Business Services
BUSINESS SERVICES POLICY AND PROCEDURE DOCUMENT (BSPPD) # 8
DEPOSITS OF CASH AND CHECKS
(Revised August 1, 2001)
INTRODUCTION - UW-Extension departments often handle cash and checks that must be deposited into the state treasury. These collections, from a wide variety of sources and for a wide range of purposes, require the establishment of uniform deposit procedures.
FREQUENCY OF DEPOSITS - Wisconsin State Statute 20.906 states "Unless otherwise provided by law, all moneys collected or received by any state agency for or in behalf of the state, or which is required by law to be turned into the state treasury shall be deposited in or transmitted to the State treasury at least once a week..."
TYPES OF DEPOSITS
- Refund of Disbursements
- Generally, this type of deposit applies only to checks received from vendors or other original payees. Checks received from the sale of goods/services should be handled as either "Sales Credits" or "Program Revenue" deposits.
- If the refund is received within the same fiscal year in which the original disbursement is made, the refund should be coded as a negative disbursement to the same fund-project/grant-division-department-program and account coding from which the original payment was made.
- Prior Year Refunds - If the refund is received after the close of the fiscal year in which the original payment was made, the accounting treatment differs by the funding source (see Appendix A).
- Refunds of Disbursement deposits should be processed using the UW-Extension "Refund of Disbursement Deposit" form available from Business Services in room 104 of the Extension Building.
- Sales Credits
- Sales Credits are income from the sales, both internal and external, of goods/services. In the University Accounting System, sales credits are budgeted as an offset to expenses. The accounting for Sales Credits is dependent on the departmental funding source:
- Internal Sales Credits (Class 9050) - Are primarily used for sales by internal service departments to other departments within the UW System. They also should be used for incidental sales made by non-service departments.
- External Sales Credit (Class 9051) - Shall be used for sales to an individual or entity external to the UW System where the selling department is GPR funded (is not budgeted for program revenue). It is also used for depositing of incidental sales of goods/services produced by funds 133, 143, and 144.
- External income received by departments where receipts have been budgeted as program revenue cannot be deposited as an external sales credit (see section C).
- Sales Credits should be deposited by processing the UW-Extension "Report of Registrations and Collections" form available on the UWEX Business Services Web site. The form is found under depositing revenue.
- Revenue
- Revenues are income from the sale of goods/services to an individual or entity external to the UW System where the selling department's funding source is budgeted for program revenue. Revenues (funds 131, 132 and 128) are not an offset to expenses but a fee directly related to the cost of goods/services. During the budget process, an expenditure budget is set up based on a specific level of anticipated revenue.
- Revenue should be deposited by processing the UW-Extension "Report of Registrations and Collections" form.
All deposits should be forwarded to the UWEX Cashiers Office, 104 Extension Building.
Further information on the proper collection, recording, safekeeping, and depositing of monies is provided on the UW-Extension Cashier's Web site under forms and guidelines.
APPENDIX A
Accounting Treatment for Refunds of Prior Year Expenditures
| ORIGINAL EXPENDITURE | TREATMENT OF REFUND IN SUBSEQUENT YEAR |
|---|---|
| "Pure" GPR (not part of a pool) Funds 105, 109, 115, 118, 158, 174, 176, 402 | Deposit to fund 100 as a RECEIPT, using revenue code 9209 and Org 98-0100 and program code of original expenditure. |
| GPR/FEE pool Fund 104 (Activity 2) Fund 104 (non-Activity 2) | Deposit to fund 189 as a RECEIPT, using revenue code 9209 and org 98-0100, program 2Deposit to fund 132 as a RECEIPT, using revenue code 9209 and org 98-0100 and program code of original expenditure |
| Program Revenue - Continuing Funds 128. 129, 133, 183 | Deposit to fund, org, account, program code of original expenditure |
| Program Revenue - Sum Sufficient Funds 123, 124 | Deposit to fund, org, account, program code of original expenditure |
| PR Federal - Continuing Funds 142 through 152 | Deposit to fund, project/grant org, account, program code of original expenditure |
| SEG - Annual, Biennial Funds 168 | Deposit to fund and program code of the original expenditure as a RECEIPT, using revenue code 9209. Use org coding 98-0100. |
| SEG - Continuing Funds 161 | Deposit to fund, project/grant, org, account, program code of original expenditure |