University of Saskatchewan

Financial Services Division (FSD)

Guidelines & Procedures

Managing and Controlling Monies

(The Board of Governors approved policy can be found at (http://www.usask.ca/university_secretary/policies/operations/4_24.php?heading=menuPolicies)

Guidelines

Purpose

To ensure all monies received by the University are handled in a secure manner, deposited on a timely basis to a University account and are subjected to the appropriate internal controls and accounting treatment.

"Monies" includes currency, cheques, money orders, bank drafts and debit and credit card payments.

These monies must be:

Departments are responsible for maintaining the security of monies until deposited with the Treasury Office or the bank.

Deposits should be made regularly in the interest of:

At a minimum, monies should be deposited:

Responsibilities

Party Responsibility
Department
  • Be informed of any special departmental requirements, restrictions or limits.
  • Maintain security of monies until deposited with Treasury Office or bank.
  • Prepare the deposit and Cash Report and ensure all monies received are deposited intact.
  • Deliver the deposit and Cash Report to Bank and Treasury Office promptly.
  • Ensure all monies received are deposited and verified against sales records and receipts. Confirm all deposits with account entries in UniFi.
  • Ensure segregation of duties
    • Whenever possible, incoming mail should be opened by two persons.
    • The person responsible for checking that the processed Cash Report agrees to the cash received should be independent from the person responsible for receiving monies and preparing the deposit.
    • The person responsible for checking the accounts in UniFi should be independent from the person responsible for preparing the deposits.
  • Employees who process credit card transactions and balance the daily batches should be segregated from the person who checks the general ledger to the monthly credit card statement.
  • For credit card payments
    • Determine if accepting credit cards would benefit the department.
    • Complete merchant application form.
    • Provide proper department controls regarding who may process credit card transactions (i.e. administration card required for return transactions)
    • Follow University Functional and Technical guidelines for acceptance of payments over the internet.
Treasury Office
  • Negotiate all contracts with financial institutions and credit card companies.
  • Verify and confirm amount deposited agrees to Cash Report total.
  • Forward deposits to the bank by armoured car service.
  • Reconcile bank accounts.
  • Segregate the reconciliation of bank accounts from the person(s) processing the deposits.
  • Advise and educate departments in proper procedures.
  • Establish department's merchant accounts for processing debit and credit card transactions.
  • Advise departments of processing down time.
Information Technology Services
  • Ensure University of Saskatchewan payment page web site is secure.
  • Ensure University web site technical standards are adhered to.
Audit Services
  • Perform audits on a routine basis.
  • Investigate complaints of financial irregularities
Insurance Services
  • Maintain adequate insurance coverage to protect the University's assets from theft and misappropriation.

Types of Deposits:

1) Cash and Cheques

2) Electronic Payment

Electronic payment is a common payment method that improves customer service, reduces the risk associated with processing cash and can bring efficiency to the cash collection process. In particular, the use of technology in conjuction with the internet provides easy access for many and the use of credit or debit cards is essential when sales are conducted electronically. Inquiries related to establishing electronic banking can be directed to the Treasury Office at 966-6688. There are two major types of electronic payments:

  1. Electronic Fund Transfers

    Remote customers of University departments often prefer to transfer funds by means of a wire transfer. This payment method speeds up the payment process and ensures the monies are deposited in a valid University account. Details on providing the correct wire transfer instructions must be obtained from the Treasury Office.

  2. Debit and Credit Cards

    Departments are encouraged to establish accounts to accept debit cards at locations where cash is routinely handled. The cost associated with processing debit cards is small in comparison with the reduction in risk associated with cash. Departments must establish debit and credit card accounts through the Treasury Office.

Prohibited Activities

Certain credit and debit card activities are prohibited by credit card companies. Prohibited activities include, but are not limited to:

Fees

University wide rates based on the type of card, the number of transactions, the average dollar amount of transactions and the total dollar value of all card sales are negotiated by the Treasury Office. Merchants are charged a merchant discount rate on all credit card transactions and transaction and rental fees depending on the method of processing selected. Refer to RATES section for the fees currently in effect. At month end these fees, which are charged to the University by the bank, are posted to the Financial Information System ("UniFi") FOAPAL that was identified by the department when the merchant account was established. Units must not negotiate their own contracts for these services. For more information, contact the Treasury Office at 966-4648.

Security

Debit and credit card transactions must be treated with the same level of security as when dealing with cash. Individual credit card information is confidential. Failure to maintain strict controls over this information could result in unauthorized use of a credit card number, financial problems for the customer and liability for the University.

