.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 Associate Vice President for Finance to sell goods and services. Effective January 1^st, 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

• Departments and individuals wishing to accept payments must be authorized to do so, in writing, by the Associate Vice President for Finance. External organizations, including the JMU Foundation, cannot provide this authorization to university employees or departments. Per JMU Policy 4501, prior to commencing any collections or sales of goods/services, receive approval from the Associate Vice President for Finance by submitting a completed Business Activity Synopsis and Cost Benefit Analysis [CBA]. Comply with this procedure when authorized by the Associate 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. Consult JMU Policy 5101 Private Fundraising and coordinate all Fundraising with Development prior to initiating any activities. All donations must be made payable to the JMU Foundation and are not to be deposited to University accounts. Donations made on behalf of the JMU Foundation and remitted electronically are to be directed to the JMU Foundation’s bank account(s) unless the Associate Vice President for Finance has authorized an exception in writing, in advance. Donations made on behalf of the JMU Foundation and remitted via check or money order are to be payable to the JMU Foundation (not James Madison University) and are to be remitted immediately upon receipt to the JMU Foundation Office. When the intent is to mail these check payments, direct the payer to mail the donations directly to the JMU Foundation Office and not to the university department contact’s physical location. (Non-compliance may result in loss of authorization to handle university payments.) University employees should contact the JMU Foundation staff to receive detailed instruction related to donor cultivation.
• Comply with Virginia Retail Sales and Use Tax Collection requirements once authorized by the Associate 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 approved Request for Authorization – Collection of Funds form is to be retained and accessible by the requesting unit, for audit purposes.
  

  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
  
  
  • The Associate Vice President for Finance must approve all new payment collection locations and/or changes in the goods and/or services offered for sale at existing locations.
  • All locations accepting payment cards must obtain written authorization from the Associate Vice President for Finance prior to conducting business and will process these transactions in accordance with Financial Procedures Manual section 4125.
  • Post a notice at all payment collection points stating "A $50 fee will be assessed for any check returned by the bank."  In the case of a payment activity marketed primarily online, the website for the activity is to include the text above.
  • Assess a $50 fee if a check is returned by the bank and deposit the $50 fee once collected, to 100000 - 010570.
  • All checks are to be payable to "JMU" or James Madison University".

    All deposits are to be US Dollar denominated. Exceptions must be approved in advance by AVP for Finance, Associate Controller for Accounting Operations & Disbursements or Director, Cash & Investments and may result in netting of fees to remitter or receiving department. Exceptions will be rare. 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 Sara Price, Cashiering Supervisor, at price2sm@jmu.edu or 8-1606.]
  • 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:

    Use of counterfeit detection pens on all bills $20 and up at time of receipt is recommended. 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/refunds from undeposited receipts. Keep undeposited receipts intact.
    
  • Ensure the safeguarding of funds. Storage guidelines for funds received are as follows:

    Access to undeposited items should be restricted to the minimum number of persons. 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. 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). 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 Associate 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 Associate 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 daily settlement each day to cashiering system reports.

.225 Cash and Investments Office

• Review Business Activity Synopsis and Cost Benefit Analysis submissions.
• Updates Approved Business Activity Spreadsheet with new and revised activities and exceptions when approved by the Associate Vice President for Finance.

.230 Associate 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 Associate 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. Provides a copy of the Deposit Transmittal Form to all departments impacted.
• 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 Associate Vice President for Finance to deposit to the University bank:.100 GeneralThis section provides definitions for accounting terms, acronyms, and information pertaining to the various forms used within the campus and this manual..200 Definitions

