Printed on: 09/21/2023. Please go to policy.umn.edu for the most current version of the document.
University of Minnesota  Administrative Policy

Accepting and Depositing University Revenue

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Policy Statement

University units that collect revenue from any source must:

  • Ensure that all revenue is accurately recorded at the time of receipt.
  • Keep all checks, currency, and coin in a locked and secured location until the funds are deposited.
  • Deposit revenue when the total reaches $1,000 or greater, or once a week, whichever comes first. Deposits must be made in a depository dropbox (Twin Cities campus), electronically (Twin Cities-check deposits),or at a system campus Cashier's Office. For those departments located off campus, use of a local bank assigned by the Office of Investments and Banking is permitted for cash depositing (and manual/exception items). Checks are to be deposited electronically using the Desktop Deposit ® system.

The University CFO/Treasurer must pre-approve 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. University departments and staff are not authorized to open or close any such accounts. Departments that identify a need for a separate banking relationship may submit such a request to the Office of Investments and Banking (OIB).

Operations and Maintenance Revenue

Departments may generate revenue through activities funded from Operations and Maintenance accounts. This revenue must be recorded to the appropriate general ledger account. Departments may spend this revenue on activities consistent with the mission of the unit.

Refunds

When departments receive revenue in error, the department must claim the revenue and process a (refund) payment through the accounts payable process.

Special Funds

Departments collecting money for a special event such as memorials or scholarships whereby the funds are intended to remain under the ownership of the University must deposit the funds into a recognized University foundation.
Departments collecting money for personal reasons such as flower or coffee funds, money for a retirement, or a memorial outside the ownership of the University have options for handing the funds:

  • Maintain cash funds
  • Deposit the money to an employee’s personal account or
  • Open an account after applying for their personal, non-University related federal tax identification number.
    • Departments must NOT use the University name or a derivative thereof or the University tax identification number, deposit to a University general ledger account, or deposit into a University general receipts account.

Student Organizations

Student organizations which are classified as University Campus Life Programs (CLPs), are University entities and subject to all responsibilities and entitled to all privileges thereof, including the use of the University name and tax identification number. All CLPs must be affiliated with a University of Minnesota academic or administrative department and have a designated University faculty or staff advisor. Registered Student Organizations (RSOs) are not University entities and cannot use the University name or tax identification number. For more information on student organization classifications, refer to the Registration and Classification of Student Groups handbook at www.sua.umn.edu/groups/handbook/classification.php.

Reason for Policy

To safeguard University assets and ensure that:

  • controls are applied
  • financial reporting and bank reconciliations are accurate
  • transactions comply with University, IRS, and other federal and state reporting requirements
  • If applicable, sponsor / donor intentions are followed

To abide by Board of Regents Policy: Internal Control (PDF).

Procedures

The above procedures relate to check, currency or coin deposits.

For procedures related to selling to external customers, or accepting credit or debit cards, refer to Administrative Policy: Selling Goods and Services to External Customers.

For procedures regarding sponsored funds, refer to the Sponsored Projects Administration (SPA) website.

Forms/Instructions

Appendices

For information related to selling to external customers, or accepting credit or debit cards, refer to Administrative Policy: Selling Goods and Services to External Customers.

Frequently Asked Questions

Date of Comprehensive Review - Time Stamp

Contacts

Subject Contact Phone Email
Primary Contact(s) Stacy Hebdon 612-624-5558 [email protected]
Overall Policy /Procedures Office of Investments and Banking (OIB) 612-625-5558 [email protected]
Document Instructions University Financial Helpline 612-624-1617 [email protected]
Non-Sponsored Receivables Accounts Receivable Services 612-625-2392 [email protected]
Sponsored Receivables Sponsored Financial Reporting 612-624-4313  
Theft Police
Office of Internal Audit		 612-624-3550
612-625-1368		 [email protected]
Database, security, html coding, etc. Office of Information Technology 612-301-4357 (Twin Cities) System campuses contact your local OIT help [email protected]

