Approved Executive Committee of the Senate 67.23
CONTROL OF INVOICING, REMITTANCES AND DEPOSITS (UNDER REVISION)
INTRODUCTION
1. This policy describes the responsibilities of Faculties, Schools and Services for:
a. the invoicing of customers for goods and services provided and the collection of payment thereof;
b. the acceptance, handling and control of remittances of all kinds received by Faculties, Schools and Services;
c. the deposit of remittances with Financial Services.
2. Detailed procedures are set out in Procedure No. Finance 16-2.
3. For the purpose of this policy, a remittance includes all forms of currency, e.g. cash, cheques, money orders, bank drafts and travellers' cheques.
SCOPE
4. Certain types of services are requested and paid for by Faculties, Schools and Services through the use of service requisitions, e.g. with (*) Reprographic Services, MPS. The appropriate debit/credit budget account entries are made by Financial Services when the transaction has been completed and charges have been recorded on the requisition. The provision of services of this manner is considered to be an "internal" process, controlled by specific procedures in each case.
5. This policy deals with the provision of goods and services of a nature which requires an invoice to be raised by the host Service in order to secure payment, and for this purpose is considered to be an "external" process. Examples include the rental of University facilities or equipment, provision of security services for social functions, sale of surplus furniture, provision of housing and food services.
BILLING
6. As a general rule, it is the responsibility of the Faculty, School or Service which provides the goods or services requested to arrange that the customer is billed immediately, to secure payment and to transmit the payment to Financial Services. This responsibility includes such follow-up action as necessary to ensure that prompt payment is effected.
7. However, in the rental of University facilities, Supply and Services is responsible for the billing and collection of charges for reservations which have been coordinated by Conventions and Catering Services, See Policy 28 and Procedure No. Conventions and Catering 11-1.
8. Unless otherwise provided for by other University policies or tradition or by terms of contract, the provision of goods or services is considered to be a cash transaction, and accounts will be considered due for payment upon receipt. The University of Ottawa pre numbered invoice form SA18-CR18 should normally be used when customers are billed,
9. At the end of each month, Financial Services will provide Faculties, Schools and Services with a list of outstanding accounts for which they are responsible, specifying the date of account, invoice number, customer's name and amount owing.
COLLECTION ASSISTANCE
10. A Faculty, School or Service unsuccessful in collecting an account in the 60 days following the invoice date must refer such account to Financial Services. The latter will turn over the account to the University's Legal Counsel which will advise Financial Services regarding collection or write off. Collection fees and bad debts will be charged to the appropriate Faculty, School or Service.
11. The value of any unpaid invoice will be charged to the appropriate budget account of the Faculty, School or Service which provided the goods or services concerned if collection has not been made at the end of 120 days from date of invoice, unless special arrangements to the contrary have been made in advance with Financial Services.
RECEIPTS
12. Books of pre-numbered official receipts are available on request from Financial Services and must be used whenever possible to acknowledge the acceptance of remittances of all kinds. Financial Services will maintain a register showing the location of all pre-numbered official receipt books. Any other form of receipt must be approved by the Director of Financial services before being taken into use.
DEPOSITS
13. Absolutely all remittances accepted by Faculties, Schools or Services on behalf of the University must be deposited with Financial Services unless specific arrangements have been made with Financial Services for direct deposit at the bank. Deposits with Financial Services must be no fewer than twice a month, i.e., at the middle and at the end, or each time a total of (*) $1000 has been accumulated, unless daily deposits are made. Deposits should always be delivered by hand to Financial Services by the Faculty, School or Service concerned; they must not be sent through the mail. Supplies of deposit forms SA18-GNO1 may be obtained from Financial Services on request. Arrangements for the use of the night depository must be made with Financial Services.
14. Financial Services will normally make bank deposits at least once daily, and will do so several times daily if substantial amounts of funds have been received.
RECEIPTS FOR DONATIONS
15. Official receipts for Income Tax purposes for donations made to the University may only be issued as directed by Financial Services.
PROTECTION OF CASH
16. Measures to be taken for the safe-guarding of cash from loss or theft are described in Procedure No. Finance 16-1, Protection of University Funds. Failure to observe the foregoing instructions shall be considered grounds for the initiation of disciplinary measures, including possible dismissal, against the offender
EXCEPTION
17. No exception may be made to this Policy without the written consent of the Administrative Committee.
Revised September 26, 1984
INDEX
Deposits with Financial Services
Donations – Receipts for
Invoicing Responsibilities
Collection of Accounts
Receipts for Remittances
Cash Receipts – Handling of
(Financial Services)