About this Policy
Policy Number: 25201
Dec 12, 2017
UM System Treasurer’s Office
UM System Office of Finance
Campus Accounting Office
- Reason for Policy
- Policy Statement
- Related Information
To provide guidance on receiving and recording of payments to the University.
The purpose of this policy is to ensure that University assets are protected, accurately processed and properly reported. Handling Cash Receipts with a strong set of internal controls minimizes the potential for the mishandling of funds.
Funds received by a department must be transferred to a Cash Transmittal Location (CTL) or the campus Cashier’s Office the same day they are received. If that is not possible, the appropriate CTL or cashier’s office must be contacted for handling instructions.
A written or printed Transaction Receipt must be made immediately for each transaction resulting in the payment or transfer of money to the University. The campus Division of Finance may grant exceptions to the need for printed or written transaction receipts in situations where adequate control is established through inventory methods such as concession stand or ticket transactions.
Acceptable Forms of Payment
The UM System Treasurer’s Office establishes accepted payment methods and processes. Acceptable forms of payment include:
- U.S. coins and currency
- Checks drawn on U.S. banks and written in U.S. dollar values
- Checks drawn on a foreign bank in either U.S. dollars or a foreign currency (subject to an amount in U.S. dollars that can be collected in exchange)
- Money orders
- MasterCard, VISA, American Express and Discover credit cards (at approved locations only) – must be coordinated through the UM System Treasurer’s Office
- Travelers checks
- Cashiers and certified checks
- Wire transfer – must be coordinated through the UM System Treasurer’s Office
- ACH credits, including e-checks – must be coordinated through the UM System Treasurer’s Office
Acceptance of Checks
To be accepted as payment, all checks presented must be payable to the University, be current dated, properly signed or endorsed, legible, correctly written, have routing numbers printed at the bottom of the check and be deposited promptly. Sufficient information about the presenter must be obtained for in-person payments, including address, driver’s license number and date of birth. Student payments should include the student ID number. Checks that have been altered, grossly mutilated or have unreasonable restrictions on the face shall not be accepted as payment. All checks must be restrictively endorsed immediately upon receipt as follows: FOR DEPOSIT ONLY, TO THE CREDIT OF THE CURATORS OF THE UNIVERSITY OF MISSOURI, Bank Account #, Account Name (campus) & department name that received the check. Deposit slips used must contain the 4-digit location code for either the campus Cashier’s Office or the Cash Transmittal Location (CTL). When the numeric and written amounts on a check do not agree, a new check should be requested. If the written amount is correct, it prevails over the numeric amount. Checks jointly payable to the University and a general contractor are to be processed by the campus Division of Finance.
Checks should not be accepted from anyone on a bad check list or who has a bad check indicator assigned. A bad check service charge (amount to be established by the campus Division of Finance) is to be assessed for each check that cannot be cleared and collected by a depository bank after two attempts. The campus Division of Finance may waive this fee under unusual circumstances. Information regarding the bad check service charge should be prominently displayed by all units accepting or cashing checks. The campus Division of Finance is responsible for campus level collection efforts which may include written requests, telephone calls and personal visits. If a second written request is made, it is recommended that it be sent by certified mail. Each campus has its own procedures if these attempts fail.
Requirements for Counting Money and Making Change
- All money received must be counted and the amount verified by the cashier before it is placed in the cash drawer.
- A bill or check for which change will be given must be placed in view of both the cashier and customer, but out of reach of the customer until the transaction is completed.
- All change given on a transaction must be counted out to the customer. Cash registers with an amount tendered key and an automatic change return feature satisfy this requirement for amount under $1.00.
- If an interruption occurs during the counting process, the counting must be stopped and started again from the beginning.
Cash Handling and Recording
Money received by mail must be opened in an area separate from other cash handling operations by an employee who is not involved in any accounts receivable or other cash handling activities. In cases where segregation of duties is not possible, mitigating controls should be put in place. Amounts received by mail must be recorded on a mail receipts log, which shows date of receipt, check date, check number, dollar amount, payer and date of deposit. For Cashiers’ Offices, instead of logging, checks are to be imaged and saved by date. All money received at Cash Receipts Locations and Cash Transmittal Locations must be deposited into an official University bank account and recorded on a Cash Received Report (CRR) or Accounts Receivable Report (ARR) using the appropriate ChartField. Direct deposit locations should prepare CRRs on the same business day as the bank deposit or armored car pick-up is made. Receipts that are not identifiable to a specific payment should be deposited immediately and credited to a special suspense account until such time that the appropriate account is identified.
Currency Reporting Requirement
The University must report any receipt of more than $10,000 in cash or foreign currency on IRS Form 8300. The reporting requirement applies to a single payment in excess of $10,000, or a payment that causes the aggregate amount received for a semester or academic period to exceed $10,000 in cash. The receipt of any such payment(s) and the completion of the Form 8300 can either be completed and submitted to the IRS by the campus or can be reported to the Office of the Controller, which will file the form within five business days of receipt.
