A-to-Z Index

4105 - Deposits

Effective Date:  August 27, 2013


Table of Contents:

    .100 General
    .200 Control Responsibilities
      .210 Departments
      .220 University Business Office
      .225 Cash and Investments Office
      .230 Assistant Vice President for Finance
    .300 Processing Procedures
      .310 Departments
    .400 Forms Preparation and Submission
      .410 Financial Information System Deposit Transmittal Form
      .411 Required
      .412 Where to Obtain Blank Form
      .413 Numbers of Copies 
      .414 Where to Send Completed Form
      .415 Form Preparation Instructions for Cash and Check Deposits
      .416 Form Preparation Instructions for Payment Card Deposits
    .420 Deposit Ticket (University bank Deposit Ticket)
      .421 Required
      .422 Where to Obtain Blank Form
      .423 Number of Copies
      .424 Where to Send Completed Form
      .425 Form Preparation Instructions
    .500 Deposit Reconciliation
      .510 Required
      .520 Who Should Perform the Reconciliation
      .530 Reconciliation Differences

.100 General

James Madison University is required to deposit receipts daily. Exceptions to this requirement may be authorized if amounts collected daily are typically less than $200. In those cases where exceptions are granted, deposits must be made whenever accumulated receipts exceed $200, but never less frequently than weekly. Payment card deposits must be processed daily regardless of the amount. Deposit corrections requested by the Department of Accounts must be prepared and submitted to Financial Reporting at the time of the request.  JMU requires that all payments to the University be made in U. S. Dollars.  University employees are not authorized to make exceptions to this requirement.  This section outlines the responsibilities and procedures necessary to comply with that requirement. Procedures apply to those departments authorized by the Assistant Vice President for Finance to sell goods and services. Effective January 1st, 2012, third-party checks will not be accepted by University departments for deposit [as payments for goods or services or reimbursement.]  Any request for exception must be submitted to the University Business Office.

Procedures for depositing funds to Local/Agency Fund accounts are included in Section 3045, "Local/Agency Funds".

