Cash Management Over Disbursements
State of North Carolina
East Carolina University
Cash Management Plan
North Carolina law, Chapter 147-86.10 of the General Statutes, requires that "all agencies, institutions, departments, bureaus, boards, commissions and officers of the State...shall devise techniques and procedures for the receipt, deposit and disbursement of moneys coming into their control and custody which are designed to maximize interest-bearing investment of cash and to minimize idle and nonproductive cash balances."
The Cash Operations Manager, Cash Management Accountant, and University Cashier, under the direction of the Financial Manager for Accounting Services, are responsible for developing, revising, and implementing the University’s plan to carry out Cash Management Policies. The departments primarily responsible for cash management are Student Accounts and University Receivables, Sponsored Research, Grants and Contracts, and Financial Services; however, all department cash management activities must abide by the plan.
Cash Management is divided into three areas: control of receipts, management of disbursements, and investment of funds on deposit.
Cash Management over Disbursements:
The objective of managing disbursements is to maintain funds in interest-bearing accounts for the longest appropriate period of time. This allows the State to recognize the maximum earning potential on its funds. This is not intended to encourage late payment or have a negative impact on relationships with firms who, in good faith, supply goods and services to the State. To accomplish these objectives, the University established the following rules:
1. Monies deposited with the State Treasurer remain on deposit with the State Treasurer until final disbursement to the ultimate payee.
2. Bank Statements are reconciled monthly by the University’s Budget Office. Budget Office personnel are not responsible for handling cash. All checks are accounted for – voided or spoiled checks are so marked and retained.
3. Requisitions for bond proceeds disbursements must be submitted by 11:00 am on Thursday for update on Friday through the CMCS system. The requisition amount should match the invoice total submitted to accounts payable for processing. The requisition is approved on Friday, and checks are mailed only after ensuring the requisition is approved and updated.
4. As provided in Section 147-86.10, the order in which appropriations and other available resources are expended shall be subject to the provisions of the Executive Budget Act, G.S. 143-27, regardless of whether the State agency disbursing or expending the monies is subject to the Act.
5. Federal and other reimbursements of expenditures paid from State funds shall be paid immediately to the source of the State funds.
6. Billings to the State for goods received or services rendered shall be paid neither early nor late but on the discount date or the due date to the extent practicable.
7. Electronic Funds Transfer (EFT) is used for certain payments between State and local units, vendors and employees when it is determined to be mutually beneficial to both parties.
8. The Payroll Transfer and Requisition processes are submitted and approved prior to the electronic transfer of data and the release of payroll checks to employees and student workers.
9. Accounts Payable disbursements are made by check or EFT when possible and these disbursements occur on regular cycles. Discounts are taken to the extent practical. Disbursements to state agencies are paid by a transfer using the cash management control system (CMCS).
10. The Financial Aid Office authorizes the disbursement of aid proceeds by electronic transmission of the data from the Financial Aid System to the financial system via the student accounting system. Financial aid disbursement can take the form of a check or direct deposit to the student’s designated bank account via ACH. The cashier’s office verifies the student’s identity using the campus id card or driver’s license when disbursing aid in the form of check. Student’s sign up for direct deposit on the University’s One Stop. All information is pre-noted prior to the submission of any ACH transfer. The One Stop application for direct deposit is accessible by students and protected to their access by university issued ID and student established password.
11. Check mailing is segregated from the data entry process in accounts payable. Controller’s office staffs receive the checks after printing, and mail them directly, along with any required remittance advices, etc. Checks are mailed daily as printed