404.C PCI Non-compliance Procedure

PCI Non-compliance Procedure

PCI Non-compliance Procedure

Procedure # 404.C
Rev.:
Effective Date: September 1, 2020

Related Policy: 404 Credit Card Merchant Services and PCI Compliance Policy 
Functional Owner: Cash Management, Business Services
Contact: PCI Mailbox: pci-help@bussvc.wisc.edu


Contents

I. Procedure Statement
II. Who is Affected by this Procedure

III. Rationale
IV. Procedure
V. Definitions
VI. Related References


I. Procedure Statement

The University of Wisconsin-Madison has merchant accounts which accept payment for goods sold and services rendered via payment card transactions. All merchants that accept payments via payment card must comply with the Payment Card Industry Data Security Standards (PCI DSS). The purpose of this procedure is to provide a framework for the disciplinary steps that will be taken in the event that a UW-Madison merchant account is found to be non-compliant with the PCI DSS. Persistent noncompliance with the PCI DSS after the enactment of the disciplinary steps described in this policy may result in the suspension or termination of the non-compliant merchant account.


II. Who is affected by this Procedure

This policy applies to all merchant accounts at UW-Madison that accept payment cards as a form of payment for goods sold and services rendered.


III. Rationale

Deficiencies exist in a merchant account’s operating procedures if a merchant does not appropriately store, process, or transmit cardholder data as defined by the PCI DSS. These deficiencies result in the merchant account being non-compliant with the applicable governance framework. Deficiencies in a merchant’s ability to appropriately secure cardholder data is the foundation of a potential data breach. Acts of noncompliance and data breaches will result in reputational damages such as distrust and loss of consumers, donors, and other stakeholders.

The ability to accept payment card transactions is a convenient and efficient method of collecting revenue owed to the University. As an alternative to cash and with the use and implementation of appropriate card transaction controls, payment cards provide better financial internal controls for the University. The ability to accept payment cards as a method of payment is a privilege granted to the University by the acquirer that UW-Madison is contracted with, Elavon, and the payment card brands: Visa, MasterCard, Discover, and American Express. If a merchant account is not in compliance with the PCI DSS or a data breach occurs, these agencies have the authority to assess fines for noncompliance. Such fines would be assessed separately by each agency per violation and for acts of noncompliance that remain uncorrected as of a designated deadline. These fines accumulate quickly and could result in hundreds of thousands of dollars in monetary damages.

Additionally, if Elavon or the payment card brands are concerned about the University’s ability to appropriately store, process, or transmit cardholder data, UW-Madison’s ability to accept payment cards could be revoked. This decision would require departments to find alternative ways to collect revenue owed to them and could result in a decline in sales.

Managing compliance with the PCI DSS is a responsibility that should be taken seriously because of its significant financial and reputational impacts.


IV. Procedure

The Cash Management, Division of Business Services, and Cybersecurity, Division of Information Technology, teams will jointly conduct of campus merchant accounts to determine the merchant’s level of compliance with the PCI DSS. Upon completion of a merchant account’s annual review, the PCI review team will complete a Risk Assessment. Each Risk Assessment will document the review team’s opinion of the merchant’s level of compliance with the PCI DSS, instances of identified non-compliant practices, and the disciplinary step to be implemented if non-compliant practices are identified. All Risk Assessments will be presented to the merchant’s Divisional Business Representative for review and signature. Below are the following types of opinions that might be issued with examples of possible instances of noncompliance:

Level 0 – No instances of noncompliance identified.

Level 1 – Minor instance(s) of noncompliance identified. Compliant procedures must be implemented as of the next annual review.

  • Incomplete PCI Security Awareness Training
  • Incomplete PCI Operator Training
  • Missing or incomplete device inspection logs
  • Missing business procedures

Level 2 – Significant instance(s) of noncompliance identified. Compliant procedures must be implemented as of a designated deadline which has been agreed upon with the merchant.

