UNIVERSITY OF PITTSBURGH PROCEDURE 05-06-02

CATEGORY:               FINANCIAL AFFAIRS

SECTION:                   Funds Management

SUBJECT:                  Cash Reports

EFFECTIVE DATE:    August 25, 1989

PAGE(S):                     7

I.    PURPOSE

      To describe the procedure for recording and processing cash, checks, money orders,

      and credit card payments received by any University unit or individual for deposit and

      credit to University accounts.

      To provide instructions and guidelines for the following:

      1.   Preparation and use of the Cash Report.

      2.   Requesting permission from the Comptroller to deposit cash receipts in a deposit

            account, directly in the bank.

      3.   Requesting permission from the Treasurer to deposit credit card receipts in a

            deposit account, directly in the bank.

II.   SCOPE

      A.   Cashier's Office Deposits

            All cash receipts received by any University unit or individual are deposited in the

            Cashier's Office, except as indicated in Paragraph II. B., shown below.

            All credit card payments received by any University unit or individual are deposited in

            the Cashier's Office, except as indicated in Paragraph II. B., shown below.

      B.  Direct Deposits to a Bank

            Cash receipts received by the Cashier's Offices at the regional campuses and units

            authorized by the Comptroller, are deposited directly to a University deposit account

            in the bank.  See Paragraph IV. F., for processing these types of funds.

            Credit card payments received by University units authorized by the Treasurer are

            deposited directly to a University deposit account in the bank. See Paragraph IV. F.,

            for processing these types of receipts.

      C.  Exceptions to Depositing Receipts in the Cashier's Office

            University units that can justify a need to deposit cash receipts directly in the bank

            because of processing large amounts of cash and/or frequency of deposit activity

            may request authorization from the Comptroller by submitting a memorandum to the

            Office of the Comptroller in accordance with the guidelines provided in Paragraph IV.G.

            University units that can justify the direct deposit of credit card payments may request

            authorization from the Treasurer by submitting a memorandum to the Office of the

            Treasurer in accordance with the guidelines provided in Paragraph IV. H.

      D.  Endorsement of Checks Made Payable to the University of Pittsburgh

            In accordance with the Expedited Funds Availability Act, the Federal Reserve System

            has initiated regulations that restricts the area of placement of the endorsement of the

            Cashier's Office stamp.  Refer to Policy and Procedure 05-06-04, Processing and

            Endorsement of Checks, for specific requirements and procedures for proper

            endorsement.

III.  DEFINITIONS

      Restrictive Endorsement

      The method of affixing an endorsement to a check or money order using a rubber stamp

      to limit its use to deposit in a University bank account.  The endorsement must include

      the words FOR DEPOSIT ONLY, and the unit name.

IV.  PROCEDURE

      A.   Preparing and Submitting Cash Reports

            The procedure following provides information for the preparation of Cash Reports for

            cash receipts, which includes paper currency, coin, checks, and money orders.  The

            procedure for preparation of the Cash Report for credit card receipts is identical to

            that shown for cash, except that credit card receipts must be shown on a separate

            Cash Report.

            Originating Unit                            1.   Balance the funds received.

                                                                 2.   Sort paper money by denominational value.

                                                                 3.   Count and wrap large amounts of coin; place

                                                                       small amounts of coin in an envelope, indicating

                                                                       the amount.

                                                                 4.   Properly endorse all checks by placing the unit

                                                                       restrictive endorsement on the back of each

                                                                       check or money order.

                                                                       NOTE: See information above for requirements

                                                                       and procedures for endorsement of checks.

                                                                 5.   Prepare an adding machine tape of the checks

                                                                       and money orders, sort the checks in the same

                                                                       order as on the tape, and attach the tape to the

                                                                       checks.

                                                                 6.   Prepare a Cash Report, FORM 0012 (Exhibit A),

                                                                       following the instructions provided in the Form

                                                                       Instruction Guide.

                                                                 7.   Prepare a separate Cash Report for credit card

                                                                       receipts.  Prepare an adding machine tape, sort

                                                                       the receipts in the same order as on the tape,

                                                                       and attach the tape to the receipts, all as

                                                                       indicated above for cash receipts.

