Transcript Financial Rep Meeting - Florida State University

CASH HANDLING
BASICS AND UPDATES
DAN WUSSLER
What is a Cash Collection
Point?
Any department, event, club or other
entity which collects more than $1,000
annually, with the exception of those
whose collections occur infrequently and
are for the recovery of expenditures such
as telephone, copies, etc.
 All Cash Collection Points must be
authorized by the Controller’s Office
before collections begin.

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How do you get authorized?
Complete a Cash Collection Point
Application (TM-01)
 Submit to Treasury Management for
review and approval or recommendations
 Applications should be submitted at least
4 weeks prior to start of collections
 Ensure cash handling staff have:

◦ Read and understand the University’s Cash
Management Policy
◦ Signed a copy of the Employee
Acknowledgement Form (TM-03)
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Before Collections Begin . . .
“The Planning Checklist”
Departmental Cash Handling Supervisor
Develops Plan:
 Is
a Change Fund Needed?
 How Will Cash be Received (Mail or In Person)?
 Who Will Collect the Cash? Record the Cash?
 Who Will Prepare the Deposit? How?
 Who Will do Reconciliations? Management Review?
 Is Training Required?
 Have Departmental Policies & Procedures Been
Developed? Departmental P&P Template
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Cash and Equivalents
Cash is defined to include:
 Coins
 Currency
 Checks & Money Orders
 Credit / Debit Cards
 Electronic Funds Transfers (ACH & Wires)
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Cash Handling Policy
Changes
OP-D-2-B3 Departments are now required to be
re-authorized as Cash Collection Points every
three years.
 OP-D-2-B4 C Cash handling duties should be
assigned to different employees for collections,
deposit preparation, and reconciliations. If there is
a justifiable reason for not doing so, alternative or
compensating control procedures must be in
place.
◦ (This section regarding segregation of cash
handling duties is a clarification of similar
requirements in the old policy.)

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Cash Handling Policy
Changes
OP-D-2-B4 E Deposits are still required to be
made daily. Exceptions may be made when
collections of currency and coin are less than
$100 (no change) or checks total less than $500
(up from $300). However, all collections should
still be deposited within five business days,
regardless of amount.
 OP-D-2-B4 G Detailed written procedures for
the handling and control of cash collections and
change funds are to be developed by the
department (not previously specified) and
provided to all persons with assigned cash
handling responsibilities.

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Cash Handling Policy
Changes

OP-D-2-B5 B1
◦ In order to validate the person’s identity, checks
received from University students, faculty or
staff should have the following information
recorded on them:
 full name, residence address, phone number,
and the last eight digits of the
individual’s FSU Card number (changed
from the last four digits of their SSN).
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Cash Handling Policy
Changes

OP-D-2-B6 Departments must request
permission from the Controller’s Office for
an agency to electronically transfer payments
into the University’s bank account.
◦ The Controller’s Office will provide the customer
with the necessary banking information. Prior to
each receipt, departments must provide the
Controller’s Office with a completed Notice of
Expected Electronic Transmission Form (ET3031).
This will facilitate the tracking of the incoming
payment and will result in the proper recording
of the funds. (This section is a new clarification
regarding payments received by EFT, ACH or Wire
Transfer.)
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Cash Handling Policy
Changes

OP-D-2-B6
◦ Detailed written procedures for the handling
and control of cash collections and change
funds are to be developed by the
department (not previously specified) and
provided to all persons with assigned cash
handling responsibilities.
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Cash Handling Policy
Changes

