thorough understanding of all three processes in the event that you need to change from one method to the other.

5.1 Making Deposits Using an Automated Deposit Station

Departments that handle smaller amounts of cash (less than two thousand dollars cash and/or ten pounds of coin) or small- to medium quantities of checks (less than one thousand checks) on a daily basis will make daily deposits using the automated deposit stations that are located around the Ann Arbor campus. There may be exceptions to this, as in the case of departments on the Flint and Dearborn campus, as well as other departments that are not within a few minutes’ walk to one of the automated deposit stations. If your department within the Ann Arbor area does not make bulk deposits and is not within an about 5-minute walk (building-to-building) of an automated deposit station or a Bank of America branch, you may contact the Treasurer’s Office to discuss using another deposit method.

Security Notes:

The following guidelines were adapted from ATM safety tips that are recommended by the American Bankers Association Education Foundation. Although depositing money in a sealed deposit bag is generally safer than withdrawing loose cash from an ATM, the Treasury department found some of the general safety principles for ATM transactions to be applicable.

Be sure to exercise discretion when carrying deposits to the deposit station, regardless of the size / amount. When traveling from building to building it is recommended that you carry the deposit bags in something larger, like a backpack or briefcase that appears less conspicuous than carrying exposed deposit bags.

You should vary your deposit schedule, even if by a few minutes each time.

Scan the area as you approach the deposit station to check for any suspicious individuals or circumstances. If you spot anyone who makes you feel uncomfortable, proceed on your way and make the deposit at a later time. Report the incident to the Department of Public Safety if you are reasonably confident that the individual intends to commit a crime.

Have your Mcard ready and in your hand as you approach the deposit station.

Be sure to take the receipt for your departmental records when you have completed the deposit transaction.

|Automated Deposit Station | |

|[pic] |Go to the nearest deposit station. Deposit stations have been strategically placed |

| |in buildings around the Ann Arbor Central Campus and North Campus area so that the vast |

| |majority of departments on campus are within a 5-minute walk of a deposit station. You |

| |can visit the Treasury Depository Services website to find the location that is most |

| |convenient for you. |

| |Anyone with an Mcard can use deposit station. They do not have to be authorized |

| |depositors, just trustworthy. |

| | |

| | |

|[pic] |Press A and insert and remove your Mcard from the card reader. |

| | |

| |This validates that you are authorized to access the deposit station and make deposits |

| |for the University. |

| | |

| |*** Mcard must be facing up to be read correctly. *** |

| | |

| | |

|[pic] |Scan the barcode on the first bag. |

| |Scanning the barcode creates a record of the specific bag you are depositing in the |

| |machine. Hold the bag right side up, approximately 3 to 6 inches from the beam. Allow |

| |the red beam to read the bag’s barcode. |

| |Note: if you are not able to scan the barcode, follow the screen prompts to manually |

| |enter the barcode number on the silver keypad. |

| | |

|[pic] |Lift the deposit bin door when prompted, insert the deposit bag and close the door |

| |completely. |

| |The deposit station contains a sensor that detects when the bag has been dropped in the |

| |bin. |

| | |

| |Note: If you have a lightweight deposit, i.e., one or two checks, fold the bag in thirds|

| |before inserting it into the bin. If you are issued a receipt that says “Deposit not |

| |detected,” your bag was not bulky enough to register with the machine’s sensor. Your bag|

| |should be safe inside the machine. Verify that the bag was received by the bank by |

| |reviewing the Business Objects Deposit Activity report. |

| | |

| |If you have multiple bags to deposit, please deposit them separately. Do not insert |

| |more than one deposit bag in the bin at a time. |

| | |

|[pic] |If depositing additional bag(s), press “A” to indicate that you have an additional bag; |

| |if you only have one bag to deposit, then skip to Step 9 and press “C”. |

| | |

|[pic] |Scan the next bag’s barcode you need to deposit. |

| | |

| |Note: if you are not able to scan the barcode, follow the screen prompts to manually |

| |enter the barcode number on the silver keypad. |

|[pic] |Lift the deposit bin door when prompted, insert the deposit bag and close the door |

| |completely. |

| |If depositing additional bags, repeat steps 5 and 6 until all bags have been scanned and|

| |deposited. |

|[pic] |Press “C” to Complete the transaction and print a receipt. |

| |NOTE: Don’t pull receipt - machine will cut receipt. Pulling on receipt will cause a |

| |paper jam. |

| |When you are finished depositing, the machine will print a receipt with the date/time of|

| |the deposit, your name, the number of bags deposited, and the bag numbers. You can keep|

| |this receipt as verification of deposit for your departmental records. If kept, this |

| |receipt should be retained in a secure location at the department for use in the |

| |reconciliation or verification of deposits. |

| | |

| |If your receipt reads, “Deposit not detected”, refer to the explanation associated with |

| |step 4 above. |

| | |

5.2 Making Deposits at a Bank of America Branch

Departments that are not located near a deposit station can make deposits at a nearby Bank of America branch, however, the Treasurer’s Office must set up departments with a particular branch prior to deposits being made. Visit the website to find a convenient branch location.

