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Direct Deposits

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Direct Deposit Overview

This section addresses direct deposit arrangements under which cash receipts are banked by a department other than through the Cashiers Office, Financial Services Department.

There are a number of such arrangements at the University. The following are the largest, affecting more than one department:

  • University of Toronto Mississauga
  • University of Toronto Scarborough

Cash received at these divisions is banked by the division in their own subordinate bank account (except for amounts which should be forwarded to the processing department as per the “Departmental Responsibilities for Processing Cash Receipts” chart in The Cashier Function).

Departments can request to open one or many subordinate bank accounts that fit the departmental and/or business operation. All types of deposits can be directed to the subordinate banks accounts, including: cash, cheques, incoming wire payments, debit card / credit card payments via POS systems, tele-deposit and e-commerce solutions. The Financial Services Department has provided answers to most questions you would have relating to subordinate bank accounts.

In addition, the Division of University Advancement banks all donations received at the University (see Monetary Donations).

Key Requirements

Department

A department should consider the relative merits of a direct deposit arrangement. Generally, such an arrangement should be considered if the department receives sufficient “cash” to warrant the additional record keeping and related procedures required under a direct deposit arrangement.

Once a direct deposit arrangement has been made, the department’s responsibilities include:

  • Maintaining required records.
  • Depositing funds directly with the University’s bank.
  • Preparing and distributing the deposit report.

Financial Services Department (FSD)

FSD provides advice to departments on the related responsibilities and the feasibility of a direct deposit arrangement.

FSD approves such arrangements as appropriate and:

  • Notifies the University’s bank of the name of the department and the address of the branch most convenient for that department.
  • Notifies the department of its account number and identification number.

The University’s Bank

  • Notifies the appropriate local branch of the name of the University department which will be depositing funds at that branch.
  • Provides the department with bank deposit slips

Procedures for Managing a Direct Deposit Arrangement

Departments that manage a direct deposit arrangement are thereby delegated some of the Cashier Function responsibilities in respect to those deposits. Associated with this responsibility are mandatory requirements:

Additional Cash Handling Requirements

  • maintenance of a log of cash received and deposited
  • preparation of the bank deposit slips

Standard Cash Handling Responsibilities

  • preparation of the cash for deposit
  • preparation of the Direct Bank Deposit form to record the deposit in the University’s accounting records

The department should proceed as follows to manage a direct deposit arrangement:

  • Prepare master deposit report form and order a cheque endorsement stamp with the ability to change the deposit number.
  • Restrictively endorse cheques as soon as received.
  • Log cash and cheques on the day received.
  • Complete the bank deposit slip
  • Deposit cash in the bank.
  • Complete and distribute the Direct Bank Deposit form.

Personal Cheques

In circumstances where it is considered necessary to accept personal uncertified cheques, the following procedures should be adopted:

  • Positive identification should be noted on the reverse side of all cheques.
  • Ensure cheques are made payable to the University of Toronto.

Endorse Cheques

Endorse all cheques with a coded endorsement stamp. The number on the stamp (i.e. the deposit number) is advanced for each new deposit. Sample stamp:

For Deposit only to the Account of:
The Governing Council
University of Toronto
35013
A1133
Canadian Imperial Bank of Commerce
Commerce Court Main Branch
Toronto , Ontario

Log Book

Record the related details in a log, i.e. payer, date, & amount. This log book is mandatory for insurance and audit purposes.

The organization of the log record should be such that there is a total that agrees to the related bank deposit and deposit report.

Post-dated cheques

Post-dated cheques should be logged on the day they are received and filed in such a manner as to provide for timely retrieval. They should be restrictively endorsed when received but without a deposit number. The deposit number will be determined on the day of deposit.

Bank Deposit Slip

The bank deposit slip is a three-part form.

  • Enter the deposit number on the bank deposit slip and in the log.
  • Prepare an adding machine tape of all cheques and cash. Attach to the Bank Deposit Slip.
  • The total of cheques and cash should then be entered on the deposit slip. This amount should agree with the corresponding log book total.

U.S. Funds

A separate deposit with a new deposit number must be prepared for each different currency. The only currency accepted other than Canadian will be U.S. dollars. The bank will enter the exchange amount on the deposit slip on the line plus/minus exchange.

Distribution

The bank will stamp the bank deposit slip and retain the third part.

The department distributes the remaining parts as follows:

  • White (top) copy: Attach this copy to the original of the corresponding Deposit Report .
  • Newsprint or carbon copy: Attached to the departmental copy of the corresponding Deposit Report.

Bank Report – Direct Bank Deposits

The Bank Report – Direct Bank Deposit form is available on-line by clicking: Direct Bank Deposit Form.

Please note the following upon completion of the Bank Report – Direct Bank Deposit form:

  • A separate deposit report must be prepared for each deposit. The deposit number on the deposit report must correspond to the deposit number on the bank deposit slip and in the log book.
  • The total deposit reported on this form must agree to both the corresponding deposit slip and corresponding log book total.

 

Last revision August 2012