FedUni Foundation

Federation University Australia Foundation Revenue Collection Policy

Policy Code: CE1913

Purpose

The University maintains financial policies that comply with the Financial Management Act 1994.This policy defines and outlines the directions that must be implemented by Federation University Australia Foundation relating to the handling and  receiving  of cash and cash equivalents. It also defines the  roles and responsibilities related to receipt, safeguarding, reporting and recordkeeping for all Federation University Australia Foundation cash and cash equivalents.

Federation University Australia Foundation funds are monies received from bequests, donations, endowments and gifts.

Its purpose is to ensure that these important Federation University Australia Foundation assets are protected, accurately and timely processed, and properly reported.

Scope

This Policy applies to all staff, who are involved in the administration or management of

Federation University Australia Foundation funds.

The collection and control of cash and cash equivalent are very important functions. The Finance Department is the University’s primary cash handling area. Ideally, from a control perspective, the collection and controlling of cash and cash equivalent should be centralised in one location; however this is not possible nor practical due to the locations of various University Campuses.

The University has established certain basic internal control principles applying to collecting and accounting for cash and cash equivalents.

Legislative Context

Financial Management Act 1994

Definitions

Term Definition
Notes and Coin "Cash": Notes and coin are the most liquid of assets and must immediately and at all times be protected against loss.
Cheque: The term “cheque” means a written order directing a bank to pay money.
Contributor Relations: A module of the University student management system, Oracle People Soft Campus Solutions which enables the tracking and acknowledgement of all donations to the Federation University Australia Foundation.
Direct Debits and Direct Deposits (DD): DD transactions are electronic payment instructions either to debit or credit a deposit account at a participating Financial Institution.
Credit and Debit Cards:

Credit cards issued by commercial banks and financial institutions under the Visa and MasterCard brands and by independent companies American Express (AMEX) permit University clients to pay for services and goods by drawing against lines of credit granted by the card issuing companies.

PIN-based Debit Cards issued by financial institutions rely on connectivity to various debit card banking networks. These cards permit University clients to pay for services and goods by drawing against available funds resident in the payer’s chequeing or savings account at the time of the payment.

Electronic Bill Payment Services (Australia Post & Bill Pay) Online facility provided by some banks or merchants that enables customers to receive and pay bills through a computer, telephone or and Australis Post outlet
Official University Receipts Receipts may be produced either manually or electronically. Manual receipts are supplied only by the Finance Section in booklet form and are serial numbered. Elec- tronic receipts are produced at the point of receiptfrom the myFinance receipting systems.  An official receipt is produced by the Foundation Office.
University Funds Are monies received from tuition fees, contracts, grants and consultancies (delivery of) revenues from University services, State and Federal funding, gifts and all other sources of revenue or expense reimbursements, whether restricted or unrestricted as to purpose of use.
Revenue Collection Point - The Foundation Office The Foundation Office is the revenue collection point for all cash or cash equivalent for the Federation University Australia Foundation.
Federation University Australia Foundation (the Foundation) The University body charged with the active promotion of philanthropy and management of donated resources for the advancement of the University.  The financial accounts of the Federation University Australia Foundation is managed by the Foundation Office.
The Foundation Office Is the University office responsible for managing the University’s relationships with donors and prospective donors.  Staff within this office have the responsibility of developing and implementing strategies for relationship management, in partnership with University staff and contractors.

Policy Statement

Required Authorisation to Collect Money

All staff involved in the collection of cash or cash equivalent on behalf of the Federation University Australia Foundation, must be authorised as collectors on behalf of the University.  Before undertaking any new cash and cash equivalent handling operation or activity, approval for the activity must be received from the Associate Director, Financial Services and Student Finance.

Once authorised, the Finance Directorate will communicate to the staff member how this activity will be accounted for and the procedures and controls developed .

Revenue Collection Point – The Foundation Office

The Finance Office is the primary cash handling area and also the liaison for working with the Foundation Office.

Cash or cash equivalent Funds must be delivered to the Finance Office. The Finance Office will issue a receipt for the cash or cash equivalent funds received.

Staff counting cash should ensure that:

•  where possible, the cash count is completed in a quiet area.

•  each denomination is counted and recorded separately

•  the count is double-checked and signed off by a second person as evidence of its correctness

Separation of Duties

The Finance Office is responsible for establishing procedures and the Foundation Office  is responsible for the implementation of those procedures. The Foundation Office is responsible for collection, handling, depositing and accounting (eg: General Ledger, Billing, AR) for cash received by the Foundation. At least two qualified individuals must be assigned to count cash.

Revenue, cash and cash equivalent activity should be reconciled to the bank statements monthly by a nominated Finance officer. The reconciliation should be reviewed by someone independent of revenue and cash handling or recording functions.

Physical Security, Safekeeping of Funds & Data Transmission Security

All forms of revenue, cash and cash equivalent should be physically protected through the use of safes or locked cash drawers.