.200 Control Responsibilities

.210 Departments

  • Submit and receive approval from Assistant Vice President for Finance of, completed Business Activity Synopsis and Cost Benefit Analysis [CBA], per JMU Policy #4501 prior to commencing any sales of goods/services or collections. (Optional templates for both are available in the FPM forms index).
  • Comply with this procedure when authorized by the Assistant Vice President for Finance to sell goods and services. Failure to do may result in any/all funds being deposited in to the University’s General Expense fund or being returned to the payee(s) as determined by Senior Management.
  • Abide by JMU Foundation Policy G-102, including but not limited to the requirement that all literature be submitted to the JMU Foundation for review prior to announcing an event or it will be impossible for the JMU Foundation to accept related funds. See more information at: http://www.jmu.edu/foundation/special_events.shtml. Consult JMU Policy 5101 Private Fundraising and coordinate all Fundraising with Development prior to initiating any activities. Remember all donations must be made payable to the JMU Foundation and are not to be deposited to University accounts.
  • Comply with Virginia Retail Sales and Use Tax Collection requirements once authorized by the Assistant Vice President for Finance to sell merchandise or rent university facilities.
    • Contact the Cash & Investments Office for specific procedures prior to initiating any sales/rentals.
  • Departments not engaged in the sale of goods or services, yet still regularly collecting funds for any reason, are required to complete and submit the JMU Request for Authorization – Collection of Funds form to Cash & Investments prior to collecting funds. The department must receive and maintain on file, within the department, the written authorization to proceed with payment handling, when received, as a result of submission of this form and must handle all funds in accordance with this section of the JMU FPM section 4105 - Deposits.
    • If requesting a new Department ID to which these funds will be deposited, submit both forms at the same time.
  • Basic Controls for the Receipt of Funds
    • All new payment collection locations and/or changes in the goods and/or services offered for sale at existing locations must be approved by the Assistant Vice President for Finance.
    • All locations accepting payment cards must obtain written authorization from the Assistant Vice President for Finance prior to conducting business and will process these transactions in accordance with Financial Procedures Manual section 4125.
    • All checks are to be payable to "JMU" or James Madison University". 
      1. All checks are to be US Dollar denominated.
      2. Exceptions must be approved in advance by AVP for Finance, Associate Controller for Accounting Operations & Disbursements or Manager, Cash & Investments and may result in netting of fees to remitter or receiving department. Exceptions will be rare.
      3. Foreign checks can be returned years in the future and are done so at the current exchange rate.  Departments assume the risk for any returned foreign checks, which may be substantial depending on amount and rate fluctuation.  These will be charged back to the department as they occur. 
    • Do not accept third-party checks as payments.  These will not be accepted as deposit to University DeptIds [exceptions should be requested via the University Business Office by contacting Kathy Starick at staricks@jmu.edu or 8.3719.]
    • To order a restrictive bank endorsement stamps for all checks received for deposit by your department, contact the Cash Accounting Manager in the University Business Office.
    • Counterfeit detection/handling:
      1. Use of counterfeit detection pens on all bills $20 and up at time of receipt is recommended.
      2. If any bills received are indicated positively as suspect:
        • Do not return to passer
        • If safely possible, delay passer & contact JMU Public Safety
        • Issue numbered receipt to passer – if bill is deemed legal, they will be given credit at that time
        • Note date, time and your initials in white border of currency
        • Limit handling & place bill in envelope
        • Notify Cash & Investments or UBO
        • Complete Secret Service Counterfeit Note Report located at: http://www.secretservice.gov/forms/ssf1604.pdf
        • Surrender currency to properly identified JMU Public Safety Officer or follow the instructions of the JMU Public Safety Office regarding the handling of the currency
    • Ensure responsibility for payments received from time of receipt to time of deposit is clearly defined and documented within each authorized payment collection location.
    • Only the minimum number of employees should handle payments from receipt to deposit.
    • Ensure proper separation of duties exists.
    • Payment handling, record keeping, and reconciliations should be assigned to different people.
    • If the size of the department makes proper separation of duties impossible, a second person must verify reconciliations of funds received and accounts maintained.
    • Restrictively endorse checks immediately upon receipt with university approved stamp. (All copies of checks stored show blacked out account numbers and are marked "VOID" and/or "COPY".)
    • Issue a receipt for every cash transaction with either a university-approved, pre-numbered receipt or a cash register-generated receipt.
    • Do not mail currency or coin to the bank or to the university cashier (through U. S. Mail or campus mail.) If bags are needed for deposits, contact the University Business Office.
    • Do not make disbursements from undeposited receipts. Keep undeposited receipts intact.
    • Ensure the safeguarding of funds. Storage guidelines for funds received are as follows:
      1. Access to undeposited items should be restricted to the minimum number of persons.
      2. Deposit university funds only into appropriate university accounts, not into accounts such as: personal bank accounts or petty cash accounts.
      3. Keep university funds and personal funds separate.
      4. Deliver deposits directly to the university cashier (or bank if authorized). Intermediate stops, overnight layovers, and taking deposits home for next morning deposit are not allowed. Ensure employees are escorted when making large deposits ($1,000 cash or more).
      5. Contact UBO Cashier for assistance making change - do not remove funds from campus.
    • All receipts must be deposited on the day received or no later than the next business day and any exceptions must be authorized, in writing, by the Assistant Vice President for Finance. These exceptions may be authorized if collected amounts daily are less than $200 and still require deposits to be made whenever accumulated receipts exceed $200, but never less frequently than weekly. All payment card deposits must be processed daily regardless of the amount.
    • Document the entire departmental procedure for handling funds received for clarity and training purposes
    • Note: all payment handling operations are subject to review and/or audit by Finance staff as well as the university's internal and external auditors. The University Business Office surveys university departments regularly to identify all payment collection points. If the controls are inadequate for the volume of funds handled, corrective action is required & monitored.
    • Amount Stored Preferred Acceptable Unacceptable
      Less than $100 Locked desk or locked file cabinet Locked box inside locked room Not secured
      $100 to $200 Night depository or safe Locked desk or locked file cabinet Locked box or not secured
      More than $200 Night depository or safe Night depository or safe Locked desk, locked file cabinet,locked box or not secured
    • Prepare and distribute the FIS Deposit Transmittal form and, if depositing directly to the University bank, a bank Deposit Ticket in accordance with subsection .400 of this section.
    • Request advance approval for an exception to the daily deposit requirement from the Assistant Vice President for Finance when appropriate.
    • Prepare monthly written reconciliation of revenue amounts shown on University monthly FIS reports to departmental records.