Credit card information should be treated as carefully as any other confidential information.

Procedures: Department

Cash and Cheques:

Electronic Payments

Debit and Credit Cards:

Determine if accepting credit cards would benefit the unit:
Departments should evaluate the cost and benefits to the unit of accepting debit and credit cards. To assist in determining the costs, please refer to RATES section of this procedure.

Choose method of processing transaction:
There are three accepted methods for processing transactions at the University. Departments may choose one or more methods depending upon sales volume, convenience or cost. The three processing methods are detailed below:

  1. IVR Processing - Credit card payments are processed by means of a touch tone phone. This processing method is only recommended for small volume departments.
  2. Terminal and Printer - The department rents an electronic terminal and printer which are connected to the credit card processing centre by telephone lines. Credit card authorization is obtained by swiping the customer card or keying the information on the terminal pad. Debit cards must be swiped. The terminal must be logged off at the end of the day to transmit the receipts to the bank.
  3. Secure Web site - This is the required method for processing credit card transactions on the internet. The unit establishes a web site that links through the central University pay page to the payment processing service. Transactions are automatically sent daily to the bank via the payment processing service. The web site must adhere to University of Saskatchewan standards for privacy, security and disclosure outlined in the E-Payments section of this document.

Complete Merchant Application Form:
To establish a merchant account, complete the Merchant Account Application form.

Establish proper internal controls:

Receive Merchant Information:
Moneris Solutions, the University card processor, will send an information package related to the merchant account number and setup required directly to the merchant. The Moneris merchant manuals are also available in PDF format in the Downloads section of the Moneris web site. In addition to the merchant manual, Moneris also publishes an e-Select Plus User Guide for merchants wishing to accept payments over the internet.

Training on the account initialization and processing steps is available through Moneris Solutions and the Treasury Office.

Process Debit or Credit Card Payments:
All cards are designed with special security elements to deter counterfeiting and alteration. When presented with a card, look for the following:

Do not alter any faxed or mailed credit card information
Departments may choose to accept credit card information when the card holder is not physically present. Any increase in the amount being paid must be authorized by the card holder.

Transmit Information to Bank:
Funds are not transmitted to the Bank until the Batch is closed. Batches must be closed and balanced to your department's internal records daily. Information on batch closing procedures is contained in the Moneris Merchant Manual. To close a batch:

Reconcile Transactions:
Issue a numbered receipt to the payee identifying the date, amount and the payee.
Balance individual sales slip totals to the Moneris batch totals. Batch totals are available as follows:

Refunds:
Refunds may be processed back to the credit card which was originally charged with the transaction for an amount up to the original authorized amount. Refer to the Moneris Merchant Manual for information on processing refunds.

Chargebacks and Sales Draft Copy Requests:

A chargeback is a debit to a merchant's account from a previous sales transaction. The reasons for chargebacks can be due to:

When a cardholder dispute occurs, Moneris will send the merchant a "Sales Draft Copy Request" which asks for a copy of the receipt as proof that the cardholder authorized the sale. Please respond to the notices within the timeframe indicated on the notice and provide a copy of the transaction record (on-line receipt or email), waybills or proof of delivery (with signature of recipient). If you do not reply to these requests and can't provide the proof of purchase/delivery, the chargeback will remain on your account.

Telephone/Mail order and e-commerce orders may have a higher risk for chargebacks if the guidelines for accepting Card Not Present transactions are not follewed. The fact that you obtained an Authorization approval number does not mean that the transaction is a guarantee of payment. The authorization only tells you that the card is a valid credit card and that there is enough funds remaining on the card for the amount of the transaction.

Prepare Daily Cash Reports

Why prepare a Daily Cash Report?
When monies are received in any department in the University, the objective is to deposit them promptly and record the information correctly in the University's financial system. The Daily Cash Report collects all of the required information for the Treasury Office, the bank and the department submitting the report. By retaining a copy of the report, the department has a detailed record of the amounts deposited to verify to the accounting records.

When to use a Daily Cash Report:

Individual and one time payments:

Grants and contracts are examples of the types of payments which are required to be entered individually in UniF in order to ensure proper internal and external reporting. When it is necessary to have an individual payment itemized in UniFi, the department may choose to either use a separate Cash Report for each item, or submit the cheque with a memo containing the coding to the Treasury Office. The department must include a contact name and number and keep a record of the item forwarded for deposit in case additional information is required.