  • Working with unsupported technology
  • Lack of security regarding access to physical devices and technology
  • Inability or neglect to provide documentation indicating appropriate security of e-commerce merchant accounts
  • Unauthorized or unsecured storing of cardholder data
  • Inappropriate use of e-commerce merchant accounts for in-person or over-the-phone transaction processing
  • Failure to implement appropriate procedures to resolve Level 1 noncompliance

If a deficiency in compliance was identified in a previous review, the PCI review team will follow up as of the which has been agreed upon the merchant, to evaluate the merchant’s progress towards achieving compliance. If measurable progress has not been made towards achieving compliance, the following disciplinary steps will be executed in this order, unless an appropriate deviation is determined:

  1. Requirement to attend in-person Merchant Card Processing training
  2. Notification from PCI review team of Level 1 noncompliance
  3. Notification from PCI review team of Level 2 noncompliance
  4. Temporary suspension of merchant account for up to 9 months
  5. Permanent termination of merchant account

V. Supporting Tools


VI. Related References

100.6 Refunding a payment Procedure

This procedure for refunding a payment is specifically for transactions that have been processed through centralized Accounts Receivable.

Refunding a Payment Procedure

Procedure # 100.6
Rev.: 7.1.20
Effective Date: July 1, 2020

Related Policy:Non-Sponsored Centralized Accounts Receivable Policy
Functional Owner: Director of Financial Information Management
Contact: Supervisor Central AR for Non-Sponsored Billing, 608-890-1328, Email: uwmsnar@bussvc.wisc.edu


Contents

I. Procedure Statement
II. Who is Affected by this Procedure
III. Procedure
IV. Definitions
V. Related References
VI. Revisions


I. Procedure Statement

This procedure for refunding a payment is specifically for transactions that have been processed through centralized Accounts Receivable. Refunds may become necessary as a result of duplicate or over payments made by customers or adjustments and cancelations of invoices that result in overpayments.


II. Who is affected by this Procedure

Any department that sells goods or services for non-sponsored activities should use this procedure.

The SFS Accounts Receivable and Billing System is currently being rolled out to UW-Madison departments for all non-sponsored accounts receivable, including internal and external customers. The use of SFS for non-sponsored billing and receivables was launched in November of 2018 and will be introduced campus-wide in the coming months/years – unless otherwise agreed upon with the Division of Business Services (DoBS).


III. Procedure

The following steps represent the overall process for requesting a refund:

  • If the refund is a result of an adjustment or cancelation of a bill, clearly indicate on the Cancel_Adjust Form that a refund needs to be processed.
  • Any duplicate payments received by customers will be placed on account for the customer in SFS. DoBS will work collaboratively with departments to determine if the payment needs to be refunded or can be applied to other open invoices.
  • Weekly, DoBS will request refunds to be processed through Accounts payable.

The following journal entry is a sample of what will post when a payment is refunded:

Debit: Selling Department Accounts Receivable (#6200) XXXX

Credit: Central funding string for payments                                      XXXX


IV. Definitions

  • Cancellation – Canceling an invoice should only be used when an error has been made on the bill. An error can include the incorrect customer, contact or location identified on the bill. A duplicate bill for services already invoiced would be a good reason to cancel the bill.
  • Adjustment – Adjusting the bill should be reserved for errors in amounts invoiced. Such as charging the wrong rate for a service or the wrong quantity ordered.
  • Refund – The process of returning money to a customer as a result of overpayment for goods or services.

V. Related Resources


VI. Revisions

Procedure Number

 

Date Approved

 

Revision Dates

100.5 Declined Payment Procedure

This procedure is for handling customer payments that have been declined for any reason including insufficient funds, closed bank accounts, etc.

Declined Payment Procedure

Procedure # 100.5
Rev.: 7.1.20
Effective Date: July 1, 2020

Related Policy:Non-Sponsored Centralized Accounts Receivable Policy
Functional Owner: Director of Financial Information Management
Contact: Supervisor Central AR for Non-Sponsored Billing, 608-890-1328, Email: uwmsnar@bussvc.wisc.edu


Contents

I. Procedure Statement
II. Who is Affected by this Procedure
III. Procedure
IV. Definitions
V. Related References
VI. Revisions


I. Procedure Statement

This procedure is for handling customer payments that have been declined for any reason including insufficient funds, closed bank accounts, etc.


II. Who is affected by this Procedure

Any department that sells goods or services for non-sponsored activities should use this procedure.

The SFS Accounts Receivable and Billing System is currently being rolled out to UW-Madison departments for all non-sponsored accounts receivable, including internal and external customers. The use of SFS for non-sponsored billing and receivables was launched in November of 2018 and will be introduced campus-wide in the coming months/years – unless otherwise agreed upon with the Division of Business Services (DoBS).


III. Procedure

The following steps represent the overall process for a declined payment:

  • Notification received that a credit card or check payment has been declined.
  • Business Services will reverse the payment in SFS and will reinstate the debt outstanding.
  • Business Services will apply an NSF fee of $25 to the customer account for the declined payment.
  • The customer will receive an updated invoice reflecting the additional fee.
  • The NSF fee will be used to offset the bank fees UWMSN incurs. The NSF fee will not be distributed to the department.

