Revenue

Timely Deposits, Deposit Types, Refunds, Corrections, Electronic Revenue, and Bank Accounts Outside of State Treasury

Applicable or Related Code Sections

ORC 113.08 - Payment and procedures for payment to treasurer.
OAC Section 113-1-02 - Payments into the state treasury.

Purpose

This policy sets forth procedures and controls for revenue collection and the requirement that funds be deposited within three days of physical receipt. The policy also describes revenue deposit types and their correct usage, explains how to process revenue refunds and revenue document corrections, and the role of the Treasurer of State in electronic revenue and the establishment of funds outside the state treasury.

Scope

This policy applies to each organized body, office, and agency established by the laws of the state.

Definitions

"Budget fund group(s)": Funds in the state treasury that are organized in categories for budgetary reporting purposes. The funds are categorized according to their revenue sources and spending authority.
“Custodial Funds”: Funds that are held in the custody of the Treasurer of State and are not a part of the state treasury. State entities must have specific legal authority to establish funds or accounts outside of the state treasury.
“Holding Account Budget Fund Group”: This fund group consists of funds used to collect moneys for which the fund most appropriate for deposit is unknown or the moneys are not yet determined to be earned by the state. A holding fund will retain moneys on deposit in the state treasury until the appropriate external party or other state fund is identified.
“Revenue pay-in document”: A form prescribed by the Treasurer of State, or the Director of Budget and Management used by state entities to deposit funds into the state treasury or custodial accounts.
“State Entities”: Any state department, agency, board, or commission that deposits funds in the state treasury or places funds in the custody of the treasurer.

Provisions

The establishment of sound procedures and controls for revenue collections is necessary to ensure the safe, accurate and timely deposit of revenue into the state treasury in accordance with Ohio Revised Code (ORC) section 113.08 and Ohio Administrative Code (OAC) section 113-1-02. Sound procedures and controls are also designed to define state entity responsibilities specifically in the cash handling process and proper revenue classification.

Funds deposited must use revenue account codes developed by the Office of Budget and Management's (OBM) Financial Support Services section to identify the revenue classification. Revenues are required to be deposited to the state treasury within three business days of receipt. The timely deposit of funds reduces the risk that these funds will be lost or stolen.

The deposit of funds in a lockbox or bank account established with the Treasurer of State (TOS), credit card receipts, and federal draws meet the intent of this requirement. If agencies deposit funds to a holding account they must ensure those funds are deposited into the holding account within three days of receipt and should use due diligence to either transfer the funds to the proper external party or identify and deposit the funds into the appropriate state fund.

A. Revenue Deposit Types

The Deposit Type field defines the deposit category for the entire deposit. The deposit type will vary depending on the nature of the transaction. The table below describes the revenue deposit types and their correct usage. All deposits must use the proper revenue account codes except for items described in the Refunds of Expenditures or Corrections to Revenue Document topics of this manual, which must use an expense account code for the deposit.

Deposit Type	Description	Bank Code	Purpose
A	AG Receipts	STATE	This is used for money received that was certified for collection to the Attorney General’s office.
B	Buy-Back	STATE	This is used to correct deposits for returned checks from the Treasurer of State’s office. See Corrections to Revenue Documents for more information.
C	Customer Receipts	STATE	This is used for money received from customers other than state agencies.
D	Credit Card Receipts	STATE	This is used for money received from the credit card program for Visa/Mastercard, Discover and American Express credit card files interfaced into OAKS FIN.
F	EFT Receipts ACH	STATE	This is used for money received by EFT at the Treasurer of State. The deposit may be interfaced or manually entered.
L	Lockbox Receipts	ISTV STATE	This is money received for ISTV billing. This is used for money interfaced by lockbox services.
M	Miscellaneous Receipts	STATE	This is used for money received that is not described in any of the other deposit types.
X	Deposit Modifications	STATE	This is used to make corrections to posted deposits. See Corrections to Revenue Documents for more information.

Address any questions about dollar amount errors to the Treasurer of State's office.

B. Revenue Refunds

A revenue refund is the return of money to an agency as a result of an illegal, erroneous, duplicate payment, unused federal funds, or return of subsidies generated in the current fiscal year. The refund must be issued from the entity who was paid. A third party cannot issue the payment. Types of expenditures that are not refunds include, but are not limited to, rebates and reimbursements.

Scenario	Action Required
Warrant issued in current fiscal year, budget period occurred in current fiscal year, refund occurred in current fiscal year.	Enter a regular deposit and Direct Journal using a deposit type M for the refund using the exact same "expense" coding that was on the voucher. The account code will begin with a "5." Attach documentation that includes the voucher number(s) for the Chartfield string used on the deposit. This transaction restores allotment and increases cash.

Warrants issued in error and NOT redeemed should not be deposited into the state treasury as a Refund of Expenditure. Instead, follow the appropriate procedure for Warrant Cancellation or Stop Payment.

C. Corrections of Revenue Documents

Direct journal deposits are used to correct revenue documents. Types of direct journals include:

Buy-backs for returned checks.
Customer refunds.
Revenue Holding and Redistribution (RHR).

Buy-backs for returned checks

The TOS is responsible for all funds received into the state fiscal system. While managing these duties, TOS/Cashier's Department periodically receives returned checks. These items are returned for reasons such as insufficient funds, stopped payments or closed accounts. TOS notifies an agency of its responsibility to "buy back" returned item(s).

To simplify the return item reimbursement process, TOS, in cooperation with OBM Financial Support Services, will prepare negative revenue documents in the amount of any returned items more than two weeks old being held by the TOS/Cashiers Department.

Use the deposit type "B" for buy-backs. Enter all amounts (control totals and payment amounts) as negative amounts. Also, use the same accounting ChartFields that were used when creating the item that was paid with the returned check.

Processing other Revenue Document Corrections

Customer Refunds

Use the deposit type "X" for customer refunds, which are entered as negative amounts. Use this type to modify earlier deposit transactions, choosing the ChartField strings for the accounts to adjust. These vary for each given situation.

RHR Documents

Use the deposit type "X" for monies to be moved from the holding account and/or fund, which are entered as negative amounts. Enter the new ChartField string as positive amounts.

D. Electronic Revenue

Agencies wishing to accept credit cards as payment should work with the Treasurer's office by completing the Merchant Services Set Up Form available on the TOS website.

Revenue posted as part of this program will be a deposit type of "D" for credit card receipts. Deposits are electronically generated based on transmissions from the state's credit card acceptance bank. For each card type, one deposit will be generated each day for each merchant number for the following card types: Visa/MasterCard, American Express and Discover.

Revenue posted as EFT or ACH will be a deposit type of "F" for EFT receipts.

Credit card and EFT receipts can be viewed under the Accounts Receivable Payment menu in OAKS FIN.

Follow the Corrections to Revenue Documents section for making adjustments if any holding funds or holding accounts are used in the default ChartField string.

E. Bank Accounts Outside the State Treasury

Except where specifically permitted under the Revised Code, agencies are not authorized to maintain bank accounts outside the state treasury for any purpose. Agencies should review ORC section 113.08 to ensure compliance for existing accounts and before creating accounts not covered by appropriations. Specific legal authority must exist before a bank account is established using a state of Ohio tax identification number or identifying the account with the name of the state, an agency, or any identifier that an independent person may consider as belonging to the state of Ohio.