Collection Safekeeping and Recording of Revenue - Fanshawe ...

FANSHAWE COLLEGE POLICY MANUAL
1. ADMINISTRATIVE POLICIES AND PROCEDURES
SECTION H – FINANCE AND ACCOUNTING
TITLE: COLLECTION, SAFEKEEPING AND
RECORDING OF REVENUE
POLICY NUMBER: 1-H-07
EFFECTIVE: Feb. 6, 2008 (AC-07-05)
APPROVAL/REVIEW MEETING: May 14, 1985
NEXT REVIEW: February 2013
DEPT./DIV./COMMITTEE RESPONSIBLE: Financial Services
RESCINDED:
1. PURPOSE
The purpose of this policy is to assist in ensuring that all funds received by the college
are documented, collected and deposited to the College’s bank account(s) in a consistent
manner, on a timely basis and are recorded promptly and accurately in the appropriate
general ledger accounts.
2. DEFINITIONS
College revenue embraces all funds handled by employees in performing their duties at
the College, including (by way of example) the following:
Tuition fees,
Bookstore sales,
Proceeds for services including rentals,
Proceeds from sale of assets,
Restaurant sales,
Admissions for special events
3. THE POLICY
3.1. While the collection of revenue is the responsibility of Financial Services, many
areas of the college will generate revenue through the sale of college goods and
services. The sale of these goods and services may result in the immediate
collection of proceeds. In other situations, customers will be invoiced for these
goods and services.
3.2. For invoiced tuition and tuition related revenue, the Registrar’s Office will
process payments to the student’s accounts receivable balance. For invoiced nontuition
revenue, Financial Services will process payments to the customer’s
accounts receivable balance. In each application, the Registrar’s Office and
Financial Services will prepare the revenue for subsequent deposit to the
College’s bank account(s).
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3.3. Non-invoiced revenue will be prepared for deposit by the area receiving the
revenue. Financial Services will issue written procedures for the collection and
recording of non-invoiced revenue to each revenue generating unit. Two
employees in each unit should be familiar with the policy and procedures for
collecting revenue. The supervisor of revenue collecting units is responsible for
ensuring that new employees performing revenue collecting duties are aware of
the relevant policies and procedures. Changes in procedures must not be
implemented without the written permission of Financial Services.
3.4. For invoiced revenue, a College receipt may be issued by the Registrar’s Office or
Financial Services from the College’s financial system. For non-invoiced revenue,
an approved College receipt may be issued by the revenue generating unit.
Approved College receipts are available from Financial Services.
3.5. Cash and cheques received by revenue generating units must be stored in a secure
location or locked cash-box during working hours and placed in a locked safe or
cabinet for overnight safekeeping. Employees assigned to revenue collection
duties are responsible for ensuring that funds received are stored in the
appropriate location.
3.6. All funds collected must be submitted to Financial Services or, when located at an
area campus, deposited in the College bank account(s) no later than:
3.6.1. The following business day if the amount exceeds $500, or $1,000 for area
campuses
3.6.2. No later than the last business day of the week
3.6.3. The following day, regardless of the amount, when the revenues cannot be
appropriately stored in a secure location
3.7. Funds must not be forwarded through either the internal College mail system or
the Canadian Postal System.
3.8. Cash collected must not be used for the purchase of goods or services; the
approved purchasing and payroll policies and procedures must be followed for all
purchases and payments.
3.9. College business must be involved in every transaction; therefore, the personal
cheques of staff or students must not be cashed from funds collected.
3.10. Revenue collected by units for non-invoiced services must be recorded in a
Revenue Summary Deposit (RSD) to ensure the appropriate general ledger
accounts are promptly and accurately updated. A RSD must be prepared the day
on which the revenues are submitted to Financial Services or deposited to the
College’s bank account(s). A separate RSD must be prepared for each bank
deposit.
3.11. Each revenue collecting unit should review their general ledger line account
listings to verify that all funds received have been credited to the appropriate
general ledger account. Errors should be immediately corrected through an
adjusting General Journal Entry or brought to the attention of Financial Services
for corrective action.
4. REFERENCES
None.
5. APPENDICES
None.
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