Cash Procedure
Explanation:
Maximizing Return on Idle Funds
Cash not required for operations should be invested. The more common types of temporary
investments are utilized by the University, including treasury bills and certificates of deposits.
In addition, several University bank accounts are set up as money-market or sweep accounts.
Expediting of Cash Receipts
The time lag between service performance and the deposit of funds to the Universityâs bank account is kept to a minimum. Funds received by the Business office are deposited into the University bank account within a 24 hour period. Promissory notes that detail the due dates of future tuition payments are issued at the time of registration. All student remittances for tuition are processed by the business office. Non-tuition related cash receipts i.e., cash returns for travel advancements, community activity income, parking stickers, etc., are collected and processed through the Business office. Contributions, pledge payments, and all other fund-raising cash receipts acquired by the Institutional Advancement office are delivered to the Business office for deposit on a daily basis.
Collection Practices
A review of accounts receivable listings for past due balances is performed on a continuous Basis. Delinquent accounts are contacted immediately, not after the next billing cycle. This review is performed primarily by the Accounts Receivable clerk responsible for past due accounts as well as the Treasurer.
Deferring Disbursements
Cash disbursements are released at the latest acceptable time, without affecting relationships with vendors. Early payment discounts are to be taken advantage of if they result in benefit. Checks are mailed at the end of the day. Accounts payable and tuition refund disbursements are processed twice a week respectively on alternate days.
Cash Budgets
A cash budget is prepared to effectively manage cash balances. The budget is built around the three basic aspects of...