Last Modified: August 04, 2011
The University of Alabama is a public institution with stewardship responsibility for public
funds. These Revenue Generating Policies are provided to promote effective administration of revenue generation throughout the University.
- Approve the establishment of all campus revenue generating operations and activities prior to implementation.
- Develop and disseminate related University revenue generating policies and monitor for compliance.
- Provide assistance in assuring that the generation of revenue is managed and controlled in a manner consistent with applicable institutional policies, laws, regulations and guidelines.
These policies apply to all University of Alabama departments and foundations under affiliation agreement with UA, and the associated employees involved in any way with the revenue generating activity. All individual departments’ procedures established for the generation of revenues must be developed within the parameters of these overarching policies.
1.00 Policies Governing the Generation of Revenue
1.01 Establishing a New Revenue Generating Operation
1.02 Requesting a Departmental Change Fund
1.03 Request for additions or changes to an existing Revenue Generating operation
1.04 Generating Revenue via contractual agreement with external parties
1.05 Revenue Generation via the Web
1.06 Safeguarding Revenue
1.07 Safeguarding Personally Identifiable Information
Any department intending to begin the generation of revenue must first receive approval from Student Account Services Associate Director of Cash Receipting Operations, regardless of the proposed tender types/funds. This request should be made by the business manager of the associated college or operation. Complete a “Request to Establish a New Revenue Generating Operation Form” and return it to Student Account Services. Do not begin the revenue generating operation until approval has been given and training has been completed.
Any department wishing to establish a permanent change fund or borrow a temporary change fund must receive approval from Student Account Services. See 3.0 Change Funds for further information.
Any department wishing to generate funds from an additional revenue source or make changes to an existing revenue generating operation must receive approval from the Student Account Services Associate Director of Cash Receipting Operations before any funds are collected. Changes may include:
- An additional revenue source.
- Change in method of customer contact (e.g., telephone, in-person, web, mail etc).
- Change in tender types accepted (e.g., checks, credit cards, etc).
This request should be made by the business manager of the associated college or operation. Complete a “Request for Additions or Changes to An Existing Revenue Generating Operation” form and return it to Student Account Services. Once approval has been given and training has been completed, proposed changes to existing revenue generating operations may be implemented.
As with all UA contractual agreements, all revenue-generating contracts between the University and external entities must be signed by the Vice President for Financial Affairs or the appointed designee. Individual departments are not authorized and may not enter into contracts with external entities for the purpose of generating revenues for or on behalf of the University. Web based agreements (“I Agree”) constitute a legal agreement. Any department wishing to enter into such a contract should contact the Student Account Services.
Certain revenue generating methods are not in the best interest of the University and therefore not approved for use by UA departments. These methods include selling products through companies such as Amazon, e-Bay, or other such providers; as well as revenue generation and/or fundraising via methods such as crowd-sourcing. Collection of payments through providers as PayPal are also not allowed. Only those providers approved by Student Account Services may be used.
Any official University of Alabama revenue generating operation desiring to conduct commercial activity on the web must first receive authorization from Student Account Services. Student Account Services will meet with the department to review the department’s plan for a web site and discuss services that are centrally provided to accommodate web processing and to provide advice and guidance regarding proposed options and/or vendors.
It is the responsibility of the department head or financial manager of the associated college or operation to establish and maintain procedures which:
- Establish proper separation of duties to create a system of checks and balances.
- Establish an appropriate form of accountability (e.g., register tapes, ticket accountability, controlled receipts, web activity report, etc.) to ensure that UA’s assets are appropriately managed and accounted for.
- Verify the accuracy and reliability of accounting data and other management information via reconciliation of the department’s receipting records (e.g. cash transmittal with official UA receipt) to the University financial accounting records.
- Ensure depositing of funds intact and in a timely manner.
- Safeguard funds
- Safeguard Personally Identifiable Information (PII)
- Manage permanent change funds and/or temporary change funds.
- Ensure that established policies and procedures remain effective through periodic reviews.
Department heads are responsible for establishing policies and procedures for the security and confidentiality of personally identifiable information (PII) collected from individuals or organizations. This requirement is intended to protect individuals from identify theft and/or other types of fraud. Go to http://oit.ua.edu/oit/security for further information.
- Check or Money Order – All checks should be made payable to The University of Alabama unless an exception is approved by Student Account Services. Abbreviations of U of A and UA are also acceptable. Upon receipt, checks should be stamped “For Deposit Only”. No post dated checks are to be accepted. Checks taken on an international bank may require processing for collection. If a foreign check is received, bring the check separately to Student Account Services.
- Cash – Cash payments should be immediately receipted and funds locked in a secure location until the deposit is completed. When the cash deposit is delivered to Student Account Services, the cash will be verified by a Student Account Services representative in the presence of the individual making the deposit and a receipt will be issued to the department immediately by Student Account Services. In the event of a large cash deposit, an appointment should be made with Student Account Services in advance.
- Credit Cards – With authorization from Student Account Services, a revenue generating operation may accept payment by credit cards. The University of Alabama Credit Card Policies identify the requirements that departments, offices, and all other entities that accept or want to accept payments by credit cards must follow.
