Scope

This procedure covers the preparation of a Bank Deposit by persons designated as having the authority to make deposits directly to a local branch of the University's bank.

This procedure does not cover preparation of a deposit for processing by the University Cashiering Office (See Procedure 5-6 "Preparation of a University Cashiering Office Deposit")

System References [Top]

IS Navigation Journals - Creating [NAV3000Z]
Recording a Direct Bank Deposit in IS Deposit-Cash [REF3005U]

Policy [Top]

See University Policy V.B.1 "Cashiering Activities"
See University Policy II.C.1 "Records Retention and Disposition"
See University Policy II.E.4 "Controlling Cash Items"

Responsibility [Top]

The Department Cashier is responsible for preparing and recording the deposit, and for completing the Direct Deposit Slip and taking the deposit to the local branch of the University's bank.

Distribution [Top]

Department Cashier
Oracle GL Specialist

Ownership [Top]

The Director of Accounting Services is responsible for ensuring that this procedure is necessary, reflects actual practice, and supports University policy.

Procedure Steps

This activity is performed whenever a Department Cashier receives funds that are to be deposited directly to the University's bank.

Department Cashier

1.      University of Virginia policy requires that all funds received be recorded immediately and deposited in a timely manner. (See University Policy II.E.4 "Controlling Cash Items") . Deposit journal entries should be recorded in the OGL module of the Integrated System the same day that the deposit is taken to the bank.

 

2.      All checks deposited must be restrictively endorsed as follows:

For deposit only to within named payee/fund of The Rector and Visitors of the University of Virginia Department of_______________________
Oracle Org: ______ Oracle Project: ______

The endorsement must appear within the first 1 1/2 inches of the check's trailing edge and include the department's Oracle Organization and Project codes. See also Procedure 5-8, "Endorsing Checks" .

3.      Complete the multi-part Bank Deposit Slip. See sample form

 

4.      Distribution of Bank Deposit Slip copies after validation by the bank:

• White   - Kept by the bank
• Yellow - Returned to depositor and then filed with deposit source documents

5.      Determine the Oracle General Ledger account segment values for the items to be deposited (Entity, Project, Fund Source, Object Code, Organization).

§         Entity:  Determine the award to which the revenue will be allocated, look up the Award Purpose Code and use the last two digits as the Entity.

§         Project: Enter the revenue project as the project number.

§         Fund Source: Determine the award to which the revenue will be allocated, look up the Award Purpose Code and use the first four digits as the Fund Source.

§         Object Code: In the majority of cases, the correct object code for recording departmental revenue will be one of the following:

4705   Sales & Svcs - Edu Activities       4710   Conference Income - Non Aux       4820   Other Income

§         Organization: Enter your 5 digit organization

6.      Log on to the Integrated System with the responsibility of GL Specialist, and create a New Journal Entry for the deposit. Refer to the IS Navigation Journals - Creating [NAV3000U] for step-by-step instructions on creating the journal transaction and Deposit-Cash [REF3005U] for examples explaining the correct choice of the Journal Category and Alias.

Notes:
A departmental clearing account has been established for each direct bank depositing location (and each credit card merchant ID). This clearing account will act as the departmental cash line for deposits recorded by the bank When recording deposits, the department must use their departmental clearing account alias as the debit line in the journal and the departmental GL string as the credit line. Use Discoverer Report FM-Project Contact Information to determine all projects and managers assigned to the department's organization number/s. Use the drop-down under "Project Owning Organization" to isolate the organizations and the projects.

Write the Journal Number assigned to the transaction by the system on the bottom of a Direct Deposit Slip (see sample form). Instructions for ordering deposit tickets can be found in the forms directory "Deposit Ticket Order Form." Do not order deposit tickets from a bank branch.

It is critical that the Deposit Control Number (DCN) from the Deposit Slip be entered in the first eight (8) places in the detail line description when making the OGL deposit journal entry. Specifically, in the 'Debit' line Description field enter only the DCN. In the 'Credit' line(s) Description field enter the DCN first. Other descriptive text may follow as desired. The Oracle Cash Management module uses this information to perform the bank reconciliation. The DCN, which is preprinted on each direct deposit slip, is unique to each department. Therefore, use only your deposit slips and do not exchange with other departments.

 

7.      File Yellow copy of the Bank Deposit Slip with all original documentation supporting the deposit. Original documentation may include: a record of checks and cash received; copies of checks or check stubs; adding machine tapes; or any other department records sufficient to satisfy an audit.

End of Activity