Home : Financial : Cash Management and Investments

Each University unit that collects revenue from any source must:

• Assure the revenue is received and accurately recorded.
• Provide adequate safeguards once received.
• Promptly and correctly deposit the revenue into authorized University general receipts accounts using the correct process. Revenue receipts totaling $1,000 or more require same day deposit, all others at least weekly.

The Board of Regents of the University has delegated all University domestic and international banking authority to the Treasurer of the University of Minnesota. Any banking or credit relationship established for the purpose of collecting or depositing University funds or uses the University name or a derivative thereof or tax identification number must be approved by the University Treasurer.

Non-University funds (coffee funds, employee funds, etc.) are not to be recorded to a University general ledger account or deposited into an account at a financial institution (i.e. checking, savings, money market , etc.) using the University's name or tax identification number.

Special Situations

Refunds

Refunds are issued by the department holding the credit by a refund voucher (which can be taken to the Bursar's Office for cash) Unclaimed refunds, over three years old, shall be forwarded to the Controller's Office and transmitted to the State of Minnesota pursuant to M.S. [[section]] 345.31, et seq.

Operations and Maintenance Revenue

Occasionally revenue may be earned from activities funded from Operations and Maintenance accounts. This revenue should be deposited to an CUFS account other than the appropriation account. The revenue can be spent on activities consistent with the mission of the unit.

University Related Activity - Special Funds

Sometimes, money is collected for a special events such as memorials or scholarships. If this money is intended to remain under the ownership of the University, it should be deposited to a recognized University foundation.

Non-University Activity - Special Funds

Sometimes, money is collected for a personal reasons such as flower or coffee funds, money for a retirement, or a memorial outside the ownership of the University. In these cases, departments have several options: they can maintain cash funds, deposit the money to an employees personal account or open an account after applying for their own tax exempt number. DO NOT use the University tax ID number, deposit to a University general ledger account, or deposit into a University general receipts account. For additional information see Administrative Policy: Hospitality and Special Expenses.

Processing each type of revenue correctly helps assure that controls are applied, financial reporting and bank reconciliations are accurate, transactions comply with University, IRS, and other federal and state reporting requirements, and sponsor / donor intentions are followed.

Bank accounts are opened and monitored by the University Treasurer to manage cash flow, safeguard assets, maximize earnings on income and guarantee accurate financial reporting.

EFS procedures for this policy are being developed and will be added as they are available. Please contact Stacy Hebdon for more information at 612-624-5858 or s-hebd@umn.edu. See also the procedures in the Administrative Policies listed in Related Information.

• Generating or Soliciting Revenue

• UM 1609 Payment Cards Merchant Application Form

Subject	Contact	Phone	Fax/Email
Primary Contact	Stacy L Hebdon	612-624-5858	s-hebd@umn.edu
Accessing Payment Card Accounts	Office of External Sales	612-625-8760 612-624-4837	hexu0007@umn.edu mille599@umn.edu
Overall Policy /Procedures	Office of Investments and Banking (OIB)	612-624-5858	s-hebd@tc.umn.edu
Document Instructions	University Financial Helpline	612-624-1617	fsshelp@umn.edu
Theft	Police Audits	612-624-3550 612-625-1368	umpolice@umn.edu
Database, security, html coding, etc.	Java and Web Services (JaWS)	612-626-8800	info@jaws.umn.edu
Location for Deposits
Twin Cities	Bursar - TC	612-625-7535	612-624-0830
Duluth	Cashier - Duluth	218-726-8295	cashier@d.umn.edu
Crookston	Cashier - Crookston	218-281-8326
Morris	Cashier - Morris	320-589-6005

Appropriations

A type of revenue. All amounts for current operations made available to the University by legislative acts or the local taxing authority. This does not include government grants and contracts or institutional fees. Examples include Draw requests from state appropriation, Draw requests from Federal appropriation, and Financial Aid Revenue.

Bankcards

• Debit Card - A card that debits an individual's bank account and reduces the account balance as purchases are made. A "Chextra" card is an example.
• Credit Card - A card that increases a balance due on a credit limit as purchases are made. There are four types of credit cards accepted at the University: VISA, MasterCard, NOVUS Cards (Discover, Bravo, and Private Issue), and American Express.

