UW-Madison Administrative Policy
Policy # 402
402 Revenue Accounting Policy
Effective Date: July 10, 2014
Last Updated: July 10, 2014
Policy Contact: Cash Management
Statement of Policy
Per State Statutes, (Chap. 20.906 Wis. Stats.), payments/receipts are to be deposited within 5 business days.
- All receipts generated as a result of the sale of UW- Madison goods or services belong to the University, and must be recorded to the University SFS accounting system. These receipts must be deposited directly into a UW-Madison Deposit Account by using:
- deposit tickets provided by Cash Management,
- the Check Deposit Form,
- On-Site Electronic Deposit (check scanning).
- Receipts may not be deposited to the University of Wisconsin Foundation, or an individual’s private bank account.
- Receipts may not be deposited into the University’s petty cash accounts, replenishable checking accounts, or used to make direct purchases of supplies, equipment, or services.
- Checks issued by UW-Madison (with a UW-Madison logo and the address of 21 N. Park Street, Suite 5301 on the front) may not be deposited. Mark these checks “void” and send them back to Accounting Services File Room, 21 N. Park Street, Suite 5301, Madison, WI 53715.
Statement of Procedure
Many departments have receipts and refunds because of the sale of goods and services, gifts, and grants. Cash receipts from a large variety of sources and for a wide range of purposes require that departments use proper accounting procedures. This chapter focuses on accounting procedures for cash receipts. Refer to the policy on revenue producing activities which includes instructions regarding revenue from non-University sponsored activities.
- Request payments to be submitted in US dollars.
- Check with your Dean’s/Divisional Office and Department to receive information on internal policies and procedures related to revenue collections.
- If your customer is asking to make payments by Wire/ACH, instruct them to include your Department ID and reference number in the Wire/ACH reference/memo field. See Wire – Incoming Department Wire/ACH Form for procedures on notifying Cash Management.
- All deposits using account code 9050, 9051, 9060, 9061, and 9062 require a program code being either 0,1,2,3,4,6,8,9,F and cannot be a program code R.
- All revenue deposits involving Funds 133, 144, or 182 which do not use account code 9050, 9051, 9060, 9061, and 9062, please submitted to Research and Sponsored Programs at 21 N. Park St., Suite 6401, Madison, WI 53715.
- All revenue deposits involving Funds 233 which do not use account code 9050, 9051, 9060, 9061, and 9062, please submit to Accounting Services at 21 N. Park St., Suite 6101, Madison, WI 53715.
- All deposits involving Fund 161 require detail backup and must be submitted directly to University of Wisconsin System Trust Funds, 780 Regent Street, Madison, WI 53715; ATTN Trust Funds.
- External customer – A customer from other state agencies and the general public who is not from UW-Madison or any UW institution.
- Internal customer – A customer from UW-Madison and any UW System institution.
- General Purpose Revenue Earned (GPR)- Revenue received by a state agency related to GPR appropriations in the course of accomplishing program objectives and for which no program revenue appropriation is made.
- Gift – An amount received that meets all of the following criteria:
- Provides support for broadly defined activities such as professorships, scholarships, fellowships, traineeships, research and instructional programs. The donor may restrict the use of the funds to a specific program area or purpose.
- No detailed fiscal or technical reports are required, either periodic or final. However, the principal investigator may provide the donor with a brief summary of the supported activities and a statement that expenditures were made in accord with the intent of the gift.
- Rights to any patents or copyrights are not claimed by the donor.
- No provisions, such as delays or advance notice, are imposed by the donor concerning publication or dissemination of data and information derived from the activity.
- The funding is voluntary and irrevocable by the donor.
Gifts are not: fees for laboratory and other services, revenues from ticket sales, registration fees, payments for facility use, or payments on contractual or business arrangements.
- Grant, Contract, or Agreement – A legally binding instrument between the Board of Regents of the University of Wisconsin System and a Non-federal or Federal sponsor that provides support for extramural research, instruction, or other institutional activities. A typical grant, contract or agreement has a defined scope of work and budget, requires a project progress report, fiscal monitoring of receipts and expenditures and a financial expenditure report. The grant, contract or agreement will be subject to audit by the sponsoring agency or their designees.
