Michigan State University
Controller's Office

305 Administration Bldg
East Lansing, MI 48824
517 355-5020

SECTION 15: Cash Handling, Deposits, and Incoming Electronic Funds

Last updated: August 2008
  1. Responsibility
  2. Cash Receipt Forms
  3. Deposits
  4. Cash Handling Policy
  5. Overages and Shortages
  6. Cash Control Records
  7. Receipts
  8. Security
  9. Checking Accounts
  10. Refund Checks
  11. How to Cancel a MSU Check
  12. Unidentified Checks
  13. Incoming Electronic Funds Transfers/Wire Transfers/ACHs
  14. Exhibits/Forms

I. Responsibility

  1. Each department is responsible for cash and checks it receives for the University.  Funds may be received from sales of items, tickets, meals, etc.
  2. If funds are received and the department does not have a cash register to record sales, prenumbered receipt forms must be used.  The only exception to this would be in the case where prenumbered tickets are sold.
  3. Upon receipt, all checks for deposit must be restrictively endorsed by the department.  At a minimum, the endorsement should read "for deposit only, Michigan State University" and include the depositing department's name and account number on the back.  This action is mandatory for funds to be covered by the University's Crime Insurance Policy.
  4. If a check has a payee other than Michigan State University, it must be endorsed as drawn and then restrictively endorsed as indicated in item C above to be eligible for deposit.  Federal Reserve Bank regulations limit our endorsement field to the first 1 1/2" from the trailing edge of the reverse side of the check.  No other markings may be placed on the remainder of the reverse side.
  5. Departments are responsible for the deposit of cash, checks and/or bankcards no less than once per week.  When receipts are infrequent, deposits of a nominal amount ($50.00 or less) may be made less frequently, but no less than every two weeks.  All funds received must be accumulated in a secure place until deposited.  The Cashier's Office will not accept checks that are stale–dated (over 12 months old).  Checks which are held from deposit for more than two weeks, which are subsequently returned unpaid, may result in the department being held liable for the University's returned check service charge.
  6. Cashier's forms may be downloaded from the Controller's Office Forms Download internet site.
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II. Cash Receipt Forms

For receipting transactions involving cash or checks, departments should use a prenumbered receipt form which can be obtained from Stores, stock order #14024830.

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III. Deposits

  1. Deposits of Revenue.  Deposit Receipt Form, (see exhibit 15–A) is to be used by the department to deposit revenue with the Cashier's Office, 110 Administration Building.  This form is not available from Stores.  Reasonable facsimiles created with various softwares such as Excel™ or Access™ are also acceptable.  It should be prepared in the following manner:
    1. Prepare the deposit form in duplicate.  Prepare additional copies if another department or office is to receive a copy as well.
    2. Print your name, office address and phone, date and sign the the deposit form.
    3. The grid for "Description To Be Put On Ledger" should be completed with information to identify the deposit when it is reported on the fund ledger.  This grid should be limited to nineteen characters.
    4. Account name(s), number(s) and appropriate revenue code(s) (see Section 65, Revenue Codes) must be indicated.  If the revenue is subject to State of Michigan sales tax (ST), the tax amount should be itemized and deposited to account 21–3236 "Sales Tax Clearing" as provided on the form.
    5. Total for the top half of the form (account distribution) must be equal to the total for the bottom of the form (funds being tendered).

    6. All currency should be banded by denomination and coinage rolled where possible and must bear the name of the department or in the case of coin, name and address of the individual from whom the roll is accepted.  These supplies may be obtained from Stores.  When possible, please band or paperclip currency in the following manner:

      Currency In Bands Of: In Clips Of:
      100's $2000 $1000
      50's $2000 $1000
      20's $2000 $500
      10's $1000 $250
      5's $500 $100
      1's $100 $25
    7. Checks.
      1. All checks being deposited must include the depositing department's name and account number (handwritten or by stamp) on the back.
      2. For deposits consisting of four or more checks, an adding machine tape must accompany the checks.  If no adding machine tape is available, a list of the check amounts and a total on a piece of paper is acceptable.
      3. Itemize checks, bankcards, EFT's, currency and coinage separately.
    8. Bankcards.
      1. All bankcard activity must be represented by a settled Batch Total Report.  For a copy of the Batch Total Report, please contact the processing company Help Desk at 1–800–848–3213.
      2. The Batch Total Report must include the following:  Batch #, Location #, Date, Amount.  If the Location # is not preprogrammed on the report, it must be handwritten.
      3. The total bankcard revenue must be segregated into three (3) subtotals as follows:
        1. Visa and MasterCard = Combined total amount per the Batch Total Report
        2. American Express = Amount for all machines under the same merchant number for that day.
        3. Discover = Amount for all machines under the same merchant number for that day.
    9. Prior to the initial acceptance of bankcards as a form of payment, please contact the Office Supervisor, Cashier's Office, 355–5023, for specific information on how to deposit these items.
  2. Deposits of Expense Abatements.  Expense Abatement Deposit Receipt form (see exhibit 15–B) is to be used by the department to deposit funds with the Cashier's Office, 110 Administration Building when such funds are reimbursements of previous expense.  (Note: refunds related to University purchase orders must not be deposited using this form.  See Section X. below.)  This form is not available from Stores.

