CASH, CHECKS, E-CHECKS and LOCKBOXES
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Agenda
Account Reconciliation
Process:
a. Banner
b. PeopleSoft
 E-Checks


Lockbox
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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.
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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 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.
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Banking Reconciliation
Methods to Record Deposits
Account #
1. Deposit Slip ( cash & checks)
Banner
10001(closes last day of Month)
2. E-check (via Touchnet)
Peoplesoft
10011(closes 4-5 days in next month)
3. Lockbox
Credit Cards
10061
Banner Deposit ID (8 Digits)
Peoplesoft Deposit ID
1101 XXXX
Tampa
2103XXXX
Tampa Cashier's post to GL
4100XXXX
St. Pete
4200XXXX
St Pete Cashier's post to GL
0061XXXX
Sarasota
0062XXXX
Sarasota Cashier's post to GL
8100XXXX
Lakeland
36 Ach Mechants
3100 - 3136
Mechant
#
file # (5 digits)
(8 Digits)
5 digit # is system generated by Touchnet
3100XXXXX Orientation
3101XXXXX Undergraduate Admissions
3108XXXXX Sarasota
3111XXXXX St.Pete Parking
3129XXXXX Residence Housing 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
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Banner Lockbox
DepositID: (lockbox # + date of deposit) ex: 864300 123114
Residence
864320 Services
Housing resposible to post into Banner
864571Student Account Cashier responsible to post
Peoplesoft Lockbox
864300Health Science
Departments resposible for Misc Receipts Form which
864315Parking Services contain chartfield information for checks deposited.
864336Anchin Center
Sent to Cashiers for Posting
864347Oracle
Cashiers will notify Dept's via email they received email
864687Clinical Research with the posting information
864568Cashier's Office Cashier'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.
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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 account’s 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. 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.
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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 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.
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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 Cashier’s office as soon as
possible.
All deposits are to be submitted to the UCO
Cashier’s 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
University’s Controller’s office at (813) 974-7686
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Contacts
Cherie Carson
Assistant University Controller
(813) 974-7686
Carsonc@usf.edu
Jaime Roman, Staff Accountant
Depository Accounts
(813) 974-6043
Romanj@usf.edu
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