    .220 University Business Office

    • Provide departments with forms and instructions for the daily deposit of receipts.
    • Assist departments in resolving problems encountered in monthly reconciliation process.
    • Prepare a documented daily reconciliation of revenue amounts shown on University monthly FIS reports to revenue transaction documents.
    • Perform periodic analysis of all revenue line items to determine reasonableness to prior year data.

    .225 Cash and Investments Office

    • Review Business Activity Synopsis and Cost Benefit Analysis submissions.

    .230 Assistant Vice President for Finance

    • Authorize appropriate Business Activities Synopses.
    • Authorize departments to sell goods and services in accordance with Commonwealth regulations.
    • Approve exceptions to daily requirements as appropriate.

    .300 Processing Procedures

    .310 Departments

    • Requests authorization from the Assistant Vice President for Finance to sell goods and services prior to any sales activity taking place. Specify additional request to accept payment cards if applicable and refer to section 4125 for payment card processing procedures.
    • Ensures appropriate security controls are in place related to customer(s) personal information.
      • No customer personal information is stored on JMU server, workstation hard drives, or hardcopy form in departmental files. Such sensitive data includes social security numbers, payment card account numbers, etc.
      • All copies of customer checks show blacked out account numbers and are marked "VOID" and/or "COPY".
    • Receives and secures monies from customers.
    • Prepares and retains documentation supporting receipts and deposits.
    • Prepares the Financial Information System (FIS) Deposit Transmittal Form in accordance with the instructions in subsection .410 of this section.
    • Deposits receipts daily, using the appropriate deposit transmittal form, with the University Cashier.
    • When authorized by the Assistant Vice President for Finance to deposit to the University bank:
      • Prepares FIS Deposit Transmittal Form and University bank Deposit Ticket in accordance with subsection .400 of this section.
      • Distributes the appropriate FIS Deposit Transmittal Form and University bank Deposit Ticket (if appropriate) in accordance with subsection .400 of this section.

    .400 Forms Preparation and Submission

    .410 Financial Information System Deposit Transmittal Form

    .411 Required:

    This form is required to transmit deposit information and expenditure credit items to Treasurer of Virginia and for input to the Financial Information System.

    .412 Where to Obtain Blank Form:

    Blank Deposit Transmittal Form for CASH

    Blank Deposit Transmittal Form for CHECKS 

    The blank Payment Card version of the Deposit Transmittal Form is only available from the University Business Office and is not available online.

    .413 Number of Copies:

    Original and one copy to be receipted and kept for department records when depositing with the University Cashier. An original form and one copy for department records when depositing directly to the University bank.

    .414 Where to Send Completed Form:

    When depositing with the University Cashier, the original and one copy of the form should be hand carried with the money to the Cashier's Office, University Business Office. Each person/department submitting deposits to the cashier must obtain a receipt for the deposited amount at the time of the deposit. If the deposit contains no cash and if the cashier is not available, the deposit may be left and a receipt will be mailed to the department.

    When depositing directly to the University bank, the form must be delivered to Financial Reporting on the deposit day.