It is the responsibility of the Federation University Australia Foundation  to establish provisions and processes that ensure at all times:

1.   Individuals who handle revenue, cash and cash equivalents are protected from physical harm.

2.   Revenue Cash and cash equivalents in the custody of the Foundation Office are protected from loss.

3.   Technology resources involved in processing revenue, cash and cash equivalents (i.e., hardware and confidential personal information)are protected from loss, corruption, or compromise to confidentiality.

4.   Any amount of cash on hand that exceeds $1000 must be maintained in a heavy safe during business hours.

Amounts less than $1000 should be maintained in a locked cash drawer.

5.   Cash pick-ups and transfers by University employees should not conform to any regular day time or schedule.

Such transfers should be irregular, subject to change at any given time, with times only known to a select few.

Transfer of accountability must be recorded (name, date, time and amount) if the deposit is not being transported by the person preparing the deposit. Transport logs should be maintained for all units. All documents should be maintained in such a manner as to provide suitable audit trail for all transactions.

Advice is available from the Finance Section if required.

Supporting Documents

Australia Accounting Standards

Financial management Act 1994

Revenue, Cash and Cash Equivalent Collection Procedures

Federation University Australia Foundation Donations Policy

Responsibility

Authorised Collectors

1.   Only Authorised Collectors are permitted to collect revenue and issue official receipts on behalf of the Federation University Australia Foundation.

2.   An authorised collector is a full-time or part-time/casual staff/ member of the University, who has been nominated by an Executive Dean, Director or Manager and has been approved by the Associate Director, Financial Services & Student Finance to collect revenue on behalf of the Federation University Australia Foundation.

3.   The authorised collector will be required to accept responsibility to collect revenue on behalf of the Federation University Australia Foundation according to the Federation University Australia Foundation revenue collection procedures and taxation requirements.

4.   Authorised collectors are required to acquaint themselves with what sources of income are GST-free and what are GST-payable for their collection point. They should seek information on the application of GST to revenue to be collected at their collection point from their supervisor or from Finance.

The University may perform police checks prior to employing staff, or assigning regular cash handling and receipting responsibilities to an individual/s involved in other critical cash handling positions.

The University must seek an explanation for any reported felonies, misdemeanours, or judgements that were due to fraud related to cash, stocks, bonds or any other financial transactions before hiring or upon learning such information. Any individual with revenue collection responsibilities must continuously maintain a clear status. If an employee with revenue collection responsibilities is convicted of a crime, that conviction must be reported to the Human Resources area.  If a revenue collection employee, loses this status his or her cash handling responsibilities must be terminated.

Finance

1.   The Chief Operating Officer/Chief Financial Officer is responsible for Revenue, Cash and Cash Equivalent Policies and Procedures – Federation University Australia Foundation and also for providing general coordination and assistance.

2.   The Chief Operating Officer/Chief Financial Officer, Associate Director Financial Accounting and Systems or nominated person is responsible for managing all relationships with organisations that provide banking services to the University.

3.   The Chief Operating Officer/Chief Financial Officer or Associate Director Financial Accounting and Systems provides relevant and appropriate information to insurance carriers concerning University cashiering practices and procedures.

Collection Point – The Foundation Office

1.   The Federation University Australia Foundation is responsible for establishing procedures to safeguard  cash handling activities, in accordance with the policies established. 

2.   The Finance Officer taxation and treasury along with the Manager, Financial Services are responsible for:

•  Maintaining a liaison with authorised collectors concerning revenue, cash and cash equivalent handling matters

•  Categorising the Foundation Office’s  performing functions related to revenue, cash and cash equivalent handling accounting.

•  Establishing operating procedures in accordance with this Policy and Procedures

•  Performing an annual review of compliance, and informing the Chief Operating Officer/Chief Financial Officer and or Associate Director Financial Accounting & Systems of risks associated with the Foundation Office collection point.

•  To ensure that  the Foundation Office  processing credit or debit card transactions receive ongoing training regarding the data security requirements for handling cardholder data and that the Foundation Office is  complying with the credit card data security requirements for their operating environment.

Managing University Bank Accounts

The University must implement and maintain an effective internal control framework over the establishment and management of bank accounts to ensure balances are accurately reflected in the financial records and bank ac- counts are operated efficiently and effectively.

Annual Review of Bank Accounts

As a Public Sector Agency, the University must have as few banking institutions and bank accounts as practicable. The number of bank accounts and institutions used for banking should be reviewed at least annually by the Chief Operating Officer/Chief Financial Officer.

The rationale for the number of bank accounts should be reviewed on the basis of: Efficiency, cost and risk.

Annual Audit Confirmation

Audit bank confirmation requests will be undertaken on a timely basis for all bank accounts as directed by the University's external auditors.

Opening, Modifying and Closing of Bank Accounts

Bank accounts shall only be opened with express written authorisation in accordance with the Delegations- Contract, Financial, Staffing and Tender Policy (Vice Chancellor and President and Chief Operating Officer/Chief Financial Officer jointly) and must be reported to Finance Committee.