The following journal entries are samples of what will post when a declined payment is posted:

Reverse the payment:

Debit: Selling Departments Accounts Receivable $500.00

Credit: Central funding string for bank transactions          $500.00

Add the NSF fee:

Debit: Selling Departments Accounts Receivable $25.00

Credit: Central funding string for bank fee transactions   $25.00


IV. Definitions

  • Cancellation – Canceling an invoice should only be used when an error has been made on the bill. An error can include the incorrect customer, contact or location identified on the bill. A duplicate bill for services already invoiced would be a good reason to cancel the bill.
  • Adjustment – Adjusting the bill should be reserved for errors in amounts invoiced. Such as charging the wrong rate for a service or the wrong quantity ordered.
  • Refund – The process of returning money to a customer as a result of overpayment for goods or services.
  • NSF – Non-sufficient funds. This term is commonly used for when a credit card or check payment is declined. This could be the result of many different reasons such as insufficient funds or closed bank account.

V. Related Resources


VI. Revisions

Procedure Number

 

Date Approved

 

Revision Dates

100.4 Write off and Collection Procedure

Non-Sponsored receivable balances will be managed centrally by the Division of Business Services

Write off and Collection Procedure

Procedure # 100.4
Rev.: 7.1.20
Effective Date: July 1, 2020

Related Policy:Non-Sponsored Centralized Accounts Receivable Policy
Functional Owner: Director of Financial Information Management
Contact: Supervisor Central AR for Non-Sponsored Billing, 608-890-1328, Email: uwmsnar@bussvc.wisc.edu


Contents

I. Procedure Statement
II. Who is Affected by this Procedure
III. Procedure
IV. Definitions
V. Related References
VI. Revisions


I. Procedure Statement (Non-Sponsored receivable balances will be managed centrally by the Division of Business Services.)

Once an invoice is generated the customer will receive a monthly statement. If payment is not received, the customer will receive dunning letters each month after the due date. Once the invoice reaches 90 days past due, write offs and collection activities will be managed centrally by the Division of Business Services (DoBS) in collaboration with UW-Madison divisions and departments. Write off and collection activities need to be processed timely to ensure responsible stewardship of UW-Madison resources.

Write offs and collection activities are only for External customers. All intra-unit invoices are paid immediately so no collection activities are needed.


II. Who is affected by this Procedure

Any department that has an invoice outstanding in the SFS AR module and has become a doubtful account.

The SFS Accounts Receivable and Billing System is currently being rolled out to UW-Madison departments for all non-sponsored accounts receivable, including internal and external customers. The use of SFS for non-sponsored billing and receivables was launched in November of 2018 and will be introduced campus-wide in the coming months/years – unless otherwise agreed upon with the Division of Business Services.


III. Procedure

The following steps represent the overall process for collection efforts:

  • Statements will be sent for all outstanding invoices regardless of due date on or around the 15th of the month.
  • Dunning letters (reminder notices) will be issued by DoBS monthly on or around the 15th. Dunning letters will begin after 30 days past due and will continue to be sent until the debt is cleared.
  • At 90 days, DoBS will reach out to the billing department to discuss collections. Decision needs to be made at that time if the invoice should be sent to a collection agency, the state of Wisconsin Department of Revenue or written off. If the department is working with the customer on payment, a note can be placed on the account providing detail on the expected date of resolution.

The following steps represent the overall process for requesting a write off:

  • Write -off transactions are initiated through workflow in SFS. Follow instructions on how to initiate a write-off.
  • Write-offs over $1,000 require Dean or Director and DoBS approval.
  • Write offs must include explanation.

The following journal entry is a sample of what will post after a write off has been processed:

Debit: Selling Department contra-revenue account (#9312) XXXX

Credit: Selling Department accounts receivable account (#6200) XXXX


IV. Definitions

  • Doubtful account – a doubtful account refers to outstanding balances that we do not expect to be paid. Typically, a doubtful account takes many things into consideration such as age of the invoice, ability to make contact with the customer or bankruptcy notification.
  • Dunning letter – The word dunning stems from a 17th century word dun which means to demand payment of a debt. Dunning letters are reminder notices that are sent periodically when an accounts receivable balance is past due.
  • Write-off – Write off relevant to this policy means that we cannot collect on the outstanding balance for an invoice. Examples of reasons for a write off would include a customer in bankruptcy or deceased, or the debt has reached the age where we can legally no longer attempt to collect payment (statute of limitations).