Location for Deposits

Campus Contact Phone Email
Crookston Cashier - Crookston 218-281-8326  
Duluth Cashier - Duluth 218-726-8295 [email protected]
Morris Cashier - Morris 320-589-6005  
Rochester Cashier - Rochester 507-258-8019 507-258-8004
Twin Cities Depository Locations:
2-596 Phillips-Wangensteen Bldg (EB)
55 Heller Hall (WB)
107 Coffey Hall (SP)		 Office of Investments & Banking 612-624-5558 [email protected]
Responsible Individuals
Responsible Officer Policy Owner Primary Contact
  • Senior Vice President for Finance and Operations
  • Senior Vice President for Finance and Operations
  • Stacy Hebdon
    Director of Treasury Operations

Definitions

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.
Contract
An agreement between the University and another entity to provide an economic benefit for compensation paid. This exchange transaction is binding between the University and the entity.
Electronic Funds Transfer (EFT)
Any payment mechanism, that entails the transfer of value from the payor to the payee. Value is represented by credit balances on the bank's books reflecting customers' deposit balances. Value is transferred through bookkeeping entries that add value to the payee's account and subtract value from the payors' account. The EFT mechanism is merely a means of communicating the instruction to add value to one account and subtract value from another account. EFT methods are fast and carry a greater degree of certainty of final settlement. The principal forms of EFT are wire transfers, automated clearinghouse (ACH) transfers, Clearinghouse Interbank Payments System (CHIPS), and the Society for Worldwide Interbank Financial Telecommunications (SWIFT).
  • Wire Transfer - Refers to a same-day transfer of funds from an account at one bank to an account at another bank, initiated over the Fedwire system. The Fed guarantees to pass value as of the date of the Fedwire transfer is initiated provided the transfer meets all required criteria. Fedwire is a part of the Federal Reserve System Communication Systems.
  • ACH Transfer - Clearinghouse associations in many major cities have developed electronic methods of passing payments among members and other financial institutions in the region, and of exchanging payments among the ACHs themselves. ACH transfers may be either credit transfers (sending funds out) or debit transfers (pulling funds in). Either the payee or the payor may initiate them.
  • Differences between Wire and ACH
    • Wire Transfer is geared to a single transfer, while ACH Transfer is geared to handling multiple transfers in a batch mode.
    • Wire Transfer is geared to same-day settlement, while ACH Transfer is geared to future-date settlement.
    • Wire Transfer is expensive because of their customized one-at-a time nature, while ACH Transfer is inexpensive because of their structured data format and high-volume batch nature.
External Sale
A transaction involving the transfer of funds by a third party to the University which meets all the criteria set forth in (a), (b), and (c):
  • The funds are in exchange for services performed by the University and any tangible goods produced as a result of such services; use of laboratory equipment; or a license to use information on University-maintained databases.
  • The transaction is not a Sponsored Project or Gift.
  • The transaction is consistent with the scope, guiding principles, and criteria set forth in Board of Regents Policy: Direct Sales of Goods and Services.

