Transcript Cash Handling Cash Handling Policies and Procedures May 27, 2015 Cash • Currency, coin, checks, money orders, travelers checks, credit cards, or debit cards.

Cash Handling
Cash Handling Policies and
Procedures
May 27, 2015
Cash
• Currency, coin, checks, money orders,
travelers checks, credit cards, or debit cards.
Cash Collection Centers
• Notify Controller if your department begins
handling cash. Departments should not accept
payments by currency without prior approval of
the Controller’s Office.
• Cash Collection Centers listing
– Emailed to centers in the spring of each year to make
changes.
• Responsible persons listed.
• Required cash handling training.
• Notify Controller of any changes in personnel responsible for
handling cash
Cash Handling Policy
• Cash must be properly safeguarded and
deposited timely – next business day.
• Only University employees (full, part-time, or
student) are permitted to handle cash.
Cash Handling Policy, Cont’d
• The full amount of cash collected must be
deposited with LaCap.
• May request petty cash from the Controller
Cash Handling Policy, Cont’d
• Access to cash should be restricted.
– Stored in a locked safe, cabinet or drawer and
safeguarded from fire and theft.
– Encourage the use of check payments instead of
currency.
• All checks should be made payable to “The
University of Louisiana at Monroe” or “ULM”
Cash Handling Policy, Cont’d
• All bank accounts must be set up by the
Controller’s Office.
– No employee may establish a University bank account
or deposit University funds into an unauthorized bank
account.
– Only the President, Chief Business Officer, Controller,
and the Budget and Investment Officer are allowed to
establish a university bank account.
– If any one else establishes a bank account using the
University’s name or federal ID#, this will be
considered an unauthorized bank account.
Departmental Procedures
• Immediately upon receipt, all checks and
money orders must be restrictively endorsed.
– For Deposit Only – ULM (first line)
– Department Name (second line)
Departmental Procedures, Cont’d
• Cash/checks received should be immediately
receipted in triplicate
– One copy for the customer, one copy for the
department, and one copy sent to LaCap
– Receipts should be numerical.
Departmental Procedures, Cont’d
• Must complete a departmental deposit ticket.
– Department must maintain a record of all deposit
tickets.
– Deposit ticket should include:
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Department name
Name of person preparing deposit
Department telephone number,
Correct University Banner fund, organization, and
account (Index and account)
• Brief description of transaction.
Departmental Procedures, Cont’d
• Must be deposited with LaCapitol within 24 hours. Must
stored in a safe or secure place until deposited.
• All cash received by departments must be supported by
appropriate documentation:
– Departmental deposit ticket
– Credit cards – individual credit card sales receipts.
– Any other document which will help to ensure proper
documentation and coding of funds which may include:
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Copy of check
Computer printout
Supporting spreadsheet or itemized list
Reconciliation
Internal memorandum
Letter from the payer
Departmental Procedures, Cont’d
• Funds deposited should be reconciled to the
receipt by the employee depositing the funds.
• Another employee, typically the supervisor,
should verify the funds.
• Once the deposit is made with LaCap, the
receipt should be matched with the
department’s copy of the deposit slip.
Departmental Procedures, Cont’d
• The deposit should be verified/reconciled to
the Banner System account (to be sure the
funds were properly recorded).
• If for some reason the deposit does not agree
with the Banner System, contact the
Controller’s office so that a correction can be
made.
Departmental Procedures, Cont’d
• In the case of monies found to be missing, or
if there is a suspicion of theft or diversion of
funds, contact the following:
– Controller
– University Police
– Dean or Division Head
– Office of Internal Audit
Cash Handling – Segregation of Duties
• Departments handling cash should separate,
to the extent possible, all duties relating to
cash handling.
– Should have a system of checks and balances.
– One employee preparing deposits, while a
different employee verifies the deposit in the
department’s Banner account.
Segregation of Duties, Cont’d
• Roles in the cash handling process
– Handling cash - Individual who accepts cash
payments, endorses checks and issues a receipt; this
individual has access to cash.
– Preparing deposit - Individual counting the cash and
preparing the Departmental deposit form or the bank
deposit form; this individual has access to cash.
– Reconciling receipts to deposit - Individual comparing
amount of cash collected based on register tape
totals, manual receipt book total, or listing of cash
receipts.
Segregation of Duties, Cont’d
• Roles in the cash handling process, continued
– Reviewing departmental deposit form - Individual
approving the departmental deposit form to ensure
the individual preparing the deposit is different than
the individual handling cash; this individual may not
handle or have access to cash.
– Making cash deposit - Individual making cash deposit
at LaCap; this person has access to cash.
– Verifying deposit in Banner - Individual comparing the
departmental deposit form to the amount recorded in
Banner.
Segregation of Duties with Three Employees
Individual #1
Individual #2
Individual #3
Handling
Cash
X
Preparing
Deposit
Reconciling
Receipts
to Deposit
Reviewing
Departmental
Deposit Form
X
X
Making Cash
Deposit
X
Verifying Deposit
in Banner
X
X
Segregation of Duties with Two Employees
Individual #1
Individual #2
Handling
Cash
X
Reconciling
Preparing
Receipts
Deposit
to Deposit
X
X
Reviewing
Departmental Making Cash Verifying Deposit
Deposit Form
Deposit
in Banner
X
X
X
Cash Handling – Segregation of Duties, Cont’d
• The Department Head/Budget Unit Head is
responsible for ensuring that money
deposited at LaCap includes all money
received.
– The Department Head or his designee should
review the department’s account on a regular
basis, but not less than monthly.
Returned Checks
• Checks returned by the bank for non-sufficient funds,
stop payments, or closed accounts result in additional
service fees to the University. Students or staff whose
checks are returned to the Controller’s Office for any of
these reasons will be assessed a returned check fee.
Students or staff who have several returned checks
may permanently lose their check writing privileges at
the University.
• Each department is responsible for collecting funds
owed when checks they accepted are returned by the
depository bank.
• Nicole Walker – [email protected], Controller,
#1040
• Amy Estes – [email protected], Associate
Controller, #5104