2801 PR.01 Recording and Depositing Cash Receipts

Contents

1.      When to Deposit

2.      Record Cash Sale

3.      Assemble and Deliver Deposit Documentation

4.      Error Correction and Network or Computer Outage Procedures

All cash receipts should be recorded and deposited the next business day following receipt unless amounts total less than $500, and then at least weekly.

If the correct account cannot be easily identified for a cash receipt, a suspense account should be used to ensure that the receipt is recorded in a timely manner and posted to the University’s accounting records. Such receipts will be reclassified when the correct account is determined.

Please also refer to Policy 2801 Depositing and Recording University Funds.

         A.  Use of Cash Sales

Use Workday Cash Sales to record receipt of any of the following forms of payment:

• currency and coin;
• checks;
• money orders; or
• traveler’s checks.

Certain items may be accompanied by supporting documentation that becomes part of the deposit record, such as correspondence from donors or other descriptive correspondence or attachments. Section 3 gives procedures for supporting documentation.

Do not use Cash Sales to record:

• returns of Payroll overpayments: salary/wage or benefits;
• repayments of charges that were initially incurred through Accounts Payable (e.g., vendor refunds, repayments of travel or expense advances); or
• receipt of grant or contract funds.

B.  Returns of Payroll Overpayments

Do not complete a Cash Sale for receipts intended to return an overpayment of salary or benefits. The Payroll Department will enter all returns of overpayments.

To process a return of a salary or benefits overpayment:

• Contact the Payroll Department at 432-5552 or employee.services@yale.edu to determine the exact amount the employee should return to the University;
• Complete Form 3501 FR.06 Overpayment Recovery Form;
• Hand-deliver the completed Payroll Payment Adjustment Form and the original Yale University paycheck and/or personal check to Employee Services, 221 Whitney Avenue or mail to P.O. Box 208356, New Haven, CT 06520-8356; and
• The Payroll Department will send a confirmation e-mail to the contact person indicated on the Payroll Payment Adjustment Form, to notify the department that Payroll has received the information and is processing the transaction.     

C.  Repayments of Accounts Payable Charges

Do not complete a Cash Sale for receipts intended to repay charges that were initially incurred through Accounts Payable.  Examples of such receipts are:

• a refund check for an order that was reduced or cancelled
• receipts that are intended to modify an existing invoice or purchase order that has already been paid
• repayment of an outstanding travel or expense advance.

The Accounts Payable Department will enter all such repayments.

To process a repayment of an Accounts Payable charge:

• Prepare a memo to Accounts Payable that includes:

• an explanation of the repayment;
• the charging instructions where the credit should be applied; and
• the name, phone number, and e-mail address of the department contact person for this transaction.

• Attach the following:

• repayment check; and
• copy of vendor credit notice, original purchase order or invoice, or other supporting documentation.

• Hand deliver to Accounts Payable, 25 Science Park.

D.  Gift Income Received in the Department

Most often, contributions are sent directly to the Development Office and deposits are processed by the Contribution Processing unit within that office.

However, occasionally departments directly receive cash or checks representing gifts to the University. Such gifts may also be accompanied by letters or other documents describing the intended use of the contributions.

Departments must deposit such gift income via Cash Sales as described in Section 2.  Attach the documentation to the Cash Sale as the preferred delivery method.  If attachment is not practicable, send documentation to Contribution Processing as specified in Section 3, or place in an envelope labeled for Contribution Processing and drop off at Treasury Services, the same day the deposit is recorded and submitted.

If a gift received in this way is given for a new initiative or is restricted in some way that makes its classification within a current source difficult or improper, one may need a new source and award for the gift.  For questions, contact Funds Management at 432-1337.

See Procedure 2200 PR.01 Gifts Processing and Stewardship for detailed procedures for processing of gifts.  Also, see Policy 2200 Gifts to the University.

E.  Payments for Grants or Contracts

In most cases, grant and contract (sponsored award) payments are sent to the Office of Sponsored Projects (OSP).  In the event that such a payment is received in your department, do not complete a Cash Sale.  The Office of Sponsored Projects (OSP) will deposit sponsored award payments.

To process any grant or contract payment received in your department:

• Contact the Office of Sponsored Projects (OSP) at 785-4689 or osp@yale.edu; and
• Hand-deliver the check and all accompanying documentation to either OSP 25 Science Park 3^rd Floor, YSM Treasury Service SHM I-100, or Treasury Service 2 Whitney Ave.

F.  IRS Reporting Requirements and Form 8300

The IRS requires that the University report all cash receipts greater than $10,000 resulting from its trade or business, regardless of whether such receipts result from a single transaction or a series of related transactions.