The Associate Director Financial Accounting & Systems can sign all official bank forms (including Master Authority), on behalf of the University, to affect Finance Committee approved additions and modifications to University bank accounts.

1.   Bank accounts should be opened with the University’s contracted banking services provider where possible.

2.   Bank accounts can only be opened in the name of the University.

3.   The Foundation Office is  not to enter into any electronic banking arrangements, unless authorised by the Associate Director Financial Accounting & Systems.

4.   Bank accounts shall only be modified with express written authorisation in accordance with the Delegations- Contract, Financial, Staffing and Tender Policy (Vice Chancellor & President and Chief Operating Officer/Chief Financial Officer jointly) and must be reported to Finance Committee.

5.   Bank accounts shall only be closed with express written authorisation in accordance with the Delegations- Con- tract, Financial, Staffing and Tender Policy (Vice Chancellor and President and Chief Operating Officer/Chief Financial Officer jointly) and must be reported to Finance Committee.

Bank Reconciliations

The University holds a number of bank accounts that are automatically swept into the University’s operating ac- count daily, whilst these accounts are not formally reconciled the underlying transactions are reconciled as part of the reconciliation process undertaken on the accounts where the funds are ultimately deposited. The University’s Operating account is reconciled on a monthly basis.

1.   Bank reconciliations must be signed by the officer responsible for preparing the reconciliation and counter- signed by an independent reviewer.

2.   The reconciliation must include the identification of all items in the reconciliation and corrective action required.

3.   Checks must be made of outstanding items on the reconciliations of the previous reporting period to ensure a speedy resolution.

4.   The original reconciliation should be filed and made available for audit purposes as required.

General

There shall be at least two signatories to every bank account. All account withdrawals and transfers require the authorisation of at least two signatories with delegation in accordance with the Delegations- Contract, Financial, Staffing and Tender Policy.

•  Action should be taken to contact the payee of all cheques un-presented after 90 days, and request that the cheque be promptly presented.  Where an un-presented cheque has been lost by the payee, then the cheque should be cancelled by way of a stop payment, and a new cheque issued in accordance with the Accounts Payable procedures.

•  A register of bank accounts and facilities, listing all relevant information, will be maintained by the Associate Di- rector Financial Accounting & Systems.

•  University staff shall not mix private monies with University funds under their control. Staff cannot cash cheques for any person out of University funds.

•  No University staff member shall keep, or permit to be housed, any private monies or documents in an official safe or strong room, or lodge or permit to be lodged, private monies in an official University bank account.

Receipt Form to be Used

Cash or cash equivalent funds should be recorded online using Contributor Relations s and the myFinance System.

The manual receipt book function is to be used in emergency situations or for forwarding information to the main cashiering office.

Money Deposited Intact

Money should be deposited promptly and Intact to the primary revenue collection point. Cashing cheques from University deposits, borrowing cash for personal use, lapping receipts to cover shortages in cash receipts, withholding cheques for deposit in order to float cheques, the pooling of personal and University funds, and modification of

cash records are all serious offences and may result in immediate dismissal from employment and/or prosecution.

In the Event of A Robbery

Refer: At your request the Risk, Health and Safety Department will assist in devising specific procedures for your area.

Promulgation

The Federation University Australia Foundation Revenue Collection Policy will be communicated throughout the University via:

  1. an Announcement Notice under ‘FedNews’ website and through the University Policy - ‘Recently Approved Documents’ webpage to alert the University-wide community of the approved Policy;
  2. inclusion on the University Policy, Procedure and Forms website; and/or
  3. Notice to the Federation University Australia Foundation Board of the approved Policy

Implementation

Forms/Record Keeping

Title Location Responsible Officer Minimum Retention Period

FedUni Approved Collector of Revenue Nomination Authorisation

Mt Helen Chief Operating Officer / CFO 7 years
General Credit Card Voucher Various Chief Operating Officer / CFO 7 years
Manual Receipt Book Request & Issue Record Various Chief Operating Officer / CFO 7 years
Manual Receipt Cash Register Revenue Collection Reconciliation Various Chief Operating Officer / CFO 7 years
Daily Takings Summary Various Chief Operating Officer / CFO 7 years
mySC Register Balance Sheet Various Chief Operating Officer / CFO 7 years
Foreign Currency Deposits Various Chief Operating Officer / CFO 7 years
Reconciliation Discrepancy Various Chief Operating Officer / CFO 7 years
Safe Custody Transfer Various Chief Operating Officer / CFO 7 years
Authorisation for Access to ANZ On-Line Remote Banking System Various Chief Operating Officer / CFO 7 years
Accounts Receivable Deposit List Various Chief Operating Officer / CFO 7 years
ANZ Company Account Change Authority Various Chief Operating Officer / CFO 7 years
CreditCard Refund Request Various Chief Operating Officer / CFO 7 years
CreditCard Telephone Authorisation Form Various Chief Operating Officer / CFO Destroyed immediately once transaction has been completed