OP-D-2-B8 D
◦ Credit and debit card collections are to be
transmitted daily (not previously specified).
◦ A copy of the summary total report along
with a University Revenue Deposit form
should be forwarded to Student Financial
Services within two business days of
transmittal (not previously specified).
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Internal Controls
Basics of Cash Handling
 Segregation
of Duties—billing, collecting, depositing
& reconciling duties must be separated
 Security—storage & access to collections as well as
confidential data must be secured at all times
 Reconciliation—ensure collections receipted were
properly deposited & recorded in OMNI departmental
ledgers
 Management Review—randomly review receipt logs,
deposits and reconciliations
 Documentation—receipt logs on daily collections
w/signatures, deposit slips, reconciliations
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The Basics of
Segregation of Duties
Assignment
Segregation of Duties
A. Biller/Invoicer
Cannot also be B, C, or D
B. Cashier
Cannot also be A, D, or E
C. Cash Point Supervisor
Cannot also be A or E
D. Deposit Preparer
Cannot also be A, B, or E
E.
Cannot also be B, C, or D
Reconciler
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Collecting — in person
 Proper
receipting devices such as pre-numbered receipt
forms or cashiering terminals are to be used
 Employees should not work simultaneously from same
receipt book or terminal
 Only official University receipt forms obtained from
FSU Printing Services may be used (unless an exception
is granted)
 Unused pre-numbered receipt forms should be
adequately secured and accounted for
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Collecting — in person
 All
customers paying in person should be provided with
a receipt or cash register tape
 Voided receipts or transactions should be approved by
supervisory personnel and all copies of the voided
receipt should be retained
 Checks should be restrictively endorsed immediately
 Collections should be secured at all times
 Persons collecting cash should not have other cash
handling duties
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Collecting — through the
mail
Upon receipt checks should be immediately restrictively
endorsed and logged
 Check log should include











Payer Name
Check Number
Check Amount
Check Date
Date Check Received
Collector’s Initials
Date Deposited
Deposit Slip Number
Depositor’s Initials
Collections should be secured at all times and access limited
to authorized personnel
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Deposits
 Persons
preparing deposits should not be involved with
collecting cash, opening the mail, or monthly
reconciliations
 Deposits should generally be made daily. Exceptions
may be made when daily coin & currency are less than
$100 or daily checks are less than $500
 No collections should be held more than 5 business
days before being deposited
 Credit / Debit card payments should be settled daily
with Student Financial Services
 Deposits should not be sent through campus mail
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Deposits
 Deposits
should be forwarded to the Office of Student
Financial Services or if armored car service is available
directly to the bank
 Departments should ensure that appropriate security is
provided when deposits are transported across campus
or from off-campus sites
 Departments not on the cashiering system must submit
a University deposit ticket Revenue Deposit Form
(DT118) to the Office of Student Financial Services
regardless of how the deposit is routed to the bank
 Individuals delivering deposits to Student Financial
Services should obtain a validated receipt at the time
the deposit is delivered
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Reconciliation
 Person
with no cash handling responsibility
(does not collect or deposit) to do
reconciliation
 Daily
 Ensure amount receipted for is equal to actual
amount on hand
 Any discrepancies to be investigated, resolved,
and signed off on
 Ensure that all funds receipted for were properly
deposited and recorded
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Reconciliation
 Monthly
 Compare daily receipt logs to OMNI departmental
ledger reports to ensure that all deposits were
properly recorded and that only appropriate
transactions have been recorded in the ledger
 Reconciliation should be completed, reviewed, and
signed off on prior to end of second succeeding
month. Individual reviewing and signing off on should
not be person performing reconciliation
 Reconciling items which cannot be identified by end
of second succeeding month shall be identified and
resolved as soon as possible, but no later than the
end of the third succeeding month
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Petty Cash or Change Fund
 Petty
Cash
 Permanent Fund – is a cash advance from the
Revolving Fund that is issued for on-campus
operations, including, but not limited to, small office
purchases, etc. A specified expiration date is not
required
 Temporary Fund – is a cash advance from the
Revolving Fund that is issued for limited on-campus
operations, field trips, research projects or other offcampus projects with a specified expiration date
 Permanent
and Temporary petty cash funds
from sources other than the Revolving Fund are
unauthorized
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Petty Cash or Change Fund
A
Change Fund is a cash advance from the
Revolving Fund that is issued to provide change for
cashier functions within the University. Change
funds from sources other than the Revolving Fund
are unauthorized.
 To request cash for either a petty cash fund or a
change fund, complete FSU form FA 252, Request
for Revolving Fund Advance, and submit to General
Accounting UCA 6310. If requesting a Temporary
Petty Cash fund, supporting documentation
detailing how the money will be used is required
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New Treasury & Cash
Management Website
http://control.vpfa.fsu.edu/Treasury-CashManagement
 Policies & Procedures
 Forms
 Cash Handling Resources
◦ Guidelines
◦ Internal Control Questionnaire
◦ Templates
 Procedures
 Check Log
 Cash Drawer Reconciliation
◦ FAQs
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Treasury Management
Contacts
 Gayla
Burdick
Accounting Specialist
A6314 University Center
Mail Code: 2390
Phone: 850-644-9480
[email protected]
 Michelle
Hill
Accounting Specialist
A6312 University Center
Mail Code: 2390
Phone: 850-644-1821
[email protected]
 Dan Wussler
Assistant Controller
A6315 University Center
Mail Code: 2390
Phone: 850-644-1823
[email protected]
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CASH HANDLING
INTERNAL CONTROLS
JANICE FOLEY
25
Internal Controls Protect
the University
Without controls:
 Cash can be stolen
 Cash can be lost
 Revenues can be lost
 The University or program’s reputation
can be damaged
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Internal Controls Protect
the Employee
Without controls:
 Trust can be lost
 Individual reputations can be damaged
 Finger pointing/Accusations can be
directed at individual employees
You could lose your job!
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Internal Controls
Basics of Cash Handling
Segregation of Duties
 Security
 Reconciliation
 Management Review
 Documentation

