Official Cash Receipt Sample by uhr19656

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Official Cash Receipt Sample document sample

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									Indiana University School of
         Medicine

IU & IUF Revenue Processing

        Andrea Johnson
     IUSM - Financial Affairs

        Training for Academic Units
            Updated April 2011
                       Goals
   IUSM shall adopt, document, and enforce all
    necessary internal controls over the receipting of
    gift and other revenue to prevent theft or loss
    and to ensure that all donors receive correct and
    appropriate credit.

   Gifts and other revenue shall be handled by as
    few people as possible during the receipting and
    deposit process and that these items be posted
    to IUF or IU accounts as quickly as possible.
                                                       2
                   Objectives
   All future communications with donors,
    prospective donors, and other friends of the
    IUSM will direct donors to send gifts to a
    lockbox. These communications will include
    solicitations, brochures, web pages, and all other
    venues and tools.

   All existing solicitation business reply envelopes
    (BREs) containing a physical campus address will
    be destroyed or relabeled with a lockbox
    address before distribution.
                                                     3
            Lockbox Addresses
   Whenever possible, donor gifts will be directed
    to a lockbox processing center.

   Gifts should be directed to the IUSM IUF
    lockbox:
    – Department name/IU Foundation, PO Box 660245,
      Indianapolis, IN 46266-0245




                                                      4
         Gifts & Other Revenue
   The School understands that IUSM units will
    continue to receive gifts and other revenue
    directly. These gifts and other revenue will be
    directed to the units in a variety of ways (USPS,
    IUPUI Mail Services, hand delivery, etc.) and will
    not arrive in a business reply envelope (BRE).

   Deposit income over $500 within one business
    day of receipt or weekly regardless of the
    amount (University Policy I-440).
    – The IUSM encourages prompt deposit, even if
      deposits are made more frequently than described in
      the University Policy.
                                                            5
    Gifts & Other Revenue, continued
   Gifts and other revenues held by the unit must be kept
    in a secure area, out of sight and reach of the public,
    passersby, etc.
    – Items held over a lunch break, an extended break, or overnight
      must be secured in a receptacle, such as a safe, locked and
      mounted box, or minimally a locked drawer.

   The method used to secure the funds should be relative
    to the amount of funds stored, i.e. a locked desk drawer
    would be adequate to secure $50; however, a safe
    would be required to secure $5,000 (University Policy I-
    440).
    – Be sure to safeguard keys; retain them on your person and treat
      them with the same degree of safe keeping as you would your
      personal house or vehicle keys.
                                                                       6
    Gifts & Other Revenue, continued
   All deposits must be reconciled in a timely manner (at
    least monthly per University Policy I-1) to ensure that
    they have been posted to the correct account, object
    code, donor, etc.

   The Department’s Fiscal Officer has an oversight role:
    – Policy adherence, reconciliations, monitoring, safeguarding
      assets, segregation of duties, accuracy of financial data
      (University Policy I-1).


   Financial Affairs will conduct periodic reviews of IUSM
    units to ensure compliance with these policies and
    procedures.
                                                                    7
Gift & Other Revenue, continued
   If received by an IUSM unit, gifts and
    other revenues will not be sent through
    campus mail or walked across campus for
    deposit. Instead, the unit will process the
    funds and contact IUPUI Banking Services
    for a pick up by IUPUI Security.




                                                  8
              Internal Controls
   IUSM units must have internal controls in place
    to promote operational efficiency and
    effectiveness, provide reliable financial
    information, safeguard assets and records,
    encourage adherence to prescribed policies and
    comply with regulatory agencies (University
    Policy I-470).

   Losses must be identified, analyzed, recorded,
    and reported in a timely manner.
                                                      9
     Internal Controls, continued
   A staff member independent of the cash receipting
    process must review and approve void and refund
    transactions.

   Duties are segregated to reduce risk of error or
    inappropriate action (University Policy I-470)

   Normally the responsibilities of the following should be
    separated:
    –   Initiating A/R documents
    –   Receiving funds
    –   Depositing funds
    –   Reconciling deposits


                                                               10
          IU & IUF Processing

   Checks will be sorted and processed based
    on payee (IU, IUF, other), donor intent,
    and destination account as described in
    later slides.
    – Note: Revenues generated using university
      resources through the sale of goods or
      services must be deposited in an IU account
      (University Policy I-460).

