Cash Control Presentation
The University of Texas @ Austin
Cash Control Presentation
Objectives
• Review appropriate cash & internal
control procedures
• Examine resources available to
ensure adherence to procedures
• Discussion
Internal Control:
What is it?
A plan of organization and procedures
that helps ensure that:
– bookkeeping and accounting data is
reliable
– assets are safe
– a clear audit trail exists
– employees who do their jobs well
are protected
Internal Control:
What does it do?
A sound system of internal control:
– minimizes possibilities of errors
– minimizes possibilities of misuse of
funds
– provides a clear audit trail
– provides for the early detection of
errors and/or irregularities
Internal Control:
How do we get it?
• Separation of duties
– custody
– recording
– authorization
– monitoring/ reconcile
Internal Control
How do we get it?
(continued)
• The custodian is the person who
receives cash or check payments on
behalf of the University.
Internal Control
How do we get it?
(continued)
• The recorder is the person who
consolidates and reviews cash receipts
and prepares the deposit for either
the Cashier’s Office or the bank.
Internal Control
How do we get it?
(continued)
• The authorizer is
• The approver
responsible for
reviews
authorizing a
transactions/deposit
transaction such as
s for accuracy,
a journal voucher,
proper
purchase or refund.
authorization, etc.
The approver also
determines if a
transaction should
continue to be
executed.
Internal Control
How do we get it?
(continued)
• The reconciler reviews and reconciles
ledgers, bank statements or statement
of accounts every month to identify
errors or discrepancies, and either
resolves them or brings
them to the attention
of supervisors.
Internal Control
How do we get it?
(continued)
Cashier
Approver/Authorizer
Recorder
Reconciler
Internal Control
How do we get it?
(continued)
• 3 Types of Separation of Duties
- Separating the custody of assets from
the accounting role
- Separating the authorization/approver
role from the custody of assets role
- Separating duties within the accounting
function
Internal Control
How do we get it?
(continued)
Roles
Custodian
Recorder
Approver/
Authorizer
Reconciler
Conflicting
Roles
Recorder
Custodian
Custodian Custodian
Approver/
Authorizer
Approver/
Authorizer
Recorder
Reconciler
Reconciler
Recorder
Reconciler Approver/
Authorizer
Internal Control:
How do we get it?
(Cont.)
• sound procedures for authorizing,
recording, and reporting transactions
• qualified and trained personnel
• consistently adhering to the above
Cash Control Presentation
The University of Texas @ Austin
THE END