Contract

An agreement between the University and another entity to provide an economic benefit for compensation paid. The agreement is binding and creates a quid pro quo relationship between the University and the entity. Contracts may be negotiated at the unit or central level depending on Board of Regents Policy: Reservation and Delegation of Authority. For guidance and examples in distinguishing between sponsored project contracts administered by SPA and other external sales contracts, see Administrative Policy: External Sales, Appendix F - Examples of Gifts, Sponsored Projects, and External Sales

Credit Card Transactions

There are three types of credit card transactions:

1. Card Present Transactions - the customer is present in your department with their card. You swipe the card through the terminal reader.
2. Card Present Keyed Transactions - customer is present in your department with their card. The magnetic stripe on the card is unreadable when swiped through the terminal. You manually key in the credit card number and expiration date.
3. Keyed Transactions - mail order, telephone order, or WWW order. The customer is not present in your department. The customer provides credit card information on a form prepared by the merchant, over the telephone, by fax, or by mail, and it is keyed into a credit card terminal or software. For the WWW order, the customer provides their credit card number and expiration date on a secure interactive web form. The sale is authorized while they are online.

Electronic Funds Transfer (EFT)

See definition in the Administrative Policy: Accessing U-Wide Banking Services.

External Sale

An exchange by the University of tangible or intangible property or service for monetary consideration with external customers. Transactions handled by the Office of Technology Commercialization for technology transfer, license, and trademark agreements are excluded from this definition. The different types of external sales include:

• Department Sales of Goods or Services
• Auxiliary Enterprises
• Central Administrative Sales
• Internal Sales Organizations (ISOs)

For example, see - Administrative Policy: Selling to External Customers, Appendix F - Examples of Gifts, Sponsored Projects, and External Sales

Gift

All restricted and unrestricted transfers of money or property (i.e., equipment, land, etc.) made to a recognized University Foundation or College by an individual, group, business or non-governmental agency when the use of the funds is NOT intended to result in direct economic benefit or any other tangible compensation (i.e., goods or services) to the donor. For example, see Administrative Policy: Selling to External Customers - Examples of Gifts, Sponsored Projects, and External Sales

Grant

Grants are additional resources awarded to the University to support instruction, research or public service. The terms of a grant may dictate particular activities but restrictions are generally few. Frequently a grant has similar characteristics to a gift. Sponsored grants are administered by Sponsored Project Administration (SPA). Although rare, certain grants are administered by specific University departments. For example, scholarship grants such as Federal Pell Grants. The terms of the grant will determine whether it should be processed as a gift, a sponsored project administered by SPA, or managed by a specific University department. For guidance in distinguishing between gifts and sponsored projects, see - Policy 3.2.3, Appendix F - Examples of Gifts, Sponsored Projects, and External Sales

Indirect Cost Recovery

Costs that are recoverable from sponsored projects because they indirectly relate to the research. Examples are operation and maintenance of buildings and grounds, central administrative expenses, research administration and library costs.

Internal Sales

The sales of goods or services by one University department to another department within the University. Examples include revenue generated by Graphics Services, Fleet Services, Telecommunication Services, Physics Shop and University Stores. In some situations a department may use a University Procurement Card to buy goods or services from a University department that accepts credit cards as a form of payment.

Investment Income

Revenue generated from the investment of University assets. Investments are made by the OAM. Examples include income from:

• Temporary Investment Pool (TIP)
• Group Income Pool (GIP)
• Permanent University Fund (PUF)
• Consolidated Endowment Fund (CEF)

Merchant Account

An account set up by the Office of External Sales (OES). The account is credited with revenue generated from debit or credit cards purchases. It is unique to each University department to assure that the correct department receives credit for revenue collected. Money collected on the World Wide Web is also credited to this account.

Patient Care Reimbursement

Revenue generated from the care of patients in the Academic Health Center. Examples include revenue received from the dental clinic and the Boynton Health Service.

Sponsored Project

An externally funded activity that is governed by specific terms and conditions. Sponsored projects must be separately budgeted and accounted for subject to terms of the sponsoring organization. Sponsored projects may include grants, contracts, and cooperative agreements for research, training, and other public service activities. To help assure compliance with submitted proposals, these projects are routed through Sponsored Projects Administration. For examples see: http://policy.umn.edu/groups/ppd/documents/appendix/esExamples.cfm

Student Fees

All fees, except tuition, assessed to students for educational purposes, net of associated refunds. These fees include all those that are assessed on students' fee statements:

• Student Services Fee - Mandatory student fee excluding course and laboratory fees.
• Course & Lab Fees - Fees used to cover special course-related expenses, usually associated with supplies and materials.
• Application Fees - Fees paid by prospective students who apply for admission.

Tuition

The amount of money assessed to students (net of refunds, but prior to application of waivers and scholarships) for instructional services:

• Tuition includes charges for all credit-bearing University courses and less formal credit-bearing services such as thesis advising
• Tuition does not include student services fees or administrative and special course fees which are subject to specific approval by Board of Regents Policy: Tuition and Fees.