    Expenses that do not relate to University operations should not normally be charged against University accounts.  (If appropriate, such expenses may be charged against Agency accounts maintained within the University accounting structure.)  However, occasionally, a non–University expense will be erroneously or unavoidably charged against a University account.  When this occurs, it is essential that full and proper reimbursement be made to the University.  Repayment of these non–University expenses by cash or check should be accounted for using the "Expense Abatement Deposit Receipt" form.

    This process is not to be used to charge/reimburse personal or non–University expenses against MSU accounts on a routine or regular basis.  Reimbursement of such expenses does not excuse the original transaction.  It is also not to be used to account for revolving operations within a budgeted account.

    The "Expense Abatement Deposit Receipt" form should be prepared in the following manner:

    1. Prepare the deposit form in duplicate.  Prepare additional copies if another department or office is to receive a copy as well.
    2. The grid for "Description To Be Put On Ledger" should be completed with information to identify the deposit when it is reported on the fund ledger.  This grid should be limited to nineteen characters.
    3. Document the person reimbursing the University, the circumstances under which the expense was incurred, the reason it is being reimbursed, the date, description and reference number from the original transaction.
    4. Account number(s) and the original expenditure code(s) (refer to original expense transaction) must be indicated.  If the reimbursement is for an expense that is subject to Federal excise tax (ET), the tax amount (over and above the expense reimbursement) should be deposited to account 21–3233 "Excise Tax Clearing".  If the expense is subject to State of Michigan sales tax (ST), the tax amount (over and above the expense reimbursement) should be deposited to account 21–3236 "Sales Tax Clearing" as provided on the form.  If you have questions regarding taxability of reimbursements please refer to Section 50 and/or contact the Controller's Office at 353–9175.
    5. Enter your name, office address, phone, and e–mail address, date and sign the bottom of the deposit form.
    6. Total for the left side of the form (account distribution) must be identical to the total for the right side of the form (funds being tendered).
    7. All checks being deposited must include the depositing department's name and account number (handwritten or by stamp) on the back.
    8. For deposits consisting of four or more checks, an adding machine tape must accompany the checks.  If no adding machine tape is available, a list of the check amounts and a total on a piece of paper is acceptable.
    9. Enter total amount for currency and for coin and itemize and total checks.

    10. All currency should be banded by denomination and coinage rolled where possible and must bear the name of the department or in the case of  coin, name and address of the individual from whom the roll is accepted.  These supplies may be obtained from Stores.  When possible, please band or paperclip currency in the following manner:

      Currency In Bands Of: In Clips Of:
      100's $2000 $1000
      50's $2000 $1000
      20's $2000 $500
      10's $1000 $250
      5's $500 $100
      1's $100 $25
  3. Frequency of deposits generally should be based on cumulative receipts on hand as follows.  These guidelines provide minimum standards, allowing departmental discretion for increased deposit frequency.

    1. Cumulative Receipts Minimum Frequency of Deposit *
      $40,000 or more Next Business Day
      $10,000 – $40,000 Within 3 business days or 2 times per week
      $50 – $10,000 Within 5 business days or once per week
      less than $50 Within 10 business days or once every 2 weeks

      * If a large portion of cumulative receipts on hand is comprised of cash, deposits should be made more frequently than outlined above.  Contact the Cashier's Office at 355–5023 for more information.

      * If a single receipt for $200,000 or more is received, every effort should be made to deposit this on the same business day.

      * If a department uses an armored car service for transport of deposits, the prearranged pick–up schedule may occasionally conflict with the above guidelines.