 


V. Related Resources


VI. Revisions

Procedure Number

 

Date Approved

 

Revision Dates

100.3 Cancelation or Adjustment of an invoice Procedure

Cancelations and adjustments of open invoices are processed centrally in the Division of Business Services (DoBS). Adjustments and cancelations need to include explanation for the adjustment.

Cancelation or Adjustment of an invoice Procedure

Procedure # 100.3
Rev.: 7.1.20
Effective Date: July 1, 2020

Related Policy:Non-Sponsored Centralized Accounts Receivable Policy
Functional Owner: Director of Financial Information Management
Contact: Supervisor Central AR for Non-Sponsored Billing, 608-890-1328, Email: uwmsnar@bussvc.wisc.edu


Contents

I. Procedure Statement
II. Who is Affected by this Procedure
III. Procedure
IV. Definitions
V. Related References
VI. Revisions


I. Procedure Statement

Cancelations and adjustments of open invoices are processed centrally in the Division of Business Services (DoBS). Adjustments and cancelations need to include explanation for the adjustment. This procedure should not be used to write off a debt. For instructions on how to write off a debt, please refer to “Write off and Collection Procedure”. Please review the definitions section of this procedure to help determine which process to use.


II. Who is affected by this Procedure

Any department that has an invoice outstanding in the SFS AR module and has found an error in the bill.

The SFS Accounts Receivable and Billing System is currently being rolled out to UW-Madison departments for all non-sponsored accounts receivable, including internal and external customers. The use of SFS for non-sponsored billing and receivables was launched in November of 2018 and will be introduced campus-wide in the coming months/years – unless otherwise agreed upon with the Division of Business Services.


III. Procedure

The following steps represent the overall process for requesting a cancelation or adjustment of an invoice:

  • Fill out the Invoice Cancel_Adjust Form including your signature and the signature of the reviewing party for your area.
  • Submit form to DoBS via email to: uwmsnar@bussvc.wisc.edu
  • Adjustments and cancelations over $1,000 need additional review from the Dean or Director and DoBS.
  • DoBS will create a credit memo in SFS. The credit memo will be matched up to the original invoice to correct the balance due. The customer will receive a copy of the credit memo.

The following journal entries are samples of what will post after a cancelation or adjustment is processed:

Internal customer:

Debit: Selling Department Revenue XXXX

Credit: Buying Department Expense        XXXX

External customer:

Debit: Selling Department Revenue XXXX

Credit: Selling Department Accounts Receivable (#6200) XXXX


IV. Definitions

  • Cancellation – Canceling an invoice should only be used when an error has been made on the bill. An error can include the incorrect customer, contact or location identified on the bill. A duplicate bill for services already invoiced would be a good reason to cancel the bill.
  • Adjustment – Adjusting the bill should be reserved for errors in amounts invoiced. Such as charging the wrong rate for a service or the wrong quantity ordered.
  • Write-off – Write off relevant to this policy means that we cannot collect on the outstanding balance for an invoice. Types of reasons for a write off would include a customer in bankruptcy or deceased, or the debt has reached the age where we can legally no longer attempt to collect payment (statute of limitations).

V. Related Resources


VI. Revisions

Procedure Number

 

Date Approved

 

Revision Dates

100.2 Creating a Bill Procedure

Departments are responsible for entering bills into SFS. The Division of Business Services (DoBS) will generate invoices from the bills entered. Bills can be entered as either one-time or installment. Payment terms generally will be Net30, unless an exception has been approved by DoBS.

Creating a Bill Procedure

Procedure # 100.2
Rev.: 7.1.20
Effective Date: July 1, 2020

Related Policy:Non-Sponsored Centralized Accounts Receivable Policy
Functional Owner: Director of Financial Information Management
Contact: Supervisor Central AR for Non-Sponsored Billing, 608-890-1328, Email: uwmsnar@bussvc.wisc.edu


Contents

I. Procedure Statement
II. Who is Affected by this Procedure
III. Procedure
IV. Definitions
V. Related References
VI. Revisions


I. Procedure Statement

Departments are responsible for entering bills into SFS. The Division of Business Services (DoBS) will generate invoices from the bills entered. Bills can be entered as either one-time or installment. Payment terms generally will be Net30, unless an exception has been approved by DoBS.