                                                    11
                                     IU Processing
         Any IU gift or other income revenue received
          is documented via a log immediately upon
          receipt. The log remains with the unit. See
          sample below:

                                                                                             Delivered via:   Date Picked up
Delivered    Time/Date                                Check               CR Doc Number       (Enter Bag         By IUPUI
   By        Received     Received By:     Check #    Issuer    Amount    or Batch Number      Number)           Security

Dr. Doe     1:15 3/8/07   Andrea Johnson   123       JPMorgan   $500.00   LV1230507         076               3/9/07




                                                                                                                       12
       IU Processing, continued
   If any coin or currency are received, a
    second staff member will be asked to
    count the coin and currency a second time
    to verify the amount. The second staff
    member will sign and date the log
    signifying verification.




                                            13
       IU Processing, continued
   Is the check for a grant?
    – This process is currently under review. In the
      interim, call Andrea Johnson (274.2346)

   See Important Notice 01-4
    – http://www.ovpra.indiana.edu/cg/imp_notice/
      /01-4.asp




                                                   14
        IU Processing, continued
   Important notice 01-4 “Defining a Sponsored
    Project” (aka grant) lists criteria for funds to be
    considered a sponsored project. Funds
    designated as sponsored projects are purview to
    the research offices of the University. Failure for
    the funds to be under the purview of the
    research offices could result in non compliance
    with the grantors restrictions and requirements
    for the funds use.


                                                      15
       IU Processing, continued
   If a check is written to IU and is destined
    for an IU account, it is stamped promptly
    with the IU endorsement stamp.
    – Call IU Banking Services with IU endorsement
      questions (274.2769)




                                                  16
       IU Processing, continued
   The processor will create a Cash Receipt (CR)
    document in FIS.
    – If the check is the result of an FIS Accounts
      Receivable (A/R) document, deposit the funds to 68-
      728-85, object code 8015. Reference the original A/R
      document number. Email the document number to
      Sue Suter at wsuter@iupui.edu
    – By depositing to this clearing account, Accounting can
      remove the receivable and increase the cash in your
      account.



                                                           17
        IU Processing, continued
   A copy of the check stub (if available), the CR doc, and
    its documentation will be kept on file in the unit in order
    of CR doc date or CR doc number.

   The official record site for these documents is the IUSM
    unit. These are important records and must be retained
    by the units for three fiscal years in addition to the
    current year for Internal Auditing and State Board of
    Accounts audits (University Policy I-45 & I-110).
    – Ex. Document created 3/23/07 is kept until 7/1/10.

   What is considered documentation?
    – Anything that arrived with the check (envelope, letter, etc.)


                                                                      18
        IU Processing, continued
   If the item(s) is a gift send a copy of the
    check stub (if available), the CR doc, and its
    documentation to:
    – IUF Gift Services (IUFACTSV@indiana.edu or IUF
      Showalter House, BLMT) so the gift can be recorded
      in the Foundation’s donor database. This allows the
      donor to receive IRS gift credit, a tax receipt, and
      acknowledgement from the School (University Policy
      I-40).
    – Office of Gift Development (OGD) Stewardship
      Coordinator at medgifts@iupui.edu or Long 506
    – Office of Financial Affairs at finaff@iupui.edu or FS
      5100

                                                              19
       IU Processing, continued
   Place the check(s), CR doc, and two calculator
    tapes detailing the check amounts and CR total
    in an IUPUI bank bag.

   For those of you who do not have IUPUI bank
    bags, place all checks, cash receipt documents,
    etc., into a sealed envelope.

   Mark the envelope for delivery to the IUPUI
    Banking Services.
                                                      20
       IU Processing, continued
   Contact IUPUI Banking Services for a pick
    up.
    – http://www.ofs.iupui.edu/banking.aspx
    – Complete the Banking Action Request Form for a pick
      up request.


   It is the responsibility of the IUSM unit to
    reconcile deposits at least monthly
    (University Policy I-1) to ensure they have
    been posted to the correct account, object
    code, etc.)
                                                        21
        IU Processing, continued
   Departments and fiscal officers may have
    additional instructions and requirements for their
    units as long as the minimum requirements
    outlined here are observed.

   Your primary contacts for gift/grant/other
    income determinations will be your fiscal officer.
    The fiscal officer should contact OFA staff with
    questions if they need help making
    determinations.

                                                     22
       IU Processing, continued
   Please send the OFA an email if you need an IU
    endorsement stamp.
    – finaff@iupui.edu
    – Include your name, campus address, and phone
      number.




                                                     23
       IU Processing, continued
   Any questions regarding the processing of
    IU revenue?




                                            24
                 IUF Processing
   IUF will provide bank bags.

   Checks made payable to IUF destined for an IUF
    account. Promptly endorse these checks with the IUF
    stamp.