Foreign funds are not generally acceptable for over-the-counter sales. They are acceptable, however, as payment on account, subject to the mount of U.S. dollar value that can be collected in exchange. All foreign funds or U.S. dollars drawn on a foreign bank should be submitted separately to the bank for conversion and collection. Adjustments to the deposit amount will be made by the bank for conversion and fees. Should the amount collected be in excess of the amount owed, a refund will be given to the payer. If the amount collected is less than the amount owed, the payer will be billed for the difference.
Credit card payments are accepted at locations approved by the Treasurer’s Office. Departments must maintain compliance with Payment Card Industry standards and validate compliance annually. Credit card numbers must be protected at all times. Most credit card sales which are processed electronically are deposited automatically with the bank and updated directly to the University’s accounting system (no CRR is prepared by the department). On some campuses, the Cashier’s Office office may run transactions for departments that don’t have a credit card terminal. These types of sales must be pre-arranged with the campus Cashier’s Office following the guidelines established by that office.
Accounts Receivable Receipt (ARR) – the daily recording of revenue received by an entry in the financial system with the correct account and MoCode, and matched with invoices in the Accounts Receivable/Billing system. Once approved, the funds post to the general ledger.
Cash Receipts – includes coins, currency, checks, money orders, credit cards and other payment forms which may be processed by a financial institution.
Cash Receipts Report (CRR) - the daily recording of revenue received by an entry in the financial system with the correct account and MoCode. Once approved, the funds post to the general ledger.
Cash Receipts Location (CRL) - a physical location (other than the Campus Cashiers Office) for the collection of money for or payment of money to the University. A CRL forwards its receipts to a CTL, if it is not itself a CTL.
Cash Transmittal Location (CTL) - a CRL that is authorized to transmit money received directly to the campus bank account, the Campus Cashiers Office or the credit card processing company.
Payment Card Industry Data Security Standards (PCI-DSS) – A set of comprehensive requirements for enhancing payment account data security for credit card payments.
Transaction Receipt - a written or printed acknowledgment of a transaction resulting in the payment or transfer of money to the University.
UM System Treasurer’s Office:
- Establish acceptable payment methods and processes.
- Maintain banking relationships.
- Establish credit card locations and validate annual PCI-DSS compliance of merchant accounts.
- Provide and oversee on-line access to view deposit information at the bank.
UM System Controller’s Office:
- Reconcile deposits in the financial system with deposits to University bank accounts.
- Approve wire transfer/ACH CRR and ARR locations
- Advise departments of any unclaimed wires/ACH transactions.
- Assist all departments with outstanding bank deposits and/or booked items.
Campus Division of Finance:
- Receive and deposit funds.
- Act as advisor for all cash handling activities of the campus.
- Reconcile and approve CRR/ARR’s for funds delivered to the Cashier’s Office for deposit.
- Verify that funds received by the Cashier’s Office, as well as the deposits of Cash Receipts Locations (CRLs), are handled and prepared in accordance with University policy and procedures.
- Monitor direct deposit areas for timely deposits and recording of those deposits.
- Establish the amount of the bad check service charge.
- Provide depository services for all departments not authorized to deal directly with the bank.
- Submit foreign funds received by the University to the depository bank for exchange.
- Work with the UM System Controller’s Office and UM System Treasurer’s Office to resolve campus deposit reconciling items.
- Prepare CRR or ARR for monies received by wire.
- Prepare CRR or ARR for monies received directly to the department (Cashier or Direct).
- Timely transport cash receipts to the Campus Cashier’s Office (unless at Cash Transmittal Location).
- Adequately segregate duties between preparation, approval and reconcilement of CRRs and ARRs. Put mitigating controls in place if segregation of duties is not possible.
- Clear up discrepancies between cash transactions and CRRs/ARRs on a timely basis.
Web applications for CRRs and ARRs: https://webapps.umsystem.edu/
Further information about credit card transactions can be found on the Treasurer’s Office website: https://umsystem.edu/ums/fa/treasurer/credit_cards_e-commerce
Training materials for CRRs and ARRS: https://umsystem.edu/ums/fa/finance-support-center/general_ledger
This policy combines the following former policies:
- Accounting Policy Manual 2.10.05 – ACH Wire Cash Receipts Report (revised 8/1/2007)
- Accounting Policy Manual 2.10.15 – Cash Receipt Reports (7/6/2007)
- Business Policy Manual 208 – Cash Receipts (revised 12/20/2004)
- Cash Receipts Manual 201 – Acknowledgement of Transactions (effective 4/27/2004)
- Cash Receipts Manual 202 – Acceptable Forms of Payment (effective 4/27/2004)
- Cash Receipts Manual 203 – Counting Money and Making Change (effective 2/28/1997)
- Cash Receipts Manual 204 – Check Processing (effective 4/4/2006)
- Cash Receipts Manual 205 – Credit Card Payments (effective 4/4/2006)
- Cash Receipts Manual 206 – Mail Receipts (effective 2/28/1997)
- Cash Receipts Manual 307 – Bad Checks
- Cash Receipts Manual 502 – Reporting Cash Received (effective 2/28/1997)
- Cash Receipts Manual 503 – Currency Reporting Requirements (effective 2/28/1997)