II. Who is affected by this Procedure

Any department that sells goods or services for non-sponsored activities should use this procedure.

The SFS Accounts Receivable and Billing System is currently being rolled out to UW-Madison departments for all non-sponsored accounts receivable, including internal and external customers. The use of SFS for non-sponsored billing and receivables was launched in November of 2018 and will be introduced campus-wide in the coming months/years – unless otherwise agreed upon with the Division of Business Services.


III. Procedure

The following steps represent the overall process for creating a bill:

  • Use the bill upload template to import bills
  • Follow the instructions to upload bills

The following journal entries are a sample of what will post when the bills are generated:

Internal customer:

Debit: Buying Department Expense         XXXX
Credit: Selling Department Revenue                      XXXX

External customer:

Debit: Selling Department Accounts Receivable (#6200) XXXX
Credit: Selling Department Revenue                                                   XXXX


IV. Definitions

  1. Bill – A bill is a document created when a sale is made. A bill becomes an invoice when a balance is due. For the purpose of this policy, intra-unit bills (Madison department to Madison department) never become invoices because the bill is paid at the same time the bill is created.
  2. Invoice – A bill becomes an invoice when the bill is delivered to the customer and creates a balance due.

V. Related Resources


VI. Revisions

Procedure Number

 

Date Approved

 

Revision Dates

100.1 Shared Customer Procedure

UW-Madison Non-Sponsored AR and Billing has a shared customer file that is managed centrally by the Division of Business Services (DoBS).

Shared Customer Procedure

Procedure # 100.1
Rev.: 7.1.20
Effective Date: July 1, 2020

Related Policy:Non-Sponsored Centralized Accounts Receivable Policy
Functional Owner: Director of Financial Information Management
Contact: Supervisor Central AR for Non-Sponsored Billing, 608-890-1328, Email: uwmsnar@bussvc.wisc.edu


Contents

I. Procedure Statement
II. Who is Affected by this Procedure
III. Procedure
IV. Related References
V. Revisions


I. Procedure Statement

UW-Madison Non-Sponsored AR and Billing has a shared customer file that is managed centrally by the Division of Business Services (DoBS). Departments can request new internal or external customers by submitting the Customer upload file. Customers can have multiple contacts and locations. Modifications to existing customer information including additional contacts or locations should be requested through the uwmsnar@bussvc.wisc.edu mailbox. DoBS will review each customer request to ensure compliance with export control lists such as OFAC.


II. Who is affected by this Procedure

Any department that is using Billing and Accounts Receivable modules in SFS for invoicing to non-sponsored customers either within the UW-Madison community or externally.

The SFS Accounts Receivable and Billing System is currently being rolled out to UW-Madison departments for all non-sponsored accounts receivable, including internal and external customers. The use of SFS for non-sponsored billing and receivables was launched in November of 2018 and will be introduced campus-wide in the coming months/years – unless otherwise agreed upon with the Division of Business Services.


III. Procedure

The following steps represent the overall process for requesting new customers:

  1. Fill out either the Internal or External customer upload file
  2. If the customer is already set up but a different contact or location is needed, fill out the Customer Update Form
  3. Email to DoBS at: uwmsnar@bussvc.wisc.edu
  4. DoBS will review the customer information and ensure the customer is not on any export control lists such as OFAC.
  5. DoBS will reply via email when customers have been set up.

IV. Related References


VI. Revisions

Procedure Number

 

Date Approved

 

Revision Dates

100 Non-Sponsored Centralized Accounts Receivable Policy

Non-sponsored accounts receivable for both internal and external sales is managed centrally in the Division of Business Services (DoBS).

UW-Madison Administrative Policy
Policy # 110
Capital Equipment Policy

Effective Date: June 1, 2020
Last Updated: June 1, 2020
Last Reviewed: June 1, 2020
Next Review: TBD

Functional Owner: Director of Financial Information Management
Executive Sponsor: Asst. Vice Chancellor for Business Services
Policy Contact: Supervisor Central AR for Non-Sponsored Billing, 608-890-1328, Email : uwmsnar@bussvc.wisc.edu


Policy Summary

Non-sponsored accounts receivable for both internal and external sales is managed centrally in the Division of Business Services (DoBS). Departments are responsible for creating accurate, timely billings in the PeopleSoft Shared Financial System (SFS) at the time the goods or services have been provided and not at the time the payment is received. Departments must have appropriate financial internal controls when working with accounts receivable. DoBS will manage invoice generation, adjustments, cancelations, write-offs, collection efforts and payment applications in collaboration with UW-Madison divisions and departments.

