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