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Accepting and Depositing University Revenue |
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Effective: April 1997
Last Updated: February 2009
Responsible University Officer:
Policy Owner:
Policy Contact:
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Every University unit that collects revenue from any source must:
- Ensure that all revenue is accurately recorded at the time of receipt.
- Keep all checks, currency, and coin in a locked and secured location until the funds are deposited.
- Promptly deposit the revenue into an authorized University general ledger account, while following University procedures. Revenue must be deposited when the total reaches $1,000 or greater, or once a week, whichever comes first.
Any banking or credit relationship established for the purpose of collecting or depositing University funds or uses the University name or a derivative thereof or tax identification number requires pre-approval by the University CFO/Treasurer. The Office of Investments and Banking (OIB) is responsible on behalf of the University CFO/Treasurer for establishing all financial institution accounts. University departments and staff are not authorized to open or close any such accounts. Departments that identify a need for a separate banking relationship may submit such a request to the Office of Investments and Banking (OIB).
Special Situations
- Operations and Maintenance Revenue
- Occasionally revenue may be earned from activities funded from Operations and Maintenance accounts. This revenue should be recorded to the appropriate general ledger account. The revenue can be spent on activities consistent with the mission of the unit.
- Refunds
- Occasionally, departments may receive revenue in error. When this occurs, the department must claim the revenue and process a (refund) payment through accounts payable. For more information, refer to the Disbursement Services procedures.
- Special Funds
- Should money be collected for a special event such as memorials or scholarships whereby the funds are intended to remain under the ownership of the University, they should be deposited to a recognized University foundation.
- Should money be collected for personal reasons such as flower or coffee funds, money for a retirement, or a memorial outside the ownership of the University, the departments have several options: they can maintain cash funds, deposit the money to an employee’s personal account or open an account after applying for their own non-University related federal tax identification number. DO NOT use the University name or a derivative thereof or the University tax identification number, deposit to a University general ledger account, or deposit into a University general receipts account. For additional information see Administrative Policy: Hospitality and Special Expenses.
- Student Organizations
- Student organizations which are classified as University Campus Life Programs (CLPs), are University entities and subject to all responsibilities and entitled to all privileges thereof, including the use of the University name and tax identification number. All CLPs must be affiliated with a University of Minnesota academic or administrative department and have a designated University faculty or staff advisor. Registered Student Organizations (RSOs) are not University entities and cannot use the University name or tax identification number. For more information on student organization classifications, refer to the Registration and Classification of Student Groups handbook at www.sua.umn.edu/groups/handbook/classification.php).
To safeguard University assets and ensure that:
- controls are applied
- financial reporting and bank reconciliations are accurate
- transactions comply with University, IRS, and other federal and state reporting requirements
- If applicable, sponsor / donor intentions are followed
To abide by Board of Regents Policy: Internal Controls.
Check, Currency, Coin Deposits:
For procedures related to selling to external customers, or accepting credit or debit cards, refer to Administrative Policy: Selling to External Customers.
For procedures regarding sponsored funds, refer to the Sponsored Projects Administration (SPA) website.
- Appropriations
- A type of revenue. All amounts for current operations made available to the University by legislative acts or the local taxing authority. This does not include government grants and contracts or institutional fees. Examples include Draw requests from state appropriation, Draw requests from Federal appropriation, and Financial Aid Revenue.
- Contract
- An agreement between the University and another entity to provide an economic benefit for compensation paid. This exchange transaction is binding between the University and the entity.
- Electronic Funds Transfer (EFT)
- See definition in the Administrative Policy: Accessing U-Wide Banking Services.
- External Sale
- A transaction involving the transfer of funds by a third party to the University which meets all the criteria set forth in (a), (b), and (c):
- The funds are in exchange for services performed by the University and any tangible goods produced as a result of such services; use of laboratory equipment; or a license to use information on University-maintained databases.
- The transaction is not a Sponsored Project or Gift.
- The transaction is consistent with the scope, guiding principles, and criteria set forth in the Board of Regents Policy Direct Sales of Goods and Services.
For further detail of External Sales, refer to Administrative Policy: Selling to External Customers, Appendix F - Examples of Gifts, Sponsored Projects, and External Sales.