- Revenue – An amount received from the sale of goods or services, registration fees, investment income, royalties, fines, or rental of property or space.
- Refund of Expenditures – An amount received as a rebate or refund from a vendor or payee for a price adjustment, overpayment, returned merchandise or duplicate payment. The amount relates to a previously recorded expenditure on a sum certain appropriation in the same fiscal year. In general, this amount is not anticipated during budget development. The refund should reduce the department’s expenditures.
II. Policy for Cash Receipts
Receipts are to be deposited to the same funding source from which expenses are paid. Receipts from the sale of goods or services to an internal customer are recorded as an internal sales credit. For department program revenue funded, use revenue codes. For department GPR funded, record the receipt as an external sales credit. Check receipts are deposited by using the Check Deposit Form. Cash receipts are deposited using the “Cash Only” Deposit Form. For sites using deposit slips, use the deposit slips issued by Cash Management along with plastic bank bags. To order deposit slips use the Bank Deposit Slip form. To order plastic bank bags use the Plastic Bank Bag Order Form.
III. Exceptions to the General Rule
- General Purpose Revenue Funds – Fund 101, etc.
- Auxiliary Enterprises – Fund 128, Program 8
- Trust Funds 161 and 162
- Refund of Expenditures
A. General Purpose Revenue (GPR) Funds (Fund 101, etc.)
The State of Wisconsin does not permit the recording of receipts on GPR funds. Record all revenue from sales as sales credit to the appropriate sales credit account code. See the complete list of GPR funds.
B. Auxiliary Enterprises – (Fund 128, Program 8)
Sales and services of an Program 8 auxiliary enterprise should be recorded as receipts, regardless of the source of the revenue. Use the general rule for recording all other Fund 128 programs.
C. Trust Funds 161 and 162
Trust Fund receipts should be recorded as receipts to fund 161 or 162 only by UW System Trust Funds Office staff. Send checks to University of Wisconsin System Trust Funds, 780 Regent Street, Madison, WI 53715; ATTN Trust Funds.
D. Refund of Expenditures
Refund of Expenditures should be recorded as negative expenditures to the funding source and account code for the original expenditure to which the transaction relates. For deposits relating to prior year Fund 101 expenditures, use the following funding string: Fund 131, Project 131A006, program code R, account code 9209. Prior year credits shall be handled according to Check Deposit Form and Instructions or “Cash Only” Deposit Form and Instructions.
E. Appendix – Prior Year Check Deposits
CODING FOR PRIOR YEAR CHECK DEPOSITS
|Fund Number||Coding for Credit|
|101, 102, 103, 104 account code 2||Refund of expenditure coded to: Fund 131, Project 131A006, Program Code R, Account Code 9209|
|104, non-account code 2||Refund of expenditure coded to: Fund 132, Project 132A006, Account Code 9209|
|105, 106, 107, 108, 109, 116, 117, 118, 119, 174, 175, 176, 178, 301, 402, 403, 406, 501, 601||Refund of expenditure coded to: Fund 100, Dept 980100, Account Code 9209|
|114||Refund of expenditure coded to: Fund 122, Project 122A006, Account code 9209|
|177||Refund of expenditure coded to: Fund 186, Project 186A006, Account code 9209|
|126, 166, 167, 168, 185, 325, 528||Deposit to the original fund using revenue account code 9209|
|110, 111, 112, 113, 120, 121, 123, 124, 125, 127, 128, 129, 129, 130-138, 135, 142-152, 161, 163, 182, 183, 184, 187, 188, 336, 350, 530, 533, 620||Refund of expenditures coded to the same funding string as the original expense|
Note-prior year vendor refund checks against purchase orders still open in the current fiscal year will be coded to the current funding with the exception of GPO pool funds (determined by voucher date)
CREDIT MEMOS ONLY
Prior year credit memos against closed purchase orders will be coded to the original funding source.
Prior year credit memos against open purchase orders will be coded to the current funding.
IV. Departmental Deposits – FAQ
1. How can I set up a deposit procedure for our department?
- If your department collects large sums of money and/or frequently collects money, please check with your Division/Deans Office to request your own deposit tickets and sealable plastic bank bags.
