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

Glencoe Accounting

IIUM UM

IIUM

Introduction

IIUM

▪ 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.

Introduction

IIUM

CASH MANAGEMENT ELEMENTS

CUSTODY & SAFEKEEPING DEPOSIT OF COLLECTION RECEIPT RECORD MANAGEMENT AUTHORITY & EMPOWERMENT 1 2 3 4

Authority & Empowerment

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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.

Receipt Record Management

IIUM

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…

Receipt Record Management

IIUM

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

Receipt Record Management

IIUM

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…

Receipt Record Management

IIUM

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.

Receipt Record Management

IIUM

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…

Receipt Record Management

IIUM

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.

Custody & Safekeeping of Collection

IIUM

➢ 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.

Custody & Safekeeping of Collection

IIUM

✓

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.

Deposit of Collection

IIUM

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.

Deposit of Collection

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Recommendation

Deposit of Collection

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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.

Deposit of Collection

IIUM

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

• nly be reflected in the system upon clearance by local bank and the

exact amount in Malaysian Ringgit (MYR) is known.

Deposit of Collection

IIUM

✓

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

• f 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.

Deposit of Collection

IIUM

FLOWCHART OF IIUM RECEIPT

Deposit of Collection

IIUM

FLOWCHART OF IIUM RECEIPT

Online Receipting System

IIUM

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

Online Receipting System

IIUM H72000 Student Fees Income 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

INCOME CODE RANGE

Online Receipting System

IIUM

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.

Online Receipting System

IIUM

Online Receipting System

IIUM

✓

The ORS report has been enhanced to incorporate all type of receipt collection including receipt issued for invoice payment known as RI. This initiative to enable K/C/D has single source reporting to ease managerial monitoring.

✓

The ORS report namely “Collection report” is compulsory report to be generated daily and must be approved by Assistant Director or supervisor which equivalent to Assistant Director. The report contains 4 important information parts:

A) Information of all collection of the day. B) Summary collection by payment mode with emphasis on cash & cheque payment in which supervisor able to validate against physical bank in slip one by one. C) Acknowledgment of user for collection of the day together with the verification and approval

• f supervisor normally Assistant director of K/C/D/i

D) Reminder for Supervisor for list of sundry receipt pending convert & bank in as of today (i.e. selected date report)

Online Receipting System

IIUM

PART A

Online Receipting System

IIUM

PART D PART C PART B

Online Receipting System

IIUM

Procedure of utilizing bank in slips:

I. For cheque payment

• Each cheque must use a different bank slip.
• e.g. 8 cheques received, 8 bank slip with different reference

number to be utilized and recorded in ORS. II. For counter cash payment (low amount severity)

• Only one (1) bank slip to be utilized on each day regardless either the amount is

small or the amount is yet is remitted to the bank. The sundries receipts must be convert to Misc Receipt first for this

• purpose. Depend on the severity of sundry collection, you may convert

maximum of at every 3 days interval.

• On the next day, the user shall use the new bank slip number

Online Receipting System

IIUM

Procedure of utilizing bank in slips:

III. For counter cash payment (high amount severity)

• In general only one (1) bank slip to be utilized on each

day regardless either the amount is small or the amount is yet is remitted to the bank. The sundries receipts must be convert to Misc Receipt first for this

• purpose. Depend on the severity of sundry collection, you may convert

maximum of at every 3 days interval.

• However if there is a requirement to bank in first on the same day for example at

3.00 p.m. with amount of RM 10,000.00 Then two (2) bank slip to be utilized for recording two different cut off collection of the day. For e.g. collection from 8.00 a.m. till 3.00 p.m. to use bank slip A (777551), while collection from 3.01 p.m. till 5.30 p.m. to be use bank slip B (777552)

• On the next day, the user shall use the new bank slip number i.e. slip C (777553)

even though there is possibility s B (777552) and slip C (777553 )is remitted on same time.

Online Receipting System

IIUM

Procedure of utilizing bank in slips:

• IV. Direct bank in by the student using bank slip
• Could only be implemented with strict and structured procedure

by K/C/D/i.

• Only recommend for K/C/D/I that have specific or one rate

collection only.

• The K/C/D/I must establish procedure as follows:

a) K/C/D/I to ensure the students must use bank slip from K/C/D/I instead of slip available at the bank. b) After K/CD/I distributes the bank slip, please ask the student go to bank and ensure the slip is return back to K/C/D/I on same day for issuing receipt process. c) The K/C/D/I must prevent students using slip from bank due to the slip is beyond control from finance division. d) K/C/D/I to put an adequate notice and effective reminder that the students are required to surrender the slips on the same day of amount is bank in. e) Payment through Cash Deposit Machine (CDM) by students is strictly not allowed.

• The implication of this approach, there will be multiple of bank slip is used for the

day.

Online Receipting System

IIUM

Report Custody:

The daily collection report must be kept by respective K/C/D/I for auditor and management

• review. There is no longer requirement for K/C/D/I to

provide one copy to Account’s Unit, Finance Division. With ORS, finance division able to view the transaction

• n the real time basis.

However Account’s Unit through online will monitor overall collection activities in the

• University. In a certain event or issue, the finance division have an authority to request

information and supporting documents for each collection from time to time.

All the best…..

IIUM

Any Questions ?

If you have any enquiries related to ORS you may contact us: 1) Br. Umair Bin Azalan 2) Br. Abu Sofian Bin Ahmad 3) Br. Muhd Izzuan Bin Mohamad Noor Email: umair@iium.edu.my Email: sofian@iium.edu.my Email: izzuan@iium.edu.my

• Ext. No: 3111/5194
• Ext. No: 3190 Ext. No: 5181