Cash Receipts Policy

Cash Receipts Policy

Abstract:
UAB offices, departments, or units must ensure that all cash receipts for UAB activities are deposited in a timely manner with a designated UAB depository (unit responsible). This policy includes guidelines and procedures for depositing cash receipts, which can encompass cash, check, and credit card transactions.
Effective Date:
9/11/1999
Contacts:
None Assigned
Administrative Category:
Applies To:
Faculty, Staff
Keyword(s):
Material Original Source:

University of Alabama at Birmingham

CASH RECEIPTS POLICY

August 11, 1999


(Replaces "Policy Concerning Timely Deposit of University Funds" dated February 27, 1995)

See also:  UAB "Fund Raising Policy and Guidelines"
                
Board of Trustees Rule 405 "Deposit of University Funds"

Background

UAB, as a public institution and steward of public funds, is responsible for ensuring that all cash receipts for UAB activities are deposited into the appropriate official UAB bank account in a timely manner.

Policy Statement

UAB offices, departments, or units must ensure that all cash receipts for UAB activities are deposited in a timely manner with a designated UAB depository (as defined below). All procedures established for the deposit of funds shall include the stipulations of this policy and shall include any guidelines established by the Controller's Office for implementation of the policy.

For purposes of this policy, designated UAB depositories are those UAB units responsible for recording cash receipts which update the UAB general ledger.

Definitions

"Cash receipts" include all negotiable instruments which result in a direct increase in the bank accounts of UAB. Specifically, the term includes, but is not limited to, cash, checks, and credit card transactions.

"Designated UAB depositories" include the Cashier's Office in Student Accounting Services, the Hospital Patient Financial Services Office, the UAB General Accounting Department, the Grants and Contracts Accounting Department, and the UAB Development Office. The appropriate UAB depository for a given type of deposit is defined by this policy.

"In a timely manner" means that the funds will be deposited within one business day following receipt by a UAB office, department, or unit.

Depository Criteria 

  1. The following principles will determine the appropriate UAB depository for receiving the various types of funds:

    • UAB University Hospital patient fees shall be deposited through the Hospital Patient Financial Services Office.
    • Student fees shall be deposited through the Cashier's Office in Student Accounting Services.
    • Cash gifts and donations shall be deposited through the UAB Development Office.
    • Cash receipts for sponsored projects shall be deposited through the UAB Grants and Contracts Accounting Department.
    • All other cash receipts shall be deposited through the UAB General Accounting Department or as authorized by the UAB Controller. General Accounting may elect to have deposits which are considered routine in terms of frequency and consistency directly delivered by the receiving unit to the Cashier's Office in Student Accounting Services.
  2. Cash receipts for which the appropriate FAS account has not been identified and those from unidentified sources shall be transmitted to the appropriate UAB depository for deposit into an approved institutional unapplied cash account.

Upon identification of the appropriate FAS account, the funds will be reclassified to that account.

  1. All checks received by a department or unit on behalf of UAB should be endorsed immediately with "For deposit only, the University of Alabama at Birmingham."

  2. All cash receipts must be hand delivered to the appropriate UAB depository.

  3. The depository procedures used by all UAB offices, departments, or units are subject to review and approval by the UAB General Accounting Department.

  4. All cash deposits are subject to accounting and cash management procedures as defined by the Controller's Office.

Implementation and Effective Date

The Controller's Office is responsible for procedures to implement this policy.

This policy represents a clarification of existing financial management standards and, therefore, is effective immediately upon its being signed by the President.