State law requires that all tuition, fees, and other charges collected by Emporia State University be deposited as state funds with the University Cashiers and Student Accounts Office. This includes fees for any workshop conducted or sponsored by any organizational unit of Emporia State University (University unit). Generally, all collections of funds by any University unit should be deposited in a state account, unless prior authorization is received from the University Controller to handle these collections in another fashion.
Deposits should be delivered directly to the Cashiers and Student Accounts Office. Campus mail should not be used to send deposits to the Cashiers and Student Accounts Office. A completed deposit slip should accompany the funds. Instructions for completing a deposit slip are outlined below. The pink copy of the official receipt form, in numerical sequence, should be attached to the deposit slip. University units should deposit their cash collections on the day following the receipt of the funds. If a daily deposit includes a large amount of cash, the University unit should bring the deposit to the Cashiers and Student Accounts Office on the day of its receipt. When the receipts are small in amount or infrequent, the unit may accumulate receipts to a maximum of $50.00 provided a deposit is made at least weekly.
Checks should be made payable to “Emporia State University,” and followed by the name of the University unit or program. University units should stamp an endorsement on the check as soon as received. The endorsement stamps should be in the following format:
For Deposit Only
Emporia State University
Cashiers and Student Accounts Office
(University unit name here)
Federal Reserve Bank regulations require that the payee’s endorsement be made on the back of the check in the first 1 and ½ inches from the left end of the check. The Controller’s Office will assist the University unit in the wording of endorsement stamps for special situations. Checks should be accompanied by two adding machine tapes showing the total of the checks being deposited.
When the Cashiers and Student Accounts Office processes the deposit, a computer printed deposit receipt will be produced. One copy of this receipt will be given to the individual making the deposit, or will be sent to the division, and one copy will be retained by the cashier. Divisions should review the printed deposit receipts to verify the accuracy of the information on the deposit.
University units are responsible for the safety of deposits in their possession and should make arrangements for proper security of the deposits. Deposits should be kept in a lock box, in a vault, or in a safe. Under no circumstances should deposits be kept in an unlocked desk or file cabinet.
Receipts are to be deposited intact, as received. The money collected by University divisions is not to be used to cash checks or make any type of payment. Collected receipts should not be used to make change. If it is necessary to make change, the University unit should request a change fund be established.
If a University unit is going to receive a large amount of cash and/or checks and does not have facilities to provide adequate security, special arrangements can be made for safekeeping of the funds until the University unit is able to process the paper work to deposit the funds with the Cashiers and Student Accounts Office.
Checks drawn on foreign banks, or checks without the Federal Reserve coding numbers, which cannot be cleared through the Federal Reserve clearing process, will be sent to the University’s bank for collection. No deposit will be recorded in the University unit’s account for such checks until funds are credited by the University’s bank. Any processing or collection charges will be deducted, and the net amount received by the University will be credited to the University unit. Only checks payable in U.S. dollars should be accepted.
Funds collected by student organizations may be received by the Cashiers and Student Accounts Office for deposit in the Organizational Safekeeping fund. Applications can be made with the University Controller to establish an account in the Organizational Safekeeping fund.
In order to provide for internal control, no one person should be responsible for receiving or depositing funds and also maintaining the accounting records of the unit. It is understood that staffing levels do not always allow for such separation of duties. When duties can not be separated, special care should be utilized by the University unit head to prevent any unauthorized activity. University unit heads are strongly encouraged to consult with the University Internal Auditor in such situations to ensure internal control.
Books of official Emporia State University receipts are available at the Cashiers and Student Accounts Office. Official University receipts must be used when providing receipts for payments made to the University. The receipt books are issued to University units in numerical order and must be used in numerical order.
A three part official receipt form should be prepared for each monetary collection received by University units. The University employee who receives the cash or check is to complete all portions of the official receipt form that is applicable to the particular transaction and sign the receipt. The third (yellow) copy remains in the receipt book, so that the receipt forms can be accounted for by receipt number. The top (white) copy is removed from the receipt book and given to the payer as a record of the transaction. The second (pink) copy is attached to the deposit slip when the funds are deposited with the University Cashiers and Student Accounts Office. Instructions for completing the receipt form are outlined below.