Completing the Daily Cash Report Form:

The Daily Cash Report form is available on the FSD web page.

To see a sample Daily Cash Report see the Forms section of this procedure. Cash, cheques and electronic payments of credit and debit cards may all be included on one Daily Cash Report. Exceptions to this are itemized in the Separate Cash Reports section below.

Separate Cash Reports:

Separate Cash Reports are required in the following cases:

  1. Foreign currency cheques (i.e. U.S. dollar cheques) - cheques drawn on a U.S. bank must be in U.S. currency.
  2. Cheques that do not have a micro encoding line.

Cash Listing

Bills and Coins

Cheques

If you have any doubts or questions on unusual cheques - please call the Cashiers at 4605.


Electronic Payments

Total Deposit

CFOAPAL Information:

Fill in the appropriate CFOAPAL information and amounts then add up the total credits.
Check the addition and ensure that the Total Credit in the CFOAPAL section equals the Total Deposit.

Submit Deposit and Cash Report

Monies can be deposited in one of three ways

  1. To the Cashiers - Treasury Office
    • Place the Daily Cash Report along with cash, cheques and one copy of any Credit Card batch summary in a deposit envelope.
    • Deposit envelopes are available from the Cashiers.
    • Deliver the deposit envelope to Cashiers, Treasury Office, Room E40, Administration Building. Do not send deposits containing cash through the Campus Mail.
    • The Treasury Office is open from 8:30 a.m to 4:30 p.m. Monday to Friday.
    • A night deposit box is available for departments requiring this service. Please contact the Cashiers at 966-4605 for further information.
  2. Armoured Car Service
    • Departments can arrange for armoured car service to transport your deposit directly to the Bank. Arrangements must be made through the Treasury Office.
    • Deposits sent directly to the bank are for cash and cheques only.
    • Complete Royal Bank of Canada Deposit Slip. Attach top 2 copies of the Deposit Slip.
    • Place top two copies of the Royal Bank deposit slip, cash and cheques in a deposit envelope. Deposit envelopes are available from the Cashiers.
    • Place Daily Cash Report in a separate envelope addressed to "CASHIERS, Treasury Office".
    • Give the deposit envelope and cashier envelope to the armoured car guard. The deposit will be taken directly to the bank and the envelope to the Treasury Office for receipting.
  3. Remote Branch Location
    • Departments not located in Saskatoon can arrange to deposit monies at a Royal Bank branch outside of Saskatoon. Arrangements must be made through the Treasury Office.
    • Deposits sent directly to the bank are for cash and cheques only.
    • Complete Royal Bank of Canada deposit slip.
    • Place top two copies of the Royal Bank deposit slip, cash and cheques in a deposit envelope. Deposit envelopes are available from the Cashiers.
    • Deliver deposit to the Royal Bank of Canada branch closest to your location.
    • Fax a copy of the Daily Cash Report and deposit slip to: Treasury Office, Fax # (306) 966-8306. Send originals in the mail to Treasury Office, Room E40 Administration Building, 105 Administration Place, Saskatoon, SK, S7N 5A2.

Reconcile Deposit to Accounting Records:

A crucial step in ensuring University monies are safely deposited and correctly recorded is to check each deposit to the accounting records. This final step is important in the financial control over monies and must not be overlooked or delayed.

Segregation of duties:

The responsibility for checking the processed Daily Cash Report and the department UniFi funds should be separated from the persons responsible for receiving monies and preparing the deposits. Receive Cashier's Receipt: The Treasury office returns the yellow copy of the Daily Cash Report along with a cashier receipt to the department after it has been processed.

Check Cashier's receipt:

Filing:

Procedures: Treasury Office:

Verify and Confirm Deposit

Process Receipt

Deposit Monies in Bank

Reconcile Bank Accounts

Segregation of duties

The responsibility for reconciling the bank accounts is segregated from the persons responsible for receiving and preparing the deposits.

Bank accounts are reconciled routinely and promptly. The reconciliation is reviewed and approved by a senior official of the department.

Verify that amounts deposited in bank correspond with receipts received from Cashier and the monthly FRS reports.

Investigate discrepancies between the bank's records and the University records. Advise departments of any problems if applicable. Advise Audit Services of ongoing problems or financial irregularities.

E-Payments

General

Use of the internet to accept credit card payments brings with it additional responsibilities in the areas of privacy, security, disclosure and business integrity

The University requires that departments choosing to accept credit cards via the internet use the University designated payment processing service. In setting up their web sites, units are required to reference and access this service for payment processing. Use of the central service assures the strictest controls are kept over electronic credit card information and the University is protected from liability.

