East Tennessee State University
Financial
Procedures
FP - 2
CASH RECEIPTS AND DEPOSITS
I. GENERAL
II.
RECORDING OF RECEIPTS
III. TRANSMITTAL
AND DEPOSIT OF RECEIPTS
IV. SPECIAL
FISCAL YEAR END CLOSING PROCEDURES
V. CUSTODY
AND SAFEKEEPING OF RECEIPTS
VI. CASH OVERAGE OR SHORTAGE
I. GENERAL
A. All payments received on behalf of the University must be promptly deposited.
B. All checks in payment of amounts due the University must be made payable to East Tennessee State University. Checks must not be made payable to departments, department heads, or any University official or employee by name. If checks are received made payable to an individual, they must be appropriately endorsed before transmittal to the Financial Services Office. The endorsement must be preceded by "pay only to ETSU". If a check which is made out improperly is in payment of an item of a repetitive nature, the maker must be instructed to make future checks payable to East Tennessee State University.
C. All receipts must be deposited intact. No expenditures may be made or checks cashed from cash receipts. No receipts may be retained within a department for departmental use.
D. No "unofficial"
funds may be maintained in any department.
Any such funds currently on hand are in violation of this policy and
must be transmitted to the Financial Services Office with a statement as to source.
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II. RECORDING OF RECEIPTS
A. All departments or activities regularly receiving funds in routine operations must record each transaction on carbon pre-numbered receipt books, (receipt books can be purchased from office supply stores by each department), or record the transaction on a cash register in the presence of the customer or payee. When the payment involves currency to be recorded in an official receipt book, the original receipt must be delivered to the payer. A notation must be made on each receipt specifying whether payment was by check or cash and the purpose for which the money was collected including course numbers, where applicable.
B. Departments or activities which are not authorized by the University Financial Services Office to accept payments and do not maintain a receipt book must not accept payment but should direct the payer to the Financial Services Office for the purpose of obtaining an official receipt. Checks which are received by such departments by mail should be promptly forwarded to the Financial Services Office with a statement covering the purpose of the payment.
C. Every person making a payment to the University for any purpose is entitled to, and must be given an official receipt for any such payment.
D. When
necessary to void a receipt, the original must be retained and stapled to the
copy.
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III. TRANSMITTAL AND DEPOSIT OF RECEIPTS
A. Frequency of Transmittals and Deposits
The Family Practice Centers, Registrars Office, Off Campus Centers, and other departments having significant daily income must deposit each day's receipts no later than noon of the following day. Other departments must deposit receipts intact within three days; however, a department must deposit funds each day when $500.00 in funds have been accumulated. Receipts are to be deposited in the Bursar's Office or in a bank account approved by the University and the Tennessee Board of Regents in accordance with Board Policy Number 4:01:01:10.
B. Procedure for Preparing Deposits of Receipts With the Financial Services Office
1. When a deposit is prepared by a department maintaining an official receipt book, an adding machine tape must be prepared of the items appearing in the receipt book subsequent to the last deposit. This tape must be attached to the receipt book opposite the last receipt covered by the current deposit, and on it must be noted the date of the deposit and the inclusive receipt numbers. The person presenting the monies to the Financial Services Office for deposit will insure that a copy of the Financial Services Office receipt is attached to the receipt book in the same manner as the adding machine tape.
2. The back of each check should be stamped "For Deposit Only - East Tennessee State University, Department Name" upon acceptance.
C. Procedures for Depositing Receipts Off-Campus
Off campus centers and clinics may deposit funds in a bank account
authorized by the University and the State Board of Regents. A copy of each deposit slip validated by
the bank teller must be transmitted to the Financial Services Office with a
deposit summary showing the purpose for which
funds were collected.
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IV. SPECIAL FISCAL YEAR END CLOSING PROCEDURES
Under present University and State regulations, all funds received by the Financial Services Office by noon on the last work-day of the fiscal year must be deposited as of that date. Funds receipted by departments as of the close of business on the day prior to the last work-day of the fiscal year must deposit funds in the Financial Services Office or in an authorized bank account by noon of the next day.
Receipts written after the fiscal year deposit must by dated July 1 or the first work-day in the new fiscal year.
Final fiscal year deposit slips received by the off-campus centers or
clinics must be transmitted immediately
to the Financial Services Office for recording.
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V. CUSTODY AND SAFEKEEPING OF RECEIPTS
Department heads must insure that proper safekeeping facilities are
available and that proper safeguards are taken to protect official funds until
deposited. Currency must never be transmitted
through US Post Office or campus mail or left overnight in cash registers. If unusually large sums are on hand,
arrangements should be made for bank night deposits or overnight storage in the
Financial Services Office vault.
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VI. CASH OVERAGE OR SHORTAGE
If at any time a department's petty cash fund or daily receipts should be
over or short, the overage or shortage should be reported by telephone to the
Financial Services Office (439-4414) immediately. If the amount of overage or shortage is
determined to be significant by the University Financial Services Office, a
written report regarding the circumstances of the overage or shortage must be
submitted to the University Financial Services office for a formal report to
the Vice President for Finance and Administration, Tennessee Board of Regents
and the State Comptroller's Office as required by law (TCA 8-19- 501).
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Original
effective date: April 9, 1982
Revised: October 1, 1987; October 16, 2000; September 3, 2001; October 2, 2003;
February 22, 2010
Last review: February 22, 2010
Web page last updated 2/22/2010