- We recommend departments make deposits daily or at least weekly in order to follow state statute and to avid theft or loss.
- To order bank deposit tickets, please follow the instructions and Submit the Bank Deposit Slip Order Form to Cash Management.
- To order plastic bank bags, please follow the instructions and submit the Plastic Bank Bag Order Form to Cash Management.
- For departments who infrequently collect money, use the Check Deposit Form for depositing checks. For cash deposits use the “Cash Only” Deposit Form.
- Please remember, per state statute, it is required to make deposits at least once a week.
2. I’m not sure what fund, Dept ID, account code, or program code to use.
3. How can I verify that the bank received my deposit?
- Log into WISDM and review your department financial activity to verify the deposit has been recorded and is posted to the correct funding string.
- Cash Management posts to WISDM within three business days after deposit is received by the bank.
- If your deposit has not been posted in five business days after receipt by the bank, contact Cash Management and provide your name, e-,mail, department ID, deposit ticket number, the amount, and the estimated date of the deposit.
4. How do I handle return items?
- The Cash Management forwards return items to departments using the fund string the original deposit was coded to.
- Per University of Wisconsin System Administration regulations, a $20 fee should be assessed for checks not paid by the bank on which it is drawn. Reference to: C.6 Checks Returned Due to Non-Sufficient Funds (NSF)
- Deposit this fee into 136-980100-R-9200. As a department, you reserve the right to refuse check from customers/students with a history of returned checks.
5. Can department deposits be sent through Campus mail?
- Only the Check Deposit Form with checks can be sent by campus mail. For additional safety, we recommend either hand delivering the checks to Cash Management at 21N Park St, Suite 5301 or mailing by US Mail.
- For cash deposits, it is required to hand deliver the deposit to the Bursars Office at 333 East Campus Mall, Suite 10501 using the “Cash Only” Deposit Form.
- If your department collects large sums of money and/or frequently collects money, please check with your Division/Deans Office to request your own deposit tickets and sealable plastic bank bags
- By using deposit tickets and sealable plastic bank bags, these deposits can be dropped off at the bank or an armored car pick-up location on campus. Please see the Bank Deposit Slip Order Form for instructions on ordering bank deposit tickets. Please see the Plastic Bank Bag Order Form for ordering sealable plastic bank bags.
6. Can I still drop off my deposit at 21 N. Park Street?
- Only the Check Deposit Form with checks can be dropped off at 21 N Park Street, Suite 5301.
- If you have your own deposit slips with sealable, plastic bank bags, then these deposits can be dropped off at the Bursars Office at 333 East Campus Mall, Suite 10501 or on the first floor of 333 East Campus Mall using the overnight bank vault on the first floor by the elevators or at any U.S. Bank branch office
- To find other armored car drop-off locations on campus, contact Cash Management. Indicate by e-mail, who you are, your e-mail, where you are located, and that you are requesting an alternative armored car drop-off site other than 333 East Campus Mall.
7. If our deposit drop-off point on campus is no longer convenient, what other sites are available for drop off?
- Contact Cash Management by e-mail, indicate who you are, your e-mail, where you are located, and your request for an alternative armored car drop-off site other than 333 East Campus Mall.
8. How do we change our current deposit drop-off location?
- Contact Cash Management by e-mail, indicate who you are, your e-mail, and where you are located.
9. Can we use plastic bank bags instead of the cloth bags? How do we get plastic bank bags?
- Yes, we strongly suggest you use sealable plastic bank bags.
- To order plastic bank bags, please follow the Plastic Bank Bag Order Form and submit to Cash Management.
- Keep in mind, our armored car services and our bank are not responsible for returning cloth bags to your respective locations
- If you have not already done so, please switch to sealable plastic bank bags.
10. What information needs to be recorded on the outside of the bank bag?
- Provide the following information on the outside of bank bags:
- Your department’s full name, the name of a contact person, phone number, e-mail, and DeptID. (6-digit code). Please see the Plastic Bank Bag Order Form and submit to Cash Management.