Department business offices must complete Form 8300 (available from the Quick Forms web site) and hand deliver it to the University Tax Department within 24 hours of the cash receipt.  In addition, the department should notify the University Tax Department by e-mail on the date of the transaction that this form will be delivered.

For this purpose, cash includes coin and currency; however it also includes cashier’s checks, bank drafts, traveler’s checks, and money orders that have a face value of $10,000 or less if such items are:

• received in any transaction in which the recipient knows that such instrument is being used to avoid the reporting of the transaction; or
• received in a designated reporting transaction, which is defined as a retail sale of a consumer durable, a collectible or a travel or entertainment activity.

Payments that are considered received in the course of the University’s trade or business include, but are not limited to, payments for tuition, room and board, rent and the repayment of debt.

Charitable contributions are not subject to these reporting requirements.

Departments and business support centers are encouraged to contact the University Tax Department for assistance or clarification at 432-5530.

G.  Security

Departments and business support centers are responsible for safeguarding cash and other receipts while in their possession.

For personal safety, anyone who transports cash deposits regularly should use a campus police escort.  It is strongly recommended that anyone making deposits of $2,500 or more do so with police protection.

A.  Organize Cash Items

Collate cash and checks.

Only U.S. Dollars and checks in USD drawn on U.S. banks may be deposited.

Do not endorse any checks.  Instead, stamp or write only the appropriate organization number clearly on the front of all checks.  The Cashier will endorse all checks before depositing them at the bank.

B.  Foreign Currency

The University does not accept foreign currency or foreign currency checks for deposit.  Please be sure that checks are drawn on U.S. banks only.

Please note the USD checks drawn on banks outside the U.S. are foreign and may not be deposited.

For sensitive donor or sponsor payments received in foreign currency please contact Treasury Services.

C.  Copies of Tracking Slip

If depositing cash, please bring two copies of the tracking slip to Treasury Services.  One will be retained and the other stamped and returned to the department as a receipt.

A.  Submit Required Notifications and Additional Documentation

For the following types of deposits, you must send an explanatory e-mail message or documentation to certain central departments on the same day the Cash Sale is entered.

You may deliver these documents to Treasury, but they must be placed in envelopes separately addressed to each central office.

If your deposit includes…

Then…

Gift transaction

Attach the documentation to the Cash Sale as the preferred delivery method.  If attachment is not practicable, send all the following documentation to Contribution Processing: copy of the tracking slip; any donor documentation and the envelope in which the gift was received; copy of the check; copy of departmental thank-you letter, if any; and if check amount includes payments such as membership, tickets, dinners, etc., in addition to a donation, include any documentation that indicates the split. No e-mail notice is required for gift deposits.

B.  Prepare and Deliver the Deposit

Separate cash and checks from supporting documents.  Submit coins in envelopes or rolls.  If you are submitting a large amount of cash, separate and strap the bills.  Roll coin if it exceeds the standard amount of a roll of coin.  Cash straps and coin wrappers are available at Treasury Services.

Reconcile the cash to the corresponding tracking slip amount, and attach cash and checks securely to the tracking slip.

If you have entered “various” on any line of the Cash Sale, you must attach a calculator tape or spreadsheet that shows the details of the aggregated amounts.  A tape must show the number of items and the dollar amount of each.

Carry the deposit, tracking slip and supporting documentation to the Cashier in your area, taking appropriate security measures.

• Central Campus: Treasury Services, 2 Whitney Ave, 1^st floor.
• Medical School: Medical School Business Office, Sterling Hall of Medicine, 333 Cedar Street, 1st floor (SHM I-110).

If you would like a receipt from the Cashier, bring two copies of the tracking slip.  The Cashier will stamp one copy and return it to you.

C.  Record Retention

The system maintains history of all transaction created and modified.  To view your history, navigate to your Workday Inbox Archive for recent transactions.  Each department is responsible for all funds until they are delivered to Treasury Services and a receipt is obtained.

A.  Corrections Made by the Cashier

If the Cashier changes any amount on a Cash Sale that you prepared, it will be reflected in system.

B.  Checks Returned for Insufficient Funds (NSF)

The bank returns NSF checks to Treasury Services.

• The Cashier will debit your account for the check amount, apply a returned check fee, and return the NSF check to you.
• It is the department’s responsibility to pursue collection of the NSF amount, and to absorb or collect the associated fee.
• Once you have received a new check or some other form of payment to cover the NSF amount and the associated fee, you should make another deposit following this procedure.

C.  Computer or Network Outage / Computer Inaccessibility

Occasionally, due to a network outage or a computer malfunction, the system may not be available to you at a time when you need to make a deposit.  The Cash Sale worksheet is available on the Quick Forms site.

• ONLY under those exceptional circumstances, you may use a paper worksheet to make the deposit.  This procedure will still apply for such deposits, and you should follow it accordingly.