General and Auxiliary Accounting

Occasionally departments receive cash instruments for miscellaneous deposits such as rebates, refunds, or payments that should be applied to outstanding accounts receivable invoices. The receipt of such cash instruments by all departments must be kept to a minimum and must be deposited immediately at the Student Financial Services Center.

If a refund is related to goods or services purchased on a purchase order, contact Accounts Payable for instructions on depositing the refund.

Checks received by departments that are gifts must be sent to the Michigan Tech Fund. Cash gifts must be brought to the Michigan Tech Fund in person.

The Student Financial Services Center, located on the first floor of the Administration Building, is the authorized final recipient of cash, checks and money orders, except for those Auxiliary units listed below. Credit cards are accepted for payments, excluding tuition and student rent.

Additional information can be found at​ ​the Student Financial Services Center website.

The Auxiliary Services Cash Hub is the authorized final recipient of cash, checks, and credit card activity for the following units:

1. A.E. Seaman Mineral Museum
2. Campus Store and University Images
3. Dining Services
4. Information Technology
5. J. Robert Van Pelt and John and Ruanne Library
6. Memorial Union
7. Mont Ripley Ski Hill
8. Portage Lake Golf Course
9. Transportation Services

Periodically a department may have an opportunity to sell a product or service. The Sales Request Form must be submitted to the Financial Services and Operations at fso@mtu.edu prior to any new sales.

A cash bank may be established only when specifically authorized by Financial Services and Operations. Cash banks include operating cash and petty cash.

Procedure
To establish a cash bank:

1. Contact Financial Services and Operations for assistance in determining the type of bank needed.
2. Send the completed and signed Cash Bank Custodian Agreement to Financial Services and Operations.
3. Submit a check request payable to the custodian.
4. The department custodian will receive a check payable to themself. The check may be cashed at the Student Financial Services Center or, for larger amounts, at a local bank.

To transfer cash bank custodianship:

1. When a new custodian is to take charge of the fund, the current custodian must count and verify the fund is equal to the amount authorized by filling out the Petty Cash/Operating Cash Reconciliation form. Likewise, the new custodian must also count and verify the fund before they conduct any new transactions from these funds.
2. Complete the Cash Bank Custodian Agreement indicating a transfer of custodianship and send it to Financial Services and Operations.

To increase or decrease cash bank:

1. When additional funds are needed, the department chair/director sends a memo to Financial Services and Operations at travel@mtu.edu justifying the increase. A check request in the amount of the increase and payable to the fund custodian must be submitted.
2. A fund should be reduced if the amount of the fund exceeds the actual needs of the department. The amount that is no longer needed must be deposited at the Student Financial Services Center. The funds must be deposited into the original index that was charged for the fund with the account code A001. Indicate on the deposit slip that the fund is being decreased.

To close a cash bank when no longer needed:

1. The custodian should count and verify that the amount equals the authorized amount.
2. Deposit the funds at the Student Financial Services Center, crediting the original index with an account code of A001, indicating the fund is being closed.
3. Notify Financial Services and Operations that the fund is no longer needed.

Departments will be charged for cash shortages. If the custodian was negligent in safeguarding the cash, the custodian may be held liable for the replacement of uninsured losses.

A department may establish a petty cash fund to purchase minor supplies. A check request and original receipts must be sent to Accounts Payable for replenishment of petty cash funds.

Petty cash procedures can be found at​ ​the Accounts Payable website.

Procedure
When a department receives a check, a deposit form must be completed. The deposit form can be found on the Financial Services and Operations Department Forms website.

 

1. Fill in the appropriate boxes with the types of payments being deposited. If there is more than one check, include an adding machine tape of the total. If the department has its own credit card machine, include the settlement report. The total amount must include all payment types.
2. Check the appropriate box concerning invoicing. If an invoice has been created, the funds must be applied to the outstanding invoice to avoid the customer receiving past due notices.
3. In the description give a detailed account of the purpose of the funds.
4. Report the index/fund/organization and account code along with the amount. If using more than one index/account code, make sure the total equals the total amount reported above.
5. Indicate where a receipt should be sent.
6. Print the name of the person making the deposit.
7. Include the signature of the person making the deposit.
8. Record the department name.
9. Record the telephone number of the person making the deposit.

The deposit form must be fully completed before it is submitted to the cashier. Deposits with missing data or incorrect cash totals will be returned.

It is preferred to hand-deliver the deposit rather than use campus mail. Cash must be deposited in person at the Student Financial Services Center.

The Student Financial Services Center Cashier and the residential hall reception desks provide check cashing services.

Checks payable to currently enrolled students and current employees may be cashed. The student or employee ID number (M#) must be on the check.

At the Student Financial Services Center Cashier the check cashing limit is $100.00 per person per day. If available monies permit, university checks for departmental petty cash funds and individual travel advances may also be cashed. The daily limit at the residence hall reception desks is $25 per person.

Procedure

1. Checks must be payable to “Michigan Technological University,” “Michigan Tech University,” “MTU,” or the individual presenting the check for payment.
2. Sign and date the check.
3. Present a valid MTU ID card with the check.
4. If the check is returned due to non-sufficient funds or an ‘account closed,’ the recipient will be charged the check amount and a $25 returned check fee.

The University receives electronic funds in the form of wire transfers or ACH payments (automated clearing house) for tuition, outstanding invoices, state appropriation, and other departmental activities such as conferences, testing, and rentals.

Financial Services and Operations provides the bank information required for an incoming electronic transfer. If a department is expecting an incoming wire transfer or ACH payment, contact Financial Services and Operations to ensure the funds are correctly deposited upon receipt.

Michigan Tech has partnered with Flywire to provide a seamless and low cost method for international students to pay for educational expenses via wire transfer. The process can be found at the Student Financial Service Center.

Periodically it is necessary to cancel a university check due to:

1. Check being lost or stolen
2. Incorrect payee, amount, or address
3. Cancellation of services resulting in no payment being required

Accounts Payable is responsible for the check cancellation process. Checks to be cancelled must be sent to Accounts Payable. If the check is to be reissued, note the correct information for the reissued payment.

Departments requiring a stop payment on an operating/accounts payable (non-payroll) check should contact Financial Services and Operations immediately upon realizing a check is lost or stolen. If a stop payment is required on a payroll check, ​Payroll Services​ must be contacted.

• A use fee is not required.
• A use fee is a method of recovering the costs of operating a lab/equipment/facility.
• The use fee will be based on actual revenue and expenses for the most recent two fiscal years and actual use from the logbooks.
• A use fee will only be approved if $1,000 of revenue is estimated for new fee requests or is generated each year.
• An allowable fiscal year end balance of plus or minus 60 days average expenses is permitted.
• All users must be charged the same fee. Departments may choose to subsidize use.
• Certain costs associated with the lab/equipment/facility may not be allowable in the rate calculation.
• A percentage of each use charge dollar is returned to a corresponding use index (D99xxx) in the form of overhead return.
• Extraordinary expenses may be amortized over four years.
• Logbooks must include all use and be retained for seven years.
• Monthly billings (IBs) should be prepared.

• Special Fees and Use Charges (Policy 2.01)
• Establishing and Reviewing Use Charge Rates (Procedure 2.01.1)
• FAQs
• Use Rate Form
  • Use Rate Calculation Template
  • Renewal requests are due 30 days before a rate expires