UCSF Cash Policy Highlights
This course highlights key cash control policies and
practices to be followed at UCSF. It reinforces cash
handling performance expectations. It also clarifies
and updates cash handling procedures and policies
as changes may occur.
All UCSF cash handlers and supervisors of cash
handlers are required to review this course annually.
1
The Need for Cash Control
Cash and other forms of income are the lifeblood of any
organization. They are needed to run any business--including
UCSF! As with any cash-based organization, one of the
University's major goals is managing cash and other forms of
income from the time it is received until it is deposited in the
bank.
Effective cash control processes are critical! Any breakdown
in them results in:
 cumulative losses that can hurt an organization
 its inability to spend its income in a way that will help it
remain competitive
 investigation, fines and jail time for those prosecuted,
and
 damage to the credibility of an organization and its
potential to generate future income.
Let’s look at an actual situation.
2
Quiz 1
The job of the Head Cashier at UCSF is to ensure the security and proper disposition of
all university funds. In the 1990s, the Head Cashier at the time took it upon herself to
personally handle all tasks associated with the disposition of university funds. This
included handling bank statements and bank notices of errors. She handled these tasks
for an extended period of time. The university subsequently discovered that she
embezzled as much as $4.5 million of the university’s funds!
If you were a benefactor of the university, imagine what you would think – you donate
money to advance the university’s mission and then discover that your contribution
walked out the door in somebody’s pocket! What might be some actions that you can
think of to have prevented the above situation from happening? (Check all that apply)
 Document in greater detail all the actions that were actually taken to dispose of
funds
 Ensure that someone was monitoring her actions to catch it sooner instead of letting
it continue undiscovered for such a long period of time
 Separate the duties among several lower level people rather than just have one
person do it.
 Train the University’s Head Cashier better in the methods of cash control and
accountability.
3
Cash Control Policies
The cash policies of UCSF ensure that three major cash
control components are present and working together. These
components are:
1. ensuring that those who handle cash are properly
certified and trained,
2. having effective cash control processes in place and
followed, and
3. a means of regular accountability embedded within the
process.
In the following topics, we'll discuss each of these
components.
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Cash Control Component 1
Certify and Train Cash Handlers
Know who your
cash handlers
are. Equip them
with clear
performance
expectations and
guidelines.
The first of the three major UCSF cash control components is
ensuring that cash handlers are properly certified and trained. In
performance terms, build cash control accountability by:
 knowing clearly who is authorized to handle cash in your unit,
and
 setting and annually reinforcing clear cash handling
expectations
The following steps apply to regular or occasional cash handlers. It
applies to "backup depositors" as well.
1. Cash Handlers should be registered by emailing depositor
name, phone number, and location to
cashcontrolsvcdesk@ucsf.edu.
2. Refer the designated Cash Handler to the UCSF Police
Department for fingerprinting and a background check.
3. Cash Handlers are required to complete this online refresher
course, "UCSF Cash Policy Highlights" annually.
Supervisors/Managers should ensure the employees meet this
obligation. The Controller's Office will monitor all participation.
5
Cash Control Component 2
Effective Processes
With the cash handler registration process in place, you are
now better able to track your cash handlers. By requiring that
your cash handler complete the online CASH course, you will
also have established performance expectations and
guidelines for the performance of these duties.
Ensure that your cash
control practices are
followed consistently to
prevent cash loss.
The second component is to ensure that you have sound cash
control practices in place that are being followed consistently.
The sole purpose of these practices is to protect all cash and
cash equivalents from loss AT ALL TIMES from the moment
they are received until deposited with the bank.
In this section, we will review:
 Cash and Cash equivalents
 Physical security of cash
 Frequency of depositing cash
 Campus drop safes
 Validation of cash deposits
 PCI-DSS and its penalties
 Practices for petty cash and change funds
 Unclaimed check processing
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Cash/Cash Equivalents Received
"Cash" covers the various ways in which people pay for
products and services at UCSF. These methods are of
two general categories:
Control all
methods of
payment
appropriately.
Actual Cash
Actual cash is composed of currency (paper money) and
coins--the stuff that we're accustomed to carrying in our
purses, wallets, and in the crevices of our couches and
car seats.
Cash Equivalents
Cash equivalents are all the other ways in which people
pay for products and services at UCSF. These include
such payment methods as: checks, money orders, credit
or debit cards, Automated Clearing House (ACH)
Payments, and wire transfers.
"Cash equivalents" all have cash value and are easily
converted into cash.
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Maintain Physical Cash Security
All cash and cash equivalents need to be physically
protected from loss AT ALL TIMES. Enact these major
physical security practices:
 Ensure that all cash and cash equivalents are locked
in a secure receptacle or safe, whether the cash
handler is present or must step away from it.
Make sure your
cash is physically
secure, whether
you are in its
vicinity or not.
 Ensure that employees who are transporting cash are
protected by
• using Armored Car Services, where appropriate
• assigning them to transport cash and deposits in
teams of two to ensure dual custody
• using campus drop safes
• keeping the minimum amount of cash on hand
when possible.
 Mail should be opened in double custody.
