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DEPOSITING FOREIGN ITEMS
Foreign items require special handling for deposit. Foreign deposits are processed through the East Bank Bursar. The West Bank and St. Paul Bursar Offices will forward these deposits to the East Bank Bursar for processing.
All Foreign fund deposits must be deposited on a separate CR-Cash Receipts (Cash/Checks-BA1290) document.
NOTE: Do not use the CR-Cash Receipts (Wire Transfer-BA 1319) document
There are a variety of ways that foreign funds may be presented for deposit. The following are some examples of how foreign funds may be deposited:
Depositing Foreign Currency/Coin
Foreign currency and coin require special handling and must be deposited on a separate CR-Cash Receipts document.
NOTE: Canadian COIN is the only foreign money that does not require special handling-it may be included in with your regular deposits.
Some typical foreign currencies you might receive may include:
- Euros
- Great Britain Pounds
- Japanese Yen
- Canadian dollars (NOTE: Canadian coin can be deposited without conversion)
A separate CR document must be prepared for foreign money. The totals of the CR must be left blank, as the Bursar Office will fill in the U.S. dollar amounts once the foreign money is converted. In the description area on the lines of the CR, departments should note the following:
- The foreign amount being deposited
- Any other info the department feels is pertinent
- If additional space is needed for comments, departments may use a D-Text document.
The Amount box must be left blank. The Bursar Office will fill in the U.S. amount once the foreign funds are converted. Please submit a self-addressed envelope for return of your official receipt once the funds have been converted and deposited. The CR-Cash Receipts document and the foreign money should be delivered to the Bursar Office for processing. It can take up to a week to process these deposits. Upon completion of the currency conversion and deposit, departments will receive the following via campus mail:
- A receipted copy of their CR document
- A copy of the Foreign Conversion information received from the bank
If for some reason the bank will not accept the foreign money for conversion, it will be returned to the department with a memo indicating the reason.
Depositing Foreign Checks Written in Foreign Funds
This includes Canadian Checks.
Departments depositing Foreign Checks written in foreign funds must follow these procedures:
The department must separate any Foreign fund items from their regular deposit items A separate CR document should be prepared for the foreign fund checks. The totals of the CR must be left blank, as the Bursar Office will fill in the U.S. dollar amounts once the foreign funds are converted. Departments must endorse the back of the Foreign fund checks with either their departmental endorsement stamp or by writing their department name and budget number on the back of each check. In the description area on the lines of the CR, departments should note the following:
- Check number
- The foreign amount
- Any other info the department feels is pertinent
- If additional space is needed for comments, departments may use a D-Text document.
The Amount box must be left blank. The Bursar Office will fill in the U.S. amount once the foreign funds are converted. Please submit a self-addressed envelope for return of your official receipt once the funds have been converted and deposited. The CR-Cash Receipts document and the foreign fund checks should be delivered to the Bursar Office for processing. It can take 1-2 weeks to process these deposits. Upon completion of the conversion and deposit, departments will receive the following via campus mail:
- A receipted copy of their CR document
- A copy of the Foreign Exchange Contract Summary showing the converted amounts (see sample)
- A copy of the foreign fund check(s)
Sample-Foreign Exchange Contract Summary
WELLS FARGO
Trade Date: 6/21/04 Contract Number: 123456
Spot Rate: 1.7927
University of Minnesota Bursar will deliver 11,466.36 Great Britain Pounds to Wells Fargo and will receive 20,555.74 United States Dollars for value 6/22/04.
Instructions Wells Fargo will debit University of Minnesota Multi-currency account xxxxxx for the amount of 11,466.36 Great Britain Pounds.
Wells Fargo will credit University of Minnesota Bursar’s account xxxxxxx for the amount of 20,555.74 United States Dollar
Internal Reference:
CR291-350000xxx
U Press
Plymbridge
Depositing Foreign Checks Written in U.S. Dollars (With No U.S. affiliated bank identified)
The bank has indicated that there are specific foreign banking institutions that are permitted to write checks in U.S. Funds. These types of checks require special processing. Checks drawn on foreign banks (with no U.S. affiliated bank identified) written in U.S. funds must be sent for collection. It is important to note that due to a $35 or higher processing fee, the bank will not accept a foreign check for collection with a face value of less than $100. (If you have any questions about a check, please process it as follows but attach a note to bring it to our attention. We do have the ability to verify an item with the bank prior to sending it for collection).
Departments depositing Foreign Checks written in U. S. funds must follow these procedures:
The department must separate these Foreign Checks from their regular deposit items A separate CR document should be prepared for these Foreign Checks. The totals of the CR must be left blank, as the Bursar Office will fill in the final U.S. dollar amount deposited once the foreign check(s) has cleared collection (there may be bank fees that will need to be deducted). Departments must endorse the back of the Foreign Check(s) with either their departmental endorsement stamp or by writing their department name and budget number on the back of each check. In the description area on the lines of the CR, departments should note the following:
- The Check number(s)
- The Check amount(s)
- Any other info the department feels is pertinent
- If additional space is needed for comments, departments may use a D-Text document.