11. When we drop off bank bags at a drop-off site, how do we get our bank bags back?
- Plastic and cloth bank bags will not be returned by US Bank or by armored car services. Please keep a copy of your deposit ticket and verify all deposits in WISDM. All deposits are posted to WISDM within 5 business days after deposits have been delivered to the bank.
12. If we’re missing one of our cloth bank bags, how do we locate it?
- Cloth bank bangs are no longer used. Please see the Plastic Bank Bag Order Form and to Cash Management.
13. How do we get copies of our deposit tickets back?
- Deposit tickets are no longer returned by the bank.
- Keep a copy of your deposit ticket and verify the amount of the deposit was received by looking it up on WISDM.
- The description field on WISDM will say DEPOSIT followed by the full deposit number.
- The journal date field will show the date the bank received the funds.
- Verify deposits have been received by the bank by looking them up in WISDM within 5 business days after deposits have been delivered to the bank.
- If this amount does not match your deposit ticket, contact Cash Management. Indicate your name, department, funding, deposit slip number, the date of the deposit, and the deposit amount. Cash Management will look up the deposit on line using SinglePoint (US Bank’s web site application). Cash Management will send you a copy of the deposit so you can determine why there is a discrepancy.
14. How would I deposit checks?
- If you have your own deposit slips with sealable, plastic bank bags, use your deposit slip and plastic bank bag to deposit your checks.
- Otherwise use the “Check Deposit Form” and attach checks. Deliver or send packet to Cash Management at 21 N Park Street, Suite 5301.
15. How would I deposit cash?
- If you have your own deposit slips with sealable, plastic bank bags, use your deposit slip and plastic bank bag to deposit your cash.
- Otherwise use the “Cash Only” Deposit Form and attach cash in a sealed envelope. Hand-deliver the cash and form to the Bursar’s Office at 333 East Campus Mall, Suite 10501.
16. How would I deposit a refund of expenditure (vendor refund)?
- If the refund is checks, please use “Check Deposit Form” and attach checks. Deliver or send form and attached checks to Cash Management at 21 N Park Street, Suite 5301.
- If the refund is cash, please use the “Cash Only” Deposit Form and attach cash in a sealed envelope. Hand-deliver the cash and form to the Bursar’s Office at 333 East Campus Mall, Suite 10501.
17. How would I change a deposit ticket/ credit card funding string?
- If you want to change a funding string of your deposit ticket or credit card, please send an email to Cash Management at Cashmgt@bussvc.wisc.edu. In the email text, please tell us your deposit ticket number or credit card merchant ID, your old funding string and new funding string. Once we receive your email, we will update our database, your funding string will be changed to new one on that day or the following day based on what time we receive your email. No necessary to order new deposit tickets. When you reorder your deposit ticket, new funding string will be put on that deposit ticket.
V. Sales Tax Collections
University departments are responsible for collection and deposit of sales tax. University departments are liable for penalties assessed for failure to report and collect sales tax. When depositing checks use the Check Deposit Form to help identify and collect sales tax. When depositing cash use the “Cash Only” Deposit Form to help identify and collect sales tax. When deposits are made electronically by credit cards or wire/ACH use the Receipt/Sales Credit Transfer Form to identify and collect sales tax. When deposits are made using deposit tickets, check scanning equipment or using Cash Management as an customer invoice collection site, use the Receipt/Sales Credit Transfer Form to identify and collect sales tax. Based on what departments identify and collect for sales tax, Cash Management reports, process and submits monthly collection of sales tax to the Department of Revenue.
Remember when reporting taxable receipts, report gross receipts on the check deposit form, cash deposit for, receipt/sales credit transfer form and identify the appropriate taxable county code.
VI. Accounts Receivable Invoices
For procedures related to accounts receivable invoicing, please see Accounts Receivable Invoices. University of Wisconsin Systems
Administration Polices can be found at UW System Administrative Policy SYS 326, Collections and Write Offs.
Any department providing goods or services not yet paid for must issue an invoice to its customers and develop an accounts receivable system for billing and tracking customer payments.
