Depositing Cash and Checks

Process Overview

Electronic Fund Transfers

Endorsing Checks

Completing the Cash Transmittal Form

Verifying Entries on the Form

Transmitting and Validating the Deposit

Foreign Checks

Document Retention

Process Overview

A cash transmittal (form UoW 1394) is the required document for recording funds received by a University department. In addition, the cash transmittal becomes the input document to the Financial Accounting System (FAS), and to the information reported on the Budget Activity Report (BAR).

The cash transmittal is completed as funds are received and taken with the cash for deposit to Student Fiscal Services, unless the payment is for grant, contract or gift budgets or the department has been authorized to make direct deposits.

Electronic Fund Transfers

As of March 20, 2006 Student Fiscal Services will convert all checks received with cash transmittals into electronic fund transfers. The checks will be scanned and the image electronically transmitted to US Bank for processing.

Bank regulations require customers to be notified that their checks will be converted into electronic transfers. Some suggested methods of doing this include: adding notification to invoices; posting information in offices and including information on your website.

Suggested wording which can be used by departments for this notification is:

Your payment will be processed by Student Fiscal Services (SFS) at the University of Washington. SFS processes checks electronically using the information on the check to create an electronic funds transfer. Each time you send a check, you authorize a one-time transfer where funds will be electronically withdrawn from your bank account. You will not receive your cancelled check as SFS is required to destroy the check after it has been processsed. For more information or to stop the conversion of your check, please contact SFS at (206) 543-4694 or email at sfshelp@u.washington.edu.

Endorsing Checks

Checks should be endorsed as soon as they are received in a department. Endorsing protects the university from having the check negotiated by unauthorized parties.

All endorsements are restricted to the left 1 1/2 inches on the back of the check. The endorsement stamp should include a budget number if all checks go to the same budget, or if multiple budgets are used, include department name and box number. This information is used to identify returned checks.

Completing the Cash Transmittal Form

The cash transmittal form should be typed or printed so that the input document is completely legible. If an error is made in completing the form, line out the incorrect data and reenter the entire entry on another line. When a form is full, use another form, not a continuation sheet.

Individual cash transmittals are required for different payment types:

• Cash
• Checks
• Foreign/Canadian checks

Transactions may be itemized by check or summarized by budget number and revenue class on the form, depending on the amount of transaction detail desired on the BAR. If sales tax is included in a payment, exclude the tax from the line entry and record all tax on the one line intended for sales tax. This is necessary because sales tax has to be reported to the state.

See Completing Cash Transmittal Forms for more detailed instructions.

Verifying Entries on the Form

After endorsing the checks and completing the form, each entry should be double-checked. To do this, run a tape of the checks being deposited and a tape of the line totals on the Cash Transmittal form.

Next, the two totals should be compared: 1) the total of checks OR currency, and 2) the total of the amounts listed on the Cash Transmittal form. The two totals must agree. When it is verified that the amounts agree, attach the tape of the checks to the Cash Transmittal.

Transmitting and Validating the Deposit

After checking the cash transmittal form for accuracy, the department retains the green copy for its files. Currency or endorsed checks can be attached to the other three copies of the form and delivered as follows:

• forms containing only checks may be sent by campus mail to Student Fiscal Services, Box 355870
• forms with currency must be delivered in person to Student Fiscal Services

When processed, Student Fiscal Services will return a validated (blue) copy of the cash transmittal to the originating department. If there are discrepancies between the entries on the cash transmittal and the BAR, call Payables Administration at 206-543-7637 and reference the cash transmittal number and validation date.

Foreign Checks

Student Fiscal Services (SFS) handles all foreign checks for all departments on campus. International money orders are preferred, as they can be included in a normal deposit. Checks that can be deposited normally, must meet all three of the following criteria:

1. Drawn on a U.S. or Canadian bank
2. Issued in U.S. funds
3. Show a bank routing code

All other checks are considered foreign and must be sent to Student Fiscal Services for special handling. Checks drawn on foreign banks in U.S. dollars for less than $200 are NOT accepted and will not be processed, due to collection costs.

Checks drawn on foreign banks in foreign funds, foreign banks in U.S. funds, and Canadian banks in Canadian funds should be listed by the department on a separate cash transmittal, with the "Total Amount" left blank. The following information needs to be included:

• amount of check
• currency type
• budget number
• transmitting department name and phone number

1. Prepare a separate deposit slip for the foreign item.
2. Forward the check and two copies of the deposit slip to the bank via U.S. mail.
3. When the bank receives the funds for the check, an advice of credit will be sent to Student Fiscal Services.
4. After the deposit receipt is received from the bank, SFS will fill in the amount on a cash transmittal form(CT) and then process it. A copy of the CT will then be sent to the Accounting Operations Office and the funds will be credited to the department's budget.
5. SFS will send a copy of the CT to the department.

Document Retention

The documentation supporting deposits, including the validated cash transmittal forms, must be retained by departments for three years.