Receipt and Deposit of Income

1. Sterling income

1.1 Receipt by department

Income should ordinarily be received as part of the general post. If a member of staff receives income on the department's behalf, the income should be passed to the Departmental Administrator (or whoever is responsible for departmental income) and a record of the transfer made [FR59] ¹ .

Income should be recorded on the current SREC (for invoiced income) or SREN (for non-invoiced income) forms and then deposited either through the Financial Services Office or directly with the bank for approved off-site locations.

Cheque income should be deposited regularly and not less than once per week. If a drop safe facility has been approved and set up for the department the frequency will depend on the amount of income received by that department and the following insurance requirements concerning storage of cash out of business hours:

Location Limit

Safe not specified on UCL insurance £1,000

Safe specified on UCL insurance Per insurance document

Not in safe eg locked cupboard/drawer £500
Where cash exceeds insurance limits it must be deposited immediately via the drop safe facility. Where total income exceeds £2,000 it must be deposited within one day of receipt [FR63]² .

All income should be deposited intact. Payments should not be made from income and personal cheques or other such instruments may NOT be substituted for cash.

The following procedures should be followed when opening the post, to ensure that a record of all income is kept by the department, and to safeguard against loss:

Procedures for opening mail

1) All incoming mail must be opened by departmental secretaries or other authorised personnel.

2) Two persons should be present when mail is opened.

3) All correspondence should be date stamped as soon as it is opened.

4) All cheques/cash should be recorded on a daily receipts register (see example attached). This should record the name of the remitter, the amount and the destination of the income eg the person to whom the cheque/cash is passed for processing or ultimately the receipt number. The register should be signed by the two persons responsible for opening the post on that day.

5) Any cheques/cash with accompanying account code or sales invoice number should be logged immediately on an appropriate receipt form for subsequent passing to the Financial Services Office for banking. Cheques/cash and receipt forms should be locked away securely until ready for delivery to Financial Services Office.

6) Large cheques (over £10,000) received during normal business hours should be deposited immediately along with any other monies held.

7) Large cheques (over £10,000) received outside of normal business hours should be locked in a fire resistant safe or cabinet if available. Smaller items should be placed in a locked petty cash box, in a locked cupboard/drawer.

8) Cheques received without adequate account codes or remittance advices should be recorded on an incomplete remittances register (see example attached). This should record the cheque number, remitter and amount. When the cheque is passed on to other members of staff for investigation, their signature must be obtained. When the cheque is returned the register should be updated with details of its destination. The record should be examined at regular intervals (at least weekly) to ensure that incomplete remittances are being investigated as quickly as possible.

1.2 Deposit via The Financial Services Office (FSO)

The completed SREC/SREN forms should be taken with the income to the FSO where the counter staff will check and reconcile the amount before accepting the sheet. If necessary the SREC/SREN form will be amended by the counter staff. The department will get a copy of the SREC/SREN for their records.

Non-invoiced receipts should be accompanied by supporting documentation to provide evidence of the nature of the income, and the services (if any) being provided. Failure to provide such documentation may result in the credit being taken to a central suspense account until adequate documentation is provided.

The Financial Services Office will bank income at least once a day.

1.3 Deposit directly

Only certain departments and halls have permission to bank directly. In these cases income must be recorded on the SREC/SREN forms, and the forms batched before banking. Books of credit slips are issued to each department/hall that banks off-site and these should be used in sequence. Bank credit slips are obtained from the Treasury Accountant Steve Williams, Financial Accounting, Finance and Business Affairs.

Control forms must be filled in detailing the date, the amount banked, related batches and credit slip numbers. These should be reconciled to ensure that the total bankings equal the total batches. The forms should be signed by an appropriate signatory and sent to the Financial Accounting Office in Finance and Business Affairs on the day of banking to enable matching against the bank statements. The halls have a separate arrangement.

SREC/SREN forms MUST be prepared on the same day the income is banked.

When the banking has been correctly matched to the bank statement a signed copy of the control form will be returned to the department/hall for their records.

1.4 Receipt by Financial Services Office (FSO)

Invoiced income received by the FSO should normally be accompanied by the invoice remittance advice slip detailing the invoice number. These details should be filled in as appropriate on the SREC. Non-invoiced income will be entered on an SREN. The FSO Manager will batch the SREC/SREN forms.

Income must be banked daily and intact using the control form to reconcile the bankings and batches. The control forms should then be passed on to the Financial Accounting Office in Finance and Business Affairs for checking. The sheets will then be countersigned and filed ready for matching to bank statements.

When the banking has been correctly matched to the bank statement a signed copy of the control form will be returned to the FSO for their records.

2. Foreign Currency Income

A separate bank account (the Currency Account) is maintained for the receipt of foreign currency income. Departments should complete a SFEX/SFEN form with the details of the receipt and invoice number or account code (SFEX for invoiced income, SFEN for non-invoiced income).

The SFEX/SFEN form should be taken to the FSO where it will be stamped and a copy returned to the department for their records.

The income is banked daily by the FSO and the SFEX/SFEN forms, together with a control form, are sent to the Financial Accounting Office in Finance and Business Affairs once a week. A signed copy of the control form is returned to the FSO as proof of receipt.

When the bank statements and advices are received from the bank the foreign receipts are identified and matched to the appropriate SFEX/SFEN forms. The sterling equivalents can then be entered onto the forms which are then batched and processed.

The Halls have a separate arrangement for the deposit of foreign currency income.

Notes (Financial Regulations)

1. 59. Every cash sum received on behalf of the College by a cashier or other member of staff shall be immediately recorded in an appropriate manner. An official receipt or voucher shall be issued to acknowledge the cash received unless alternative arrangements have been agreed with the Director of Finance and Business Affairs. Likewise, where money which is accountable to the College is transferred from one member of staff to another, such transfer shall be acknowledged by the issue of an official receipt or, where appropriate, by signature in a cash accounting record kept by the Department. Cash should only be retained by a department where secure facilities are available and up to the limit provided by the College's insurance policy as notified by the Director of Finance and Business Affairs.

2. 63. All income shall be deposited at the Financial Services Office (or directly banked if appropriate) not less often than weekly, except where total income received is in excess of £2,000 where it shall be deposited within one working day, and where cash exceeds insurance limits when it shall be deposited immediately in the drop safe facility.

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