Creighton University

Accounting Procedures

PROCEDURE TITLE:

Depositing Cash and Checks

PROCEDURE NUMBER:

GNPR 01

RELATED POLICY STATEMENT(S):

GNPL 01

DATE ISSUED: 

July 1, 1993

DATE REVISED:

October 1, 1995

OVERVIEW

 

This procedure provides guidance on the required steps for depositing cash and checks with the University's Business Office.

REQUIRED FORM(S)

 

Deposit Slip

PROCESSING STEPS

 

General

 

Deposits cannot be netted with petty cash transactions, resulting in a deposit smaller than reflected on the deposit ticket. These transactions must be completed separately to allow for a proper audit trail for accounting purposes.

Depositing Cash

 

A supply of deposit slips should have previously been obtained from Varsity Press for use within the department. When cash is received, a deposit slip should be prepared, listing the current date, the accounting distribution(s) to be used, date of service, and the department name. One copy of the deposit slip should be retained by the department. The cash and the remaining copies of the deposit slip should be personally delivered (not mailed) to the Business Office. The Business Office will record the deposit and return a validated copy of the deposit slip to the department for its records.

Depositing Checks

 

All checks should be endorsed "For Deposit Only" as soon as they are received. This endorsement can be hand written or stamped (if a stamp has been purchased). Complete a deposit slip, listing each check as a separate item. If there is a large volume of checks to be deposited at one time, the department may run an adding machine tape of all the checks and attach the tape to the deposit slip. The date, accounting distribution(s), date of service, total amount of the deposit and the department name should be included on the deposit slip. A copy of the deposit slip should be retained by the department.

The deposit slip and the checks should then be delivered to the Business Office. (Some departments with a high volume of checks and cash to be deposited have made previous arrangements with an armed security service to pick up and deliver their monies to the Business Office.) After processing, the Business Office will return a validated copy of the deposit slip to the department for its records.

Receipt of Unidentified Funds

 

It is imperative to the safeguarding of University assets that all cash and checks be deposited as soon as possible. Therefore, when a department receives cash or check(s) made payable to Creighton University and the proper accounting cannot be identified, a deposit slip should be prepared listing the date, department name and the following cash clearing accounting distribution: 101000-2603. One copy of the deposit slip should be retained by the department. Forward copies of the deposit slip, the check(s) and attached documentation to the Unrestricted Accounting Clerk in the Controller's Office. The actual deposit slip and the check(s) should be delivered directly to the Business Office. The Controller's Office will follow-up to determine the appropriate distribution of the funds and prepare the related journal entry.

Faculty Practice Plan (FPP)

 

The FPP has a clearing accounting distribution for all deposits of patient billing receipts. When a billing area receives payment for another billing area within the FPP, the cash or check is deposited into the clearing account. A copy of the check and the Explanation of Benefits are forwarded to the appropriate contact in the correct billing area for processing.