• Financial Procedures Manual
• 1000 - General
• 2000 - Classification and Coding Structure
• 3000 - Financial Management and Control
• 4000 - Cash Management
  • 4105 - Deposits
  • 4110 - Petty Cash Change Fund
  • 4115 - Receivables
  • 4120 - Financial Aid Accounting
  • 4125 - Payment Card
  • 4205 - Expenditures
  • 4210 - Vendor Edit Table
  • 4215 - Travel
  • :: M&IE Rate Tables
  • :: Pers. Vehicle Mileage Rates
  • 4220 - Small Purchase Charge Card
  • 4225 - Revenue Refunds
  • 4230 - Internal Transfers
• 5000 - Payroll Services
• 6000 - Asset Control and Management
• 7000 - Procurement Services
• Corporate Travel Card Application
• Small Purchase Charge Card Application

Effective Date: September 28, 2009

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Table of Contents:

    .100 General
    .200 Control Responsibilities
      .210 Departments
      .220 University Business Office
      .230 Assistant Vice President for Finance
    .300 Processing Procedures
      .310 Departments
      .320 University Business Office
      .330 Assistant Vice President for Finance
    .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
      .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

All payment card activity at James Madison University must be approved by the Assistant Vice President for Finance prior to implementation.

Procedures for payment card activity for Local/Agency Fund accounts are included in Section 3045, "Local/Agency Funds".

.200 Control Responsibilities

.210 Departments

• Comply with this procedure when authorized by the Assistant Vice President for Finance to sell goods and services.
• 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 Finance Support Office for specific procedures prior to initiating any sales/rentals.
• Basic Controls for the Payment Card Processing
  • All locations accepting payment cards must obtain written authorization from the Assistant Vice President for Finance prior to implementing a payment card payment option.
    • Complete the Departmental Request to Process Payment Cards
  • Upon approval of Request to Process Payment Cards and after merchant numbers are received, any required processing equipment will be procured and programmed by the University Business Office. (Equipment costs are charged to the department requesting authorization to process payment cards.)
  • Contacts card processor in addition to the UBO, with all error messages received on the payment card terminal.  Departments may NOT place orders on new or replacement payment card terminals.  These are to be procured through the UBO. 
  • Department Head (Merchant) must review, sign and complete JMU Merchant Agreement and PCI DSS Self Assessment Questionnaire (SAQ) on an annual basis with the University Business Office.
  • Department requests training and access, from the University Business Office, for online transaction management sites.
    • Department submits required background check documents for appropriate staff (including students).
  • Department contacts the University Business Office to schedule mandatory Payment Card Acceptance Training for all employees and students designated to handle any area of payment card processing.
  • 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 trained 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.
  • Deposit university funds only into appropriate university accounts, not into accounts such as: personal bank accounts or petty cash accounts.
  • Keep university funds and personal funds separate.
  • All payment card receipts must be deposited on the day received or no later than the next business day, regardless of 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 the University Business Office 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.
  • Prepare and distribute the FIS Deposit Transmittal form and a "dummy" deposit ticket, which is for JMU use only and does not go to the bank.
  • 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.
• Perform periodic analysis of all revenue line items to determine reasonableness to prior year data.
• Provide Payment Card Acceptance Training to university employees.
• Facilitate approved departmental requests for payment card merchant numbers.
• Assist departments in acquiring appropriate payment card processing equipment or implementing approved online payment sites.
• Assist departments in resolving problems encountered in monthly reconciliation process of payment card transactions.
• Initiate annual completion of Merchant Agreement and Self Assessment Questionnaire.
• Perform scheduled and unscheduled audits.

.230 Assistant Vice President for Finance

• 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 accept payment cards using the Departmental Request to Process Payment Cards.
• Completes JMU Merchant Agreement and Self Assessment Questionnaire (annually) to the University Business Office.
• Ensures appropriate security controls are in place related to payment card transactions:
  • All employees given access to payment card information have completed payment card acceptance training.
  • Submits required Criminal Records Report/Background Check Form (Full–Time Staff) or (Student Employees) and the Staff Terms of Agreement for all department staff (including students) having access to payment card information.
  • No customer payment card or personal information is stored on JMU Server or workstation hard drives.
  • Only pre-authorization credit card information is allowed to be stored.
  • All post-authorization credit card information is required to be destroyed by cross-cut shredder or outsourced service.
  • All customer and merchant receipts show only truncated card numbers - the last four digits.
  • Processing credit card information received in email is strictly prohibited. Responds to all email which includes credit card information by deleting the credit card information and including instructions for re-submission through an approved method.
• 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 Financial Reporting Office.
• If Merchant (Department) wished to change original intent for which permission was granted to accept payment cards; a Payment Card Change Request form must be completed and submitted to the University Business Office.