All used and partially-used receipt books are to be retained by the University unit. When the supply of receipts is low, additional receipt books can be obtained from the Cashier’s Office. The used books are to be turned in to the Cashiers and Student Accounts Office when receiving new receipt books.
If the volume of receipt transactions makes the use of hand-written receipts a laborious process, the University unit should request permission from the Office of the Controller to use an alternative process for recording receipts, such as a cash register. For those cases where permission to use a different form of receipt has been granted, procedures for handling of receipts will be developed by the Controller’s Office and the University unit.
Refunds of workshop fees and charges other than tuition may be obtained by submitting a “Request for Refund” form. Instructions for completing this form are outlined below. The University unit that collected the original receipt should submit a completed form to the Cashiers and Student Accounts Office for each refund to be requested. The Cashier’s Office will process the request and write a refund check, usually within two business days. The refund check will be returned to the originating University unit for mailing.
A check returned to the University by the University’s bank will be deducted from the account to which it was originally deposited. The University unit will be notified of the returned check, and the check sent to the University unit for collection. The University unit should then contact the maker of the check and request payment for the amount of the check plus a $30 returned check charge. If repayment is not made within ten days, a hold should be placed on the student’s records by the University unit. When collection is made, a receipt should be provided. When the deposit slip is completed the amount of the returned check should be redeposited to the account originally credited with receipt of the original check and the amount of returned check charges collected entered on a separate deposit slip with the account number left blank. The account number for the returned check charge will be completed by the Cashier.
Retail sales of goods and services made to the ultimate consumer are subject to both state and local sales tax. The tax rate is 8.3%. It is recommended that University units verify the current rate with the Cashiers and Student Accounts Office. Only sales to wholesalers or educational institutions are exempt from sales tax. Exempt individuals or organizations must furnish a tax exemption certificate at the time of the sale, if one has not been supplied previously, or pay the sales tax. The University unit must maintain a file of the tax exemption certificates to substantiate sales when sales tax was not collected.
Examples of taxable sales include, but are not limited to: T-shirts, admission tickets, books and pamphlets, paper, computer disks, computer software programs, pens, pencils, paint, brushes, other art supplies, subscriptions, printing, test materials, test grading services, and prepared meals. Tuition and workshop registration fees are sales tax exempt. However, if the registration fee includes a meal or snack, then that portion used to provide the food is taxable. If supplies are provided as a result of paying the registration fee, a portion of the registration fee equal to the cost of the supplies is taxable. If specific costs for the meals and/or supplies are not known, then an estimate of the fair market value of those items must be made and sales tax collected accordingly. The Controller’s Office will provide guidance on the taxability of specific sales items upon request.
The purchase price can either include sales tax or the sales tax can be added to the purchase price. Depending upon the practice followed, the formula for calculating the sales tax varies. The sales tax formulas are:
PURCHASE PRICE DOES NOT INCLUDE SALES TAX:
Purchase Price times Current Tax Rate equals Sales Tax.
EXAMPLE: Taxable sales of $35.00
Sales tax = $35.00 x .083 = $2.91
PURCHASE PRICE INCLUDES SALES TAX
Purchase Price divided by 1 + Current Tax Rate equals Cost of Merchandise.
Purchase Price less Cost of Merchandise equals Sales Tax.
EXAMPLE: Sales including tax of $50.00
Taxable sales = $50.00/1.083 = $46.17
Sales tax = $50.00 - $46.17 = $3.83
Standardized charts indicating the amount of sales tax when sales tax is not included in the purchase price are available from the Cashiers and Student Accounts Office.
When sales tax is collected, the amount of the sales tax is to be entered as a separate item on the deposit slip. The Controller’s Office will accumulate all collected sales tax and transfer it monthly to the Kansas Department of Revenue. If sales tax is not collected and it is determined later that the sale was taxable, the University unit making the sale will be liable for the tax and any penalty assessed by the Department of Revenue. It is recommended that the Controller’s Office be consulted on sales where the taxability is uncertain.
The State of Kansas policy on change funds is that these funds are established exclusively for the making of change when receiving amounts due to the state. Change funds are not to be used for check-cashing, loan purposes, or to make payments of any kind. University units must deposit all receipts, in total, with the Cashiers and Student Accounts Office on a regular basis. Monies may not be withheld from deposits to be used as a change fund, petty cash fund, or to cash checks.