University Authorized General Receipts Account

A depository bank account set up by the University Treasurer to receive deposits made on behalf of the University.

University Authorized Disbursement Account

A disbursement account set up by the University Treasurer to disburse funds made on behalf of the University.

Treasury Accounting

Reconcile the University's general receipts and disbursement accounts to the general ledger. Provide information for financial reporting and year-end audits. Establish University revenue codes. Distribute investment income to investment pool participants. Prepare monthly billings of debit and credit card processing fees and revenues.

Office of Investment and Banking (OIB)

Oversight of all University cash management practices to include all University bank accounts and banking services. Prepare daily cashflow forecasts. Maintain adequate liquidity of University assets to meet cash flow needs. Provide assistance to University departments in areas of banking, cash handling and treasurer policies. Negotiate, coordinate and manage all agreements, policies and business related cash management and banking services on behalf of the University.

Audit

Conduct routine audits of revenue collecting procedures. Audit cash receiving process during normal audit process. Conduct special reviews or investigations at the request of University departments or others with concerns or allegations.

Bursar

Serve as a central depository for all University departments. Collect and receipt revenue for tuition, fees and departmental deposits. Provide departments with coin, currency and postage per their business needs. Order banking supplies for University departments. Provide check cashing services to University staff and students.

Department

Establish accountability for receipts. Restrictively endorse all checks as received. Deposit receipts intact each day in accordance with established minimum. Determine proper classification of revenue and code properly. Lock undeposited cash in a safe or secure location. Perform proper reconciliation to verify deposit and check for misappropriations. Pursue collection of bad debts and returned checks.

Reconcile cash receipt activity. Properly separate cash handling duties. Report cash shortages to the Office of Internal Audits, Police and if applicable the Office of Risk Management. Seek approval to accept credit card payments.

Pay for merchant card equipment, software and fees.

Office of External Sales

Establish, maintain and terminate bankcard merchant accounts. Ensure, maintain, and monitor compliance with Payment Card Industry Data Security Standards (PCIDSS)

Police

Respond to thefts and complete reports.

Treasurer

Approve bank and credit card contracts on behalf of the University. Authorized signer on all University bank accounts. Determine the University-wide philosophy regarding the use and handling of cash.

University Debit/Credit Card Processor

Provide training to University departments. Authorize and process University debit/credit card transactions. Deposit money into the University's bank account.

These appendices are undergoing revision. For further information contact Greg Miller at 612-624-4837 or mille599@umn.edu.

• Additional information on bankcard transactions (to be revised)
• Payment Card Merchant Rates

There is no FAQ for this policy.

• Board of Regents Policy: Reservation and Delegation of Authority
• Board of Regents Policy: Tuition and Fees
• Administrative Policy: Accepting and Managing Gifts
• Administrative Policy: Accessing U-Wide Banking Services
• Administrative Policy: Establishing Change and Miscellaneous Payment Funds
• Administrative Policy: Managing Program Income Earned on Sponsored Projects
• Administrative Policy: Reporting and Notifying Individuals of Security Breaches
• Administrative Policy: Selling Goods and Services to University Departments
• Chart of Accounts
• Chart of Accounts FY 2008
• Chart of Accounts FY 2007

Amended:

July 2008 - Changed OAM references to OIB. Accounting Services references changed to Treasury Accounting. Other updates made to address rollout of Enterprise Financial System (EFS). Updated procedures and appendices will be updated as they become available.

Amended:

March 2007 - Updated OAM and Bursar responsibility descriptions. Changed Business Services to Controller's Office.

Amended:

November 2006 - External Sales office now has responsibilities for establishing, monitoring and terminating bankcard accounts rather than the Office of Asset Management. Responsibilities and contacts sections updated to reflect this. Bankcard Merchant Application Form and Bankcard Internet Merchant Application form have been consolidated into one form.

Amended:

July 2004 - Procedures 3.12.1.1, 3 and 4 and some appendices superceded by Financial Onestop (FOS) Tasks in the Accept and Deposit Revenue Process.

Amended:

January 2004 - Added Appendix F: Common Audit Recommendations – Accepting & Processing Revenue.

Amended:

September 1997 - Clarified policy statement: "Revenue greater than $1,000 requires same day deposit" changed to read "Revenue receipts totaling $1,000 or more require same day deposit." Updated phone numbers and e-mail addresses in Contacts section. Clarified language in definitions, responsibilities and special situations sections as well as the Establishing Revenue Accounts procedure.

Effective:

April 1997

Supercedes:

Receipts Policy 1/93 and Receiving Cash Procedure 10/93

To obtain a copy of a historical policy, e-mail the U Policy Librarian at policy@umn.edu or call 612-624-4372.