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Finance & Administration > FAPolicies > Accounting > Handling Deposits
Handling Deposits
Section:1- Accounting
Policy Procedure:1-7.01
Subject:Handling University Deposits
Established Date:1/1/2004
Responsible Department:Controller

Overview
All cash, checks and/or credit card payments received must be deposited with the University Cashier's Office. This procedure describes how departmental personnel are to deposit funds.

Guidelines
Funds must be deposited no later than 1-2 business days at the Cashier’s Office. Do not send cash through the mail (including campus mail). Any area that collects funds as part of normal operations must complete the Request for Authorization to Collect Funds Form (Policy 1-7.02).
Departments authorized as a Collection Areas drop their sealed deposit bags in one of the drop safes on campus. Collection Areas must be authorized by the Cashier’s Office before collection begins (Policy 1-7.02). An armored car picks up the deposits from the drop safes and delivers to the bank. Collection Areas can elect to have pickup service; however, they will be required to cover all costs associated with the departmental pickup. Collection Areas must make deposits within the time specified below:

a) When accumulated amounts received total $50 or more, the deposit must be made no later than the following business day.
b) When accumulated amounts received are less than $50, deposit within a one week period of time.
c) Due to the risk of loss or theft, funds should not be retained by any department unnecessarily.

Safeguarding receipts prior to deposit is the responsibility of the department. Cash, checks and credit card charges must be kept in a safe place at all times. An office safe or vault with restricted access is required. Never store bank account numbers, credit card numbers, or other confidential information on your computer. Do not send confidential information by email or ask others to do so.

Separation of duties is an important part of internal control. The ideal separation of duties has three distinct employees performing the tasks of collections, deposits, and reconciliation. The three-way separation is the safest and most accepted internal control measure. If there are insufficient personnel, a two-way separation can be used. In the two-way separation the same individual can perform the tasks of both collections and deposits; however, the reconciliation task must be completed by a separate individual.

When delivering deposits to the Cashier’s Office or drop safes, individuals should take adequate precautions for their personal security and safety. MUSC Public Safety Office has a safety escort program.

The Controller’s Office will notify Departments if an overage or shortage greater than $25 exists with the deposit. Request a receipt for deposits delivered to the Cashier’s Office. If you do not receive a receipt or see your deposit recorded within 3-5 days from the date of deposit, notify the Cashier’s Office Manager at 792-2718. Receipts should be compared against original deposit and attached to the departmental copy of the Remittance Advice Form.

Foreign money – The Cashier’s Office does not accept foreign currency or coins. It is the responsibility of the person who accepts the payment to exchange it for U. S. dollars. The Cashier’s Office will accept foreign checks. The checks will be entered for collection at Wachovia bank. The amount collected by Wachovia less collection fees will be credited to the requested UDAK.

Departmental management should perform unannounced reviews of their cash handling areas. The reviews should verify the adequacy of controls and the validity of information recorded by the cash handlers. Periodic surprise cash counts should be performed by someone who is not responsible for custody of the funds. The department should designate an employee to routinely reconcile the amount collected by the department and the amount deposited and recorded in the cash receipts system.

The following points could be addressed during reviews of the cash handling areas:

• Count the change fund and cash receipts if applicable for the area.
• Observe the physical safeguards for cash receipts such as the use of a safe.
• Reconcile the latest deposit with the cash handler.
• Are checks stamped immediately “for deposit”?
• Does the cash handler collect for checks that are returned due to insufficient funds?
• Review the receipt process and timeliness of deposits.
• Are cash handling duties separated?
• If payments are received via the mail, who opens the mail?
• Does the cash handler have access to applicable policies?
• Do receipts reconcile to transactions or the service provided?

Procedures
Areas not authorized as Collection Areas:
1. Complete a Remittance Advice Form (policy/procedure 1-7.03).  For your records, be sure to maintain a copy of the completed Remittance Advice Form, checks deposited, and receipts issued to customers.
2. Make the deposit by taking the completed Remittance Advice Form and funds to the Cashier’s Office located at 19 Hagood Avenue, Suite 303, Harborview Office Tower.

Collection Areas:
1. Complete a Remittance Advice Form (policy/procedure 1-7.03). 
2. Using the MUSC endorsement stamp showing your department name and the bank account number, endorse the back of each check. Keep copies of checks and receipts issued to customers.
3. Complete bank deposit slip. Write the Bag Number and Armored Car Sticker Number at the top of the deposit slip.
4. Place the Sticker on the tamper-evident deposit bag and write your department name, Wachovia Bank, and the deposit amount on the bank bag.
a. Place the cash/checks and deposit slip in the bag.
b. Seal the bag by removing the release liner to expose adhesive. Press down and smooth closed.
c. Remove tear-off receipt and keep with deposit documentation.
5. The Armored Car Service will collect the deposit from the drop safe or your department.
6. Fax (792-2016) or email (cashier@musc.edu) the Remittance Advice Form to the Cashier’s Office. Keep the original for your records.


Page last updated:05/24/2012

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