Depository Accounts Reconciliation

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Depository Accounts Reconciliation

• CASH, CHECKS, E-CHECKS and LOCKBOXES

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Agenda

• Account Reconciliation Process
• Banner
• PeopleSoft
• E-Checks
• Lockbox

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Account Reconciliation Process

• - Bank reconciliations are prepared at the
  beginning of each month for the previous months
  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 cashiers 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.

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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 Cashiers 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.

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Banking Reconciliation Banking Reconciliation Banking Reconciliation

Methods to Record Deposits Methods to Record Deposits Methods to Record Deposits Methods to Record Deposits Account Account
1. Deposit Slip ( cash checks) 1. Deposit Slip ( cash checks) 1. Deposit Slip ( cash checks) 1. Deposit Slip ( cash checks) Banner 10001 (closes last day of Month) (closes last day of Month) (closes last day of Month)
2. E-check (via Touchnet) 2. E-check (via Touchnet) 2. E-check (via Touchnet) 2. E-check (via Touchnet) Peoplesoft 10011 (closes 4-5 days in next month) (closes 4-5 days in next month) (closes 4-5 days in next month)
3. Lockbox 3. Lockbox Credit Cards 10061

Banner Deposit ID Banner Deposit ID (8 Digits) Peoplesoft Deposit ID Peoplesoft Deposit ID (8 Digits)

1101 XXXX 1101 XXXX Tampa 2103XXXX Tampa Cashier's post to GL Tampa Cashier's post to GL Tampa Cashier's post to GL
4100XXXX 4100XXXX St. Pete 4200XXXX St Pete Cashier's post to GL St Pete Cashier's post to GL St Pete Cashier's post to GL
0061XXXX 0061XXXX Sarasota 0062XXXX Sarasota Cashier's post to GL Sarasota Cashier's post to GL Sarasota Cashier's post to GL
8100XXXX 8100XXXX Lakeland

36 Ach Mechants 36 Ach Mechants 3100 - 3136 3100 - 3136
Mechant file (5 digits) file (5 digits) 5 digit is system generated by Touchnet 5 digit is system generated by Touchnet 5 digit is system generated by Touchnet 5 digit is system generated by Touchnet
3100 XXXXX Orientation Orientation
3101 XXXXX Undergraduate Admissions Undergraduate Admissions Undergraduate Admissions
3108 XXXXX Sarasota
3111 XXXXX St.Pete Parking St.Pete Parking
3129 XXXXX Residence Housing will post information into Banner Housing will post information into Banner Housing will post information into Banner Housing will post information into Banner
note Cashier's post all ach activity from Touchnet except(3107,3108,3128,) note Cashier's post all ach activity from Touchnet except(3107,3108,3128,) note Cashier's post all ach activity from Touchnet except(3107,3108,3128,) note Cashier's post all ach activity from Touchnet except(3107,3108,3128,) note Cashier's post all ach activity from Touchnet except(3107,3108,3128,) note Cashier's post all ach activity from Touchnet except(3107,3108,3128,) note Cashier's post all ach activity from Touchnet except(3107,3108,3128,) note Cashier's post all ach activity from Touchnet except(3107,3108,3128,)
exceptions are sent by Mechant with posting information exceptions are sent by Mechant with posting information exceptions are sent by Mechant with posting information exceptions are sent by Mechant with posting information exceptions are sent by Mechant with posting information exceptions are sent by Mechant with posting information exceptions are sent by Mechant with posting information
Ach's post in bank within 2 days Ach's post in bank within 2 days Ach's post in bank within 2 days Ach's post in bank within 2 days
Detail codes input postings into 10001 or 10061 Detail codes input postings into 10001 or 10061 Detail codes input postings into 10001 or 10061 Detail codes input postings into 10001 or 10061 Detail codes input postings into 10001 or 10061 Detail codes input postings into 10001 or 10061
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Banner Lockbox Banner Lockbox DepositID (lockbox date of deposit) ex 864300 123114 DepositID (lockbox date of deposit) ex 864300 123114 DepositID (lockbox date of deposit) ex 864300 123114 DepositID (lockbox date of deposit) ex 864300 123114 DepositID (lockbox date of deposit) ex 864300 123114 DepositID (lockbox date of deposit) ex 864300 123114