When you make a deposit at a Bank of America branch, the preferable method is to walk the deposit into the branch during business hours and hand it to a teller. The teller will provide you with a deposit receipt as proof of the deposit that you can keep for your records. This receipt should be retained in a secure location at the department for use in the reconciliation or verification process of deposits. You can also use the drive-up lane as long as the branch has a drawer that extends from the building – do not use a drive-up lane with the pneumatic tubes to make a U-M deposit.

5.3 Making Deposits Using Armored Car Service/courier service

Departments that handle large amounts of cash (more than two thousand dollars cash, and/or bulk quantities of coin that exceed ten pounds in weight) on a daily basis or large quantities of checks (more than one thousand checks) on a daily basis will be entitled to use the armored car service that is under contract with the Treasurer’s Office.

The armored carrier will specify a window of time during which they will usually make the pickup of deposit bags on normal banking business days. It is the responsibility of the department depositor to have each day’s deposit ready for pickup before the designated start time that the carrier may arrive. The armored carrier service cannot wait for a deposit to be prepared after they arrive for the pickup, as they make multiple pickups on their route and must stay on schedule.

The armored carrier provides each department with a logbook where the amount of each deposit is logged, and the courier signs for each deposit bag that is to be delivered to the bank.

Departments can also use Metro Delivery Service to have deposits transported to Bank of America. Please contact the Treasurer’s Office for details. Along with regular internal controls, departments must create a log sheet for the courier to sign for all deposits retrieved. Log sheet must include Date, Time, Deposit Bag #, signature line, courier printed name, etc.

Section 6: Post-Deposit Procedures

This section covers the various procedures for activities that occur after a deposit has been made by your department. This includes verifying your deposit, how deposit discrepancies are handled, how returned items (NSF / stop-payments) are handled, and how adjustments to a journal entry occur. It is important to understand the process for each of these activities, and what the roles and responsibilities are within each process.

6.1 Deposit Verification: Business Objects

This section will demonstrate the steps required to verify your weekly deposit activity using a Business Objects report. This report will enable you to ensure that your department is properly credited with deposits made during the previous week. It is important to verify deposits every week. This report has been published into the Business Objects Corporate documents.  The name is “FN03 JrnDetail Location Deposit Activity.rep”.

Please keep in mind that the policies regarding access to financial data apply to this report. Any misuse of data in or from administrative systems will subject you to disciplinary action as described in Standard Practice Guide 201.12 (Discipline – performance and conduct standards). Do not access depository detail for any location code other than the code directly related to your job responsibility.

|Business Objects Reporting | |

|[pic] |Click the “Reporting" link on the |

| |University Business page in Wolverine |

| |Access. |

|[pic] |Click the “U-M Data Warehouse” link. |

|[pic] |You will see a folder structure in the |

| |left-hand frame; select “Public |

| |Folders”, then “UM-Maintained”, then |

| |“Financials”, then finally “FN03 |

| |Journal Detail…” |

| |Click the “FN03 JrnlDetail Location |

| |Deposit Activity” link in the main |

| |frame of the browser window. |

|[pic] |You will then see the report – click |

| |the ‘Refresh Data’ button. |

| |You will be prompted to enter your |

| |four-digit location code and a date |

| |range. Enter the values and click ‘Run|

| |Query’. |

|[pic] |The results will appear on the report, |

| |grouped by transaction type. |

|[pic] |All deposit discrepancies and returned |

| |items will be reflected in a separate |

| |section of the report. |

For those who seek deposit activity more frequently than weekly and have FINODS query access, can run the following FINODS query: MGL04329_LOCATION_DEPOSIT_ACTV

This query will give you all CRT deposit history for your four-digit location code within a specified date range

6.2 Reconciling Deposits to Statement of Activity

Each department should reconcile deposit activity to the monthly Statement of Activity (SOA) provided by U-M Financial Operations. The Journal IDs assigned for deposit/adjustment activity sent in the daily bank activity file will be ‘CR’ followed by the 8-digit deposit ticket number, i.e. CR00061203.  The Journal Date will be the date the deposit/adjustment was posted to the bank account, which will be the business day prior to the date the file is sent to the University by the bank.  

