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Cash Receipts and Accounts Receivable
Contents
Overview
Accounts receivable are monies due to the University, which have not yet been received. Amounts owed to the University include tuition and fees, sponsored projects, student loans, travel loans, parking tickets and fines, petty cash loans, etc.
Policy
The university's general policy is to apply the Commonwealth of Virginia's policies, standards, and limitations to all accounts receivable transactions, regardless of the source of funds. All receivables are to be processed through the university’s central receivable system that is managed by the Virginia Tech Bursar’s Office. The University is required to take all appropriate and cost effective actions to aggressively collect accounts receivables and the University is required to withhold services to those who refuse to pay their debts. The University Controller has the ultimate responsibility for the management, reporting, and collection of the university’s accounts receivables. The overarching goal is to minimize the number and amount of past due and delinquent accounts receivable on an ongoing basis, and to minimize the annual write-off of accounts receivables.
Your Department’s Responsibilities
- Ensuring a system is in place to record and safeguard all cash receipts properly until they are deposited
- The department manager should periodically review departmental records and the procedures used in this system
- Ensuring employees assigned cash handling duties are trustworthy and trained adequately in the appropriate procedures (written procedures should be available to these employees)Ensuring the department manager or designee review the procedures on a periodic basis to ascertain compliance
- Ensuring all cash receipts are deposited timely (within 24 hours of receipt) and that documentation of cash receipts and deposits is maintained in good order for the period specified in university procedures
- Ensuring the appropriate sales tax is collected for all taxable transactions, and state sales tax returns are completed and mailed to the Controller’s Office in a timely manner (by the 10th day of the month following the period covered by the return)
- Ensuring adequate reconciliation procedures are performed to verify that all cash received was properly deposited and recorded in the Banner Finance system
Required Internal Controls
- Cash Receipts Reconciliation as well as Accounts Receivable Reconciliation should be performed on a monthly basis. The employee who reconciles the department’s deposits to the appropriate departmental fund(s) must be someone other than the employee who receives and processes the cash receipts.
- Departments should avoid retaining cash receipts over nights, weekends, holidays if large sums of money are involved or if the facilities do not provide adequate physical security.
- Departments should use university security personnel to transport large deposits. (Contact Bursar’s Office for details).
- Departments must retain copies of university deposit tickets and bank deposit tickets in good order for the time period stated in the university’s records retention schedule.
Resources
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