IIUM UM IIUM Glencoe Accounting IIUM Introduction Cash - PowerPoint PPT Presentation

IIUM UM IIUM Glencoe Accounting

IIUM Introduction ▪ Cash management policy is stipulated under Policy No.1: Cash Management under Cash Management Section in IIUM Financial Policies & Procedures. ▪ The updated Cash Management policy has been revised in July 2012 compiled from previous Policy No.05 & No.09 of IIUM Financial Policies & Procedures and also circulation policy approved by Standing Finance Committee. ▪ The Finance Division has empower the authority to collect & deposit cash & other collections on behalf of the University to the KCDs.

IIUM Introduction 1 3 AUTHORITY & CUSTODY & EMPOWERMENT SAFEKEEPING CASH MANAGEMENT ELEMENTS 4 2 DEPOSIT RECEIPT OF COLLECTION RECORD MANAGEMENT

IIUM Authority & Empowerment Approving Authority • The Finance Division is the approving authority to Centres that necessitate cash collection as follows: (i) Approval for the Centres to collect cash (ii) Approval for the specific personnel who are entrusted to handle cash collection • The Finance Officers are responsible for receipts of monies. Any delegation to other officers must be made in writing.

IIUM Receipt Record Management Official Receipt Record Management • The Finance Division will allocate receipts to K/C/D for issuance of receipt via Online Receipting System (ORS) • Official receipts must be issued immediately at the time of transactions as proof of money received • Specifics receipts bearing the reference of Income Tax exemption under Section 44(6) must be issued to the donors for donation received. • Receipts book must be properly kept and can only be taken out after proper documentation and authorization is given by the assigned Finance Officer Cont …

IIUM Receipt Record Management Official Receipt Record Management Cont … • No amendments can be made on receipts • Cancelled receipts and damaged receipts must be kept for audit trail purposes. • The retention period of financial documents is 7 years. • A Statement of Daily Collection detailing the recipient's name, amount and date received and cheque/document number must be recorded and the total amount must be reconciled with collections at the end of the day

IIUM Receipt Record Management Types of IIUM receipts in ORS: 1. Temporary receipt – numbering starts with TR 2. Miscellaneous receipt – numbering starts with CM 3. Tax exempt receipt – numbering starts with CP • The temporary receipt (TR) created via Online Receipting System (ORS) is issued for cash collection amount less than RM50. The TR will be aggregated and converted into miscellaneous receipt (CM) at the end of the day. • The miscellaneous receipt (CM) is used to record cash collection of RM50 & above and non-cash collection (regardless of the amount). • The tax exempt receipt (CP) is issued to donors for donations received for approved University programs. Cont …

IIUM Receipt Record Management Cont … ✓ The manual receipts must be aggregated and transferred to ORS miscellaneous receipt (CM) at the end of the day to be recorded in the bookkeeping. It is a requirement for each non-cash collection recorded via manual receipt to be transferred to a single ORS miscellaneous receipt (CM). ✓ General Rule: Any cash collected at Collection Centre cannot be used or expended for any purpose. (i.e. purchase of stationery items, refreshment, etc.) ✓ Nevertheless, for sponsorships received for approved KCDs programs, the amount received can be used to finance the program expenditure provided the collection is banked in first into the bank. The collection is to be recorded in the trust account of the respective KCDs.

IIUM Receipt Record Management Official Receipt Record Management Procedure ✓ The Online Receipting System (ORS) is designated to record non-invoice related receipts (ad hoc collection) ✓ For collection received for invoice issued, user shall using IFIS for issuance of receipts ✓ The use of manual receipts are permitted in certain circumstances as follows: “ on occasion approval ” a) After office hour collection (office closure) or; b) Collection for programs organized at locations where accessibility to ORS is unavailable. (i.e. sport activities at field area) Cont …

IIUM Receipt Record Management Official Receipt Record Management Procedure ✓ In the event of manual receipts are use, the receipt must be signed by the Finance Director or any other authorized officer, but not by the officer who is preparing the receipts. ✓ The Treasury Instruction No. 70(a)(i) provides an exemption to the above policy in the event the official receipts are issued by using an electronic receipting system.

