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Policy for Cash Receipts University of Houston

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  • pg 1
									                        UNIVERSITY OF HOUSTON
     DIVISION OF INFORMATION TECHNOLOGY



                     CASH HANDLING PROCEDURES



Overview of IT Division

      The Division of Information Technology (IT) is comprised of the Departments of
Computing and Telecommunications (CTS), Enterprise Systems (ES), Security and
Disaster Recovery (SDR), and Technology Support Services (TSS), the Office of the
Vice Chancellor/Vice President, and the Houston Area Technology Advancement Center
(HATAC). In FY 04, IT has an $29.5 million dollar operating budget, including $6 million
in recovered costs. Full-time equivalencies (FTEs) total 304. IT is a progressive
organization operating in a highly collaborative environment with a commitment to
outstanding service, innovation and creative problem resolution.


Policy for Cash Receipts

      Procedures for the handling of cash receipts are designed to provide accountability for
monies received in accordance with accepted standards of internal controls. Cash receipts
include currency, checks and credit card payments. All employees are responsible for
complying with the policies and procedures described below. Failure to adhere to these
policies and procedures may result in disciplinary action being taken against the employee.
Compliance with these procedures will not only safeguard the university’s assets, but protect
employees and departments from criticism by auditors and other reviewing officials. The
Department of Student Financial Services is responsible for receiving all University monies
after completion of preparation for reviewing and forwarding on to the University's bank.
Gifts receipts will be sent directly to the Treasurer's Office.

      In addition to safeguarding cash receipts, all employees have an obligation to report
any suspected theft, fraud, embezzlement, or any other irregularity causing a loss of cash.
Employees who are aware of criminal activity and fail to report it may be subject to
disciplinary action. Employees are required to cooperate with any police or audit
investigation, and they may be requested to keep their knowledge of the investigation


                     COMPUTING AND TELECOMMUNICATIONS SERVICES
                                       ENTERPRISE SYSTEMS
                              SECURITY AND DISASTER RECOVERY
                                TECHNOLOGY SUPPORT SERVICES
confidential.

      Specific procedures for each department within IT are contained in subsequent
sections. Also provided is an overview of the university’s baseline standards for cash
receipts and best practices as defined by our division.




CASH HANDLING PROCEDURES                                                        PAGE 2 OF 14
                                                                                               2

                         DIVISION OF INFORMATION TECHNOLOGY
                   OFFICE OF THE VICE CHANCELLOR/VICE PRESIDENT
Baseline Standards for Cash Receipts


1. Completeness of recording of cash receipts

       *        Use of prenumbered and controlled General Cash Receipts (GCR’s) or other
                documents in recording all cash receipts.
     *         Receipt of currency and checks performed by someone who does not
reconcile                      cash and is supervised by the department business
administrator.


2. Completeness of summarization of cash receipts

      *      Department business administrator accounts for the sequence of
prenumbered               General Cash Receipts or other documents and follows up on
missing documents.


3. Propriety of account classification

       *         Department business administrator checks account coding on GCRs prior to
           posting to PeopleSoft financials.

4. Accuracy of summarization of cash receipts

       *        Verification of mathematical accuracy of GCR's by someone other than those
who             prepare GCR's.


5. Adequacy of physical safeguards

       *        Immediate restrictive endorsement of all checks upon receipt.
      *         Adequate physical controls, (e.g., work area layouts, safes, etc.) of cash
receipts              prior to depositing.


6. Timeliness of bank deposits

       *        GCR's are completed daily for all cash receipts and deposited in accordance
with            University cash handling policies by persons not involved in (a) accounts
                receivable, (b) accounts payable or (c) PeopleSoft Financials.




CASH HANDLING PROCEDURES                                                         PAGE 3 OF 14
                                                                                                3

                         DIVISION OF INFORMATION TECHNOLOGY
                   OFFICE OF THE VICE CHANCELLOR/VICE PRESIDENT
7. Consistent and efficient responses to inquiries

      *        The department business administrator is responsible for all revenue and
cash           receipts related inquiries and is the primary contact person to whom all
questions                      are directed.