   Cash destined for an IUF account

   Credit cards destined for an IUF account (bundle
    separately)



                                                          25
       IUF Processing, continued
   Checks made payable to IU; however, attached
    documentation (donor letter, pledge reminder,
    solicitation, reply card, etc.) directs the gift to an IUF
    account. Do not endorse these checks.
   Checks made payable to IUF intended for an IU account
    based on attached documentation. Do not endorse
    these checks.
   Checks made payable to program name or division
    name. Do not endorse these checks.
   Allowable other income

   Checks made payable to outside entities (ex. American
    Cancer Society) cannot be deposited to IU or IUF.
                                                             26
        IUF Processing, continued
   Gift batches sent for deposit should be limited to 35 gifts
    per bundle.

   The bank requires a specific order for bundling batches:
    –   Check
    –   Documentation (reply card, deposit slip, correspondence)
    –   Check
    –   Documentation (reply card, deposit slip, correspondence)
    –   And so on…


   The items can be paper clipped, but not stapled.


                                                                   27
                IUF Processing, continued
        Any IUF gift received is documented via a log
         immediately upon receipt. The log remains
         with the unit. See sample below:
                                                                                            Delivered via:   Date Picked up
Delivered    Time/Date                                 Check             CR Doc Number       (Enter Bag         By IUPUI
   By:       Received       Received By:    Check #    Issuer   Amount   or Batch Number      Number)           Security
Campus
Mail        3:00 3/12/07   Andrea Johnson   256       Abbott    $50.00   ANJ03132007-1     2A                3/13/07




                                                                                                                       28
       IUF Processing, continued
   If any coin or currency are received, a second staff
    member will be asked to count the coin and currency a
    second time to verify the amount. The second staff
    member will sign and date the log signifying verification.

   If the check is made out to IUF and destined for an IUF
    account, it is stamped promptly with the IUF
    endorsement stamp.

   The processor will create a batch report and complete an
    IU Foundation deposit slip.
    – IU Foundation deposit slip is located at
      https://onestart.iu.edu/my2-prd/portal/102213, under
      Administrative Forms.

                                                             29
      IUF Processing, continued
   What is a batch report?
    – Excel spreadsheet that describes the gifts received
    – It is located at
      https://adminfinance.iusm.iu.edu/foundation2/Batc
      h%20Reports%20for%20Departments.xls
      Batch:    ANJ03132007-1

      From:     Andrea Johnson

      Date      3/13/2007

      Check #   Name                Amount         Account    Comments

                                                              IMO Sally Doe; Alz
      5406      John Doe                $50.00    38MDOMxxx       res

                                                              IMO Sally Doe; Alz
      9340      Jane Doe              $2,000.00   38MDOMxxx       res

                            Total     $2,050.00
                                                                                   30
       IUF Processing, continued
   A copy of the check stub (if available), the deposit slip,
    the batch report and its documentation will be kept on
    file in the unit.

   The official record site for these documents is the IUSM
    unit. These are important records and must be retained
    by the units for three fiscal years in addition to the
    current year for Internal Auditing and State Board of
    Accounts audits (University Policy I-110).
    – Ex. Document created 3/23/07 is kept until 7/1/10.

   What is considered documentation?
    – Anything that arrived with the check (envelope, letter, etc.)


                                                                      31
       IUF Processing, continued
   Email the batch report to the OFA (finaff@iupui.edu),
    and the IUF-Indy depositors (IUFACTSV@indiana.edu)

   If the item is a gift, send a copy of the check stub (if
    available), deposit slip, and its documentation to the
    Office of Gift Development (OGD) Stewardship
    Coordinator at medgifts@iupui.edu or Long 506.

   IUF bank bag - Place the item(s) (original checks,
    deposit slip, documentation, and one calculator tape) in
    the locked bag. Do not include the batch report in the
    locked bag.



                                                               32
      IUF Processing, continued
   For those of you who do not have IUF
    bank bags or an IUF endorsement stamp,
    place all checks, correspondence, gift
    deposit slips, etc., into a sealed envelope.

   Mark the envelope for delivery to the IUF-
    Indy Gift office.


                                                   33
       IUF Processing, continued
   Contact IUPUI Banking Services for a pick
    up.
    – http://www.ofs.iupui.edu/banking.aspx
    – Complete the Banking Action Request Form for a pick
      up request.


   It is the responsibility of the Office of Financial
    Affairs to reconcile the revenue; therefore, it is
    extremely important all the batch reports are
    emailed to finaff@iupui.edu.

                                                          34
       IUF Processing, continued
   Departments and fiscal officers may have
    additional instructions and requirements for their
    units as long as the minimum requirements
    outlined here are observed.

   Your primary contacts for gift/grant/other
    income determinations will be your fiscal officer.
    The fiscal officer should contact OFA staff with
    questions if they need help making
    determinations.