    Deposit Transmittal forms prepared for corrections must be delivered to Financial Reporting at the time the correction is requested.

    .415 FIS Deposit Transmittal Form Preparation for Cash and Check Deposits.

    Note: * DTF revised June 2012 to show error messages when Bank Code, Bank Acct and/or DEPTID not completely entered or coordinated as required. Be sure to look for error messages when completing form.

    Following are instructions for preparation of the FIS Deposit Transmittal Form. Enter information in the following categories ONLY.

    DC #: For direct bank deposits only, enter the deposit number of the University bank Deposit Ticket, recording this deposit (see subsection .425, "Form Preparation Instructions") below.  For deposits made directly to the University Cashier, leave blank.

    Prepared By: Name of the person completing the form, initial beside typed name.

    Dep. Date: Enter the date the deposit is made.

    Date: Enter the date the form is prepared.

    Phone/E-Mail: Phone number and/or e-mail address of the preparer.

    *Bank Code: Enter TV for Treasurer of Virginia deposits. (Consult Financial Procedures Manual Section 3045.300 Local/Agency Funds for deposits to DeptIDs 8xxxxx).

    MSC: Enter the MSC of the preparer.

    *Bank Acct.: Enter CH02 for Treasurer of Virginia cash/check deposits.

    Amount: Enter and verify the total amount of the deposit, if completed electronically this total is automatically calculated.

    Line Count: This field will automatically populate.

    Explanation: Indicate any additional facts related to the origin and/or the nature of the deposit.  

    Cash or Checks: Use the DTF for the tender type you are depositing. 
    DO NOT COMBINE CASH AND CHECKS ON THE SAME DEPOSIT.

    *Dept. ID #: Enter the six-digit department identification number. Refer to Section 2010, "Department Numbers" Numerical Listing for a list of codes and definitions.

    Account #: Enter the six-digit revenue source code. Refer to Section 2020, "Revenue Account Codes and Definitions" for a list of codes and definitions.  When using a recovery code and receiving reimbursement from the JMU Foundation the funds are to be sent directly from the JMU Foundation to the Financial Reporting Office to confirm the appropriate account code before depositing with the University Cashier.

    Description of Deposit: Indicate the origin and/or nature of the deposit.

    Amount: Summarize the receipts by DeptID and revenue account codes and enter the amount for each code. For unidentified items, list each amount collected separately.  Payment Card amounts must be recorded, by day, on a separate Deposit Transmittal form. These amounts should not be included with cash and check receipts.

    D/C: Enter a "C" if the deposit is a credit to DeptID; enter a "D" if the deposit is a Debit to the DeptID.

    Total: Enter and verify the total amount of the deposit, if completed electronically this total is automatically calculated.

    Exp Credit Voucher: Enter the Voucher Number of the original expenditure every time a deposit is made using an expenditure account code.

    .416 FIS Deposit Transmittal Form Preparation for Payment Card Deposits

    Following are detailed instructions for the preparation of the Financial Information System Deposit Transmittal Form for payment cards. Enter information in the following categories only; leave all other areas blank.

    DC #: Enter the Deposit Certificate number on the Deposit Transmittal Form using a sequence of numbers provided by the University Business Office. The department should maintain an Excel spreadsheet of these numbers to keep track of the DC # used, deposit date, amount, and card type deposit. The department must only use the numbers within their sequence and restart the sequence each July 1. If a department runs out of numbers within their designated sequence within the Fiscal Year, contact the University Business Office for another set of numbers—do not go past your designated numbers!

    Prepared By: Name of the person completing the form, initial beside typed name.

    Dep. Date: Enter the date the deposit is made.

    Date: Enter the date the form is prepared.

    Phone/E-Mail: Phone number and/or e-mail address of the preparer.

    Bank Code: Enter TV for Treasure of Virginia deposits. (Consult Financial Procedures Manual Section 3045.300 Local/Agency Funds for deposits to DeptIDs 8xxxxx).