Best Business Practices for Cash Receipts

1. Ensure checks are payable to the University of Houston.

2. Immediately restrictively endorse checks by stamping them “University of Houston, For
   Deposit Only.”

3. Secure cash and checks until they are deposited, preferably in a lock box or safe.

4. Deposit cash and checks on a timely basis:

       a. Greater than $100 within 1 working day,

       b. Less than $100 within 5 working days.

5. The following responsibilities and duties are mutually exclusive and are not to be
   performed by the same employee:

       a. Opening the mail and logging in the cash receipts.

       b. Preparing the cash deposits.

       c. Reconciling the cost center activity.




CASH HANDLING PROCEDURES                                                       PAGE 4 OF 14
                                                                                              4

                        DIVISION OF INFORMATION TECHNOLOGY
                    OFFICE OF THE VICE CHANCELLOR/VICE PRESIDENT
Department of Computing and Telecommunications Services

     The Department of Computing and Telecommunications Services (CTS) operates the
Network Service Center to provide voice, data, and video services to the campus and
outside community. Cash is received in the form of commission checks from vendors
including Southwestern Bell and MCI and from external customers that need our services on
the campus. The following procedures describe CTS’ processing of commission checks and
payments for billed services.

     Addendum D – Acknowledgement of Receipt of Funds and Cash Policies and
Procedures is updated at the beginning of each fiscal year or when a change in employees
occurs. The current (May 2002) cash handling employees are Arlisha Bogan, Sonia
Morales, and Chelsea Jackson.



Agency Payments for Services
Phase 1 – Restrictively endorse checks

     1. Immediately restrictively endorse the checks by stamping them “University of
           Houston For Deposit Only.”

     2. Place in Check lock box. (Checks must be kept secure at all times)

*********Checks over 100.00 should be processed within one working day.

*********Checks under 100.00 should be processed within five working days.

Phase 2 – Create electronic Journal Entry Request Form and deposit funds

1.        Complete Electronic Journal Entry Request Form.

          Account Number – 00730-2060-H0198-F1096-12100 Speedtype: 23978

          Description - Name of Agency Account and month they are paying

          Credit Amount - amount of the check

          Explanation/Justification - Telephone payments

          Print out 3 originals of the Journal Entry Request Form.

     2.   Write the cost center on the back of each check.

     3. Obtain Certifying Signature.


CASH HANDLING PROCEDURES                                                     PAGE 5 OF 14
                                                                                            5

                         DIVISION OF INFORMATION TECHNOLOGY
                   OFFICE OF THE VICE CHANCELLOR/VICE PRESIDENT
     4. E-mail Journal Entry Request Form to FS_H_StFinSvc@uh.edu

     5. Make copies: Check – 5 copies

     6. Deposit and keep records

              To Campus Accounting: at CAS 0909: A copy of the check and a copy of
                the Journal Entry Request Form.

              To Bursar’s Office: Original Check in Deposit bag, 2 Signed sets of
                Journal Entry Request Form and check, Calculator tape showing amount
                calculations

              CTS records: Staple together in the following order: Plastic strip with bag
                number, deposit slip, journal entry request form, a copy of the check, and
                check stub.

              With fifth copy of check, match invoice with payment and stamp “Paid” on
                invoice and file in auxillary folder.

     7. Call UH Police for a deposit pick-up at ext. 3-0600



Vendor Commission Checks
Phase 1 – Restrictively endorse checks

     1. Immediately restrictively endorse the checks by stamping them “University of
         Houston For Deposit Only.”

     2. Place in Check lock box. (Checks must be kept secure at all times)

******** Checks over 100.00 should be processed within one working day

********Checks under 100.00 should be processed within five working days

Phase 2 – Create electronic Journal Entry Request Form and deposit funds

     1. Complete Journal Entry Request Form.



     SWB checks

         Account Number – 00730-1026-H0264-F0247-43627 Speedtype: 11979
         (deposited to President’s account)


CASH HANDLING PROCEDURES                                                       PAGE 6 OF 14
                                                                                              6

                        DIVISION OF INFORMATION TECHNOLOGY
                  OFFICE OF THE VICE CHANCELLOR/VICE PRESIDENT
       Description – SWB Coin Commission

       Credit Amount - amount of the check

       Explanation/Justifciation – Southwestern Bell Telephone coin commission.



