Back to Accounting Menu
6.1 Approval Prior to Collection Required
The Tennessee Board of Regents must establish or approve all institutional fees and charges unless specific exceptions are provided. Requests for new fees or changes in existing fees and charges are submitted to the Board one time per year as a part of the July Budget process.
Fees and charges which do not require Board approval must receive formal approval by the President.
6.2 Safeguarding of Funds
A procedure for safeguarding funds is to be established at the time an administrative unit is authorized to start collecting funds on behalf of the University. The funds must be in a safe, locked file or bank lock bag stored out of sight. Access to these storage areas should be limited. For large amounts, the funds should be left in the Business Office vault overnight. Bank lock bags and night depository keys are available from the Business Office Head Cashier for securing monies collected after Business Office hours. Any administrative unit which has not been approved as a collection agency of the institution shall deposit all funds upon receipt with a cashier in the Business Office.
Departments having a safe should have the combination changed each time there is a personnel change involving an employee having access to the combination, or every five years if there are no personnel changes. The Business Office should be notified in writing of such combination changes with documentation retained by the department for reference by Internal Audit.
6.3 Check Endorsement/Internal Control
Checks must be restrictively endorsed immediately upon receipt by departmental personnel. Endorsement stamps are available from the Business Office Head Cashier. A listing of payments received by mail should be prepared daily, with a follow-up verification of the receipting of each payment being made. Various fee assessment, payment listing, receipting, reconciling and depositing duties should be segregated where feasible in order to strengthen internal control.
6.4 Tennessee Technological University Subsidiary Receipts, Cash Register Receipts and Tickets Must Be Issued
Official Tennessee Technological University subsidiary receipts (See Exhibit A-9) must be written by the department collecting money. Official Tennessee Technological University receipt books may be obtained from the cashiering section of the Business Office, and only those receipts will be accepted. (Tennessee Code Annotated 9-203, 9-204, 9-205, and 9-206). In limited areas having a high volume of transactions, use of cash registers has been approved. For special events, pre-numbered tickets may be used in lieu of receipts. Please reference Accounting Policies and Procedures, Section 7 for more detailed receipting procedures and controls.
6.5 Limitation on Number of Employees Authorized to Write Receipts
The number of employees authorized to write receipts should be limited. With the exception of graduate assistants whose work assignments include receipting and depositing duties, student employees are not authorized to write receipts or transport deposits. A current listing of graduate assistants who will perform such duties should be provided to the Business Office Head Cashier. If the need arises for other students to write receipts, the exception must have the prior approval of the Vice President for Business and Fiscal Affairs.
6.6 Proof of Identity Required When Transacting Business by Check
The identity of students or others paying by check and their signature must be verified by a Tennessee Tech identification card, driver's license or other reliable identification. The student's T-number and campus post office box number or local address should appear on the check in case the check is returned. If a two-party check is presented as payment, the payee must endorse the check before it is accepted. Post-dated checks are not acceptable.
6.7 Payment in Full is Required
Fees or assessments should be collected in full. IOU's should never be accepted. No credit should be extended and no services should be provided, except in the case of emergency, without payment being made.
6.8 Deposits of Funds "Intact" Required
All funds must be deposited by the department with a cashier of the Business Office in the form received. Checks should not be cashed from the deposit. No refunds should be given from the revenue unless procedures for such have the prior approval of the Vice President for Business and Fiscal Affairs. Funds received which are not due must be deposited in the Business Office and a refund check should be requested. For example, fee payments should not be held pending the development of classes or seminars nor should payments be returned directly to the payor in the event the course does not materialize.
6.9 Funds Must be Deposited Within Two (2) Days
Tennessee law requires all state institutions to deposit all funds into a bank designated as a depository of the institution. (Tennessee Code Annotated 9-4-301). Departments must deposit funds with the Business Office within two (2) working days of receipt. The Business Office will then transmit the funds to the bank. Daily deposits must be made by the department if the amount collected or on hand per day exceeds $500.00. Arrangements should be made in advance for the continuance of timely deposits in the event the employee routinely making deposits is absent.
6.10 Transporting Funds
No funds should be sent in campus mail. Personnel transporting deposits or other funds which include currency in excess of $1,000.00 to the Business Office should request a Safety and Security escort. Personnel transporting funds to the bank for deposit or for placement into the night depository should in all cases request a Safety and Security escort.
6.11 Limitation on the Number of Employees Authorized to Transport Monies
The number of employees authorized to transport monies to the Business Office for deposit should be limited. Only non-student employees of the University should transport funds. This group includes regular full/part-time employees, temporary full/part-time employees and graduate assistants whose work assignments include receipting and depositing duties. Student employees are not authorized to transport monies.
6.12 Deposits of Any "Overage" With the Business Office Required
Any overage must be deposited with a cashier of the Business Office. Any shortage must be reported immediately to the Business Office cashiering section. A memo explaining the procedures followed to identify the reason for any material overage or shortage must be immediately forwarded to the Business Office via the appropriate academic or administrative officer. Examples of procedures to be followed are listed below:
6.12.l Determine if shortage or overage is in checks or cash.
6.12.2 If it is in checks, compare checks on hand to receipts individually.
6.12.3 Review calculations of change given as noted on receipt.
6.12.4 Review overall to recall any unusual circumstances.
After the analysis, a conclusion should be drawn as to why the shortage or overage occurred and the conclusion noted in the memorandum.
6.13 Thefts
Apparent thefts should be immediately reported to the following:
6.13.1 Vice President for Business & Fiscal Affairs
6.13.2 Internal Audit Department
6.13.3 University Police.
6.14 Storage of Non-University Funds on University Premises Prohibited
Only Tennessee Technological University funds may be handled or stored on University premises unless specifically approved by the Vice President for Business and Fiscal Affairs. The University assumes no responsibility for funds stored contrary to this procedure.