Handling Cash and Depositing UMB Funds

Financial Affairs, Office of the Controller   |   Approved March 1, 2020

Purpose

Handling Cash and Depositing UMB Funds.

Applicability

Operational Units (schools, divisions, departments, affiliates) receiving UMB Funds.  UMB Funds include State appropriated general funds, tuition, fees, and other income, as well as auxiliary funds, revolving/discretionary funds, Designated Research Initiative Funds, gifts, contract or grant revenues, and other restricted funds.

Instructions

General Guidelines

1. UMB income is the property of the State of Maryland. Accordingly, State regulations apply to the management, safekeeping, and use of UMB income.
2. Sources of UMB income include, but are not limited to:
   1. Tuition and charges for UMB courses; whether or not the courses are taken to pursue a degree.
   2. Student fees.
   3. Fees charged for the use of auxiliary facilities or generated through auxiliary operations; such as the student union, campus housing, parking operations, the athletic center, etc.
   4. Amounts received from government or private grants or contracts.
   5. Gifts or grants made expressly to UMB, a school, or an academic or administrative unit of UMB.
   6. Revenue generated from events such as conferences, lectures, seminars, presentations, and similar activities using UMB resources.
   7. Revenue generated by operations of health, human services, or legal clinics operating under the direction and management of UMB.
   8. Rents and charges for use of UMB space.
   9. Fines and penalties assessed by UMB for violations of campus rules and policies.
   10. Royalties, licensing fees, and similar payments received in consideration for the grant of rights to use the intellectual property owned by UMB.
   11. Refunds or rebates under UMB procurement contracts.
3. Maryland State Education Code Ann. §12-105 requires all UMB Funds to be deposited in the State Treasury and the State General Accounting Division requires deposits to be made no later than the first working day after the day received; however, the preferred method is to deposit Receipts on the day received, especially when large amounts are involved.
4. Operational Units may establish stricter controls as needed to meet operational needs.

Procedures

1. Cash and Checks/Money Orders received by a UMB Operational Unit (“Receipts”)
   1. Receipts must be kept in a secure location with limited access (e.g. locked cabinet, safe).
   2. Receipts must be recorded in a log or similar record and checks and money orders must be restrictively endorsed “For Deposit Only” as soon as they are received.
   3. Complete the Deposit Summary Form Instructions for completing the form.
   4. Print the completed PDF form(s) and take the Deposit Summary Form(s) with the funds to the Cashier’s Office for processing.  Receipts must be deposited or taken to the Cashier’s Office for deposit no later than the first working day after the day received.  If possible, Receipts should be deposited on the day received. 
   5. Hand the deposit to the cashier and request a receipt.  Do not leave the deposit at the window unattended.
   6. Deposits are accepted at the Cashier’s Office during business hours. The Cashier’s Office is located at:
      
      University of Maryland, Baltimore
      Health Sciences and Human Services Library
      601 W. Lombard Street, 2^nd Floor
      Baltimore, Maryland  21201
      
      
   7. The Cashier’s Office staff will enter the deposit into the cashiering system for posting to the general ledger. Operational Units who process their own deposits in the cashiering system must bring completed Web Deposit Forms to the Cashier’s Office for approval in the system the same day the cash and checks are couriered to the bank.
   8. Operational Units who bill external customers for goods and services are required to comply with UMB Policy VIII-6.00(A) Customer Billing and Collections and Financial Services Procedure Customer Billing and Collections. Customers are encouraged to mail payments to the lockbox address provided on the invoice, or pay online.
2. Electronic Transactions
   1. The State of Maryland Banking Services Division processes electronic (e.g. wire transfers, ACH) transactions on behalf of UMB.
   2. Operational Units should enter a Customer Billing Invoice in Quantum Financials when funds are expected from another State agency through an RSTARS transfer or from an outside vendor via wire transfer or ACH.  If an invoice has not been entered, use the online RSTARS Receivable Notice Request Form. All other receivable notifications should be sent to generalaccounting@umaryland.edu.
   3. For operational units with established merchant accounts, do not combine credit card receipts with cash/check deposits. See the Procedure on Establishing and Accounting for Payment Card Accounts.
   4. Operational units who do not have merchant accounts must utilize Customer Billing for credit card payments. See UMB Policy VIII-6.00(A) Customer Billing and Collections and Financial Services Procedure Customer Billing and Collections. Credit card payments are not accepted at the Cashier’s Office.
3. Questions? Contact the Cashier's Office.

Deposit Verifications and Reconciliations

1. Deposit Verifications and Reconciliations must be performed by an employee independent of the cash receipts function and documented accordingly.
   1. Deposit Verification
      1. Deposit verification should be performed as soon as possible after making the deposit, preferably within two business days.
      2. Verify the Cashier’s Office deposit ticket receipt against the corresponding deposit log.
      3. Document the verification (e.g. initial and date the deposit ticket receipt or log).
   2. Reconciliations
      1. Transactions must be reconciled at a minimum on a monthly basis.
      2. Prepare a reconciliation report using a spreadsheet or similar tool.
      3. Compare the deposit logs with the activity recorded in the general ledger (i.e. financial system). The amounts should be equal and the dates should be within a reasonable timeframe (e.g. two business days) taking into account holidays, time of deposit, etc.
      4. Document the reconciliation (e.g. sign and date the reconciliation documentation).
      5. The department head or designee must review, sign, and date the reconciliation documentation.
2. Any discrepancies must be investigated and resolved. Any unexplained differences must be reported in writing to the supervisor of the Operating Unit and to Management Advisory Services (MAS).

EXCEPTIONS

Exceptions to this Procedure must be approved in writing by the Controller in Financial Services. All requests must be submitted to the Controller using the Policy or Procedure Exception Request Form available on the Financial Services website.  The request must be signed/e-mailed by the Department Head or designee.

RESPONSIBILITIES 

1. Employees/Affiliates
   1. Promptly deposit monies received for UMB-related business activities into a bank account authorized by the State Treasurer’s Office in accordance with the State of Maryland General Accounting Division Procedures.
   2. Request assistance from the Cashier’s Office or the Associate Controller in Financial Services as needed.
   3. Promptly notify Financial Services – General Accounting with account combo information when expecting an electronic payment.
2. Financial Services – Student Accounting: Cashier’s Office
   1. Promptly process deposits received from Operational Units.
   2. Assist Operational Units as needed.
3. Financial Services – General Accounting
   Promptly process electronic payments to the account combo provided by the Operational Unit
4. Management Advisory Services
   Assist operational units in complying with this Procedure.

Violation of Procedure

Employees who do not comply with this Procedure may be subject to disciplinary action and/or criminal action.  An Authorized Affiliate Employee who does not comply with this Procedure may be subject to disciplinary action, lose the privilege of being an Authorized Affiliate Employee, and will have UMB fiscal authority terminated.

DEFINITIONS AND TERMS

Authorized Affiliate Employee - Person employed by an entity that has a relationship with UMB authorized by the Board of Regents or by law, e.g., faculty practice plan organizations, University of Maryland Baltimore Foundation (UMBF) and other affiliated foundations, recognized incorporated alumni associations, recognized affiliated business entities, University of Maryland Medical System/University of Maryland Medical Center, and other University System of Maryland institutions.  An Authorized Affiliate Employee is responsible for the administration and reporting of UMB resources.

UMB Funds- All funds administered by UMB, regardless of fund source.  UMB funds include State appropriated general funds, tuition, fees, and other income, as well as auxiliary funds, revolving/discretionary funds, Designated Research Initiative Funds, gifts, contract or grant revenues, and other restricted funds.