Cash Handling – It’s my job
Whether you take
in lots of money
or…you collect
“pennies”
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……..the principles of good cash handling
are basically the same.
•Segregation of Duties
•Security
•Reconciliation
•Management Review
•Documentation
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What is included in “Cash Handling” ?
•Coins
•Currency
•Checks
•Money Orders
•Credit Cards
•Cash Equivalents
Tokens
Tickets
Stamps
Gift Cards
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First, let’s talk about risk and controls….
Who or what is at risk?
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Risk?
•Cash is stolen
•Cash is lost
•Lost revenues
•No audit trail
•Finger pointing/Accusations
•Lost job!
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Risk and Controls
Remember – In the cash collecting
process, YOU are just as important as the
cash………..
The controls (rules) that we will discuss
are designed to protect both YOU and the
cash you are handling.
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Before cash collection begins…..
“The planning checklist”
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Is a change fund needed?
How is cash received? Mail or in person?
Who is going to collect the cash? Record the cash?
How is the cash going to be secured?
Who is going to prepare the deposit? How?
Deposit at the Bank or Treasurer’s Office? When?
Reconciliation? Management Review?
Who needs training?
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Making Change
• Is a change fund needed?
• If so, then you need to:
– Send a written request for change fund to
Accounting
– Keep amount at a bare minimum
– Keep the cash safe
Never make change from your personal
cash!
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Collecting the Cash
• How is cash
received?
• Who is going to
collect the cash?
• Who will record the
cash?
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Collecting the Cash In Person
• The cash received must be entered on
a cash register, if one is available, and
a copy of the receipt given to the
customer.
• If a cash register is not available, then
create a dual copy receipt, keep one for
balancing, and give one to the
customer.
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Collecting the Cash In Person
• The cash collection
point must maintain a
clear separation of
duties.
An individual should not
have responsibility for
more than one of the
cash handling
components:
– Collecting/Depositing
– Reconciling
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Collecting the Cash In Person
• Immediately endorse all checks with a
restrictive endorsement payable to
“Iowa State University” and the
corresponding departmental
fund/account number.
For Deposit Only
Iowa State University
201 00 00
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Collecting the Cash by Mail
• Designated staff should open
the mail and immediately
restrictively endorse each check
with ”For deposit only to Iowa
State University”.
• Log into the Kuali Financial
System (KFS) and enter the
details of each check
• Alternatively, departments may
enter the detail in their own
database system and enter only
summary information into the
KFS.
For Deposit Only
Iowa State University
201 00 00
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Collecting the Cash by Mail
• Checks received that were
intended for another department
should be restrictively endorsed to
“Iowa State University” and
forwarded to that department for
deposit.
• If the intention is unclear, the
check should be restrictively
endorsed to “Iowa State
University” and sent to the
Treasurer’s Office to handle.
For Deposit Only
Iowa State University
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“Now that we have collected the
cash, what do we do with it?
• Secure
• Balance
• Deposit
• Reconcile
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How is cash going to be secured?
• Cash must be stored in
a safe or other secure
place until it is
deposited.
• Whether your
department uses a safe
or a locked cash box, it
is very important to
change the combination
when someone who
knew the combination
leaves the department.
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How is cash going to be secured?
WHILE in Use…
• If making change is necessary, each
person collecting cash should have a cash
box or drawer that no one else uses.
When not in Use…
• Secure the cash box in a locked drawer
and limit access.
• Secure the cash drawer by locking it and
limiting access.
When Collecting…
• When collecting payments in a high traffic
area, you may want to consider installing
an alarm system. (Contact Department
of Public Safety for guidance)
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Balancing
Balancing
Every day, all cash receipts
must be balanced.
• Compare the cash (currency,
coin,
checks, credit card
receipts, etc.) to the records
(cash register tapes, receipt
copies, sales logs, etc.)
• Identify and resolve any
discrepancies.
• Sign and date to provide
evidence of balancing.
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How to prepare the deposit.
• All cash sales must be recorded
through the use of the Kuali
Financial System (KFS) in
Access Plus
(https://accessplus.iastate.edu/
frontdoor/login.jsp).
• An adding machine tape of the
individual checks with the total
of all the checks must be
included with the deposit.
• The currency must be sorted by
denomination bundled into
groups of $100.
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How to prepare the deposit.
• Once the deposit has been submitted in the Kuali
Financial System, a document number is assigned.
• This document number, along with the cash and
checks, must be delivered to the Treasurer’s Office
(1220 Beardshear).
• For those departments that are not conveniently
located to the Treasurer’s Office, checks may be
sent by campus mail.
• All currency and coin must be hand delivered to
the Treasurer’s Office (1220 Beardshear).
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How to prepare the deposit.
• When cash receipts are less than $100, the
deposit must be delivered within 5 days.
• Monies exceeding $100 should be delivered
within 2 days.
• Employees are held personally liable under
their bonds for all monies handled.
• The responsibility for monies does not cease
until the monies are deposited with a
completed and correct Kuali Financial System
(KFS) transaction and verified by the
Treasurer’s Office.
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Reconciliation
• Verify that all transactions are
complete, recorded, and
deposited on a timely basis.
• This function must be
performed by an employee
who has no cash handling
responsibilities.
• Reconciler investigates and
resolves discrepancies, and
initials (or signs) and dates
documentation reconciled.
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Reconciliation
• Monthly, compare the
deposits submitted per
Kuali Financial with your
Departmental Statement.
• Evidence of reconciliation
must be maintained by
the department.
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Management Responsibilities
• Establish an effective internal control
system.
• Delegate responsibility for cash handling,
while maintaining proper segregation of
duties.
• Require that staff who handle cash be
properly trained and that they follow all of
the University’s cash handling policies and
procedures.
• Review reconciliation on a regular basis,
then sign & date documentation review.
• No matter who is collecting, depositing, and
reconciling cash, Management is ultimately
accountable.
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Segregation of Duties
• This is the most important control in the cash
collection process, and often, the most
difficult to manage. A different person
should be involved in each step: recording of
charges/billing, cash receipting, cash
depositing, and reconciliation.
• If the segregation of duties is a problem for
your department, please contact Internal
Audit for guidance.
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Record Retention
• Keep the following documents
for five years:
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Cash Register “total” tapes
Departmental Copy of receipt
Electronic Sales Log
Cash over/short record
• Credit Card receipts must be
kept 18 months.
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Transporting Cash
• If you have responsibility for
taking the cash deposit to the
Treasurer’s Office, please:
– Put deposit in a cash bag or
envelope
– Do not be conspicuous
– Do not take the same route or go
at exactly the same time every
day
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Cash Equivalents
If you have the responsibility for cash
equivalents such as parking passes or
gift cards, remember that they must
be treated as if they are cash:
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Secure in a locked safe or drawer.
Record the sale.
Balance sale.
Deposit cash promptly.
Reconcile sales against statement of
accounts.
Resolve all outstanding issues.
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Cash Handling Policy
Please take the time to read and review
the University’s Cash Handling Policy
online at:
http://www.treasurer.iastate.edu/policies/cashhandling.html
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