Overview: Processing University Receipts

This overview describes the process for properly depositing monetary receipts (cash and checks) received by schools and departments. Processing / depositing instructions vary depending upon the type of receipts. For comprehensive information on all receipt types and more detailed explanation of processing methods, see Training: Cash and Check Receipt Guidelines.

On this page:

General Instructions, Guidelines and Controls

  • Whenever possible, departments should encourage payment via check rather than cash, since safeguarding checks is easier than safeguarding cash.
  • All checks should be made payable to Stanford University. In the event that a check intended for Stanford is instead made payable to an individual, it can have a complicated impact on tax reporting for both Stanford and the individual.
  • Include enough information on all paper transmittal forms so central office personnel can determine the nature of the deposit (e.g., payer, purpose). Review of receipts is done after they are deposited, so relevant information (such as who wrote a check) is not available to a reviewer unless it is also captured on the transmittal form. Departments that make frequent deposits may elect to use CASHNet.com for online deposit preparation. For information on CAHSNet.com and how to get access, see Overview: Online Preparation of Department Deposits Using CASHNet.com.
  • Never send checks greater than $1,000 or any cash through interdepartmental mail. It is recommended that all non-sponsored project receipts (including checks less than $1,000) be hand-delivered to the appropriate office as indicated in the processing instructions below. Sponsored receipts should be sent by US Mail as indicated in the section on sponsored research below.
  • Cash and check receipts should be processed as soon as possible, preferably on the same day they are received. In any interim between receipt and deposit, cash and checks should be secured in a cash box or other locked container, with copies of sequentially numbered receipts to validate the total cash and checks that should be available.
  • Access to cash and checks should be restricted to individuals with appropriate fiscal responsibilities included in their job descriptions.
  • Upon receipt, checks should be immediately endorsed on the back with “For Deposit Only to Stanford University.” The appropriate project, fund, and object code (for revenue transactions) or project, task, award, and expenditure type (for expenditure credit transactions) should be recorded on the back of the check.
  • All transmittal forms and letters should be reviewed (and preferably signed) by an appropriate financial approver, who verifies that all departmental accounts and any object codes/expenditure types are appropriate and that the deposit total agrees with the total cash and checks being transmitted.
  • Checks returned by Stanford’s depositing bank (e.g., for insufficient funds) are sent first to Cash Management, who charges the depositing unit via journal entry for the value of the returned check and sends the check back to the unit. It is the responsibility of the processing unit to collect any outstanding amounts.
  • Financial reports should be reviewed on a monthly basis to ensure that all receipts are properly credited to the correct account. The use of sequentially numbered receipts or other log mechanism is recommended. Copies of all checks, transmittal forms, and backup documentation should be kept by the department and filed with the respective receipt or verification for reconciliation of reports with the amount submitted.
  • Units which receive cash or checks on a regular basis should contact Cash Management at 723-7755 to determine the best way of processing these receipts (e.g., establishing a lockbox, if appropriate).
  • Segregation of duties is a crucial internal control that helps safeguard Stanford assets. No one person should be responsible for the entire cash receipt process. The responsibilities for receipt, custody, recording, and reconciliation of cash receipts should reside with different individuals whenever possible.
  • Individuals should report any suspected fraud or misappropriation of funds to their unit’s management, Cash Management (723-7755) or the Internal Audit Department (725-0074) as appropriate. See Overview: Preventing Fraud
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Types of Receipts (Cash and Checks for Deposit to Stanford)

Receipts — monies paid to or donated to Stanford — generally fall into one of five categories or types of payment. These categories determine how the receipts are processed.

Designated Income Generated by Schools and Departments

Schools and departments may generate income by selling products or services, provided the product or service is related to the primary research and educational missions of the University; income-producing activities that are not related to Stanford's primary missions require written permission from the Provost. See important compliance information on Resources & Job Aids: Unrelated Business Income.

Many income transactions require the payment of state sales tax, which must be paid even if the department fails to collect the tax. See important sales and use tax guidelines.

Sponsored Project Receipts

Receipts from sponsoring agencies in support of sponsored research projects, contracts or agreements, including clinical trials, require special care and are handled by the Office of Sponsored Research.

Gifts

Receipts of cash or checks are considered gifts when they are from an outside entity and are given in support of a school, department, or the University and the donor receives nothing other than an acknowledgment in return, i.e., Stanford provides no goods or services to the donor.

For information on processing non-cash gifts, see Administrative Guide Memo 41: Gifts to the University, and Memo 42: Receiving and Processing Gifts.

Reimbursements to the University (Non-Salary Related)

Cash or checks paid to the University are considered non-salary reimbursements when they represent:

  • repayment for expenditures made by the University on behalf of someone else
  • repayment of erroneous payments (other than wages or stipends) made by the University
  • payment for damages to University property when the payment is for the exact amount of replacing or repairing the damaged item
  • refunds on previously paid expenses
  • reimbursements to the University for personal expense originally charged to a University account


  • Examples of Reimbursements to the University (and exceptions)

Other Types of Receipts

Some types of receipts do not fall precisely into the categories of designated income, sponsored project receipts, gifts, or non-salary reimbursements, and therefore may have special processing considerations and/or instructions. Some types of receipts require different processing procedures because of accounting or compliance issues.

  • Examples include:
    • Repayment to the University for payroll overpayment
    • Reimbursement to the University for sick leave pay
    • Reimbursement of student-aid overpayment
    • Externally awarded financial aid
    • Patent or software licensing fees
    • Travel advance adjustments
    • Payment for purchase of surplus property
    • Checks paid to individuals for professional fees or honoraria, and endorsed to Stanford University
    • Income to an academic service center for services performed for an individual or non-Stanford entity
    • Administrative and service fees paid to Stanford for non-University programs (programs sponsored by an outside entity such as conferences or symposiums)
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Processing Instructions by Receipt Type


Type of Receipt Process Through: Link to Specific Processing Instructions
Department or School Income Cashier's Office Quick Steps: Process Department Receipts via Cashier's Office
Sponsored Project Office of Sponsored Research Quick Steps: Process Sponsored Project Receipts
Gifts Office of Development
(either professional school's office or University Office) 		Quick Steps: Process Donor Gift Checks
Reimbursements (Credits Related to Transactions Originating in iPO or iOU) Disbursements Training: Cash and Check Receipt Guidelines (p. 15)
Reimbursements to the University (Non-Salary) Cashier's Office Quick Steps: Process Department Receipts via Cashier's Office
Reimbursements - Salary / Sick Leave Payroll Quick Steps: Adjust for Employee Overpayment
Other Types various Quick Steps: Process Miscellaneous Receipts
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