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Procedure: 5-5

Effective: July 9, 2001

Owner: Associate Comptroller of Accounting Services

Latest Revision: June 03, 2009

Preparation of Direct Bank Deposits

Procedure Steps

Scope | System References | Policy | Responsibility | Distribution | Ownership

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 Associate Comptroller 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 GL module of the Integrated System the same day that the deposit is taken to the bank.

2. All University depositors must restrict the placement of all endorsements either written or stamped to within 1 ½ inches of  the trailing edge of the back of the check (see diagram below).

 

3.      All checks deposited must be restrictively endorsed as follows and include the department's Integrated System Organization and Project codes:

For deposit only to within named payee/fund of
The Rector and Visitors of the University of Virginia
Department of ___________________________
Org #: ________ Project#: _________________

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

 

5.      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

6.      Determine the 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 funds will be allocated, look on the 'IS.FM_Award Commmon Attributes' report in Discoverer for 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 funds will be allocated, look on the 'IS.FM_Award Common Attributes' report in Discoverer for 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

A complete listing of reveue object codes can be found by running the Discoverer report 'IS_GL_Object Codes'.  Revenue object codes are in the 4xxx series of values.

§         Organization: Enter your 5 digit organization

7.      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 GL 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 Integrated System 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.

 

8.      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.

 

Foreign Checks/Foreign Currency

  1. Deposit these checks separately. Enter the amount into the Integrated System for the 'probable' amount based on the currency exhcange rates quoted by the University's bank.

  2. The collections process (see below) can take as long as six to eight weeks to clear the bank and may include fees not associated with the exhcange rate.

    Foreign Bank/Foreign Funds with No Hold- If a scan of the check at the bank does NOT ask for a hold, then the check amount is converted on the spot and the funds are deposited.

    Foreign Bank/Foreign Funds with Requested Hold - If the scan of the check at the bank 'asks for a hold', then a $40.00 minimum fee applies and the collection will take a minimum of 6 to 8 weeks.

    Foreign Bank/U.S. Funds - There is ALWAYS a 'hold for collection'. The $40.00 minimum (or greater) fee will apply and collections will take a minimum of 6 to 8 weeks.

  3. Reverse the original Integrated System entry and create a new entry for the correct deposit amount.

End of Activity

 

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© 2001 by the Rector and Visitors of the University of Virginia
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