                                                                 8.   Attach the cash, endorsed checks, money

                                                                       orders, and the adding machine tape to the

                                                                       Cash Report.

                                                                 9.   Deliver the Cash Report and receipts to the

                                                                       Cashier's Office for verification of receipts and

                                                                       validation of deposit.

                                                                       NOTE: Cash Reports, receipts, and supporting

                                                                       documents must be hand-carried to the

                                                                       Cashier's Office by a University employee of the

                                                                       originating area.  Escort service is available from

                                                                       the University Department of Public Safety upon

                                                                       request.

      B.  Verification of Receipts and Validation of Deposit

            Cashier's Office                           1.   While the unit representative is present, verify

                                                                        that all required entries have been completed in

                                                                        the appropriate format on the Cash Report.

                                                                  2.   Count the cash and verify that the total agrees

                                                                        with the amount shown in the CASH section of

                                                                        the Certification by Originator block.  Similarly,

                                                                        verify all credit card receipts shown on separate

                                                                        Cash Reports.

                                                                  3.   Verify that the Cash Report entries equal the

                                                                        listed TOTAL.

                                                                  4.   Verify that the adding machine tape is attached

                                                                        to the checks or money orders bearing the

                                                                        restrictive endorsement.

                                                                  5.   Verify that the total shown on the adding

                                                                        machine tape agrees with the amount entered

                                                                        in the CHECKS AND MONEY ORDERS section

                                                                        of the Certification by Originator block.

                                                                  6.   If any calculated amount differs with the Cash

                                                                        Report entries; return the Cash Report, the

                                                                        receipts, and supporting documents to the unit

                                                                        representative for correction.

                                                                  7.   Complete the VERIFICATION OF RECEIPT

                                                                        section of the Cash Report:

                                                                        a.   Obtain the unit representative's signature

                                                                        b.   Sign the form and enter the date and time

                                                                        c.   Validate the form with the Cashier's stamp

                                                                              on the original (white) and the second copy

                                                                              (pink)

                                                                  8.   Return the second copy (pink) to the unit

                                                                        representative.

                                                                  9.   Forward the cash receipts, the original (white)

                                                                        and the first copy (canary) of the Cash Report,

                                                                        and the adding machine tape to Deposit

                                                                        Services.

      C.   Preparation of the Deposit Package For Deposit In the Bank

            Deposit Services

            (Cashier's Office)                         1.   Recount the currency and coin.

                                                                  2.   Verify that all required entries, endorsements,

                                                                        and signatures have been completed on each

                                                                        check or money order.

                                                                  3.   Verify that the total amount in checks and/or

                                                                        money orders equals the submitted unit tape.

                                                                  4.   If any check or money order cannot be

                                                                        processed for deposit, or an incorrect amount

                                                                        was entered, indicate an adjusting entry on the

                                                                        Cash Report to debit or credit the appropriate

                                                                        account.

                                                                  5.   Prepare a Deposit Ticket.

                                                                  6.   Complete the VERIFICATION OF DEPOSIT

                                                                        section of the Cash Report, which includes:

                                                                        a.   The amount deposited

                                                                        b.   Date of the deposit

                                                                        c.   Bank Identification Code

                                                                        d.   Signature of person preparing the Deposit

                                                                              Ticket

                                                                  7.   Validate with the validation stamp in the

                                                                        CASHIER'S STAMP section of the first copy

                                                                        (canary).

                                                                  8.   Affix the University endorsement, batch the

                                                                        checks and money orders, and attach the first

                                                                        copy (canary) of the Cash Report.

                                                                  9.   Make a copy of any check or money order in

                                                                        question and the form letter sent to originating

                                                                        unit for the files; send originals to the unit.

                                                                  10.  Prepare a Summary of Deposits when the

                                                                         validated deposit ticket is returned from the

                                                                         bank.

                                                                  11.  Forward the Summary of Deposits and the

                                                                         original (white) of the Cash Report, together

                                                                         with all supporting documents and a copy of

                                                                         the validated bank deposit tickets to General

                                                                         Accounting.

      D.   Direct Deposits by the Regional Campuses

            Originating Unit                              1.   Prepare a Cash Report as previously described.

