Unmoved Fund Policy, The American University in Cairo DRAFT – April 9th 2013

UNMOVED FUND POLICY

Policy Statement

The policy is aimed to deal with the stale checks as well as unmoved funds due to students, customers, and vendors that were not claimed or collectedby the beneficiaries for a period of limitation. These checks/funds should be removed from the ledger as pending reconciled items and credited to the university revenue account in accordance with this Unmoved Funds Policy.

Reason for Policy/Purpose

The unmoved Funds that were not claimed for more than three years as well as stale checks that were not collected for a period of limitation became expired items and composing credit balances in the university books. These credit balances should be removed from AUC accounts payable records and credited to the university revenue in accordance with this Unclaimed/UnmovedFundsPolicy.

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Unmoved Fund Policy, The American University in Cairo DRAFT– April 9th 2013

Who Approved This Policy

Executive Vice President for Administrationand Finance

Who Needs to Know This Policy

The entire AUC community.

Web Address for this Policy

Contacts

Responsible University Official: The AUC Controller

Responsible University Office: Office of the Controller

If you have any questions on the policy or procedure for the Unmoved Funds policy, you may:

  1. Call Mr. Samir Samy at 2303, or
  1. Send an e-mail to

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Unmoved Fund Policy, The American University in Cairo DRAFT– April 9th 2013

Definitions

Stale checks
Period of limitation / Checks that were issued by AUC and held for a too long period of time (period of limitation) before being presented for payment. Abankisnotobligatedtopayastalecheck. It has been recommended to treat the stale checks as follows:
  • To Void the Check by Debiting Bank and crediting Equity account through stale checks revenue account.
  • If the Controller’s Office has to re-issue another check after voiding the old one, the Controller’s Office needs to process a reversal of the previous entry and to call vendors to collect their new checks
  • Three years and half for checks withdrawn on Egyptian banks.
  • Six months for checks withdrawn on non-Egyptian banks

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Unmoved Fund Policy, The American University in Cairo DRAFT– April 9th 2013

Policy/Procedures

Journal Entry for stale checks

DrBank A/C

Cr Unmoved Funds Revenue A/C

When the checks are being reissued to the party

Dr Unmoved Funds Revenue A/C

Cr Bank A/C

Forms/Instructions

General Journal Voucher. Found under Forms on the Controller’s webpage.

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Unmoved Fund Policy, The American University in Cairo DRAFT– April 9th 2013

Related Information

Other Disbursement policies and procedures found on the Controller’s Office webpage.

Appendices(optional)

Not applicable

History/Revision Dates

Origination Date: April, 18, 2013

Last Amended Date: October, 13, 2014

Next Review Date: Month, Day, Year

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