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Simple Segregation of Duties
OMNI
Cash Log
Reconcile
Deposit
University
Cashiering
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Security
Background Checks
 Cash
 Credit Cards
 Cash Logs

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Security
Background Checks
University Policy OP-C-7-G12(A)
1. Pre-employment criminal history
background checks shall be required for the
following categories of staff employees:
a. A&P, USPS, and OPS positions that handle cash
(except petty cash), checks, or credit/debit
cards
2. Effective for all persons hired into positions
with cash handling responsibilities after
January 30, 2007
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Security
Background Checks
Need for background check should be in
job description and in OMNI
 For OPS:

◦ Complete the Background Request Form
◦ Contact your individual recruiter
$27.00
 Usually 48 hours turnaround time

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Security
Cash

During Working Hours
◦ Should have a separate cash box with a lock
◦ Cash box should be secured when not in use

Overnight
◦ Secure the cash box in locked drawer
◦ Secure the cash box in a safe
Secure keys
 Change combinations periodically and
after someone leaves

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Security
Credit Cards

Payment Card Policy (OP-D-2-G)
◦ PCI-DSS Security Requirements
◦ Employee Training Requirement

Other Policies
◦ Records Management (OP-F-3)
◦ Destruction and Shredding of Confidential
Documents and Records (OP-F-6)
◦ Safeguarding of Confidential and Personal
Information (OP-F-7)
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Security
Cash Log
Secure your cash logs
 If electronic:

◦ Limit access
◦ Write protect
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Reconciliation
Basics
Person who does not receive cash, record
the financial transaction or prepare the
deposit should:
 Compare the receipt received from the
University Cashier to the department
deposit
 Compare the cash log/receipt book to
OMNI financial records
 Initial and date these reconciliations!
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Reconciliation
Management Review
Review reconciliation documentation
 Add your initials and the date reviewed

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Document Procedures
Helps to ensure consistency with laws,
rules, and University policies and
procedures
 Records the knowledge of experienced
staff
 Provides a tool to assist new staff
perform regular duties

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Tips on Documenting Cash
Handling Procedures
Complete the Cash Handling Procedures
Template
 Compare your procedures to the
University’s Cash Handling Policy
 Identify needed changes
 Record or revise written procedures
 Implement

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Recent Audit Observations

Credit card transactions not handled
properly
◦ Credit card numbers are:
 Being taken over the phone
 Written down and not destroyed
 Written down and scanned to files
◦ Old credit card documents containing full
information not adequately secured

Background Checks not completed
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