                                                                   2.   Hand carry cash receipts and deposit tickets to

                                                                         the designated bank.

                                                                   3.   Complete the VERIFICATION OF DEPOSIT

                                                                         section indicating the actual date of deposit.

                                                                   4.   Forward the original (white) and the first copy

                                                                         (canary) of the Cash Report, all supporting

                                                                         documents, and validated bank deposit slip to

                                                                         General Accounting.

                                                                   5.   Retain the second copy (pink) of the Cash

                                                                         Report for file.

      E.   Direct Deposits by Authorized Units

            Originating Unit                              1.   Prepare a Cash Report as previously described.

                                                                   2.   Hand carry cash receipts and deposit tickets to

                                                                         the designated bank.

                                                                   3.   Complete the VERIFICATION OF DEPOSIT

                                                                         section indicating the actual date of deposit.

                                                                   4.   Forward the original (white) and the first copy

                                                                         (canary) of the Cash Report, all supporting

                                                                         documents, and validated bank deposit slip to

                                                                         General Accounting.

                                                                   5.   Retain the second copy (pink) of the Cash

                                                                         Report for file.

      F.   Direct Deposits of Credit Card Payments by Authorized Units

            Originating Unit                              1.   Prepare a Cash Report as previously described.

                                                                   2.   Hand carry cash receipts and deposit tickets to

                                                                         the designated bank.

                                                                   3.   Complete the VERIFICATION OF DEPOSIT

                                                                         section indicating the actual date of deposit.

                                                                   4.   Forward the original (white) and the first copy

                                                                         (canary) of the Cash Report, all supporting

                                                                         documents, and validated bank deposit slip to

                                                                         General Accounting.

                                                                   5.   Retain the second copy (pink) of the Cash

                                                                         Report for file.

      G.   Requesting Authorization From the Comptroller For Direct Deposit In The Bank

            Originating Unit                               1.   Prepare and submit a memorandum to the

                                                                          Office of the Comptroller requesting

                                                                          authorization to deposit cash, checks, and

                                                                          money orders directly in the bank.  Include the

                                                                          justification for direct deposit in the

                                                                          memorandum, e.g.,:

                                                                          a.   The frequency of deposits necessitates

                                                                                direct deposit

                                                                          b.   The processing of large amounts of cash,

                                                                                and/or money orders necessitates direct

                                                                                deposit

                                                                          c.   Any other extenuating circumstances

                                                                                considered to warrant direct deposit

                                                                    2.   Forward the memorandum to the responsibility

                                                                          center head for signature.

                                                                    3.   Forward the signed memorandum to the Office

                                                                          of the Comptroller for review and approval.

            Office of the

            Comptroller                                     4.   Review the request for appropriate justification

                                                                          and return a response to the originator with the

                                                                          result of the determination; whether approved

                                                                          or disapproved.

            Originating Unit                               5.   If approved, refer to paragraph IV. E. for the

                                                                          procedure on direct deposits.

                                                                    6.   If disapproved, refer to paragraph IV. A.

      H.   Requesting Authorization From the Treasurer for Direct Deposit of Credit Card

            Receipts

            Originating Unit                               1.   Prepare and submit a memorandum to the

                                                                          Office of the Treasurer requesting

                                                                          authorization to deposit credit card receipts

                                                                          directly in the bank.  Include the justification for

                                                                          such requests.

                                                                    2.   Forward the memorandum to the responsibility

                                                                          center head for signature.

                                                                    3.   Forward the memorandum to the Office of the

                                                                          Treasurer for review and approval.

            Office of the

            Treasurer                                        4.   Review the request for appropriate justification

                                                                          and return a response to the originator with the

                                                                          result of the determination; whether approved

                                                                          or disapproved.

            Originating Unit                               5.   If approved, refer to paragraph IV. E. for the

                                                                          procedure on direct deposits.

                                                                    6.   If disapproved, refer to paragraph IV. A.

V.   EXHIBITS

      Exhibit A - FORM 0012, Cash Report

      FORM 0012 Form Instruction Guide

VI. REFERENCE

      Policy 05-06-02, Cash Reports

      Policy 05-06-03, Disbursement Requests