An accounts receivable system must be operated on a consistent basis and bill monthly in order to ensure recovery of receivables. Regular invoicing requires pre-numbered invoices issued in chronological number order. Invoices are issued in chronological order in order to reduce the likelihood of lost charges from nonpayment on services performed. Copies of all invoices must be maintained for six years plus current year in chronological number order along with supporting documents for record retention purposes, audit trails and follow-up inquires. Effective maintenance of an accounts receivable system requires consistent, timely follow-up on unpaid invoices.
Any invoices not collected within 30 days are considered past due. Once an invoice is past due, follow accounts receivable collection procedures.
For those departments who do not use their Dean’s/Divisional office for central collections and they do not have adequate separation of duties, please contact Cash Management for discussions on options listed below. Send e-mail to email@example.com.
- Option One:
- Request your customers to pay online through a web application process called UW-Madison Ecommerce (CASHNet).
- Option Two:
- Develop separation of duties either internally within your department or using your Dean’s/Divisional Office to help locate a separate collection point within your School/Division.
- Option Three:
- Use Cash Management as a collection point for your customers. See instructions for Accounts Receivable Invoices. To use this option, invoice design must be approved by Cash Management before use. Customers must sent their money direct to Cash Management or wire funds to our main deposit account.
All accounts receivable invoice forms sent to Cash Management for deposit must meet the invoice numbering and financial coding standards in order for Cash Management to identify receipts. Please work with Cash Management for review and approval before using Cash Management as a customer payment location.
Please note: Check with your Dean’s/Divisional Office and Department to receive information on internal policies and procedures related to revenue collections.
VII. Bank Deposit Slip
Deposits can be made at armored car drop off sites or directly at US Bank. Bank Deposit Slips are ordered through US Bank and are preprinted with the bank routing and deposit bank account number. There are a special set of numbers on the bottom of these bank deposit slips which Cash Management staff uses to identify individual deposits on the daily bank statement. Please provide Cash Management with one string of funding code which will be used for your department to collect all revenue related to this set of deposit tickets.
VIII. Plastic Bank Bags
On the plastic bags print or attach a label with only the following information:
- department six digit ID number
- full name of your department
- contact name
- phone number
Note: On the plastic bag, do not write the deposit amount or the bank account number.
Please write the bag number on your deposit ticket. Send the original (white) to the bank with your deposit and keep all others for your records. Tear off the stub which has pre-printed bag number information. Keep this stub and indicate the date of the deposit, amount, and the last 4 digits of the bank account number (if known).
When dropping off your deposit bag at the pick up location, write the bag number on the armored car service log sheet along with the other information the log is requesting. Each drop off site may have their own procedures in place for filling out the log.
Once the above procedure is followed, we will no longer need to have plastic bags returned. As of February 1, 2010, US Bank will not be returning deposit bags back to the departments. Let Cash Management know if you have any questions.
IX. Receipt/Sales Credit Transfer Forms
If a department needs to record sales tax for receipts deposited and/or for receipts being to transfer to different department funding, please use the Receipt/Sales Credit Transfer Form to distribute these funds along with accurately reporting and collecting sales tax.
Appendix Tax Rate
Codes and tax rates are shown only for those counties that require more than the standard 5% rate.
|County Name||Code||Tax rate||County Name||Code||Tax rate|
|Fond du Lac||Saint Croix||55||5.5|
X. Check and Cash Deposits
To deposit checks, use the “Check Deposit Form” and attach checks. Deliver or send packet to Cash Management at 21 N Park Street, Suite 5301.
Never send deposits through campus mail. Steps are as follows:
- Complete Check Deposit Form.
- Attach checks and the adding machine tape showing the detail and total. All checks are to be endorsed by the depositing department using the following language, “For Deposit Only to US Bank Account 0226.”
- For foreign checks, complete a separate Check Deposit Form for each foreign check and send to Cash Management.
- Note: Foreign checks require special handling by the bank. These deposits may take up to 15 business days to show up in WISDM under department funding provided on submitted forms.
To deposit cash, use the “Cash Only” Deposit Form and attach cash in a sealable envelops. Hand delivers the form and cash to the Bursar’s Office at 333 East Campus Mall, Suite 10501. Never send cash deposits through campus mail.
- Complete “Cash Only” Deposit Form.
- Attach cash in sealed envelopes along with adding tape totaling up currency detail.