IIUM Custody & Safekeeping of Collection ➢ The Assistant Director/College Principal and authorized officer is responsible for the safekeeping of unused manual receipts. ➢ Any blank manual receipt which is no longer in used must be crossed as “cancelled” with the original copy and carbon copy properly attached in the receipt book. ➢ The lost of receipts must be reported in writing to the Finance Division. ➢ Collections will be recorded by receipts issued by the authorized user and kept in custody at the Centre.

IIUM Custody & Safekeeping of Collection ✓ Cash collections and non-cash collections pending to banking in shall be stored at the safe/strong room. Keys and lock combination number must be known only by authorized officers. ✓ Any monies received that have yet to be sent to the bank cannot be used for any purposes and no officer/staff is allowed to borrow , advance or change the money received on behalf of the University. ✓ The Officer and the authorized Officer must ensure that the collection cannot be used or expended for any purpose and no officer is allowed to borrow, advance or change the money received on behalf of the University.

IIUM Deposit of Collection GENERAL RULE ✓ Existing Policy Cash collections must be banked in within three (3) working days. ✓ All receipts through cheques (i.e. non-cash collections) must be credited to the bank within a week from the date of their receipt. ✓ Amounts collected and not banked in into the bank, must be kept in a safe/strong room with at least 2 persons in direct control of the amounts.

IIUM Deposit of Collection Recommendation

IIUM Deposit of Collection Deposit Procedure: ✓ For cash The deposited amount must be crossed check against bank in slips. The customized bank in slip provided by Finance Division must be used for deposit of collection unless the mode of payment requires the customers to bank in directly into the University's bank account. ✓ There is a requirement to segregate the bank in slips for cash collection and non-cash collection. ✓ Bank in slips must be retained and checked against bank account number, bank stamping and cash book.

IIUM Deposit of Collection Deposit Procedure: ✓ The standard clearance period for bankers draft & telegraphic transfer in foreign currency are as follows: a) Bankers draft: 5 - 7 days. Similar to normal cheque but in different monetary currency. b) Telegraphic transfer: 5 - 7 days. Require an intercept bank in Malaysia such as Citibank, Maybank, etc. ✓ All cheques must be crossed upon receipt. Receipts for foreign currency received in the form of bankers draft/ cheque/ telegraphic transfer can only be reflected in the system upon clearance by local bank and the exact amount in Malaysian Ringgit (MYR) is known.

IIUM Deposit of Collection ✓ The banking in of cash collections via a cash deposit machine (CDM) is allowed especially after normal banking hours. The staff in charge must keep the cash deposit transaction slip as an evidence of the transaction. ✓ The cheque deposit machine can be used to deposit collection in the form of cheque. The cheque deposit transaction slip must be kept as a proof of the transaction. ✓ All receipts must be properly recorded to the appropriate account codes. ✓ Any receipts in the form of assets must obtain clearance from the Rector.

IIUM Deposit of Collection FLOWCHART OF IIUM RECEIPT

IIUM Deposit of Collection FLOWCHART OF IIUM RECEIPT

IIUM Online Receipting System ORS URL >> http://ifis.iium.edu.my/ORS/ Overview of homepage of ORS with reminder of pending task (if any) FINANCE DIVISION POLICIES & PROCEDURES URL >> http://www3.iium.edu.my/finance/login2.php

IIUM Online Receipting System H72000 Student Fees Income INCOME CODE RANGE H73000 Sales Income H74000 Rental Income H75000 Investment Income H76000 Fines Income H77000 Contribution From Others Income H78000 Consultancy & Commercialization H79000 Other Income H83000 Hospital Services Income

IIUM Online Receipting System GUIDELINES ON THE IMPLEMENTATION OF DAILY COLLECTION REPORTING & ORS ✓ The users are required to prepare daily collection for supervisor verification through approval of summary daily collection by the supervisor. ✓ For this mean, the users are required to print a report namely “Collection Report” on daily basis.

IIUM Online Receipting System