Lumens—assuming use by all C/Us for non‐credit based CE/CT The following are broad, general assumptions and related processing or control issues that seem relevant. 1. See general process flow on Page 3. 2. There will be no automated interface between Lumens and ISRS. ISRS must reflect all necessary financial activity at a summary level; Lumens will contain detail at the transaction level (i.e., it will be similar to a subsidiary ledger). 3. Any future, desired interface work will require that CE/CT follow the Enterprise Investment Committee requirements for identification of funding and assignment of internal/external resources. 4. All registrations and payments, including all discounting, to happen within Lumens. Payment is assumed to be via payment card or eCheck using Lumens ePayment processing. •
Design exception processing as may be needed such as: o
Third‐party payers not able or willing to pay via payment card or eCheck o
Third‐party state government payers paying through MAPS o
Waivers, other? 5. No cashiers window payments—direct students to Lumens payment process (and have a computer kiosk available) 6. All daily receipts to be recorded as general receipts in ISRS (specific ISRS recording/transaction coding to be determined) with daily reconciliation to Lumens. Daily reconciliation by each C/U is critical to control—this could easily take several hours or more each day depending on transaction activity level and the number and types of reconciling items. Some or all of the following will impact the reconciliation process: •
Daily ePayment cash settlement from Lumens processor (generally this is a “gross” settlement with fees charged once per month) will be wired to C/Us’ bank accounts (“settlement account”) •
The daily cash settlement from Lumens may in fact contain settlements from several past days of activity depending on how Lumens settles. Our US Bank ePayment process settles cash next day because US Bank fronts the money; I doubt if Lumens will do this. Transactions that settle over multiple days will significantly increase the reconciliation effort. •
Lumens ePayment process may require set up of an additional bank account at a designated bank to be the settlement account with cash then sent via ACH to the C/Us’ local bank accounts—if this is the case it will likely add at least one day to the overall cash settlement time‐
frame 1 | P a g e Lumens—assuming use by all C/Us for non‐credit based CE/CT •
Monthly ePayment fee will be cash taken via ACH (cash pulled electronically) by processor from the identified settlement account for each C/U •
Third‐party payers not able or willing to pay via payment card or eCheck (a no cashiers window payment exception?) •
Third‐party state government payers paying through MAPS (a no cashiers window payment exception?) •
Payment card / eCheck payments through Lumens will generate any number of timing differences and correction items such as bad eChecks, payment card chargebacks, payment card settlement delays, etc. •
Depending on how (if?) Lumens treats accounts receivable and prepayments, these are likely to be reconciling items (i.e., tuition revenue but not cash, cash but not tuition revenue). 7. Receipt of cash in ISRS (from ePayment process and from exception receipting at cashiers window) will trigger inclusion of the cash in the MMB cash sweep; business offices know this from the existing ePayment process used by students to pay for credit‐based courses and related costs. 8. It is likely that C/Us will have to be able to record gross tuition and all discounts (discounts, waivers, etc.) allowing financial statement disclosure of gross, discounts and net. Will Lumens track this? If total discounts aren’t material, and Lumens can document specifics, disclosure probably won’t be an issue; the key will be substantiating immateriality to auditors. 9. C/Us will have to be able to identify accounts receivable (A/R) balances (e.g., from third parties) and any prepaid balances, this is especially true for 6/30 financial statement accrual needs. Does Lumens recognize accounts receivable and prepayments? •
Outstanding amounts owed by third party payers—after completion of course(s)—this will need to be identified and recorded at each campus as an account receivable •
Cash paid for courses where the courses are not complete must be recorded at each campus as unearned revenue 2 | P a g e T
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General Receipts
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ePayment
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Receipts
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Daily ISRSto-Lumens
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Settlement detail +
ISRS receipt detail
Manual
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Receipts
Lumens detail
Inter-agency
MAPS Payments
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Cashier— from
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General Overview of Lumens--ISRS Financial Flow for Non-Credit Transactions