302 - University of North Carolina at Chapel Hill Policy on General Receipts and Deposits

Introduction

Purpose

The Daily Deposit Act, North Carolina General Statute 147-77, requires daily deposit of funds received by the University. In addition, a consistent process of documenting receipts and deposits is an important internal control practice to ensure the security of assets and the accuracy of revenues.

Policy

Policy Statement

University staff must deposit all funds within one business day of receipt. Most departments do this by using ConnectCarolina.

Upon acceptance of payment in person (especially cash), department staff must provide a receipt to the person making the payment to the University.

All check items received for deposit must be restrictively endorsed as instructed in Finance Procedure 302.2, Restrictively Endorsing Checks for Deposit, in accordance with the State Treasurer's Banking Services Handbook.

Cash and/or Check items must be transmitted to the University Cashier's Office by courier within one business day of receipt, along with the Daily Cash Transmittal Report generated in ConnectCarolina. Though not recommended, deposits including only checks may be sent through campus mail. Coin and currency must be delivered in person, never by mail. Deposits must be made intact: checks must not be cashed from receipts and expenditures must not be made from receipts.

Bankcard and other electronic payments are automatically deposited to the bank.

State and University policies require the inclusion of adequate documentation to support and identify each deposit. These supporting documents should accompany the cash, check and/or credit card transmittal report(s). Examples of these kinds of documents may include correspondence, check stubs, copies of receipts, or other proof of deposit. Copies of these documents should be retained for departmental files. If this supporting documentation includes Personal Identifying Information (PII), the University Policy on Data Security Breach Protocol requires that the department to protect this information. PII includes an individual's social security, employer taxpayer identification, driver's license, state identification, passport, checking account, savings, and credit card or debit card numbers. Proper security measures employed to protect this information include storing the copies in locked filing cabinets, using password-protected electronic files, and encryption.

All monies received by the University Cashier's Office will be summarized and deposited to the bank within one business day and approved by Accounting Services for posting into the University accounting system. Departments are responsible for monitoring the status of their deposits and confirming that they are recorded in the University's accounting system.

Deposits received electronically directly into University bank accounts via automated clearing house (ACH), wire, or other electronic receivable methods should be claimed by departments within the month they are received by the University.

Q: How do we process a money order or travelers' check?
A: Treat money orders and traveler's checks the same as a regular check.

Exceptions

The Daily Deposit Act, North Carolina General Statute 147-77, allows for non-cash receipts that accumulate to less than $5,000 within a week to be deposited on a weekly basis, rather than a daily basis.

Credit card receipts are transferred directly to the bank; a Daily Cash Transmittal Report must be completed in order for the receipts to be attributed to the appropriate department account.

Deposits for contract and grant accounts should continue to be forwarded directly from the department to the Office of Sponsored Research, subject to the Daily Deposit Act.

Only gifts from University-related foundations may be deposited through the Cashier's Office. All others must be deposited through the Office of University Development.

Certain departments are authorized to make their deposits directly to a designated bank account, subject to the Daily Deposit Act. Exceptions may be granted through the Office of the University Controller.

Foreign items not drawn or payable on a U.S. bank in U.S. funds, whether check, money order, or draft, must be sent to the bank for collection.

Related Requirements

External Regulations and Consequences

• DDD Memo dated 5/1/06 entitled Implementation of the North Carolina Identity Theft Protection Act
• The Daily Deposit Act, North Carolina General Statute 147-77

University Policies, Standards, and Procedures

• Finance Procedure 302.1 - University of North Carolina at Chapel Hill Procedure on Receipting Funds
• Finance Procedure 302.2 - University of North Carolina at Chapel Hill Procedure on Restrictively Endorsing Checks for Deposit
• Finance Procedure 302.3 - University of North Carolina at Chapel Hill Procedure on Monitoring Outstanding Deposits
• Finance Procedure 302.4 - University of North Carolina at Chapel Hill Procedure on Presenting Foreign Items
• Finance Procedure 302.5 - University of North Carolina at Chapel Hill Procedure on Reporting Cash Payments Over $10,000 Received in a Trade or Business
• University of North Carolina at Chapel Hill Policy on Data Security Breach Protocol

Contact Information