All in-person receipting transactions require that a receipt be given to the customer immediately. Receipt forms can be provided by Student Account Services for departmental use and require completion by hand. The department can develop their own receipts with the UA department’s information pre-printed. Receipts can be generated by the department’s automated system, point of sale system (i.e., cash register) vending system receipts (i.e., parking, copies, etc), or web e-commerce applications. For payments received through the mail or by telephone, receipts issuance is not required but initial control and separation of duties are required.
Departments must balance funds collected on a daily basis. Total funds collected must be compared to the daily receipts totals. Any difference (overage/shortage) discovered during the balancing process must be documented and reported to the appropriate official. The department head or financial manager should establish procedures to assure that funds are balanced with appropriate documentation and approval.
Department Heads and/or Business Managers are responsible for ensuring that proper safekeeping facilities are available and that proper procedures are in place to protect the University’s funds until they are deposited with the Student Account Services Office. Departmental procedures should incorporate the following:
- Secure the funds in a locked, restricted access area.
- Limit personnel who have access to the funds.
- If multiple personnel are collecting revenue, segregate the accountability and the associated funds for each person.
- Deposit funds frequently and no less often than the institutional Frequency of Deposit Policy.
- Establish a secure method of funds transfer to Student Account Services, unless authorized by Student Account Services for direct deposit. Campus Mail is not to be used to transfer cash, checks, or credit card numbers.
Each department will periodically complete/update UA’s revenue generating questionnaire and specify how/where funds will be safeguarded.
Student Account Services will secure any funds overnight for a department, either on-site or in an outside banking facility. Temporary safekeeping should be used in instances where the deposit preparation is not complete. Contact Student Account Services to establish a night deposit/safekeeping arrangement at least two weeks in advance.
Permanent change funds and temporary change funds are issued to departments justifying the need for cash to be held in the department for providing change for cash transactions. The request should be made by the department head or business manager, as appropriate, of the associated college or operation. In order to request a permanent change fund or a temporary change fund, complete a Departmental Change Fund Request Form and return it to the Student Account Services.
- Check cashing from change fund monies is prohibited.
- Purchases cannot be made from a change fund, even if the fund is subsequently reimbursed.
- The custodian identified for the funds is responsible for the safekeeping and maintenance of the fund in accordance with departmental policies.
- The fund must be properly secured at all times and segregated from all other funds maintained by the department.
- The Change Fund must be maintained at the authorized amount at all times.
If the requesting department justifies the need for a change fund on an on-going basis, a Permanent Change Fund will be established on University records, provided a suitable facility for safeguarding the funds is available.
- Funds will be provided to the custodian assigned responsibility for the fund with no date established for the return of the funds.
- The custodian of the fund and the departmental approving official will be asked periodically to physically count the cash and document the counts.
- In the event that the department needs to change custodians, a Transfer of Change Fund to a New Custodian must be completed and submitted to the Student Account Services.
For events or short-term needs, a Temporary Change Fund will be issued. If the department does not have adequate safekeeping facilities, Student Account Services can provide safekeeping services for temporary change funds and revenue collected for events on an as needed basis.
All funds collected are to be deposited intact (e.g. all UA funds received are to be deposited to a UA Board of Trustees approved bank account). Collected funds are to be deposited through Student Account Services Departmental Receipts area
between 8:30 am and 4:30 pm (CDT), unless authorization has been given by Student Account Services to directly deposit to a bank account approved by the Board of Trustees. Collected funds are not to be used to cash checks, to establish a change or petty cash fund, or to purchase items. A University Daily Cash Transmittal Form is used to document the funds collected and transmit them to Student Account Services.
4.01 Communicating with UA’s Bank
Departments are not authorized to communicate directly with the banks used by the University. If a problem arises with a bank deposit or related issue, contact Student Account Services. If the Department is contact directly by Bank personnel refer the individual to Student Account Services if it concerns a bank deposit.
Credit/debit card funds are pre-deposited when the daily electronic settlement is done. Deposits by areas that have been authorized to make direct deposits to a UA bank account also are considered pre-deposited funds. Recording such pre-deposited funds on University financial records through Student Account Services must follow the same required Frequency of Depositing and Recording Policy.
Receipts totaling $500.00 or more per day must be deposited on a daily basis. While daily deposits are preferred, small amounts of less than $500.00 may be deposited on a weekly basis (if a secure place exists within the department for safekeeping). Deposits must be made at least once per week.
Each department must have a written policy with associated procedures to address record retention. This policy should include data access limitation, data storage, data retention, and data disposal. It should address retention from a business need to know basis while also complying with any applicable laws or regulations. These policies and procedures must be periodically reviewed and updated as appropriate.
5.01 Records that should NOT be imaged, copied or retained
- Personal checks
- Credit card numbers and expiration dates
- Social security numbers
- Campus wide ID’s if necessary to do business
The University has only two cash receipting operations authorized to cash checks, Student Account Services and the University Supply Store. These areas do not, however cash checks received by University departments. All other receipting operations may not cash checks from receipts, change funds or petty cash funds for any individuals or organizations.