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

Last updated: December 2010

Responsibility
Cash Receipt Forms
Cash Handling Policy
Depositing Cash and Checks
Depositing Credit Card Revenue
Other Revenue
Overages and Shortages
Cash Control Records
Receipts
Security
Checking Accounts
Refund Checks
How to Cancel a MSU Check
Unidentified Checks
Incoming Electronic Funds Transfers/Wire Transfers/ACHs
Exhibits/Forms

I. Responsibility

Each department is responsible for cash and checks it receives for the University. Funds may be received from sales of items, tickets, meals, etc.
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.
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.
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.
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 6 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.
Deposits of cash and checks should be made using the Cash Receipt eDoc (CR). Deposits of credit card revenue should be made using the Credit Card Receipt eDoc (CCR) unless the revenue is automatically deposited. Revenue sent directly to the bank with a deposit ticket or by lockbox should be credited using the Advance Deposit eDoc (AD). All revenue received as an electronic funds transfer (including ACHs and wire transfers) will be credited by the Controller’s Office.

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. Cash Handling Policy

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.
Checks drawn outside the 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, Hannah Administration Building, 426 Auditorium Road Rm 110, 355–5023.
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.
ALL RECEIPTS MUST BE DEPOSITED. Refunds or other expenditures must NOT be made from cash receipts. Large numbers of similar refunds can be made from cash advance funds obtained by the department for that purpose (see Section 60, Cash Advances). Miscellaneous or infrequent refunds may be made by submitting a Disbursement Voucher eDoc.

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IV. Depositing Cash and Checks

The Cash Receipts eDoc (CR) is to be used by departments to deposit cash and checks with the Cashier's Office, Hannah Administration Building, 426 Auditorium Road Rm 110. This eDoc replaces the Departmental Deposit Receipt and Expense Abatement Deposit Receipt. For instruction on how to prepare the CR, please take course EBS-N215: Cash Receipts Preparer. This course and all prerequisite courses are available through the Non-Credit Registration System.
When State of Michigan Tax (6%) is collected: the funds are deposited into account AD023236. For SALES tax (i.e., sale of goods) collected the object code is 4069. For USE tax collected the object code is 4070. Use tax includes equipment rental, lodging less than 30 days, conference room rental, and telephone service. Each tax type must be entered on a separate accounting line if deposit includes both. This information is available in the CR eDoc by clicking the Sales Tax “?” in the Accounting Lines tab. If you have questions regarding taxability of reimbursements please refer to Section 50 and/or contact the Controller's Office at 355–5020.
Once the CR has been successfully submitted, print the Cash Receipt Coversheet. This document must accompany all deposits of cash and checks.

Preparation of Cash and Checks

All currency should be banded by denomination and must bear the name of the department. Currency bands are no longer available from Stores, but may be purchased from an external company using a PCard.

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

All coins should be rolled when possible. Rolls must bear the name of the department or the name and address of the individual from whom the roll is accepted. Coin wrappers are no longer available from Stores, but may be purchased from an external company using a PCard.
All checks being deposited must be endorsed. At a minimum, the endorsement should read "for deposit only, Michigan State University" and include the depositing department's name and account number. For deposits consisting of four or more checks, an adding machine tape must accompany the checks. If no adding machine is available, a list of the check amounts and a total is acceptable. This may be hand-written or generated in Microsoft Excel.

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.

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 $250,000 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.

Deposits may be delivered to the Cashier’s Office in one of the methods below. Prior to delivery, funds must be accumulated in a secure, locked location. Deposits delivered to the Cashier’s Office generally will be processed by the next business day if the CR eDoc has received all approvals.
1. Armored Car Service – 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. Fur further information, contact the Cashier’s Office at 355-5023.
2. Campus Mail – Deposits containing cash should never be sent through Campus Mail. Deposits of checks may be sent by Campus Mail to the Cashier’s Office, Hannah Administration Building, 426 Auditorium Road Rm 110. Departments sending deposits through Campus Mail should retain copies of all items sent with the deposit until the CR eDoc has been approved.
3. Hand Delivery – Deposits may be delivered by hand to the Cashier’s Office, Hannah Administration Building, 426 Auditorium Road Rm 110. Departments may wait for a teller to process their deposits or drop them off for processing as time permits.
The Cashier’s Office, Hannah Administration Building, 426 Auditorium Road Rm 110, 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.
For all deposits, the Cashier’s Office reserves the right to disapprove and return incomplete or inaccurate deposits for correction. Cash deposits requiring correction must be picked up by the submitting department. Check deposits requiring correction may be sent back via campus mail unless the department prefers to pick them up.