  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.
  Accounts Receivable	Amounts owed to the University or a department of the University by individuals or organizations (other than state agencies and institutions) for goods and services rendered, tuition and other fees, and other obligations. Refer to Section 4115, Receivables, for additional definitions and information.
  ATV	See Agency Transaction Voucher.
  Account Number	The expenditure or revenue code that best describes the transaction being processed. Refer to Section 2015for expenditure codes and Section 2020 for revenue codes.
  Accounting Voucher	The form used to initiate prepayments and other payments that do not require a purchasing document. Refer to Section 4205.
  Agency Funds	See Local/Agency Funds.
  Agency Transaction Voucher	The form used to distribute, adjust and/or correct revenue and expenditure transactions from one University account to another and to record recoveries from one university account to another. Refer to Section 4230. To use the form for Agency/Local Fund accounts, refer to Section 3045.
  Autonomy	The ability/authority to operate independently. Generally applies to the University operating independent from the State.
  Auxiliary Enterprises	Nonacademic services furnished directly or indirectly to students, faculty, or staff for which there is a charge or fee that is related to, but not necessarily equal to, the cost of the services. Organization Numbers 3xxxxx.
  Budget	A financial plan projecting revenues and expenditures.
  Capital Outlay (Capital Project)	An acquisition, construction or improvement related to property, plant or equipment (including plans) for state agency use as owner or lessee. Organization Numbers 7xxxxx.
  CAPP (Commonwealth Accounting Policy and Procedures) Manual	A policy and procedures manual maintained and distributed by the Department of Accounts for the Commonwealth.
  Cardinal	The State's centralized accounting system operated by the Department of Accounts (DOA).
  Classified Employee	A permanent or temporary staff employee.
  DOA (Department of Accounts)	The central State agency that serves as the State Controller's Office.
  DPO (Department Purchase Order)	The form that a department may use to purchase certain items with a value of $4,999.99 or less. Refer to Section 7005.
  Debt Set-Off	See Set-Off Debt Program.
  Department ID Number	The six-digit code assigned to identify a University department in the Financial Information System. Refer to Section 2010 for a listing of active numbers.
  Deposit Transmittal Form	The form used to transmit deposit information for revenue items and expenditure credits/recovery transactions for input to the Financial Information System. Refer to Section 4105.
  EIN (Employer Identification Number)	Nine digit number assigned by the IRS to identify taxpayers required to file various business tax returns.
  ETF	See Equipment Trust Fund.
  Educational and General (E & G)	The classification used to describe all operations related to the university's educational objectives. Programs authorized for use by James Madison University are Instruction, Research, Public Services, Academic Support, Student Services, Institutional Support and Operation and Maintenance of Plant. Organization Numbers 1xxxxx.
  Equipment Trust Fund (ETF)	A trust fund, made available through the State Council of Higher Education for Virginia. The funds are provided to purchase instructional or instructional related equipment for higher education agencies. Academic departments eligible to participate are determined by SCHEV. A list of the items to be purchased must be approved by SCHEV prior to making any commitment to purchase. Refer to the Equipment Trust Fund website.
  Expenditure Code	The six-digit account number assigned to identify types of expenditures, e.g., classified salaries, ADP equipment. Refer to Section 2015.
  Expenditure Credit	A reimbursement to a university account for an expenditure made during the current fiscal year, for which a prior expenditure document can be cited, and the original vendor returned the funds.
  F & A	See Facilities & Administrative Costs.
  Facilities & Administrative Cost(s)	Costs incurred in support of many activities that cannot be identified with a single project. Costs for maintenance and operation of buildings, use of equipment and administrative expenses are usually considered F & A costs.
  FIN (Federal Identification Number)	A unique number containing nine to twelve digits assigned to businesses.
  Financial Accounting System Deposit Transmittal Form	See Deposit Transmittal Form.
  FICA-OASDI (Federal Insurance Contribution Act--Old Age Survivors Disability Insurance)	The Federal tax also known as Social Security that provides retirement and disability income to eligible recipients.
  Financial Procedures Manual	The University manual designed to outline accounting and procurement procedures, describe control responsibilities, and provide guidance for completing financial transaction forms.
  Fixed Assets	Assets of a long-term nature intended to continue to be held or used, such as land, land improvements, buildings, machinery, and equipment. These assets must have a value of $2,000 or greater and a useful life of at least two (2) years to be recorded on the University's fixed asset accounting records. Some restrictions apply to items purchased with Grant or Equipment Trust funds. Refer to Section 6005.
  GAAP (Generally Accepted Accounting Principles)	Accounting rules and guidelines that are used on such a wide basis as to be uniformly accepted.