- Gift
- All restricted and unrestricted transfers of money or property (i.e., equipment, land, etc.) made to a recognized University Foundation or College by an individual, group, business or non-governmental agency when the use of the funds is NOT intended to result in direct economic benefit or any other tangible compensation (i.e., goods or services) to the donor. For example, see Administrative Policy: Selling to External Customers - Examples of Gifts, Sponsored Projects, and External Sales.
- Grant
- Grants are additional resources awarded to the University to support instruction, research or public service. The terms of a grant may dictate particular activities but restrictions are generally few. Frequently a grant has similar characteristics to a gift. Sponsored grants are administered by Sponsored Project Administration (SPA). Although rare, certain grants are administered by specific University departments. For example, scholarship grants such as Federal Pell Grants. The terms of the grant will determine whether it should be processed as a gift, a sponsored project administered by SPA, or managed by a specific University department. For guidance in distinguishing between gifts and sponsored projects, see Administrative Policy: Selling to External Customers, Appendix F - Examples of Gifts, Sponsored Projects, and External Sales.
- Indirect Cost Recovery
- Costs that are recoverable from sponsored projects because they indirectly relate to the research. Examples are operation and maintenance of buildings and grounds, central administrative expenses, research administration and library costs.
- Internal Sales
- The sale of goods or services by one University department to another department within the University. Examples include revenue generated by Graphics Services, Fleet Services, Telecommunication Services, Physics Shop and University Stores. In some situations a department may use a University Procurement Card to buy goods or services from a University department that accepts credit cards as a form of payment.
- Investment Income
- Revenue generated from the investment of University assets. Investments are made by the Office of Investments and Banking (OIB). Examples include income from:
- Temporary Investment Pool (TIP)
- Group Income Pool (GIP)
- Permanent University Fund (PUF)
- Consolidated Endowment Fund (CEF)
- Merchant Account
- An account set up by the Office of External Sales (OES). The account is credited with revenue generated from payment card purchases.
- Patient Care Reimbursement
- Revenue generated from the care of patients in the Academic Health Center. Examples include revenue received from the dental clinic and the Boynton Health Service.
- Payment Cards
- Payment cards may be either debit cards or credit cards:
- Debit Card - A card that debits an individual's bank account and reduces the account balance as purchases are made.
- Credit Card - A card that increases a balance due on a credit limit as purchases are made. There are four types of credit cards accepted at the University: VISA, MasterCard, Discover, and American Express.
- Payment Card Transactions
- There are three types of payment card transactions:
- Card Present Transactions - the customer is present with their card. The card is swiped through the terminal reader.
- Card Present Keyed Transactions - customer is present with their card. The magnetic stripe on the card is unreadable when swiped through the terminal. The credit card number and expiration date are manually keyed.
- Keyed Transactions - mail order, telephone order, or WWW order. The customer is not present. The customer provides credit card information on a form prepared by the merchant, over the telephone, by fax, or by mail, and it is keyed into a credit card terminal or software. For the WWW order, the customer provides their credit card number and expiration date on a secure interactive web form. The sale is authorized while they are online.
- Sponsored Project
- An externally funded activity that is governed by specific terms and conditions. Sponsored projects must be separately budgeted and accounted for subject to terms of the sponsoring organization. Sponsored projects may include grants, contracts, and cooperative agreements for research, training, and other public service activities. To help ensure compliance with submitted proposals, these projects are routed through Sponsored Projects Administration.
- Student Fees
- All fees, except tuition, assessed to students for educational purposes, net of associated refunds. These fees include all those that are assessed on students' fee statements:
- Student Services Fee - Mandatory student fee excluding course and laboratory fees.
- Course & Lab Fees - Fees used to cover special course-related expenses, usually associated with supplies and materials.
- Application Fees - Fees paid by prospective students who apply for admission.
- Tuition
- The amount of money assessed to students (net of refunds, but prior to application of waivers and scholarships) for instructional services:
- Tuition includes charges for all credit-bearing University courses and less formal credit-bearing services such as thesis advising.
- Tuition does not include student services fees or administrative and special course fees which are subject to specific approval by Board of Regents Policy: Tuition and Fees.
- University Authorized General Receipts Account
- A depository bank account set up by the University Treasurer to receive deposits on behalf of the University.
- University Authorized Disbursement Account
- A disbursement account set up by the University Treasurer to disburse funds on behalf of the University.
- University Funds
- Monies generated by University units, or University-sanctioned organizations, from teaching, research, outreach, external sales, investment and fund-raising activities. Also monies received from grants and state.