    MSC: Enter the MSC of the preparer.

    Bank Acct.: Enter CH03 for Treasurer of Virginia payment card deposits. All payment card deposits, and ONLY payment card deposits, are CH03.

    Amount: Enter and verify the total amount of the deposit, if completed electronically this total is automatically calculated.

    Line Count:  This field will automatically populate.

    Explanation: Indicate any additional facts related to the origin and/or the nature of the deposit. The batch settlement confirmation number may be listed here.

    Payment Cards: Only option available.

    Discover/MasterCard/Visa: Select if the deposit is for Discover/MasterCard/Visa transactions. The deposit will arrive from FNBO (First National Bank of Omaha).

    American Express: Select if the deposit is for American Express. The deposit will arrive from American Express.

    Dept. ID #: Enter the six-digit department identification number. Refer to Section 2010, "Department Number" Numerical Listing for a list of codes and definitions.

    Account #: Enter the six-digit revenue source code. Refer to Section 2020, "Revenue Account Codes and Definitions" for a list of codes and definitions.

    Description of Deposit: Indicate the origin and/or nature of the deposit.

    Amount: Summarize the receipts by DeptID and revenue account codes and enter the amount for each code. For unidentified items, list each amount collected separately. Payment Card amounts must be recorded, by day, on a separate Deposit Transmittal form. These amounts should not be included with cash and check receipts.

    D/C: Enter a "C" if the deposit is a credit to DeptID ; enter a "D" if the deposit is a Debit to the DeptID.

    Total: Enter and verify the total amount of the deposit, if completed electronically this total is automatically calculated.

    Total: Enter and verify the total amount of the deposit, if completed electronically this total is automatically calculated.

    .420 Deposit Ticket (University bank Deposit Ticket)

    .421 Required:

    This form is required when deposits are made directly to the University bank.

    .422 Where to Obtain Blank Form:

    Blank deposit ticket book to the University bank are available from the University Business Office.

    .423 Number of Copies:

    Original and one copy to be receipted and returned to department.

    .424 Where to Send Completed Form:

    If deposit is made directly to the University bank, present all copies to the bank teller for validation. The pink (3rd.) copy may be retained for department records. The first two copies must be delivered to Financial Reporting (attached to the back of the Deposit Transmittal form) on the day of the deposit.

    .425 Form Preparation Instructions:

    Following are instructions for the preparation of the Deposit Ticket (University bank Deposit Ticket). Enter information in the following categories ONLY.

    Date: Enter the date the deposit is taken to the University bank.

    Currency/Coin: Enter the amount of currency and coin if depositing directly to the University bank.

    List each Check: Record the amount of each check presented for deposit. Add the currency/coin amount if appropriate. A calculator tape listing each check is necessary when each check is not listed on the Deposit Ticket.

    Total Deposit: Enter the total of all currency, coin, and checks presented for deposit.

    Location: Enter the department or location receipting the deposit.

    Deposit Identification: Record the digits on the FIS Deposit Transmittal Form. (see subsection .415 "Deposit #")

    .500 Deposit Reconciliation

    .510 Required:

    A written reconciliation is required comparing revenue deposited to University monthly FIS reports. Auxiliary Enterprises accounts (Nos. 3xxxxx) are reconciled by comparing the department's internal records to University monthly FIS reports. Educational and General Accounts (Nos. 1xxxxx) are reconciled by comparing revenue transaction documents to University monthly FIS reports.

    .520 Who Should Perform the Reconciliation:

    Auxiliary Enterprise Departments receiving revenue should reconcile their individual accounts. The University Business Office should reconcile or confirm reconciliation of Educational and General Accounts. The individual responsible for preparing the deposit should NOT be assigned this responsibility.

    .530 Reconciliation Differences:

    If differences other than timing differences are encountered, the department is responsible for documenting and resolving the situation in a timely manner. The department may contact the Cash & Investments Office for further assistance as necessary.