1. Depository Accounts Reconciliation CASH, CHECKS, E-CHECKS and LOCKBOXES 1

2. 2 Agenda  Account Reconciliation Process: a. Banner b. PeopleSoft  E-Checks  Lockbox

3. Account Reconciliation Process - Bank reconciliations are prepared at the beginning of each month for the previous month’s transactions. - The process begins by completing a comparison. This is done by matching all transactions recorded to the general ledger by figures and deposit numbers against all deposits posted to the bank statement. - General Accounting is also responsible to complete daily audits of all transactions processed by the UCO cashier’s office. All discrepancies are submitted back to the cashiers office for corrections. This process corrects errors before the reconciliation is completed. - After researching differences against all original paperwork, all outstanding items and deposits remain in transit until the following month. 3

4. Account Reconciliation Process Continued.. - If there are any discrepancies General Accounting will contact the department immediately and the department will be responsible for submitting a correction to the Cashier’s office. - Most common errors: - A. Totaling - Differences between amount recorded and amount deposited - B. Unrecorded deposits - C. Transactions recorded to the wrong G/L account - D. Timeliness, Timeliness, Timeliness… - E. Discrepancies on the deposit slip totals on the actual deposit slip. - - F. Differences on the actual checks that are being deposited. The written out check amount overrides the numerical amount of the check. - All reconciliations are required to be completed and submitted to the Associate Controller by the end of month. 4

5. 5 Banking Reconciliation Methods to Record DepositsAccount # 1. Deposit Slip ( cash & checks)Banner10001(closes last day of Month) 2. E-check (via Touchnet)Peoplesoft10011(closes 4-5 days in next month) 3. LockboxCredit Cards10061 Banner Deposit ID(8 Digits)Peoplesoft Deposit ID(8 Digits) 1101 XXXXTampa2103XXXXTampa Cashier's post to GL 4100XXXXSt. Pete4200XXXXSt Pete Cashier's post to GL 0061XXXXSarasota0062XXXXSarasota Cashier's post to GL 8100XXXXLakeland 36 Ach Mechants3100 - 3136 Mechant #file # (5 digits)5 digit # is system generated by Touchnet 3100XXXXXOrientation 3101XXXXXUndergraduate Admissions 3108XXXXXSarasota 3111XXXXXSt.Pete Parking 3129XXXXXResidenceHousing will post information into Banner note: Cashier's post all ach activity from Touchnet except(3107,3108,3128,) exceptions are sent by Mechant with posting information Ach's post in bank within 2 days Detail codes input postings into 10001 or 10061

6. 6 Banner LockboxDepositID: (lockbox # + date of deposit) ex: 864300 123114 864320 Residence Services Housing resposible to post into Banner 864571Student AccountCashier responsible to post Peoplesoft Lockbox 864300Health ScienceDepartments resposible for Misc Receipts Form which 864315Parking Servicescontain chartfield information for checks deposited. 864336Anchin CenterSent to Cashiers for Posting 864347OracleCashiers will notify Dept's via email they received email 864687Clinical Researchwith the posting information 864568Cashier's OfficeCashier's resposible for Lockbox -mail payments commercial & departmental note: Lockbox checks deposited into wrong locbox are corrected by bank. If checks are within University they are corrected via journal entry Suspense items 3 days to Identify check before putting into suspense account.

7. Account Reconciliation Process Continued.. An important fact to always remember to adhere to is Internal Controls. This involves: The safety of all funds. The timeliness of recording the receipt of all funds. That reconciliations are completed and reviewed on a regular schedule by the different departments and General Accounting. 7

8. E-CHECKS 8

9. E-check  Is an electronic transfer of funds in which the money is taken directly from a bank account, typically a checking account.  It is a representation of the paper check but it combines the security, speed and processing efficiencies of an electronic transaction.  The account’s routing and account number are used to draw funds from the account. E-checks can clear much faster than written checks. 9

10. How does the process work? A customer Initiates an electronic check, with authorization to charge their bank account via web form. Once the transaction is submitted, order and payment information is securely transmitted via the internet to the Touch net system Gateway. The Transaction is accepted or rejected based on initial data validation and security criteria. If accepted, Touch net formats the transaction information and sends it to the Bank as an ACH Transaction. 10

11. Electronic Check Process Diagram Customer Touch net System Bank 11

12. Touch net Payment Gateway Touch net is a leading provider of technological services that make self-service information access more efficient and convenient for both our institution and the individual user. It provides to the students the ability to pay : Tuition Transcripts Housing Parking among others Make sure there are funds to avoid fees 12

13. Touch net Security System Touch net systems is protected behind a firewall access list. All data is encrypted for maximum security. Data for each Department is maintained according to specific merchant or account configuration. Each user has the ability to view data for his/her department after entering the system according to specific roles. 13

14. LOCKBOX 14

15. Lockbox Is a Banking service that works like a post office box the bank establishes for your department. The department will have to provide their customers a remit to address; this will allow them to send all payments to invoices directly to the lockbox. The bank will control and receive all correspondence, deposit the checks into your account, and provide general accounting with an electronic access that allows us to view daily information and activities. 15

16. Lockbox Benefits  Faster Funds Availability – Directing your remittance to Wells Fargo for processing allows you to meet earlier deposit deadlines and benefit from improved cash forecasting and funds availability. Customer’s payments are sent directly to your department assigned box.  Advanced Image Technology – Within a matter of seconds, you have access to a Web based archive that provides all information you need.  Reports – On a same day basis, the payments are deposited, and an account batch listing and deposit summary report is available online. 16

17. How to record your deposits? After reviewing your deposits you are to complete a Miscellaneous Receipt form for all your previous day transactions. This form will be sent to the Cashier’s office for immediate processing and recorded to the General Ledger. All forms are required to have an attached copy of the lockbox report. Once the deposit is in the system, General Accounting will complete a monthly reconciliation. Each Department’s revenue is reviewed and compared on a daily basis to the bank statement by using the assigned Lockbox number. It is very important that all information is complete and accurate; this will help avoid any errors in the recording and reconciliation process. 17

18. How to record your deposits? Continued… In case there are any discrepancies, General Accounting will immediately contact the department via email and will attach a copy of the reconciliation for review. To avoid any Audit criticism it is very important that all corrections are completed and sent to the Cashier’s office as soon as possible. All deposits are to be submitted to the UCO Cashier’s office on a daily basis. 18

19. Lockbox Information We suggest that you do an analysis for your department before deciding if this form of cash collection is beneficial for your department. Although a lockbox is very effective there are service fees involved and justification is required by administration. For more information on Lockbox services please contact Cherie Carson at the University’s Controller’s office at (813) 974-7686 19

20. Contacts Cherie Carson Assistant University Controller (813) 974-7686 Carsonc@usf.edu Jaime Roman, Staff Accountant Depository Accounts (813) 974-6043 Romanj@usf.edu 20