- When possible, band and roll currency and coins.
All deposit will be counted in the presence of two people and validated. Original deposit sent with deposit form and/or deposit slip, another copy of the deposit kept with the department for deposit records, and a third copy sent to department reconciler.
XI. On-Site Electronic Deposit of Checks
UW-Madison departments may choose to deposit checks by using On-Site Electronic Deposit (OED). Departments that choose to utilize OED are required to:
- Obtain prior authorization from Cash Management to implement OED. Contact Cashmgt@bussvc.wisc.edu
- Provide a secure work station with access to US Bank SinglePoint website.
Implementation of the check scanning equipment, computer application and internet connection must be approved by the department or Division/Dean’s Office. An implementation schedule will be reviewed and approved through Cash Management with input from Office of Campus Information Security (OCIS).
To obtain and/or update US Bank SinglePoint access for On-Site Electronic Deposit of Checks, complete the Bank Account Website Access (SinglePoint) form, which includes the Check Scanning set up form.
Workstations with attached electronic check scanners must follow these requirements:
- Have a dedicated workstation on the PCI network installed and maintained by the Repair and Departmental Support (RADS) group at the Division of Information Technology, according to specifications outlined in the current PCI-DSS. (https://www.pcisecuritystandards.org/).
- These workstations physical equipment) are only allowed to access URL’s associated with the electronic check scanning process, and are not allowed to access any other applications, including email, additional web browsers, etc.
- Printers must be directly connected to this workstation.
- Your IT staff in coordination with RADS will recommend your best IT structure.
- Have a managed workstation installed and maintained according to specifications outlined in the Office of Campus Information Security baseline information systems security standard.
- Make use of two-factor token based authentication for access to the OED module
- The token should be stored in a locked cabinet when not in use
- The token should never leave university property
- Lost or stolen tokens should be reported to Cash Management immediately
- All workstations with access to OED should be located in a physically secured and monitored location. For example, the workstation should be in an office suite that is locked after normal business hours. The workstation should not be in a public area, or in an unoccupied office area (such as a vacant cubicle).
- Persons or workstations with access to OED should be limited to only those workstations and users with a documented legitimate business need.
- Persons or workstations with access to OED should be limited to only those users who have completed a background check.
- Restricted to workstations with appropriately assigned University IP addresses.
- Client authorization and access will be managed by Cash Management through the SinglePoint Portal.
- All checks, both scanned and ready to scan, must be stored in a locked room or file cabinet; access to the storage area(s) must be limited to authorized personnel only.
- All scanned checks must be destroyed (cross-cut shred) within 30 days after the deposit date.
Business Process requirements
- Users with access to SinglePoint shall have separation of duties between those who scan checks and those who approve the deposit batches for processing.
- Users shall fulfill operator training requirements, as prescribed by Cash Management.
- In the event of staff changes, department shall contact Cash Management to change SinglePoint access.
XII. Incoming Wire Form
This form is used when your department is expecting either an Incoming International Wire/ACH or an Incoming Domestic Wire/ACH.
When your customer is asking to make payments by Wire/ACH, instruct them to include your Department ID and Invoice number in the Wire/ACH reference/memo field. See Wire – Incoming Department Wire/ACH Form for procedures on notifying Cash Management and requesting bank information. Use the memo field on the bottom of the form to request bank information.
XIII. Refunds of Receipts/Sales Credits
To initiate a refund back to the source who sent the receipt, use the Refunds of Receipts/Sales Credits form. Send the approved, signed form back to cash Management at Accounting Services, 21 N. Park St., Suite 6101, Madison, WI 53715-1218.
XIV. Correction of Revenue Coding Errors
To correct the coding on a prior deposit use the Receipt/Sales Credit Transfer Form and send to Cash Management, 21 N Park St., Suite 6101, Madison, WI 53715-1218.
XV. Credit Card Request for Visa/Master Card/Discover Card/American Express
- Department Deposit Memo
- Armored Car Service Change Form
- Armored Care Service Contract
- UW Foundation Policies
- Request for Access: US Bank On-Site Electronic Deposit of Checks Form
Who should know this procedure?
Deans, Directors, and staff dealing with revenue.