    2. The funds must be accumulated in a secure, locked location prior to making the deposit.
    3. The University has a contract with an armored car service that will make scheduled pick–ups of departmental deposits from a department on a per trip fee basis and deliver them to the Cashier's Office.  For further information, contact the Manager of the Cashier's Office, 110 Administration Building, telephone 355–5023.
    4. Deposits delivered by armored car or otherwise dropped off generally will be processed the next business day.
  4. The Cashier's Office, 110 Administration Building, is open from 8:15 a.m. to 4:45 p.m., Monday through Friday.  For deposits at other hours, a department may use the night depository located at the front of the Administration Building.  Contact the Office Supervisor at 355–5023 for more information.
  5. For all deposits, the Cashier's Office will validate the deposit and return the duplicate copy to the department for its records.
  6. For all deposits, the Cashier's Office reserves the right to return incomplete or inaccurate deposits for correction.
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IV. Cash Handling Policy

  1. Checks should be made payable to Michigan State University.  If checks are received by mail, the senders should be notified in advance to make their checks payable as indicated above and to mail them to the attention of the department involved.  Checks which have been made payable to persons or departments must be endorsed by the payee prior to deposit.  All checks must be restrictively endorsed in writing or with a stamp when received by a department.  At a minimum, the endorsement should read "for deposit only, Michigan State University" and include the depositing department's name and account number on the back.
  2. Checks drawn outside the continental United States should be made payable to Michigan State University in U.S. funds payable through a U.S. bank.  Any check drawn on a foreign bank not having a correspondent bank in the United States may be returned for compliance with this policy.  Any fees associated with the depositing of these checks will be charged to the depositing account number.  Further information regarding the acceptance of checks drawn outside the U.S. may be obtained from the Manager of the Cashier's Office, 110 Administration Building, 355–5023.
  3. No personal check(s) in excess of the amount of the purchase should be accepted. Checks CANNOT be cashed at a department for the accommodation of the University faculty, staff or students.  Persons responsible for handling University funds should, under no circumstances, cash personal checks from these funds.
  4. ALL RECEIPTS MUST BE DEPOSITED WITH THE CASHIER'S OFFICE.  Refunds or other expenditures must NOT be made from cash receipts.  Large numbers of similar refunds can be made from petty cash funds obtained by the department for that purpose (see Section 60, Petty Cash Funds).  Miscellaneous or infrequent refunds may be made through the use of a multiple check voucher or a direct payment voucher.  In these instances, checks will be mailed to the individuals.
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V. Overages and Shortages

All large or unusual overages/shortages or reconciling problems must be reported to the Manager of the Cashier's Office and the Director of Internal Audit on a timely basis.

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VI. Cash Control Records

Daily records should be kept of the inclusive receipt or ticket numbers and total amount for which the receipts were written or tickets sold.  Deposits with the Cashier's Office should also reflect the inclusive receipt or ticket numbers and the total amount collected.

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VII. Receipts

The maintenance of a numerical file of all receipts is the responsibility of the department.  Since all prenumbered receipts must be accounted for, all original copies of voided receipts should be stapled together and must be retained by the department.  Copies of receipts are to be retained by the department and attached to the departmental copy of the deposit slip.

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VIII. Security

Funds should not be left unlocked or unattended and should be concealed from general view. Receipt records should not be kept with the funds received.  The University has a contract with an armored car service that will make scheduled pick–ups of departmental deposits from a department on a per trip fee basis and deliver it to the Cashier's Office in the Administration Building.  For further information, contact the Manager of the Cashier's Office, 110 Administration Building, 355–5023.

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IX. Checking Accounts

THE USE OF CHECKING OR OTHER BANK ACCOUNTS BY UNIVERSITY PERSONNEL FOR THE DEPOSITING OF UNIVERSITY FUNDS IS STRICTLY PROHIBITED.

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X. Refund Checks

Refunds from vendors or individuals – Occasionally, departments receive whole or partial refunds of payments made by MSU.  Such refunds from vendors or individuals could be due to erroneous payments, the return of merchandise, unfulfilled services, etc.  In such cases, departments can have the refund check deposited into the account from which the original MSU payment was issued in one of two ways:

  1. If the refund relates to a payment made against a University purchase order, send the refund check along with an explanatory memo to Accounts Payable–Invoice Audit, 103 Angell Building.  The memo should state the circumstances of the refund, and document the original MSU payment (i.e., supplier name, check number, pay date, purchase order number, University account number and object code).  A copy of the document authorizing the original MSU payment should be attached.  Invoice Audit will process the refund to credit the account due the refund.  It will appear on the account ledger as an expense abatement.
  2. If the refund does not relate to a University purchase order, the check may be deposited according to the procedure outlined above in III.B. using the "Expense Abatement Deposit Receipt" form.
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XI. How to Cancel a MSU Check

Canceling a Check – Checks drawn on a MSU account may be canceled by sending the check, a completed Cancel Checks Form, and a copy of the document authorizing the original MSU payment to Accounting in 360 Administration Building.  (See below for checks pertaining to purchase order payments).  The Cancel Checks Form must be signed by an authorized departmental signer.  Valid reasons for cancellation are:

  1. Incorrect payee or amount.
  2. Cancellation of the purchase or service the check was to cover.
  3. To cancel a duplicate payment.