                                                     35
      IUF Processing, continued
   Any questions regarding the processing of
    IUF revenue?




                                            36
              Gift Solicitations
 All solicitations for gift funds must be reviewed
  and approved by Dean’s Office and IU
  Foundation staff before they are printed.
 Send solicitation letter, reply card, and envelope
  to:
    – OFA (finaff@iupui.edu)
    – OGD (medgifts@iupui.edu)
    – IUF (mleal@indiana.edu and shdecker@indiana.edu)



                                                         37
               Purging Files
   Per IU policy VI-120, units should
    immediately stop the practice of copying
    checks.

   Units need to protect sensitive financial
    data (credit card numbers, MICR numbers,
    etc.). Review and assess departmental
    files for necessary purging of this type of
    data.

                                               38
           Storing Donor Data
   Refrain from downloading donor data onto
    any portable device (laptops, flash drives,
    PDAs, etc.) unless university-approved
    encryption technologies are utilized.




                                              39
                Sensitive Data
   For a detailed explanation regarding how to
    secure sensitive data visit the Office of Financial
    Affairs website at
    http://finance.medicine.iu.edu/body.cfm?id=149
    and locate links to “Actions You Can Take to
    Secure Sensitive Data” and “Red Hot Data: A
    Guide to Safe Handling of Critical Information”.




                                                      40
      Education Requirement
 IUSM Revenue Processing is mandated for
  all employees who process revenue.
 A revenue processor is an IUSM employee
  who processes any type of revenue (cash,
  checks, credit cards, etc.) for deposit to IU
  or IU Foundation.
 Email names of employees who need
  training to finaff@iupui.edu.

                                              41
Education Requirement, continued
 Once you have attended an IUSM training
  session, you are in compliance and are not
  required to attend another session;
  however, everyone is welcome to attend,
  as these sessions serve as great refreshers
  for those already in compliance.
 IU Treasury also has mandatory training.
  More information is on their website.
    – http://www.indiana.edu/~iutreas/

                                            42
            Web Site Postings

   IUSM Office of Financial Affairs website:
    – http://finance.medicine.iu.edu/body.cfm?id=9
      &oTopID=9
    – Power point presentation
    – Log
    – IUF batch report
    – FAQ page

                                                 43
        Gift Processing Contacts
   Your Fiscal Officer

   IUSM Financial Affairs:
    – Richard Strouse, Associate Director
        rkstrouse@iupui.edu, 317.274.0141
    – Andrea Johnson, Gift Administration Manager
        ajohnso3@iupui.edu, 317.274.2346


   IU Foundation:
    – Sheila N. Decker, Executive Director Administration
        shdecker@indiana.edu, 812.855.9391
    – Martin Leal, Manager, Gift Administration
        mleal@indiana.edu, 812.855.6300

                                                            44
                 Other Contacts
   IU Internal Audit
    – Michael Gardner, Internal Audit Executive Director
        micagard@indiana.edu, 812.855.0283
    – Richard Williams, Internal Audit, IUPUI Office
        rwilliam@indiana.edu, 317.274.1285
    – http://www.indiana.edu/~iuaudit/


   Fraud Reporting Hotline
    – Call 888.236.7542
    – Click
      https://secure.ethicspoint.com/domain/en/report_cust
      om.asp?clientid=17361
                                                           45
      Other Contacts, continued
   IUPUI Office of Financial Services
    – Juletta Toliver, Director of Financial Services
        jtoliver@iupui.edu, 317.274.4009
    – Cathy Halter, Banking Services
        czinsmas@iupui.edu, 317.274.2769


   http://www.ofs.iupui.edu/directory.aspx



                                                        46
               University Policies
   Related University Policies can be found at
    http://www.indiana.edu/~vpcfo/policies/accounting/hom
    e.html
    – I-1, Role of the Fiscal Officer, Account Manager and Account
      Supervisor
    – I-30, Fiscal Misconduct
    – I-35, Fraud
    – I-40, Gifts to Indiana University
    – I-45, Donor Intent Responsibilities
    – I-110, Preservation and Destruction of Public Financial Records
    – I-440, Depositing of Funds
    – I-460, Depositing of Revenue for the Sale of Goods and Services
      at the IU Foundation
    – I-470, Internal Controls
    – VI-120, Revenue Processing


                                                                    47
             University Training
   The FIS training schedule can be found at:
    – https://fdrs.fms.indiana.edu/cgi-
      bin/training/fis_schedule.pl/ScheduleIUPUI


   Suggested training sessions:
    – Internal Controls
    – Financial Documents Hands On (covers the CR
      document)
    – Responsibilities of an Account Manager/Fiscal Officer


                                                              48
Questions?




             49

								
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