    MCI checks

       Account Number – 00730-2072-H0198-F0917-50054 Speedtype: 17891

       Description – MCI Percentage DT SAV

       Credit Amount - amount of the check

       Explanation/Justification – MCI percentage of location net DT savings



        Spectracorp Commision Checks

         Account Number – 00730-2072-H0198-F0917-50054 Speedtype: 17891

         Description – Spectracorp Commission (MM/YY)

         Credit Amount - amount of the check

         Explanation/Justification – Spectracorp Commission 1-800 Hospitality Program

       Print out 3 originals of the Journal Entry Request Form.

    3. E-mail Journal Entry Request Form to FS_H_StFinSvc@uh.edu

    4. Obtain certifying signature.

    5. Make copies: Check-3 copies

    6. Deposit and keep records:

            To Bursar’s Office: Original Check in Deposit bag, 2 Signed sets of
               Journal Entry Request Form and copies of checks, Calculator tape
               showing amount calculations.

            CTS records: 1 set of Journal Entry Request Form and original checks
               stubs and copies of checks.

    7. Call UH Police for a deposit pick-up at ext. 3-0600.



CASH HANDLING PROCEDURES                                                  PAGE 7 OF 14
                                                                                         7

                       DIVISION OF INFORMATION TECHNOLOGY
                 OFFICE OF THE VICE CHANCELLOR/VICE PRESIDENT
Department of Enterprise Systems

     The Department of Enterprise Systems (ES) provides no services for which payment is
requested. Monies received by ES during the course of a fiscal year are unanticipated and
incidental, requiring no special procedures beyond general IT Baseline Standards for Cash
Handling.




CASH HANDLING PROCEDURES                                                     PAGE 8 OF 14
                                                                                            8

                        DIVISION OF INFORMATION TECHNOLOGY
                  OFFICE OF THE VICE CHANCELLOR/VICE PRESIDENT
Department of Technology Support Services (TSS)

      The Department of Technology Support Services (TSS) operates several service
centers to provide software and software licenses and video conferencing and reproduction
services.

      Guidelines for Receiving of Monies

      1. As a general rule, cash receipts should be routed to the Technology Support
Services Counter without ever coming into the custody of any other employees.

      2. All persons receiving monies will strictly adhere to University of Houston Policy and
Procedures MAPP 5.01.01 and 5.01.02.

      3. The following responsibilities and duties are mutually exclusive and are not to be
performed by the same employee:

      a. Opening the mail and logging in the cash receipts.

      b. Preparing the cash deposits.

      c. Reconciling the cost center activity.

      4. Cash receipt books are used in number sequence order and the white copy of
receipt is to remain in the books at all times including voided receipts. These books are kept
with the Technology Support Services Business Office fiscal year files.


Procedures for Receipts by Mail
Technology Support Services Business Office, Special Events

      1. The person opening the mail should maintain a log of all cash receipts. This log
should be compared to the deposits recorded in the FRS accounts each month.
Discrepancies between the log and the FRS accounts must be investigated and resolved.

            As soon as payments are received through the mail and date stamped, the
individual opening the mail will hand deliver all checks to the appropriate department. If the
department is not known, then it should be hand delivered to the Technology Support
Services Business Office immediately. The Technology Support Services Business Office
will determine what type of deposit it is and hand deliver to the correct unit.




CASH HANDLING PROCEDURES                                                          PAGE 9 OF 14
                                                                                                 9

                          DIVISION OF INFORMATION TECHNOLOGY
                    OFFICE OF THE VICE CHANCELLOR/VICE PRESIDENT
      2. Receiver of funds will require all checks be made to University of Houston and
restrictively endorse all checks for "Deposit Only" and enter the following information on the
Cash Receipt in the Cash Receipt Book.

      a. Name/Customer Name (Name of Remitter)

      b. Purpose

      c. Indicate Pay Mode - either "Check, "Credit Card," or "Cash"

      d. Amount Received

      e. Account Name and Number to be Credited

      f.   Subcode of account credited. If the individual does not know what subcode should
be credited, they should contact the Technology Support Services Financial Coordinator or
Business Administrator.