864320 Residence Services Residence Services Housing resposible to post into Banner Housing resposible to post into Banner Housing resposible to post into Banner Housing resposible to post into Banner
864571 Student Account Student Account Cashier responsible to post Cashier responsible to post Cashier responsible to post

Peoplesoft Lockbox Peoplesoft Lockbox Peoplesoft Lockbox

864300 Health Science Health Science Departments resposible for Misc Receipts Form which Departments resposible for Misc Receipts Form which Departments resposible for Misc Receipts Form which Departments resposible for Misc Receipts Form which Departments resposible for Misc Receipts Form which Departments resposible for Misc Receipts Form which
864315 Parking Services Parking Services contain chartfield information for checks deposited. contain chartfield information for checks deposited. contain chartfield information for checks deposited. contain chartfield information for checks deposited. contain chartfield information for checks deposited.
864336 Anchin Center Anchin Center Sent to Cashiers for Posting Sent to Cashiers for Posting Sent to Cashiers for Posting
864347 Oracle Cashiers will notify Dept's via email they received email Cashiers will notify Dept's via email they received email Cashiers will notify Dept's via email they received email Cashiers will notify Dept's via email they received email Cashiers will notify Dept's via email they received email Cashiers will notify Dept's via email they received email
864687 Clinical Research Clinical Research with the posting information with the posting information with the posting information

864568 Cashier's Office Cashier's Office Cashier's resposible for Lockbox -mail payments Cashier's resposible for Lockbox -mail payments Cashier's resposible for Lockbox -mail payments Cashier's resposible for Lockbox -mail payments Cashier's resposible for Lockbox -mail payments
commercial departmental commercial departmental commercial departmental
note Lockbox checks deposited into wrong locbox are corrected by bank. If checks are within note Lockbox checks deposited into wrong locbox are corrected by bank. If checks are within note Lockbox checks deposited into wrong locbox are corrected by bank. If checks are within note Lockbox checks deposited into wrong locbox are corrected by bank. If checks are within note Lockbox checks deposited into wrong locbox are corrected by bank. If checks are within note Lockbox checks deposited into wrong locbox are corrected by bank. If checks are within note Lockbox checks deposited into wrong locbox are corrected by bank. If checks are within note Lockbox checks deposited into wrong locbox are corrected by bank. If checks are within note Lockbox checks deposited into wrong locbox are corrected by bank. If checks are within
University they are corrected via journal entry University they are corrected via journal entry University they are corrected via journal entry University they are corrected via journal entry University they are corrected via journal entry

Suspense items 3 days to Identify check before putting into suspense account. Suspense items 3 days to Identify check before putting into suspense account. Suspense items 3 days to Identify check before putting into suspense account. Suspense items 3 days to Identify check before putting into suspense account. Suspense items 3 days to Identify check before putting into suspense account. Suspense items 3 days to Identify check before putting into suspense account. Suspense items 3 days to Identify check before putting into suspense account. Suspense items 3 days to Identify check before putting into suspense account.
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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.

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E-CHECKS
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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 accounts routing and account number are used
  to draw funds from the account. E-checks can
  clear much faster than written checks.

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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.

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Electronic Check Process Diagram

• Customer Touch net System
  Bank

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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

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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.

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LOCKBOX
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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.

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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. Customers 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.

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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 Cashiers 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 Departments 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.

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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 Cashiers office as soon as possible.
• All deposits are to be submitted to the UCO
  Cashiers office on a daily basis.

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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 Universitys
  Controllers office at [phone]

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Contacts

• Cherie Carson
• Assistant University Controller
• [phone]
• Carsonc_at_usf.edu
• Jaime Roman, Staff Accountant
• Depository Accounts
• [phone]
• Romanj_at_usf.edu