Departmental Business Management Guide - Cash Handling

Contents

• Overview
• University Guidelines
• Internal Controls
• Departmental Responsibilities
• Resources

Overview

The establishment of internal controls for cash collections is necessary to prevent the mishandling of funds and to safeguard against loss. Internal controls are also designed to protect employees by defining responsibilities in the cash handling process. Cash is defined to include currency, checks, money orders and credit and debit cards.

University Guidelines

Department heads and managers of units that collect university funds remain accountable for ensuring adequate control procedures are in place to secure cash collections. Departments, events, clubs or other entities which collect more than $1,000 annually, with the exception of those whose collections occur infrequently and are for the recovery of expenditures such as copies, faxes, etc., must be authorized by the University Controller’s Office as a Cash Collection Point. Entities functioning as Cash Collection Points without receiving approval risk losing budgetary authority for funds collected.

(Policy OP-D-2-B – Cash Management)

Internal Controls

• Ensure proper segregation of duties. The person collecting cash cannot have any other responsibilities related to cash handling including updating/recording general ledger or accounts receivable records. The person preparing the deposit cannot be involved with collecting cash or opening the mail. The person reconciling cash collections cannot be involved with any other cash handling responsibilities.
• Provide safeguards to ensure physical security for handling and storing cash collections. Each person collecting cash should have his/her own cash drawer. While in use the cash drawer must be secured and access limited.
• Provide safeguards to protect confidential data. Systems that contain confidential data should be controlled and restricted to authorized personnel. Staff members who handle confidential data should be adequately trained and understand the university rules on confidentiality.
• Ensure that cash collections are recorded and deposited accurately and timely. In general, deposits should be made daily. Debit and credit card payments should be settled daily.

Departmental Responsibilities

• Completing and submitting a Cash Collection Point application at least four weeks prior to the start of the collections.
• Submitting an updated Cash Collection Point application if cash handling procedures change. At a minimum, submit an updated Cash Collection Point application every three years.
• Ensuring that staff who have cash handling duties have read and understand the requirements of the University’s Cash Handling and related policies.
• Developing and maintaining written procedures to safeguard collections and data.
• Performing an annual review of cash handling procedures.
• Ensuring timely and accurate reconciliations are performed and reviewed.
• Ensuring compliance with the University’s policy on Employee Background Checks.
• Ensuring employees who handle confidential information have read and signed the Employee Confidentiality Statement.

Resources

• University Policy OP-D-2-B – Cash Management
• University Policy OP-F-7 - Safeguarding of Confidential Financial And Personal Information
• University Policy OP-C-7-G12 – Employee Background Checks
• Cash Collection Point Application
• Cash Collections Training Presentation (coming soon!)

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