Transcript Piece Of Mind - South Texas College

Departmental Cash Handling
By: Maria De Jesus Sussy Palomo
Accounting Group Supervisor
3-31-2015
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Introduction
Cash represents one of the College’s most sensitive asset.
• There must be clear accountability for cash handling.
• Departments that collect and handle cash must adhere to
strict internal controls.
• The primary purpose of the cash handling procedures is to
assist College departments with
– Collection
– Custody
– Reporting of cash.
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Overview
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Board Policies
Definition of Cash
Payments
Responsibility of Department Employees
Departmental Cash Collection and Deposit Procedures
Shortages and Overages
Internal Controls
Change and Petty Cash Funds
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Board Policies
• Board Policy # 5110 – Controllership Function:
– “The Comptroller, as authorized by the Vice President of Finance and
Administrative Services, shall have sole responsibility to perform all
accounting functions pertaining to the College and grant funds,
including, but not limited to, collection, deposit, and disbursement.”
– Authorized representative shall be designated by the Comptroller in
writing.
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Board Policies
• Board Policy # 5630 - Establishment and Control of Petty
Cash Funds
– “to authorize, establish and maintain petty cash funds required
to provide funds for purchases in income producing activities and
for the Business Office to furnish limited change and petty cash
replenishment to other income producing activities.”
– “College policy also requires that adequate controls over petty
cash funds be maintained to prevent loss through theft or
misappropriation. “
– The Vice President of Finance and Administrative Services
will approve the establishment, change in amount, or the
discontinuance of petty cash funds.
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Definition of Cash
• Cash – Coins, currency, checks, money orders, credit
cards, cashier checks .
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Department Approval
• Each department receiving cash
– Must be approved by the Business Office.
– Comply with guidelines and procedures.
• Financial Manager
– Should assign the responsibility of receipting and accounting
for funds to one individual or few people as possible.
• Responsible Individual
– Certified by the Business Office as a cash collector
– Must be a full- time, permanent employee
• Part-time or temporary employees (including student workers)
may assist the responsible person
• Maintain a single collection point
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Payments Directed To Cashiers Only
• All payments should be directed to the Cashiers Office.
• Departments may not request payments be mailed to
their location.
• All mailed receipts should be mailed to:
Cashiers Department
P.O. Box 9701
McAllen, TX 78502-9701
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Conferences and Special Events
• Departments should immediately contact the Business
Office.
• Guidance will be provided for revenue and expense
codes
• A review will determine adequacy of procedures
– Cash handling, safeguarding, depositing, reconciling and other
internal controls
– Provide cashiering services if needed.
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Responsibility of Department Employees
• Financial Manager – establish effective internal
controls, delegate responsibility and maintain
segregation of duties.
• Cash Collector – Conduct transactions with customers
(endorse checks, provide receipt, maintain log).
• Cash Collector Supervisor – Monitor cash receipting
functions and authorize various transactions as voids.
• Deposit Preparer – Count and verify receipts, prepare
deposit worksheet and take to Cashiers Office.
• Reconciler – Account for cash as it is received,
reconcile to Banner Accounting System.
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Cash Collection
• Receiving Cash in Person or in the Mail
– All checks must be endorsed immediately
– Receipts must be provided to every individual paying in
person.
– Transaction must be logged.
– Cash must be counted at the end of the day and deposited.
– Checks must not be cashed at collections point.
– Cash collection point must maintain clear separation of
duties.
• An individual should not have responsibility for more than one
cash handling components.
– Collecting
– Depositing
– Reconciling
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Cash Collection and Receipts
• Business Office BANNER Departmental Receipt
Books
– The Business Office will issue official receipt books
• Regular employee who is to serve as custodian of the book
• All used individual receipt books must be returned to the
Business Office.
– Use of receipts other than official college receipt is prohibited.
Departments receiving funds
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Issue a receipt
Sequential numbered receipts must be provided
One copy must be included with the deposit
One copy must be kept with the department files
– Voids
• Must be maintained in sequential order and approved by a
supervisor.
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Deposit Procedure
• Daily Balancing of Collections
– Total daily collections, cash, checks, money orders, etc.
– Assure that the amount equals the amount of receipt issued.
– Financial manager or designee should verify the balancing.
• Deposit Support Forms
– Deposits must be summarized and documented
– Identifies the type of monies being deposited
– Approved by cashiers
• Transporting Deposits
– Bags or envelopes should be utilized for the transport of
deposits from the department to the Cashiers’ Office.
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Credit Card Payments
• Credit Card Payments
– Credit Card information is very sensitive and it should not be
maintained by the department.
– Acceptance of Visa/MasterCard/Discover requires preapproval by the Business Office.
– The department may arrange with the Cashiers Office to have
the credit card payments taken by telephone.
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Shortages and Overages
• Immediately report any balancing discrepancies in the
amount of $25.00 or more
– Director of Student Accounts and Bursar.
• Norma Jimenez
• Discrepancies will be investigated
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Internal Controls
• Principles of good cash handling
1.
Proper segregation of duties – different individual
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Receiving of cash
Depositing of cash
Reconciliation
Adequate safeguards for handling, transporting, and
storing cash
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Cash kept overnight must be secure
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3.
Safe, locked desk or cabinet in a locked office
Independent reconciliation of deposit documents to the
Banner statement of accounts.
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Internal Controls
•
Education Code §51.003-(b)
“Funds that are to be deposited in the depository bank or banks
must be deposited within seven days from the date of
collection.”
– Promptly depositing cash at the Cashier’s Office
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Deposits must be made no later than the close of business on
the next day following the date of collection.
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Collections under $20.00 may be held until $20.00 is met,
but a deposit must be made, at least once per week, even
when less than $20.00 has been accumulated.
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At least once a week and at month end.
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Change and Petty Cash Funds
• Request must be by Financial Manager to Comptroller
• A memo/email should contain the following:
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Intended use of the fund
Amount requested
Length of time funds will be needed
Custodian of the fund
Custodians must adhere to additional change and
petty cash fund procedures.
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Change and Petty Cash Fund
• Procedures
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Custodian must be designated in writing by the Financial
Manager
Custodian must received training
Funds must be kept in a secure place, never left unattended.
Funds should only be accessible to the official custodian
or an alternate.
The funds can not be use for financing IOU’s, loans,
accounts receivable, or cashing personal checks.
Personal use is prohibited.
Personal/private funds should not be commingled.
Cash funds must reconcile at all times.
Sales tax will not be reimbursed.
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Change and Petty Cash Fund
10. Miscellaneous receipts of cash should not be added to cash fund.
11. Cash funds must be accessible for an audit
12. Business office should be notified of change of cash custodian or
location.
13. Disbursements from cash funds must be approved by VPFAS and must be supported by documents (date of payment,
price, description of expenditure, signature, charge account).
14. Disbursement from a Petty Cash Fund may not exceed $50.00
per transaction
15. Disbursements should be reimbursed at least quarterly and
at August 31, requested on a purchase requisition.
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Cash Disbursements
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Custodian must be designated in writing by the
Financial Manager
Custodian must receive training
Custodian should count the money at time of receipt
and disbursement
Money must be secure all the time
Distribution of money must be done by custodian
Excess money should be secure all the time and
returned to Business Office
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Source: STC JAGNET
– Cash Handling Procedure
• JAGNET - log in
– Employee
» Business Office Procedures
» Departmental Cash Handling Procedure
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To request training contact:
Maria (Sussy) Palomo
(956)872-6451
[email protected]
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