  General Ledger	Reflects balances in the Financial Information System by account assets, liabilities, and fund balances.
  Grants and Contracts Funds	Funding from governmental and non-governmental organizations that is received or made available for specific projects or programs, such as research or training. Organization Numbers 5xxxxx.
  Internal Controls	Management procedures designed to ensure efficiency and effectiveness in operations, to improve management decision making, to protect resources, to ensure maintenance and reporting of reliable information and execution of operations consistent with established management policy. Refer to Section 3005.
  International Travel Authorization Form	The form used to obtain approval for University supported international travel. Refer to Section 4215.
  JMU Foundation	A separately incorporated foundation affiliated with the University and organized to support the University through fund-raising activities.
  Local/Agency Funds	Funds the University holds in a fiduciary role for students, faculty, staff and organizations. Organization Numbers 8xxxxx.
  Local Funds	See Local/Agency Funds.
  NCR (No Carbon Required)	A type of multi-part paper which produces the necessary copies without the need for carbon paper.
  Organizational Unit	An Organizational unit is made up of resources defined by the institution's management structure and functional responsibilities. For instance, an academic department is an organizational unit of a college, and a college is an organizational unit within the division of Academic Affairs.
  PAR (Personnel Action Request) Form	The form used to initiate personnel actions.
  Payroll Time Authorization Form	The form used to submit hours worked by temporary/student employees.
  PeopleSoft Finance	The University's financial information system.
  Petty Cash Change Fund	A Petty Cash Change Fund is established with a specific amount of funds for making cash advances for authorized purposes.
  Position Number	The unique number assigned by Human Resources to each full-time Position. All temporary positions are assigned number 99000.
  Procurement	The act of acquiring goods, supplies, and services.
  Purchase Requisition	The form used to initiate purchases of items that require the participation of Procurement Services. Generally, this form is required for items that have a value of more than $4,999.99 or are specifically exempt from procurement via the Department Purchase Order. Refer to Section 7005.
  Recapitulation	A summary.
  Receivable	Any amount owed to the University. Refer to Section 4115, "Receivables", for additional definitions and information.
  Reconciliation	Identification and resolution of differences between separate sets of records. Refer to Section 3035.
  Recovery	A reimbursement to a University Departmental Organization for various expenditures (in full or partial) incurred during a fiscal year.
  Revenue Code	See Revenue Account Code.
  Revenue Refund	A return of revenue collected, to an individual or business. In specific cases a refund may be made to the University for distribution.
  Revenue Account Code	The six-digit code assigned to identify and summarize types of revenue. Refer to Section 2020.
  Set-Off Debt Program	The Commonwealth program whereby delinquent accounts receivable balances are collected by reducing the individual's State tax refund.
  SCHEV	State Council of Higher Education for Virginia.
  Signature Authorization Form	A form that lists approved signatures of individuals authorized to sign department purchase requests and financial transaction documents. Refer to Section 3020.
  Sponsored Programs	The program used to record expenditures for the direct costs of research grants and contracts and other programs sponsored by agencies external to the University that are fully funded by such external source.
  Subsidiary (Ledger)	Individual ledgers that reflect balances by account for budgets, revenues, expenditures and encumbrances (commitments).
  TIAA-CREF (Teachers Insurance and Annuity Association-College Retirement Equities Fund)	An annuity and retirement program for faculty and teaching and research administrators.
  VRS (Virginia Retirement System)	The State program designed to provide retirement and disability benefits to all full-time employees.
  Work Order	The form and/or electronic media used to initiate a variety of work actions by the University's Facilities Management Department.

.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

    Blank Deposit Transmittal Form for Electronic Payments

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. One copy provided to any other JMU department impacted by the Deposit Transmittal Form. 

.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 funds to the Cashier's Office, University Business Office.  The cashier will fill in the receipt details on the original and copy and return the copy to the department as a receipt.

Deposit Transmittal forms prepared for corrections must be delivered to the University Business Office at the time the correction is requested.

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

Note: * DTF revised 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.

.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.

.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 and Local/Agency Fund Departments receiving revenue should reconcile their individual 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.