      NOTE: Do not obliterate any entry in the Cash Receipt Log. Errors should be crossed
out and initialed.

      3. All Moneys received will be organized in the same sequential order as they appear
in the Cash Receipt Book.

      4. After the above has been completed any monies received totaling $100.00 or more
must be deposited with Student Financial Services in accordance with cash deposit
procedures within one working day of receipt. Student Financial Services shall, in turn,
deposit funds with the University bank within one working day of receipt. Amounts less than
$100.00 may be held no longer than five working days prior to deposit.


Procedures for Other Monies Received

      1. There are occasions when reasonableness and/or courtesy dictate that a check
may be accepted without a receipt being issued immediately. The check should be treated
as a "mail" receipt, restrictively endorsed for "Deposit Only" and entered on the appropriate
office log at the first opportunity. Currency should never be accepted without immediate
issuance of a receipt. In the Cash Receipt Book the method of payment should be noted by
which the check came into university possession if not received by mail. This is an
exception and is not expected to become the "normal" procedure.

      2. Reimbursements of expenses: The amount of the reimbursement cannot exceed
the amount of the original purchase. In order to deposit the reimbursement, the Technology

CASH HANDLING PROCEDURES                                                        PAGE 10 OF 14
                                                                                                 10

                          DIVISION OF INFORMATION TECHNOLOGY
                     OFFICE OF THE VICE CHANCELLOR/VICE PRESIDENT
Support Services Business Office must reference the original order (vendor name, purchase
order number, check number, date). Please provide as much information as possible in the
comments section of the Deposit Summary when submitting your deposit

     3. All matters involving collection of monies must be coordinated with the Technology
Support Services Business Office IN ADVANCE.

Procedures for Credit Card Payments
Credit Card payments are accepted for software purchases only. Credit cards can only

be accepted from faculty, staff, or students at the University of Houston. A student will

need to provide a Cougar 1 Card, email address, and the major they are taking at the

University while faculty and staff will need to provide working department, email

address, and extension. After the service desk staff (SDS) obtain the software the

customer needs, the staff will enter into the Retail Pro System the information such as

(name, email, address, etc.). The Retail Pro System will provide the price of the

software. The SDS will inquire which type of credit card payment the customer will be

using (Visa, MasterCard, Discover, or Amex). The SDS will swipe the card on the

payment check system, get the approval code, and will have customer sign receipt and

issue a copy to the customer. Three individual journals are created to deposit credit

card slips to the Bursar’s Office at the end of each day. Once Journals are completed

and email is sent out to the Business Office staff. The Business Office staff will then

certify the Journals.

The Police are then called to pick up the deposit. The police will receive two of the three

copies. The third copy will be returned to the Business Office for departmental internal

records.




CASH HANDLING PROCEDURES                                                     PAGE 11 OF 14
                                                                                             11

                        DIVISION OF INFORMATION TECHNOLOGY
                   OFFICE OF THE VICE CHANCELLOR/VICE PRESIDENT
Procedures for Revenue from Technology Support Counter Sales

      1. Responsibilities for the Fund Custodian.

      a. Custodian will complete and sign the UH Acknowledgment of Receipt of Funds
      and Policies and Procedures Related Thereto. This form will be sent to the
      Technology Support Services Business Office.

      b. Formally transferring funds to a new custodian by having the new custodian
      acknowledge receipt of the fund using the Acknowledgment of Receipt of Cash Funds
      form. The transfers must be approved in advance by the college/divisional
      administrator.

      c. Prior arrangements for a temporary custodian during any absences will be
      arranged with the Technology Support Services Business Office.

      d. Campus Accounting Services will be notified of changes in custodian, location of
      fund, account number or the physical security of the fund.

      e. No later than July of each year, the Campus Accounting Services Department will
      distribute an Annual Acknowledgment of Policies and Procedure Related Thereto form
      to all departmental cash fund custodians of record. This form is to be completed by
      the custodian and returned to the Technology Support Services Business Office who
      will then forward to the Director of Finance and Accounting.