University unites that need to make change in the process of receiving amounts due Emporia State University should submit an “Application to Establish a Change Fund” form to the Controller’s Office. Additional copies of the change fund application forms are available in the Controller’s Office.
After approval by the University Controller, the application will be submitted to the Director of the Division of Accounts and Reports. When the change fund has been approved by the Director of the Division of Accounts and Reports, the University unit will be notified. The Controller’s Office will assign a number to the change fund. Monies to establish the change fund will be provided from the University’s Imprest Fund. To obtain the starting cash for the fund, the custodian of the newly approved change fund will receive an Imprest Fund check to be drawn payable to ESU Change Fund No. ___. The number will be the number assigned to the change fund by the Controller’s Office. The Change Fund custodian can cash the check at the Cashiers and Student Accounts Office and establish the fund.
Each time there is a change in the custodian, alternate custodian, supervising employee, or University unit head, an updated application form must be submitted to the Controller’s Office for informational purposes.
The custodian of each change fund should record daily, any long and short amount and the balance in the change fund on a “Record of Cash ‘Long’ or ‘Short’” form. The “Record of Cash ‘Long’ or ‘Short’” form is to be submitted after the last day of the month to the Controller’s Office. The custodian is also to submit to the Controller’s Office a “Reconciliation of Change Fund” form at the close of business on the last working day of the month.
University units needing change for a limited period of time should request, by letter signed by the University unit head, a cash advance from the Cashiers and Student Accounts Office. Specific information includes the University unit name, the type of receipts being collected, and dates the change will be picked up and returned to the Cashiers and Student Accounts Office, the denominations and quantity of each coin or currency required, and the name of the person authorized to receive the change. The amount of monies returned must equal the amount received. Any shortage must be made up by the University unit through processing and expenditure voucher against the account into which the receipts were deposited. Instructions for covering shortages will be provided by the Controller’s Office should the need for such a transaction arise.
When a University unit is planning to collect charges not specifically authorized in the University Comprehensive Fee Schedule, prior approval of the Controller is required by Board of Regents policy. This includes both credit and non-credit workshop fees, other than tuition or Continuing Education fees. When planning such charges, the University unit must submit a “Schedule of Charges” form to the University Controller for approval. The University unit should not advertise or collect the fee until approval of the fee has been received from the Controller’s Office.
The University unit should include information on the types of services that will be provided and how the proposed charges were determined. All charges should be at prevailing rates, but not less than actual cost for direct costs (supplies, faculty salaries, etc.), and include a reasonable allowance for indirect costs (equipment, space, utilities, etc.).
Board of Regents policy limits the types of sales which can be made to the external community (everyone other than students, faculty, staff, and University guests), and requires that charges for such sales must “generally reflect the direct and indirect costs of the products or services and should minimally reflect the price in the private marketplace.” The University President has designated the Associated Vice President for Fiscal Affairs as the University officer responsible for approving the initiation of new activities or programs which will produce sales of products or services (or a substantial change in the type or level of existing sales of products or services), as required by the Board of Regents policy. University units are encouraged to consult with the Associated Vice President for Fiscal Affairs when any new or revised charges for products or services are contemplated.
NOTE: University units and offices may collect ONLY those charges approved and included in the University Comprehensive Fee Schedule by the Board of Regents. All such charges shall be at prevailing rates, but not less than cost, including a reasonable allowance for equipment, space, and indirect costs. Sales made to the ultimate consumer are subject to both state and local sales tax. Income from sales which do not contribute to ESU’s tax-exempt purpose may be subject to unrelated business income tax. Contact the Controller’s Office for additional information.
As a service to students, faculty, and staff, the ESU Foundation has made funds available which the Cashiers and Student Accounts Office can use to cash personal checks. A University ID is required. A small fee, currently 25 cents, per check, is charged for this service. Students are limited to one $25.00 check per day. Checks from faculty and staff may be limited by the availability of cash. A $30.00 fee is charged for any check returned by the University’s bank for any reason, and the individual’s check cashing privileges may be suspended. Third party checks are not accepted.
Divisions may not use cash on hand from receipts or change funds to cash checks for students, faculty, staff, or visitors. All receipts are to be deposited intact as received. Change funds are for making change for payments made to the division on debts owed to the University. Change funds may not be used to cash checks.