The Amount box must be left blank. The Bursar Office will fill in the final deposit amount once the foreign check(s) has cleared collection. (There may be bank fees that will need to be deducted). Please submit a self-addressed envelope for return of your official receipt once the funds have cleared and been deposited. The CR-Cash Receipts document and the foreign check(s) should be delivered to the Bursar Office for processing. It can take 2-4 weeks for the bank to collect on these items. Upon collection and deposit of the item(s), departments will receive the following via campus mail:
- A receipted copy of their CR document
- A copy of the foreign check collection paperwork
- A copy of the foreign check(s)
Depositing Canadian Checks
At present, the Check 21 Legislation allowing the imaging and electronic depositing of checks applies to United States banking and is not applicable to Canadian banking. Canadian checks drawn on U.S. banks sometimes use MICR bank/account numbers that follow U.S. standards and they sometimes use MICR bank/account numbers that follow Canadian standards. Checks using the Canadian standards will not go through our imaging and electronic depositing process. They must be processed manually by the Bursar Office. FOR THIS REASON, WE ASK THAT YOU PROCESS YOUR CANADIAN CHECK DEPOSITS (WRITTEN IN U.S. FUNDS OR CANADIAN FUNDS) SEPARATELY FROM YOUR REGULAR U.S. CHECK DEPOSITS.
Departments should be extra careful to include the following information on the back of the check(s) for identification use in the event that there are any questions/problems with the deposit:
- Name of the department
- Department’s FUND, DEPT ID#, PROGRAM/PROJECT numbers
Canadian Checks Indicating U.S. Dollars
Canadian checks may be written in U.S. Dollars or Canadian Dollars. The bank has indicated that if the check is pre-printed with "U.S. dollars" or "USD" on it, or, if it indicates that it is in U.S. funds anywhere on the check, it will probably go through the banking channels as U.S. dollars, similar to a regular check.
However, departments should be aware that it is possible that the bank may send a notice at a later date indicating that a conversion of the funds was necessary, or that the issuing bank is not legally able to fund the check in U.S. dollars. If this happens, the department will be notified and their budget will be charged for the discount rate or return check as assessed by the bank. The department would be sent copies of the Canadian Discount Bank Advice (see sample).
Canadian Checks Not Indicating U.S. Dollars or a U.S. Dollar Account
If you have a Canadian check that does not indicate U.S. Funds, it needs to be processed as a Foreign Check (See Depositing Foreign Checks written in Foreign Funds).
These types of checks must be deposited on a separate Cash Receipts (CR) document. The dollar amounts on the CR should be left blank and we will fill them in when the deposit amount is verified. The department will be sent copies of the Foreign Exchange Contract Summary (see sample) as well as the completed copies of their CR document.
Canadian check (does not indicate U.S. Dollars and is drawn on a Canadian Bank).
Sample-Canadian Discount Bank Advice
WELLS FARGO FOREIGN ITEM PROCESSING
1300 S.W. 5TH AVENUE, 12TH FLOOR
PORTLAND, OR 97201-5688
FOREIGN CHECK ADJUSTMENT ADVICE
Date: June 11, 2004
Our Reference: 123456789
Account Number: xxxxx
UNIVERSITY OF MINNESOTA BURSAR
145 WILLIAMSON HALL
231 PILLSBURY DR. SE
MINNEAPOLIS, MN 55455
Dear Customer,
Your account has been adjusted as detailed below for the following reason: REASON: Foreign Check not Rated
| CCY |
Foreign Amount |
Rate |
Amount |
Rate S/B |
US Amt S/B |
| CAD |
22.00 |
1.000 |
22.00 |
0.7024 |
15.45 |
Total charge to account: $6.55
Foreign items accepted for deposit are subject to final payment. Checks denominated in a foreign currency are charged back at the prevailing market rate in effect on the date of return. This rate may be different than the original deposit rate.
Sincerely,
Wells Fargo Bank
Foreign Item Processing
They will typically include a copy of the front/back of the check.
DEPOSITING FOREIGN CHECKS WRITTEN IN U. S. DOLLARS - WITH A U.S. BANK AFFILIATE
These checks will be cleared through the U. S. affiliated bank and usually may be processed as a regular deposit. However, the Check 21 technology sometimes has a problem reading the Canadian checks so it is helpful to the Bursar Office if you can submit these types of checks on a separate Cash Receipt document.
Departments should be extra careful to include the following information on the back of the check(s) for identification use in the event that there are any questions/problems with the deposit.
- Name of the department
- Department’s FUND, DEPT ID#, PROGRAM/PROJECT numbers
Sample - Foreign check written in U.S. Dollars With a U.S. Bank Affiliate
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