This policy is not guidance for grants, tuition or student housing revenues.


Policy Application

The SFS Accounts Receivable and Billing System is currently being rolled out to UW-Madison departments for all non-sponsored accounts receivable, including internal and external customers. The use of SFS for non-sponsored billing and receivables was launched in November of 2018 and will be introduced campus-wide in the coming months/years – unless otherwise agreed upon with the Division of Business Services.


Rationale

To comply with State of Wisconsin DOA accounting manual (07-01), through the centralized timely collection of non-sponsored receivables. To minimize the exposure of uncollectible receivables and to increase the integrity of the financial statements through consolidation of receivables and revenues.


Policy Detail

Departments will upload bills to SFS using a shared customer file. DoBS will generate invoices from the uploaded bills and process all transactions related to the invoices from that point.

The shared customer file will be managed centrally by DoBS. Payment terms will be established and managed centrally.

DoBS is responsible for the collection of non-sponsored receivables in collaboration with UW-Madison divisions and departments as outlined in procedure 100.4. This includes uploading invoices to third party accounts payable companies. Outstanding balances of any non-sponsored receivables may be referred to either a third-party collection agency or the State of Wisconsin’s Department of Revenue. Wisconsin’s Department of Revenue will be used for collection efforts if the DoBS has a Tax-ID for the customer that can be helpful to the DOR. Otherwise the third-party collection agency will be used.

Forms of payment include check, credit card, ACH and Wire transfers. Credit card fees that result from payments on invoices will be charged to the department for that invoice on a monthly basis.

Any adjustments, cancelations or write-offs will be processed centrally and must include valid explanation and documentation as outlined in procedures 100.3 and 100.4. Write-offs of $1,000 or more will require dean or director and DoBS approval and approval from UW System Administration.

It is the responsibility of the department to correctly charge sales tax on bills per the state of Wisconsin sales tax policy.


Supporting Procedures and Templates


Definitions

  1. Bill – A bill is a document created when a sale is made. A bill becomes an invoice when a balance is due. For the purpose of this policy, intra-unit bills (Madison department to Madison department) never become invoices because the bill is paid at the same time the bill is created.
  2. Invoice – A bill becomes an invoice when the bill is delivered to the customer and creates a balance due.
  3. Accounts Receivable – An asset that refers to the amount due from a customer for the sale of goods or services, when the goods or services have been delivered to the customer and payment is not received by the seller.
  4. Accrual Accounting – A basis of accounting that recognizes revenue when earned, and expenses when incurred, regardless of when cash changes hands.
  5. Write off – Write off relevant to this policy means that we cannot collect on the outstanding balance for an invoice. Types of reasons for a write off would include a customer in bankruptcy or deceased, or the debt has reached the age where we can legally no longer attempt to collect payment (statute of limitations).
  6. Cancellation – Canceling an invoice should only be used when an error has been made on the bill. An error can include the incorrect customer, contact or location identified on the bill. A duplicate bill for services already invoiced would be a good reason to cancel the bill.
  7. Adjustment – Adjusting the bill should be reserved for errors in amounts invoiced. Such as charging the wrong rate for a service or the wrong quantity ordered.
  8. Refund – The process of returning money to a customer as a result of overpayment for goods or services.

General Responsibilities

Division Chief Financial Officer (CFO) – Coordinates the designation of billing specialist(s) for their division and provides oversight and support to the billing specialist(s) in execution of their responsibilities.

Accounts Receivable and Billing Manager – Coordinates rollout of AR/BI modules to campus divisions and provides troubleshooting, reporting, analysis and guidance on invoicing and collection efforts.

Accounts Receivable and Billing Accountant – Responsible for the overall processing of Accounts Receivable & Billing assigned to the University of Wisconsin – Madison. Duties include establishing and maintaining a customer database, training, troubleshooting and to ensure accurate accounting and reporting.

Billing Specialist – Responsible for the departmental functions in the AR/BI module in SFS.  Duties include verifying and submitting customer requests as needed, bill generation, and collaborating with the AR/BI Manager and AR/BI Accountant on collection efforts and inquires.


Links to Related Policies

121 Unclaimed Deposits Policy

This procedure applies to all UW-Madison departments that accept and request payment for goods or services provided. This procedure should be understood by all employees responsible for claiming deposits and reconciling their department's accounts receivable.