.320 University Business Office

• Provides authorized departments with the appropriate deposit and transmittal forms and instructions for their use.
• Monitors and audits departmental credit card processing.
• Updates departmental staff on PCI DSS compliance changes.

.330 Assistant Vice President for Finance

• Authorizes departments to sell goods and services in accordance with Commonwealth regulations and to implement payment card acceptance.

.400 Forms Preparation and Submission

.410 Financial Information System Deposit Transmittal Form

.411 Required:

This form is required to transmit deposit information and payment card refund information for Treasurer of Virginia revenue items for input to the Financial Information System.

.412 Where to Obtain Blank Form:

Blank forms are available online.

.413 Numbers of Copies:

Original to the Finance Support Office.

.414 Where to Send Completed Form:

When depositing payment card transactions, the form must be delivered to Finance Support on the deposit day.

.415 Form Preparation Instructions:

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

DC #: Enter the deposit number of the "dummy" Deposit Ticket, recording this deposit. See subsection .425, "Form Preparation Instructions".

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

Dep. Date: Enter the date the deposit is being 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 Deptid#s starting with an 8.)

MSC: Enter the MSC of the preparer.

Bank Acct.: Enter CH02 for Treasurer of Virginia deposits.

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

Line Count: Enter the total number of lines completed for the deposit.

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.

Cash/Check, Payment Cards: Check the credit card box to describe the deposit.

MasterCard/Visa: Check if the deposit is for MasterCard/Visa transactions.

Discover: Check if the deposit is for Discover transactions.

American Express: Check if the deposit is for American Express transactions.

Dept. ID #: Enter the six-digit department identification number. Refer to Section 2010, "Department Numbers" Numerical Listing.

Account #: Enter the six-digit revenue source code. Refer to Section 2020, "Revenue Account Codes and Definitions".

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

Amount: Summarize the receipts by revenue account codes and Deptid#s 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 Dept. ID # ; enter a "D" if the deposit is a Debit to the Dept. ID.

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

Notes for payment card payment processing:

>  Payment card terminal sales are always batched once a day at the end of the day for every payment card machine within an authorized departmental location. If more than one batch is settled in one day or there is more than one machine, all batches must be added together and combined on one transmittal from for each card type.

>  All refunds must be made by payment card only – no refund checks. If the deposit you are making has refunds included in the total, list the sales on the deposit transmittal as a "C" credit and the refunds as a "D" debit to get a "net" total.

.420 Deposit Ticket (University Bank Deposit Ticket)

.421 Required:

A separate form is required to process payment card deposits. (This "dummy" deposit ticket will not be given to the bank) It should be clearly marked "Payment Cards" and submitted with a FIS Deposit Transmittal Form.

.422 Where to Obtain Blank Form:

Blank deposit ticket forms are available from the University Business Office.

.423 Number of Copies:

Complete the entire NCR set.

.424 Where to Send Completed Form:

Attach a copy of the batch settlement report and "dummy" deposit ticket to the deposit transmittal form and send to Financial Reporting at MSC 5715.

.425 Form Preparation Instructions:

Following are instructions for the preparation of the "Dummy" Deposit Ticket. Enter information in the following categories ONLY.

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

Indicate "Credit Cards" on deposit ticket and indicate card type.

Total Deposit: Enter the total presented for deposit.

Location: Enter the department or location receipting the deposit.

Deposit Identification: Record the digits on the FIS Deposit Transmittal Form – this is the DC#. (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.

NOTE: Payment card chargebacks (when the bank retrieves funds from the university's local bank account due to a customer disputed payment card charge) must be reimbursed by the department immediately regardless of resolution issues. The University Business Office will prepare a deposit transmittal form to record the debit transaction to the local bank account. An accounting voucher will be prepared charging the department that the chargeback belongs to and forwarded to the department for coding completion and authorizing signature. The department must then forward these forms to Accounts Payable to MSC 5712 for payment processing.

.520 Who Should Perform the Reconciliation:

Departments processing payment card activity on–site are responsible for reconciling their FIS Monthly detail reports as described in Financial Procedures Manual Section 3035. The individual responsible for preparing the deposit should NOT be assigned this responsibility.

.530 Reconciliation Differences:

If differences other than timing differences are encountered, contact the University Business Office to determine the proper adjustment. For transaction research assistance, contact e–commerce@jmu.edu.