For further detail of External Sales, refer to Administrative Policy: Selling Goods and Services to External Customers, Appendix - 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 Goods and Services to External Customers - Examples of Gifts, Sponsored Projects, and External Sales.
Grant
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 Administrative Policy: Selling Goods and Services to External Customers, Appendix - Examples of Gifts, Sponsored Projects, and External Sales.
Indirect Cost Recovery (CR)
Revenue received by the university when F&A rates are applied to direct costs charged to sponsored projects. This revenue is returned to academic units consistent with the University budget model. Examples are operation and maintenance of buildings and grounds, central administrative expenses, research administration and library costs.
Internal Sales
The sale 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 U Market. 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 Office of Investments and Banking (OIB). Examples include income from:
  • Temporary Investment Pool (TIP)
  • Group Income Pool (GIP)
  • Permanent University Fund (PUF)
  • Consolidated Endowment Fund (CEF)
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.
Payment Card Acceptance
Departments may choose to accept payment cards (Visa, Mastercard, Discover, American Express) as a form of payment. Please see Administrative Procedures: Obtaining Approval to Accept Payment Cards and Managing Payment Card Acceptance.
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 ensure compliance with submitted proposals, these projects are routed through Sponsored Projects Administration.
Student Fees
All fees, except tuition, assessed to students for educational purposes, net of associated refunds. These fees are indicated on the student's bill:
  •  General Fees -  Fees payable by all students who match the criteria noted under each description
  • College and Program Fees- Fees for required equipment, technology, or materials for specific degree and study programs.
  •  Course Fees - Fees for a specific term and course subject, including Online and Distance Learning term fees.
  • Services and Usage Fees – Charges prompted by requests or other activity initiated by students.
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 on behalf of the University.
University Authorized Disbursement Account
A disbursement account set up by the University Treasurer to disburse funds on behalf of the University.
University Funds
Monies generated by University units, or University-sanctioned organizations, from teaching, research, outreach, external sales, investment and fund-raising activities. Also monies received from grants, the state, and external organizations.

Responsibilities

Accounting Services
Provide information for financial reporting and year-end audits. Establish University revenue codes.
Office of Internal 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.
Department
Establish accountability for receipts. Restrictively endorse all checks as received. Deposit receipts intact each day in accordance with University policy. Determine proper classification of revenue and code properly. Lock un-deposited cash in a safe location. Perform proper reconciliation to verify deposit. 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 Audit, Police and if applicable the Office of Risk Management. Seek approval to accept payment card payments.

Pay for merchant card equipment, software and fees.

Non-Sponsored Accounts Receivable Department
Manage non-sponsored billing and receivables, establish, maintain and terminate payment card merchant accounts. Ensure, maintain, and monitor compliance with Payment Card Industry Data Security Standards (PCIDSS).
Office of Investment and Banking (OIB)
Oversight of all University cash management practices to include all University bank accounts and banking services. Prepare daily cash flow forecasts and fund operations. 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. Provide departments with coin and currency per their business needs. Order banking supplies for University departments. Negotiate, coordinate and manage all agreements, policies and business- related cash management and banking services on behalf of the University. Responsible, on behalf of the University CFO/Treasurer for establishing all financial institution accounts.
Police
Respond to thefts and complete reports.
Sponsored Financial Reporting (SFR)
Receives all revenue on behalf of the University for sponsored grants and contracts. SFR collection representatives follow up with the sponsor on all past due invoices to ensure receipt of payment on invoices and work with both sponsors and academic departments on quality or quantity issues related to non-payment.
Treasury Accounting
Reconcile the University's bank accounts to the general ledger. Provide information for financial reporting and year-end audits. Distribute investment income to investment pool participants.
University CFO/Treasurer
Has fiduciary responsibility to open and monitor financial institution accounts to manage cash flow, safeguard assets, maximize earnings on income and guarantee accurate financial reporting. Approve banking service contracts on behalf of the University. Authorized signer on all domestic and international University bank accounts. Determine the University-wide philosophy regarding treasury operations.
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.

Related Information

History

Amended:
April 2014 - Comprehensive Review. Major Revision. The policy now reflects major process changes due to the closing of the TC Bursar’s Office. The processes also incorporate changes due to the rollout of the Desktop Deposit system to departments.
Amended:
October 2013 – Closure of Twin Cities Bursar Office, rollout of Desktop Deposit to Twin Cities departments (electronic check depositing)
Amended:
November 2011 - Comprehensive Review, minor edits for clarity made in Statement and Definitions sections.
Amended:
February 2009 - EFS related content updates. Added procedures, appendix and faq.
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
Date of Comprehensive Review - Time Stamp