- Accounting Services
- Provide information for financial reporting and year-end audits. Establish University revenue codes.
- Audit
- Conduct routine audits of revenue collecting procedures. Audit cash receiving process during normal audit process. Conduct special reviews or investigations at the request of University departments or others with concerns or allegations.
- Bursar
- Serve as a central depository for all University departments. Collect and receipt revenue for tuition, fees and departmental deposits. Provide departments with coin, currency and postage per their business needs. Order banking supplies for University departments. Provide check cashing services to University staff and students.
- Department
- Establish accountability for receipts. Restrictively endorse all checks as received. Deposit receipts intact each day in accordance with University policy. Determine proper classification of revenue and code properly. Lock un-deposited cash in a safe location. Perform proper reconciliation to verify deposit. Pursue collection of bad debts and returned checks.
- Reconcile cash receipt activity. Properly separate cash handling duties. Report cash shortages to the Office of Internal Audits, Police and if applicable the Office of Risk Management. Seek approval to accept payment card payments.
- Pay for merchant card equipment, software and fees.
- Office of External Sales
- Establish, maintain and terminate payment card merchant accounts. Ensure, maintain, and monitor compliance with Payment Card Industry Data Security Standards (PCIDSS).
- Office of Investment and Banking (OIB)
- Oversight of all University cash management practices to include all University bank accounts and banking services. Prepare daily cash flow forecasts. Maintain adequate liquidity of University assets to meet cash flow needs. Provide assistance to University departments in areas of banking, cash handling and treasurer policies. Negotiate, coordinate and manage all agreements, policies and business- related cash management and banking services on behalf of the University. Responsible, on behalf of the University CFO/Treasurer for establishing all financial institution accounts.
- Police
- Respond to thefts and complete reports.
- Sponsored Financial Reporting (SFR)
- Receives all revenue on behalf of the University for sponsored grants and contracts. SFR collection representatives follow up with the sponsor on all past due invoices to ensure receipt of payment on invoices and work with both sponsors and academic departments on quality or quantity issues related to non-payment.
- Treasury Accounting
- Reconcile the University's bank accounts to the general ledger. Provide information for financial reporting and year-end audits.. Distribute investment income to investment pool participants.
- University CFO/Treasurer
- Has fiduciary responsibility to open and monitor financial institution accounts to manage cash flow, safeguard assets, maximize earnings on income and guarantee accurate financial reporting. Approve bank and credit card contracts on behalf of the University. Authorized signer on all domestic and international University bank accounts. Determine the University-wide philosophy regarding the use and handling of cash.
- University Debit/Credit Card Processor
- Provide training to University departments. Authorize and process University debit/credit card transactions. Deposit money into the University's bank account.
For information related to selling to external customers, or accepting credit or debit cards, refer to Administrative Policy: Selling to External Customers.
- Amended:
- February 2009 - EFS related content updates. Added procedures, appendix and faq.
- Amended:
- July 2008 - Changed OAM references to OIB. Accounting Services references changed to Treasury Accounting. Other updates made to address rollout of Enterprise Financial System (EFS). Updated procedures and appendices will be updated as they become available.
- Amended:
- March 2007 - Updated OAM and Bursar responsibility descriptions. Changed Business Services to Controller's Office.
- Amended:
- November 2006 - External Sales office now has responsibilities for establishing, monitoring and terminating bankcard accounts rather than the Office of Asset Management. Responsibilities and contacts sections updated to reflect this. Bankcard Merchant Application Form and Bankcard Internet Merchant Application form have been consolidated into one form.
- Amended:
- July 2004 - Procedures 3.12.1.1, 3 and 4 and some appendices superceded by Financial Onestop (FOS) Tasks in the Accept and Deposit Revenue Process.
- Amended:
- January 2004 - Added Appendix F: Common Audit Recommendations – Accepting & Processing Revenue.
- Amended:
- September 1997 - Clarified policy statement: "Revenue greater than $1,000 requires same day deposit" changed to read "Revenue receipts totaling $1,000 or more require same day deposit." Updated phone numbers and e-mail addresses in Contacts section. Clarified language in definitions, responsibilities and special situations sections as well as the Establishing Revenue Accounts procedure.
- Effective:
- April 1997
- Supercedes:
- Receipts Policy 1/93 and Receiving Cash Procedure 10/93
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To obtain a copy of a historical policy,
e-mail the U Policy Librarian at policy@umn.edu or call 612-624-4372.
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