UW-Madison Administrative Policy
Policy # 121

Effective Date: July 1, 2020
Last Updated: May 15, 2020
Last Reviewed: May 15, 2020
Next Review: May 15, 2021

Functional Owner: Cash Management, Business Services

Executive Sponsor: Asst. Vice Chancellor for Business Services

Policy Contact: Cash Management: cashmgt@bussvc.wisc.edu


Policy Summary

The University of Wisconsin-Madison receives deposits daily in the form of domestic and international wire transfers, Automated Clearing House (ACH) credits, check deposits, and cash deposits. These funds are deposited into the University’s main deposit account at US Bank. The intended recipients of these funds are various departments across campus. The existing process requires campus departments that are expecting funds to submit to Cash Management a completed Incoming Department Wire/ACH Form or Check Deposit Form in advance of the deposit to allow for timely and accurate distribution of the funds deposited. However, there are times when the required form is received by Cash Management after the deposit is received, or the form is never received. This results in the funds remaining unclaimed for an extended period of time or never being claimed.


Policy Application

This procedure applies to all UW-Madison departments that accept and request payment for goods or services provided. This procedure should be understood by all employees responsible for claiming deposits and reconciling their departments accounts receivable. This includes directors, deans, department managers and chairs, and department accountants and financial specialists.


Rationale

Unclaimed deposits are transferred to and held in the Unidentified ACH/Wires project PRJ38CM until they are claimed by a department on campus and the appropriate documentation is provided. The Cash Management team makes every reasonable effort to determine the appropriate recipient of unclaimed funds.

Steps taken to identify the appropriate recipient include:

  • Reviewing the information provided in the bank remittance detail;
  • Contacting campus department who have previously claimed deposits from the payer;
  • Contacting the payer of the funds to request information on the recipient;
  • Publishing a list of unclaimed deposits being held in the PRJ38CM account at least once monthly; and
  • Notifying the Financial Managers via email each time the list is updated.

The process to research these unclaimed deposits is time consuming and often unfruitful. Additionally, the maintenance of this holding account for unclaimed deposits requires monthly reconciliation at a minimum, manual tracking of deposits that have been claimed, and manual preparation of the transfer to distribute the deposits to the appropriate departments. Lastly, unclaimed funds collected in the previously mentioned holding account have no designated use such as consideration for budgeting, investing and financial planning purposes.


Policy Detail

Campus departments are responsible for notifying Cash Management of expected deposits and providing the appropriate documentation. Cash Management will make every reasonable effort, as discussed above, to determine the appropriate recipient of daily deposits received via domestic and international wire transfers, ACH credits, check deposits, and cash deposits. Deposits which remain unclaimed at the end of each day will be transferred to the PRJ38CM holding account.

Campus departments can claim deposits from the PRJ38CM holding account by providing Cash Management with the appropriate deposit claim form (i.e. Incoming Department Wire/ACH Form, Check Deposit Form) along with documentation to support ownership of the deposit such as an invoice.

All unclaimed deposits that have been claimed will be transferred from the PRJ38CM holding account to the appropriate funding string on a monthly basis at a minimum. At this time, an updated list of all unclaimed deposits will be published and Financial Managers notified.

The list of unclaimed deposits can be accessed here.

Beginning July 1, 2020, on a prospective basis, any unclaimed funds held in project PRJ38CM that are older than 12 months at the end of each fiscal year, June 30, will be transferred to a General Fund miscellaneous revenue account for redistribution to priority program areas as established by the executive leadership. Once this transfer occurs, these funds can no longer be claimed even after providing supporting documentation and substantiating the claim except for claims made by external entities.

The following timelines have been established to claim balances as they currently appear on the unclaimed deposits listing:

AGING OF FUNDS DEADLINE TO CLAIM
Fiscal Year 2019 and Newer Balances June 30, 2021
Fiscal Year 2018 and Older Balances September 30, 2020

In rare circumstances, departments may request to claim funds that have already been transferred from PRJ38CM to the General Fund; however, such exceptions will be assessed on a case by case basis and the decision to approve such requests is at the sole discretion of the Assistant Vice Chancellor/Controller.


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COVID 19 Account Codes- FAQs

General Questions:

Question: Why were separate COVID account codes created?

  • The COVID-19 account codes were created to identify COVID activity for various reporting requirements including those from the EOC (Emergency Operations Center), UWSA Finance Response Team, FEMA, and the Coronavirus Aid, Relief, and Economic Security (CARES) Act, as well as for internal information.