      Guidelines for Depositing Funds

      1. Procedures for General Cash Receipt

      a. Complete General Cash Receipt in accordance with University of Houston
guidelines.

      b. Attach back-up documentation to the original computer- generated copy of General
Cash Receipt.

      c. Attach a calculator tape of the line items on the original copy of the receipt to show
that it is in balance.



CASH HANDLING PROCEDURES                                                        PAGE 12 OF 14
                                                                                                12

                         DIVISION OF INFORMATION TECHNOLOGY
                     OFFICE OF THE VICE CHANCELLOR/VICE PRESIDENT
      d. Prepare five (5) legible deposit slips (make sure carbons can be read easily) with
the General Cash Receipt number, bag number, and department name on the deposit slips.

      e. Staple (one staple please) in top left corner. Arrange all documents for individual
deposits in order from top to bottom:

           To be sent to Student Financial Services

           1.   2 deposit slips

           2.   Copy or duplicate of General Cash Receipt.

           3.   Original General Cash Receipt with copy of backup documentation attached.

           To be kept in Technology Support Services Business Office

      1    One (1) deposit slip

      2. Copy or duplicate General Cash Receipt for cash/checks with original backup
documentation attached.

      3. Copy of duplicate General Cash Receipt with backup documentation for credit
cards if applicable.

           Backup consists of copy of receipts from Cash Receipts book, check stubs, any
letters/explanations received with check, Cash Summary Reports, "Z" Tapes, Incident
Reports.

      f.   Repeat steps a - e for each deposit and staple each deposit separately.

      g. Paper clip multiple deposits together for transport by the University Police.

           3.   Service Center Requisition Payment Processing

      a. Service Center Requisitions are received for payment from other University
departments for payment of goods and services. Service Center Requisitions should be
checked carefully for correctness before acceptance and release of goods and services.

      b. Service Center Requisitions must be checked for Requested By, Authorized By
and Received by signatures.

      c. A detailed description of goods and/or services, quantity issued, unit price and total
price must be completed on the face of the Service Center Requisitions.

      d. Service Center Requisition must have the debit account and subcode areas filled
in when received.

CASH HANDLING PROCEDURES                                                        PAGE 13 OF 14
                                                                                                13

                           DIVISION OF INFORMATION TECHNOLOGY
                       OFFICE OF THE VICE CHANCELLOR/VICE PRESIDENT
     e. Complete amount and credit account (to the budget and subcode to be processed)
at bottom of Service Center Requisition.

     f.   A copy of the invoice, receipt, etc. must accompany the Service Center
Requisition.

     g. General Accounting will not process service center requisitions if the signatures,
debit account, credit account and the amount at the bottom of the form or back-up are
missing. This means credit to the designated account for payment will not be received.

     h. Auxiliaries (Technology Support Services) are not allowed nor will they be paid for
Service Center Requisitions using a state ledger account. To identify a state ledger, the 6
digit budget number starts with a one (1). There is no exception to this rule. SERVICE
CENTERS ARE ALLOWED TO TAKE LEDGER 1 FUNDS.

          How to Prepare a General Cash Receipt

     1. Prepared By                        Signature of Preparer

     2. Approved By                        Authorized certifying signature for unit, together
          with the name or two-digit FRS code of the college/division

     3. Account Number:                    Appropriate account for receiving revenues

     4. Type                               Leave Blank

     5. Description                        For deposits of like amounts of $100.00 or less
per check/cash receipt: a summary description of the deposit. (Some units such as the
Technology Support Services Ticket Office are exempt from this rule)

     6. Amount:                            Amount total for each item described

     7. D/C                                "C" (Credit) for deposits

     8. Additional Information

          Explanation                      For departmental information and records or to
add any information not self evident in Description

     9. Total Total of this deposit, with separate totals provided for checks and cash
dollars and cents) where indicated

     10. Documentation Required        See each unit's individual requirements for
breakdown of backup



CASH HANDLING PROCEDURES                                                        PAGE 14 OF 14
                                                                                                14

                         DIVISION OF INFORMATION TECHNOLOGY
                   OFFICE OF THE VICE CHANCELLOR/VICE PRESIDENT

								
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