Checks pertaining to a purchase order payment can be sent to Accounts Payable/Invoice Audit, 103 Angell Building, accompanied by a note stating the reason for the cancellation.  The note must be signed by an authorized signer.  Valid cancellation reasons are the same as above.

Checks cannot be canceled where there still exists a legal obligation to pay for services rendered.  No refunds or cancellations will be credited to General Fund accounts in the current fiscal year for payments made or checks drawn in a previous fiscal year.

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XII. Unidentified Checks

Upon receipt of any payment, departments should put forth a reasonable effort to verify whether or not the payment relates to their operations.  If a payment cannot be identified as belonging to the department, the unidentified payment is to be sent to the Controller's Office, Room 305 Administration Building, for handling and disposition.  Departments should forward an unidentified payment, and any related correspondence, to the Controller's Office within 10 business days of receipt of the payment if possible.

Upon receipt of an unidentified payment, the Controller's Office will follow a set of procedures in a further attempt to identify the payee, including contacting the payor.  If attempts to identify the payee are unsuccessful, the Controller's Office will deposit the payments into the "Unidentified Checks" clearing account (21–3254).  Once a payee is identified, the Controller's Office will contact the respective department and will process the appropriate paperwork to transfer the payment to the correct account (i.e. JVE if the payment was deposited).

Payments will be held in the Unidentified Checks clearing account and, if not identified after one year, will be transferred into a General Fund miscellaneous revenue account (11–0739).

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XIII. Incoming Electronic Funds Transfer/Wire Transfers/ACHs

  1. The University accepts electronic transfers of funds as payment for outstanding student, departmental and sponsored project obligations. These transfers may be in the form of electronic checks (ACHs) or wire transfers. The information below may be provided to those interested in making payment by one of these means.
  2. All transfers should be addressed to the University’s bank, LaSalle Bank n.k.a. Bank of America, 2600 W. Big Beaver Rd, Troy, MI 48084. If the transfer is originating from outside the United States, the Swift Code is MICH US 33.
  3. Unless the transfer relates to a Contract and Grant Administration account, the following information should be used:
    1. Transfers should be marked “For the Board of Trustees, Michigan State University.”
    2. The ABA Routing number is 0720–0080–5 and the bank account number is 1935–218139. This is a business checking account.
    3. If the transfer is for a student account, the sending party should reference the student’s name and PID (student number).
    4. If the transfer is for a department, the sending party should reference the MSU contact person, the name of the department, and the MSU account number to credit.
    5. To facilitate prompt deposit to the appropriate MSU account, please email the Cashier’s Office at the address below providing the sender’s name, amount being sent, MSU contact person and MSU account number to credit.
    6. Inquiries regarding non–CGA transfers should be directed to the Cashier’s Office via email at incomingwires@ctlr.msu.edu.
  4. Specific Instructions for Contract and Grant Administration Transfers
    1. Transfers should be marked “For the Contract and Grant Administration (CGA) account of the Board of Trustees, Michigan State University.”
    2. The ABA Routing number is 0720–0080–5 and the bank account number is 5405–652115. This is a business checking account.
    3. The sending party should reference the MSU account number and invoice number(s), name of the CGA contact person, and title of the project(s).
    4. To facilitate prompt deposit to the appropriate project, please email the CGA Accounts Receivable unit at the address below providing these same identifying attributes (MSU account number, name of CGA contact person, date sent, amount, sender, etc).
    5. Inquiries regarding transfers for CGA should be directed to the CGA Accounts Receivable unit at incomingwires@cga.msu.edu.
  5. Additional Federal Coding Information (DUNS/CAGE)
    1. The general ABA routing number 0720–0080–5 with bank account number 1935–218139 is registered to the related DUNS number 556256436 and CAGE code 1M6V8, located at 110 Administration Building, East Lansing, Michigan 48824–1046.
    2. The Contract and Grant Administration ABA routing number 0720–0080–5 with bank account number 5405–652115 is registered to the related DUNS number 193247145 and CAGE code 4B834, located at 301 Administration Building, East Lansing, Michigan 48824–1046.
  6. Additional International Transfer Information
    1. Transfers originating outside the United States may take 10–15 business days to be credited to the University’s bank account. Funds will not be posted to a University or student account until received by the University’s bank.
    2. It is the sender’s responsibility to cover all transfer fees, including any third–party bank transfer fees.
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XIV. Exhibits/Forms

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