8
Use Campus Drop Safes
Campus drop safes are highly secure cash holding facilities
that are located throughout UCSF. Make deposits to our
drop safes located at these locations:
 Parnassus (Millberry Union G Level)
Use drop safes
that are located
throughout
UCSF.
 Laurel Heights (near the guard station)
 Mission Center Building (near the guard station)
 San Francisco General Hospital (Bldg. 20,4th Floor)
 Mission Bay (Genentech Hall, near the guard station)
 Mt. Zion Hospital (near the 1st floor Security Office)
9
Keep Minimum Cash On-Hand
Crooks can't steal cash that isn't there!
Keep cash secure by keeping only the
minimum amount of needed cash on hand. In
practice, this means making regular cash
deposits, rather than letting cash accumulate
at your location.
The University of California policy regarding
when to deposit cash/cash equivalents is
straightforward:
Deposit once a week or when you have a
total of $500 or more--whichever comes
first!
Give what you have, but let's keep it to a
minimum! What is the minimum amount of
cash that you need to function each day?
Use only deposit slips that are preprinted
with special location codes.
10
Process Unclaimed Checks
The following administrative policies help to maintain the
security of unclaimed checks.
Use drop safes
that are located
throughout
UCSF.
 All outstanding vendor and payroll checks are stale
dated after 180 days from the issue date. They are
then transferred monthly to Unclaimed Checks
accounts, such as 20653, 26457, etc.
 Checks under $100 are "written off" after 1 year and
those $100 and above are "written off" after 4 years
(UCOP Policy C-173-78).
Practice
Credit the original fund sources for non-federal vendor
checks or transfer them to #26457 and remit the funds to
the US Government.
11
Secure Credit Card Information
Secure credit
card
information.
Whether you receive credit card payments in person or via a
website account, lock up all credit card information and
receipts. Grant access to this information only on a "need-toknow" basis. It is against UC policy for departments to
transmit or receive credit card information by fax. For further
information regarding an exception to policy, contact the
Campus Cash Coordinator. Lack of proper controls resulting
in a breach of credit card information can result in penalties
starting at $100,000.
To assist you in the credit card security effort, the Campus
and Medical Center have implemented strong information
access control measures to prevent hacking or unauthorized
access to personal information.
Starting in the Fall of 2010 mandatory training will be
required of everyone that accepts or processes credit cards
annually.
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Cash Control Component 3
Accountability for Validating Cash Deposits
Administrative accountability for validating cash deposits is now
vested in the following organizations:
 All funds received for sponsored agreements such as:
clinical trials, contracts and grants, etc., are deposited and
journalized by the Extramural Funds (EMF) Department.
 Private gifts are handled by the Gift Administration
Department. (For specific instructions see Cash Policy
300-14.)
 Other miscellaneous receivables or receipts are processed
by individual departments. On a regular basis,
departments are required to review deposits made to the
appropriate GL account on MyReports.
 The Controller’s Office (CO) has special oversight
responsibilities that are discussed next.
13
Controller’s Office Accountability Practices
The Controller’s Office (CO) plays several key accountability roles:
 Downloads bank deposits daily from Bank of America Direct in
an Excel spreadsheet format. It then matches all deposits with
the cash journals prepared by the departments.
 Monitors university assets by reconciling bank accounts on a
daily and monthly basis.
 Reconciles all Balance Sheet related accounts (monthly or
quarterly) to ensure our financial statements are accurate, and
 Clears or resolves within 60 days all un-reconciled items.
14
Special Procedures
Petty Cash and Change Funds
Access to Petty Cash and Change Funds is restricted to
authorized custodians only. Access to the fund is limited to
one custodian. Those to whom fund custodian responsibility
is to be delegated must now qualify by:
 being finger-printed,
 having their background checked, and
 completing the online training: "Policies for Petty Cash
Handlers".
 training is mandatory for all custodians annually.
15
Petty Cash and Change Funds
Petty Cash and Change Fund managers should account for
all cash movement in and out of these funds accurately, in
writing, and in a timely manner.
The University closely monitors the creation of new Petty
Cash and Change Funds, increases in existing funds, and
changes in fund ownership.
In addition, the Controller’s Office now conducts periodic
verifications AND surprise audits and cash counts to
confirm that fund balances are accurate. It also monitors
reimbursement requests for accuracy. Please ensure that
original receipts are submitted. Department Managers are
also required to perform periodic cash counts. Refer to
Petty Cash Policy 300.32.
All shortages are promptly reported to the Internal Audit
Service Department.
Follow the Petty Cash Fund procedures.
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Summary of Control Practices
Implement the following cash control practices described in this course.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
Safe-guard cash and cash equivalents.
Prevent unauthorized access to personal information from checks or credit cards.
Deposit once a week or when total on hand reaches $500 or more; whichever comes first.
Deposits with currency over $5,000 must be prepared in dual custody.
Keep copies of all checks deposited according them the same protection as you would cash.
Journalize all cash receipts on-line accurately within 5 working days of deposit.
Do not attach copies of checks or credit card information to journals.
Review, approve, and submit all cash journals by the close of the 2nd business day following the
end of the month.