The journal line ChartFields and description for deposit activity will either be what was entered on a corresponding Cash Receipt Ticket (CRT), or in the absence of a CRT the journal line ChartFields will be the default ChartFields assigned to your unique location code.  If there is not a corresponding CRT, the journal line description will contain ‘DEPOSIT TICKET# < 8-digit ticket number >’.  In the case of any deposit adjustments, the ChartFields will be the default ChartFields for your unique location code and the line description will contain either ‘DEBIT ADJUSTMENT TIC# < 8-digit ticket number>’ or ‘DEBIT ADJUSTMENT LOCATION < 4-digit location code >’ if only the location code is provided in the bank file.  

Credit adjustments will use similar journal line descriptions except you will see “CREDIT” rather than “DEBIT” indicated in the description.

6.3 Adjustments

Discrepancies may occur, on occasion, between the deposit amount a department reports on the CRT and the amount the bank reports having received. This is commonly due to a cash miscount or a check being left out of the deposit that was counted as part of the deposit. Departments can monitor for such discrepancies by using the Business Objects report.

When Bank of America counts a deposit and detects an amount other than the amount written on the deposit ticket, they will credit the U-M Depository Account the deposit ticket amount and then issue a separate adjustment to the account in the amount of the discrepancy. Bank of America will also fax the department’s Treasury Primary Contact a deposit correction notice (DCN) generally the following morning after processing a deposit with a discrepancy.

NOTE/Exception: Bank of America will simply provide credit for the written deposit ticket amount even if it is up to +/- $10 off. They will not issue any notifications to departments.

Bank of America also sends an electronic file to ITS on a daily basis with the deposit activity from the previous business day. The data in this file will contain both the reported deposits and adjustment line items for any discrepancies. When the file is sent to ITS they will process the file and make automatic journal entries.

6.4 Discrepancy Handling

The U-M Financial Operations Banking Services department will be able to assist you, in most cases, regarding a discrepancy between a deposit you made and what shows up on your Statement of Activity (SOA).

If you detect a discrepancy that you are unable to resolve you can contact treasury@umich.edu for further assistance. If for some reason they are not able to answer your question, they will be able to direct you to someone who can assist you.

6.5 Return Item Handling

This section explains how deposit items returned to the University will be processed by the Accounting Services group in Financial Operations. A returned item includes any deposited item returned due to non-sufficient funds (NSF), stop payment order or refer-to-maker.

An NSF check will be submitted twice by the University’s bank to the issuing institution. If the item is returned the second time, the University’s bank will return the item to the Accounting Services department within Financial Operations.

Additionally, items that were returned due to a stop payment order by the issuer and items returned noting refer-to-maker will be returned to Financial Operations - Accounting Services.

The University’s bank will also electronically communicate the returned item information along with the location code of the item to Accounting Services. Accounting Services will process the returned item using the default returned items ChartFields specified by the location administrator at the time of certification. Immediately upon receipt of the returned item, Accounting Services will send via Campus Mail the returned item to the respective location. Collection for returned items is the responsibility of the department from which the check originated.

Section 7: Glossary of Terms

Location Code: A four-digit number assigned to departments and depositing units by the Treasury department; enables Financial Operations to track depository activity and materials. It can be located on the check endorsement stamp and deposit tickets.

ChartField Combination: ChartFields are the seven fields used in M-Pathways to enter, record and report financial transactions for the University. A ChartField Combination is a sequence up to seven fields that describes a specific financial activity within the University.

Shortcode: A six-digit number that represents a portion of a ChartField Combination. At a minimum, this stands for a specific Fund/Department/Class combination, but may also include a Program and/or a Project/Grant value depending on how the unit is tracking its business.

Refer-to-Maker: Banking term on a returned check that implies the check is not redeemable, for reasons other than non-sufficient funds (NSF) or stop-payment orders – commonly due to stale-dated checks or suspicion of fraud.

For general depository questions, please contact: treasury@umich.edu.

[pic]

-----------------------

Unit Name / Loc. Code

Location Code

Sequential Number

Deposit Ticket Number

2

1

3

4

3

6

5

7

8

9

16

15

14

13

12

10

11

1

3

6

2

1

3

3

7

5

4

1

5

4

3

2

1

2

3

4

2

1

3

4

7

6

5

6

9

5

4

2

3

1

1

2

3

4

2

5

................
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