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V. Depositing Credit Card Revenue

Departments using the FirstData platform offered by Bank of America Merchant Services will have their credit card revenue deposited automatically. For information on converting to the FirstData platform, please contact the Manager of the Cashier’s Office at 355-5023.
Departments using a different processing system will record the revenue associated with credit card sales using the Credit Card Receipt eDoc (CCR). A separate EBS training session will be provided to these departments. For further information on depositing credit card revenue, please contact the Cashier’s Office, Hannah Administration Building, 426 Auditorium Road Rm 110 at 355-5023.
Credit card revenue should be deposited with the same frequency as indicated above for cash and checks.

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VI. Other Revenue

Bank Deposits – Some departments have been granted access to send deposits of cash and checks directly to the University’s bank. These departments will use the Advance Deposit eDoc (AD) to credit their account for the funds received.
- When completing the AD eDoc, the Bank Code should be BOFA and the location code should be a four-digit code listed on your deposit ticket. For questions about your location code, please contact the Cashier’s Office Supervisor at 355-5023.
Lockbox Deposits – Some departments have lockbox capabilities arranged with the University’s bank. These departments will use the Advance Deposit eDoc (AD) to credit their account for funds received.
- When completing the AD eDoc, the Bank Code should be BOAL and the location code should be the five-digit lockbox number. For questions about your location code, please contact the Cashier’s Office Supervisor at 355-5023.
For further instruction on how to prepare the AD, please take course EBS-N218: Advance Deposit Preparer. This course and all prerequisite courses are available through the Non-Credit Registration System.
These other forms of revenue should be deposited with the same frequency as indicated above for cash and checks.

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VII. 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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VIII. 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. Departments are responsible for reconciling the total amount of receipts or tickets with deposits made to the Cashier's Office.

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IX. 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 copies of completed eDocs that record the corresponding revenue..

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X. 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, Hannah Administration Building, 426 Auditorium Road Rm 110, 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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XII. 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:

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, Angell Building, 166 Service Rd Rm 103. 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.
If the refund does not relate to a University purchase order, the check may be deposited according to the procedure outlined above in Section III using the Cash Receipt eDoc.

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XIII. 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 Hannah Administration Building, 426 Auditorium Road Rm 360. (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:

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

Checks pertaining to a purchase order payment can be sent to Accounts Payable/Invoice Audit, Angell Building, 166 Service Rd Rm 103, 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, Hannah Administration Building, 426 Auditorium Road Rm 305, 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 (AT023254). 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. Distribution of Income and Expense 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 (GV010739).

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XV. Incoming Electronic Funds Transfers/Wire Transfers/ACHs

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.
All transfers should be addressed to the University’s bank, Bank of America, 2600 W. Big Beaver Rd, Troy, MI 48084. For transfers originating outside the United States, the Swift Code is BOFAUS3N and, if requested, the CHIPS (Clearing House Interbank Payments System) participant number is 0959. At present, the United States does not participate in IBAN (International Bank Account Number). Therefore, Bank of America does not have an IBAN number.
Effective October 20, 2008, the ACH and Wires are processed through different ABA routing numbers. Please verify the appropriate routing information before submitting your electronic funds transfer request.
Unless the transfer relates to a Contract and Grant Administration account, the following information should be used:
1. Transfers should be marked as payable to “Michigan State University.”
2. The ABA Routing and related Bank Account numbers are:
  1. For ACH: 071000039 Bank Account Number: 1935218139
  2. For Wire: 026009593 Bank Account Number: 1935218139
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.
Specific Instructions for Contract and Grant Administration EFTs
1. Transfers should be marked as payable to “Michigan State University Contract and Grant Administration.”
2. The ABA Routing and related Bank Account numbers are:
  1. For ACH: 071000039 Bank Account Number: 5405652115
  2. For Wire: 026009593 Bank Account Number: 5405652115
3. The sending party should include the following information in the ACH or Wire reference section: MSU account number and invoice number(s), name of the CGA contact person, Funding (paying) agency and agreement number.
4. Inquiries regarding transfers for CGA should be directed to the CGA Accounts Receivable unit at cashmanagement@cga.msu.edu.
Additional Federal Coding Information (DUNS/CAGE)
1. The bank account number 1935218139 is registered to the related DUNS number 556256436 and CAGE code 1M6V8, located at Hannah Administration Building, 426 Auditorium Road Rm 110, East Lansing, Michigan 48824-1046.
2. The Contract and Grant Administration bank account number 5405652115 is registered to the related DUNS number 193247145 and CAGE code 4B834, located at Hannah Administration Building, 426 Auditorium Road Rm 301, East Lansing, Michigan 48824-1046.
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

Cancel Checks Form

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