Reconcile cash on a daily/weekly/monthly basis.
Resolve outstanding and un-reconciled items on a timely basis.
Separate deposit and journal preparation duties among different people (Separation of duties).
Perform surprise cash counts and report discrepancies immediately to the manager and to the
Controller’s Office.
Monitor and ask questions about any un-posted, unidentified, or undistributed items.
Rotate assigned tasks among cash handlers.
Update internal policies and procedures and inform staff regularly.
Ensure Cash Handlers and Petty Cash Handlers take appropriate online courses annually.
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Contacts and Assistance
http://controller.ucsf.edu/cash_handling/
If you need assistance with…
Cash Coordination and General Questions
Cash Reconciliation
Refer to the Controller’s
Office website…
Cash Handling and Deposits
Contacts page
Cash/Check Deposits
Unclaimed Checks
Credit Card Charges
Petty Cash
Cash Journals Approval
Sundry Receivables
Intercampus / Financial Control
Financial Reporting Contacts
page
Account Fund Profile
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Policy and Procedural References
Topic
UCOP Policies
References
BUS 49 Policy for Handling Cash and Cash
Equivalents
C-173-78 Unclaimed and Uncashed Checks
UCSF Financial
Administrative Policies
300-14 Cashiering
300-15 Change Funds
300-32 Petty Cash Funds
300-34 Special Cash Funds
Resources
Controller's Office website: http://controller.ucsf.edu/
Understanding Internal Controls - a Reference
Guide for Managing University Business Practices
www.ucop.edu/ctlacct/
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Implementation
Translate policies into daily actions!
Thank you for reviewing carefully the contents of this course! The next step is
IMPLEMENTATION!
The University relies upon you to implement the policies outlined in this and the
other courses sponsored by the UCSF Controller's Office. By doing so, you are
protecting the assets used to advance the University's important mission. You
are also protecting the University's credibility and ability to attract future
funding.
To complete this course, all that's needed is for you to complete the final quiz.
Please continue to the final quiz.
20
Final Quiz – Question 1
What three requirements must a Cash Handler meet to comply with the UCSF Cash
Handling Policy? (Choose three.)
 Take the course “Working with Integrity: Ethics for the UCSF Community.”
 Have fingerprints taken and background check processed by the UC Police
Department.
 Take the online course “Policies for Petty Cash Handlers.”
 Register with the Controller’s Office.
 Sign up with Human Resources as working in a sensitive position.
 Take the mandatory refresher course “UCSF Cash Policy Highlights” annually.
21
Final Quiz – Question 2
Policy says that certain deposits must be prepared in dual custody. In what circumstance
is dual custody required?
 Checks that total over $5,000
 Total deposits over $100,000
 Currency over $5,000
 Deposits that consist of currency
22
Final Quiz – Question 3
Which statement best describes the University of California’s deposit policy?
 You should deposit every week regardless of the amount.
 You should deposit currency weekly regardless of the amount.
 You should deposit when the total of your checks reach $500 or more.
 You should deposit once a week or when the total is $500 or more – whichever
comes first.
23
Answer Quiz 1
The job of the Head Cashier at UCSF is to ensure the security and proper disposition of
all university funds. In the 1990s, the Head Cashier at the time took it upon herself to
personally handle all tasks associated with the disposition of university funds. This
included handling bank statements and bank notices of errors. She handled these tasks
for an extended period of time. The university subsequently discovered that she
embezzled as much as $4.5 million of the university’s funds!
If you were a benefactor of the university, imagine what you would think – you donate
money to advance the university’s mission and then discover that your contribution
walked out the door in somebody’s pocket! What might be some actions that you can
think of to have prevented the above situation from happening? (Check all that apply)
 Document in greater detail all the actions that were actually taken to dispose of
funds
 Ensure that someone was monitoring her actions to catch it sooner instead of letting
it continue undiscovered for such a long period of time
 Separate the duties among several lower level people rather than just have one
person do it.
 Train the University’s Head Cashier better in the methods of cash control and
accountability.
24
Answer Final Quiz – Question 1
What three requirements must a Cash Handler meet to comply with the UCSF Cash
Handling Policy? (Choose three.)
 Take the course “Working with Integrity: Ethics for the UCSF Community.”
 Have fingerprints taken and background check processed by the UC Police
Department.
 Take the online course “Policies for Petty Cash Handlers.”
 Register with the Controller’s Office.
 Sign up with Human Resources as working in a sensitive position.
 Take the mandatory refresher course “UCSF Cash Policy Highlights” annually.
25
Answer Final Quiz – Question 2
Policy says that certain deposits must be prepared in dual custody. In what circumstance
is dual custody required?
 Checks that total over $5,000
 Total deposits over $100,000
 Currency over $5,000
 Deposits that consist of currency
26
Answer Final Quiz – Question 3
Which statement best describes the University of California’s deposit policy?
 You should deposit every week regardless of the amount.
 You should deposit currency weekly regardless of the amount.
 You should deposit when the total of your checks reach $500 or more.
 You should deposit once a week or when the total is $500 or more – whichever
comes first.
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