Question: Should I transfer expenses and/or refunds posted prior to the codes being available on 4.1.20?

  • Yes, any non-refunded costs or customer/student refunds related to COVID-19 should be transferred to the new COVID-19 expense account codes for accurate reporting and tracking. The rest of the funding string should remain the same. Please note that Accounting Services is reviewing Refund of Receipts (RORS) for accurate account code usage related to COVID refunds, so please double check coding in WISDM/WISER before processing transfers.

Question: Should I transfer expenses related to conferences or other events that were cancelled due to COVID-19, but then were ultimately refunded?

  • No, if you received a vendor refund for cancelled events due to COVID, do not move the original expense. Vendor refunds should be applied to the original expense account to adjust for any F&A previously incurred.

Research Questions:

Question: How should expenses on COVID-related research projects be handled? Should expenses be posted to the new COVID Account Codes?

  • If the project is doing COVID-related research, the regular accounts (salary, equipment, supplies, etc.) codes should be used.
  • Since the UW is also interested in knowing how much COVID-research activity is happening, RSP is capturing that information through information in the project titles entered into SFS and WISPER.  That lets RSP pull not only award and proposal data, but also budget and expenditure data from SFS.
  • The new SFS Covid-19 account codes are to capture expenses that the UW would not have experienced prior to the pandemic.  Some of these codes may end up on sponsored projects.  For example, suppose a researcher is still able to work in her lab.  She would have her normal research-related expenses (salaries, supplies, etc.).  Now suppose that this researcher’s grad student tests positive and can no longer work in the lab.  It’s quite likely that before anyone else could return to the lab, that it would need deep cleaning.  Those unanticipated COVID cleaning expenses could be charged to the sponsored project on account code 3117 (Cleaning/Sanitation Costs-COVID).

Question: How should we code per diem costs incurred for animal care and facilities as researchers are currently unable to use these resources in experiments? Technically, these costs are caused by the COVID-19 delays as it extends the length of days because research is delayed.

  • The monthly internal service charges (generally coded to account code 2650) to the sponsored project would not change. Likewise, the code for the revenue collected by the animal care unit would not change.  Delays in research progress are common; even outside of the current COVID remote operations of the UW.
  • The unit taking care of the animals may use the new account codes for additional COVID-related expenses directly related to animal care and the well-being of the staff.

UW-Sponsored Conference Refunds:

Question: There are two contra refund accounts related to conference refunds 9213 – Conference & Event Refunds – COVID and 9216 – Other Refunds – COVID that mentions continuing education refunds – how should I use them?

  • It’s helpful to break these apart as Conference and Event Space (9213) and Registration Fees (9216). Some examples of situations with the correct codes below:
  • Refunds for internal UW participant registrations – use account 9055
  • Refunds for events held as continuing education with non-UW participant registration – use account 9216
  • Refunds for space rental – use 9213

Question: If an event was run through Extension, are they are responsible for coding the refund to the correct COVID-19 code?

  • Yes, Accounting Services has been working with Extension to get the correct codes applied to the refunds.

Student Income Continuation:

Question: Are all student income continuation payments posted to account 5717 -Income Continuation – Scholarship – COVID?

  • No, expenses paid via payroll were paid using regular payroll processes, accounts, and funding strings.  The payments made by scholarship (thru SIS) will be posted using the 5717 – account code.

Travel:

How should we code canceled travel related to COVID?

  • If the traveler or the travel arranger cancelled the flight, there is an unused ticket for future business use.  The value of the cancelled and unused ticket is not a loss if used in the future – no immediate action needs to take place.
  • There are situations where we will experience costs related to the cancelled travel and for those costs, they can be coded to the COVID account created for Other Expenses-COVID – 3115. Examples of these costs include:
  • The ticket is not used by the traveler due to a COVID reason such as a conference was cancelled and never rescheduled; or, rescheduled for a day/time the traveler cannot attend
  • The ticket is used for future travel, but now the cost of travel to the same event previously cancelled due to COVID now costs more than the original ticket.
  • The traveler uses the unused ticket toward the purchase of future travel that is less cost than the unused ticket and the airline requires a forfeiture of the balance.
  • Deposits for hotels, meetings or events, which is non-refundable, and the event didn’t occur as a result of COVID-19.
  • Repatriation costs for students/employees (flights back to Uhttps://uwmadison.box.com/s/535hejrzwa6gelexac5fvglux2sp6lhiS, hotel stay near airport).

Download COVID Account Codes(PDF)