The University of Saskatchewan has adopted minimum standards to be used in the above areas including minimum technical standards which must be adopted to connect to the University e-payment provider. The current technical standards required to connect to the approved e-payment provider are contained in the Technical Standards Guide produced by Information Technology Services.

Receipts

The department's application is responsible for providing an on-line receipt to each customer. In accordance with credit card company regulations, the following information must be included with the receipt:

Disclosure

Ensure that your department web site discloses to the customer:

See Disclosure for a sample format of a recommended disclosure statement.

Privacy

Departments accepting payments on line must:

Security

The department must take reasonable precautions to protect the information from loss, misuse, unauthorized access, disclosure, alteration and destruction. Include security information on the Disclosure page.

In addition to the security standards required for hard copy files, additional security is required for the maintenance of electronic data files:

Business Practices and Transaction Integrity

Ensure that your department takes reasonable care to ensure that the information it collects is relevant for the purposes for which it is to be used and disclose how the information is used in the Disclosure

Customer Options

Give the customer information:

Availability and Confidentiality

Ensure that your department takes reasonable care to ensure that the web page is readily available to the customer during the hours stated.

The department must take reasonable care to ensure that the information is kept confidential.

Definitions

Authorization #

The number returned by the credit card provider that tells you that the credit card number entered is valid and that there is a credit remaining on the card for the amount of the transaction. It does not authenticate the person using card is the card holder.

Chargeback

The deduction of a disputed sale previously credited to a department's account when the department fails to prove that the customer authorized the credit card transaction.

Customer

An individual or other entity that makes a payment to the University for goods or services.

Floor Limit

The minimum transaction amount that can be processed by credit card without receiving authorization from the credit card company.

Merchant

A college, department or other University entity that accepts credit cards as a method of paying for goods, services, information or gifts.

Merchant Account

An account established for a merchant by the bank. Separate merchant accounts for each department are required in order to credit sale amounts, and debit processing fees, to the appropriate department.

Merchant Discount

A percent of the transaction or sale that is paid to the credit card processor for the total transactions each month. The negotiated Merchant Discount Rate is based on the University's average monthly VISA/MasterCard dollar volumes and the average transaction dollar size.

Personal Information

Information about an identifiable individual. It can include your full name, address, telephone number, date of birth, email address and any other information that identifies who you are or would allow someone to contact you.

SSL Secure Sockets Layer (SSL)

Protocol which provides a high level of security for Internet communications. SSL provides an encrypted communications session between your web browser and a Web server. When sensitive information is being sent over the Internet between your browser and a web server SSL verifies that the information has not been altered in any way en-route.

CONTACTS

For questions about specific issues, call the following offices:

Subject

Contact

Telephone

Electronic Banking Inquiries

Treasury Assistant

966-4648

Receipting Inquiries

Cashiers

966-4605

UniFi Account Codes

Financial Reporting

966-8303

Financial Irregularities

Audit Services

966-4915

Establish Electronic Banking Treasury Assistant 966-4648
Moneris Equipment Problems Moneris Solutions 1-866-802-2637
Establish E-Payment Web Page Treasury Assistant 966-4648

E-Payment Pay Page Problems

ITS Epay Support  

RATES

Card Merchant Discount Rate Transaction Rate
Visa 1.62% to 1.97% *
no charge
MasterCard 1.64% to 2.8% *
no charge
American Express 1.75% $.05 / transaction
Debit Card   $.0832 / transaction
Web Based Processing:
     Moneris
     ITS
  $.12 / transaction
$.80 / transaction
$45.00 / month
*  Discount rate varies depending on card type and processing method. Contact Treasury office for details.
Equipment Rental Charges Transaction Rate
IVR Fee $6.00 / month
Transelect (Interac) Terminal and Printer **
(electronic authorization and processing)
$35.00 / month
On-line Account $35.00 / month
** Plus telephone line charges - contact Facilities Management for quote
Other Charges Transaction Rate
Web Based Processing Set-up Fee (one-time flat fee)
     Temporary accounts (less than 6 months usage)
     Permanent accounts (greater than 6 months usage)

$500
$1,000
Chargeback Fee $15.00 / item
MasterCard Chargeback Fee $80.00 / item

Forms

VersionsDocument NameHelp
Daily Cash Report
E-Select Information Form
Merchant Account Application
Sample Disclosure Statement (click on Help)