Cash Management

 

Money

Money includes currency and other negotiable documents, such as personal checks, money orders, cashier's checks, and traveler's checks, received by a department for goods or services or as a refund, reimbursement, or gift, etc.  Credit and debit card transactions will be discussed later on this page. All money received as payments to the university must be promptly forwarded to the campus central cashier or deposited to the credit of the University of Tennessee General Account in a bank designated as a university depository.  When money is deposited in an approved bank, the campus central cashier must be notified immediately in one of two ways: 

  1. A deposit document printed from the university's accounting system or
  2. a report of the departmental collections, form T-33.  The deposit ticket must accompany the printed deposit document or the Form T-33.

All money must be deposited or transmitted to the campus central cashier within three business days of receipt.  Deposits must be made intact and include all money received.  Expenditures may not be made from  money received, and the money may not be retained in a department for its use.

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Recording Money Received

Departments that Use Receipt Books.  All amounts must be spelled out and a notation made on each receipt specifying whether payment was by check or currency.  The original receipt must be initialed and given to the payor if the payor is present or when the payment involves currency.  Whenever a receipt is voided, the voided receipt must be properly explained and both copies kept on file.  Official receipt books are available from the Bursar's Office.  Receipt books are signed out to the employee only who have a UTC ID.  The receipt books cannot be signed out by student employees .

Departments That Are Unable to Issue Receipts. Every department with a reasonable expectation of receiving payments in currency should obtain an official university receipt book and deposit the payments as described in deposit instructions.  Departments that are unable to issue an acceptable university receipt (see above) should not accept currency payments.  If a payor must transact in currency and the department cannot issue an acceptable receipt, the department must complete a FORM T-33 in duplicate for this payment and have an employee accompany the payor to the Bursars Office to obtain a receipt. The Customer Service Specialist will receipt and deposit the payment. 

Checks Made to the University.  All checks in payment to the university should be made payable to "The University of Tennessee" and Not to departments or any university official or employees.  Checks should be restrictively endorsed immediately upon receipt with the university's official endorsement stamp.  Third-party checks must be endorsed by the individual cashing the check and then stamped with the endorsement

Safekeeping of Money Received.  Department heads should see that official funds are protected until they are deposited or transmitted to the campus central cashier, as follows:

  1. Proper safekeeping facilities should be used.
  2. Deposits should never be sent through campus mail.
  3. Safe combinations should be changed whenever security is compromised or knowledgeable employees leave the department.
  4. No more than two or three responsible employees should have access to funds stored in a department.
  5. Currency and checks should not be left overnight in cash registers, drawers, or other unsecured locations.
  6. If a deposit includes large sums of currency and checks, the department should consider:
    • Requesting security officers to transport the deposit
    • Using night depository services
    • Making deposits daily (or more frequently).

Money Collected from Students.  Routine laboratory supplies for a course are normally covered by student fees.  Other miscellaneous charges must be approved by the campus or institute chief business officer.  Such charges should be collected by departmental staff and not a member of the teaching faculty.  Required course materials and texts for the department will be handled by the university bookstore on consignment (See Fiscal Policy F10425 for exceptions.)

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Accepting Credit and Debit Cards

 Crediting Card Processing.  Departments are not permitted to engage in any form of credit card payment processing without seeking and receiving approval as required by fiscal policy FI0311 - Credit Card Processing.  All users are required to be familiar with and comply with this policy.

Campus/Department Policies and Procedures.  Departments accepting credit and debit cards must develop comprehensive campus-specific policies and procedures that articulate a framework and security structure.  At a minimum, the policies and procedures must contain complete descriptions of the following:

  • Credit card processing system to be used. (e.t. e-commerce, point-of-sale, etc.)
  • Steps for reporting deposits into the university depository (including university cost centers and WBS elements to be credited).
  • Steps for handling voids, returns, chargebacks, and all costs associated with such transactions ( including university cost centers and WBS elements to be charged).
  • The data encryption system for credit card use.
  • A statement that the participating departments have reviewed the policies with their internal audit staff

Review  FISCSL POLICY F10311 for detailed requirements for Credit Card Processing.

Credit and Debit Card Deposits

Processing Electronic Transactions.  Two types of electronic transactions may be made, through point of sale (POS) terminals or the Internet, both of which rely on the electronic capture of data necessary for processing the transaction.  Departments or units that receive credit and debit deposits should enter deposit information into the university's accounting system.  Departments or units that are unable to enter deposit information must prepare a REPORT OF DEPARTMENTAL COLLECTIONS (FORM T-33) for each deposit and forward to the appropriate campus/institute office for processing and posting to official university records.  Batch release reports generated by the POS terminals or the Internet payment system must be attached to the bank deposit statement (or FORM T-33).

  1.  POS Terminal Transactions.  Cardholder and transaction information is swiped or keyed into a POS terminal and electronically submitted to the card processor (bank) for authorization or approval.  At the close of each business day, the department or unit reconciles all transactions processed through the POS terminal to the actual sales drafts and transmits the batch of transactions to the card processor (bank) for settlement.  Many cash registers are equipped with POS capabilities and can be used in lieu of separate POS terminals.  Departmental or unit sales drafts must be maintained for seven (7) years.
  2. Internet Transactions.  Cardholder and transaction information is captured via the Internet and transmitted electronically to the university's processor for authorization or approval.  Each day at a predetermined time, all approved transactions are submitted to the processor for settlement.  Each department or unit will receive a daily batch release report detailing all transactions processed by its Web site.  This report must then be reconciled with orders received and processed during the same time period.  Documentation must be maintained for seven (7) years.

Credit and Debit Card Refunds and Chargebacks

Refunds must be issued against the customer's credit card.  The Treasurer's Office (or business office ) will be notified of all chargebacks, i.e., items disputed by the customer, through the university's accounting system.

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