CONTROLLER’S OFFICE PROCEDURE
Procedure
Number
C-CA-006
Subject
Departmental Cash Procedures
Effective
Date
Revised
Date
01/01/2006
08/26/2010
DEPARTMENTAL CASH CONTROL PROCEDURES
Department heads and managers of units that collect University funds remain
primarily responsible for ensuring that adequate control procedures have
been put in place and maintained to secure University collections and change
funds. This policy has been established to provide a framework for guidance
and coordination in this area and for establishing minimum control standards
relative to cash handling. Only those departments or units who have applied
for and have received approval will be authorized to function as a University
Cash Collection Point.
DEFINITIONS
Cash
For purposes of this policy cash is defined to include currency, checks, money
orders, and credit/debit card collections.
Cash Collection Point
A cash collection point is defined as a department, event, club or other entity
which collects more than $1,000 annually and the source of the revenue is
other than recovery of expenditures such as telephone, copies, etc., unless
these types of reimbursements occur frequently. All Cash Collection points
must be authorized by the University Controller’s Office before collections
begin.
Internal Controls
Internal controls generally comprises the plan of organization and all of the
coordinated methods and measures adopted within a business to safeguard
its assets, check the accuracy and reliability of its accounting data, promote
operational efficiency, and encourage adherence to prescribed managerial
policies. For purposes of this policy the emphasis on controls will generally be
related to the methods and practices necessary to ensure the safeguarding of
University cash collections and change funds.
CASH COLLECTION POINT
Approval
Only those departments or University related entities that can demonstrate
the ability to establish appropriate control procedures and comply with
prescribed cash handling guidelines will be approved as Cash Collection
Points.
Responsibilities
The Controller’s Office will make periodic reviews of the cash collection points
and/or request that managers of the areas attend periodic training and/or
submit completed internal control questionnaires relative to their cash
handling procedures. Additionally, the University Inspector General and the
staff of the State Auditor General's Office routinely conduct audits of cash
collection points. Failure to follow appropriate procedures may result in an
audit criticism and the loss of authority to serve as an authorized cash
collection point.
Any department functioning as a cash collection point without receiving the
required approval by the Controller’s Office incurs the risk of losing budgetary
spending authority for the funds collected, in addition to the possibility of
incurring other appropriate disciplinary action. Any significant changes within
a cash collection point relating to personnel duties or procedures should be
brought to the attention of the University Controller’s Office. Additionally, the
Controller’s office will make periodic unannounced visits to audit the cash-inhand at various collection points.
INTERNAL CONTROL REQUIREMENTS
General
It is recognized that no one control model effectively or efficiently fits the
needs of all cash collection areas. However, there are certain standard control
procedures that will be in place. In such cases, there would be an expectation
that alternative or compensating control procedures be put in place. The
standard control procedures generally expected to be established at each
cash collection point are as follows:
For collections not received through the mail, but rather in person, proper
receipting devices, such as cashiering terminals, are to be used to receipt
funds at the initial point of collection so that all customers are provided with a
receipt or cash register tape. Cash registers should have appropriate control
features and the operator should not have the ability to reset totals.
An employee with no cash handling responsibilities (who does not collect or
deposit funds) should ensure that all funds receipted for have been properly
deposited and recorded. This separation of duties is key to an effective control
process. The individual that provides this check and balance is someone with
the accounting responsibility. Persons with the responsibility for maintaining
and billing accounts receivable should not be given responsibility for collecting
payments.
Collections received through the mail must be receipted or logged and
restrictively endorsed for deposit only at the earliest point in the collection
process. These receipts or logs must subsequently be compared with the
deposit and collections recorded. One copy of the completed log must be
placed in the mail-log notebook and another copy of the log is to be returned
to the office manager.
Different employees must not work simultaneously out of the same cash
drawer and whenever funds are transferred among employees responsibility
should be fixed through some receipting mechanism.
Cash collections and change funds must be adequately secured at all times.
Cash drawers must be locked when a cashier must be away from his or her
workstation. Safe combinations are to be changed periodically or when
someone leaves.
Persons with assigned cash handling responsibilities must be given clear
written procedures regarding their responsibilities with regard to the handling
and control of cash collections or change funds. It must be made absolutely
clear to such individuals that personal loans or the cashing of personal checks
from cash collections or change funds is prohibited. At a minimum, persons
handling cash must be required to read these cash handling procedures and
sign a copy acknowledging that they have read and understand them.
Processing Payments
Cash
Cash is always counted in front of the customer and a receipt given to the
customer.
Checks
A. Checks received should be made payable to UNF.
B. The following information must be recorded on checks received from
students, faculty or staff:
1. Name
2. Current address and phone number
3. Driver’s License number and state of issue
C. For checks received from individuals other than students, faculty, or staff,
the following information regarding the identity of the person presenting the
check must be written on the check (Does not apply to checks received
through the mail):
1. The presenter's full name
2. Residence address
3. Home phone number
4. The driver's license number or state identification number, specifying the
state of issuance of the person presenting the check. (Ref. 832.07(2)(b),
F.S.)
D. The Cashier’s Office will return any check that cannot be accepted if it is
incorrectly written or there is a previous NSF check. Checks must be
restrictively endorsed immediately upon receipt. Restrictive endorsement
stamps will be provided by the Cashier’s Office.
Voids
Voided receipts or transactions must generally be approved by supervisory
personnel. All copies of the voided receipt form must be retained or returned
with the deposit.
Payments Received by ACH or wire transfer
Prior to initiating the receipt of payments by ACH or wire transfer, appropriate
arrangements must be made with the Treasurer’s Office and Accounting
Services section of the Controller's Office.
PREPARING AND TRANSMITTING DEPOSITS
As noted earlier, daily sales reports must generally be prepared and overages
and shortages appropriately noted. Deposits must be made intact and agree
with the totals of the daily sales reports.
Cash is to be counted by two employees and placed in the deposit bag. Two
tapes are run on the checks. One tape is attached to the checks and the
other tape is attached to the transmittal (cash-out sheet). Cash and checks
are separated & enclosed in disposable deposit bags furnished by the
Cashier’s Office and sealed after verification. Both employees verifying the
deposit are to initial the transmittal (cash-out sheet). Each deposit slip is to
bear the amount of cash or checks along with the department name, deposit
bag number, and cashier name/ID. Place the white copy of the deposit slip in
the deposit bag with the cash or checks; attach the yellow copy to the
transmittal (departments retain the pink copy for their records). Credit card
payments and the settlement tape should be attached to the transmittal also.
For those departments using Remote Deposit Capture (RDC) the checks are
scanned and a copy of the detail report is kept with the checks for 14 days
before destroying. There is no deposit bag for checks. A copy of the detail
report is sent to the Cashier’s Office with the transmittal (via the Q:Drive)
Transmittals must designate the foapal information—index, fund,
organizational code, account code, & program code number that the funds are
to be deposited to. The transmittal must include the total of each payment
type that comprise the deposit. Notification will be given of any discrepancies
in the deposit and the funds will be charged back to the department, if
necessary.
The deposit is to be forwarded to the Cashier’s Office or directly to the bank
(if armored car service is available). Deposits should not be transmitted to the
Cashier’s Office through campus mail or placed in a mail box. Departments
should ensure that deposit bags are sealed and appropriate security is
provided when deposits are transported across campus or from off-campus
sites. Departments must submit a University deposit slip (or RDC detail report
for scanned checks) and a transmittal form to the Cashier’s Office regardless
of how the deposit is routed to the bank. Individuals delivering deposits to the
Cashier’s Office should obtain a validated receipt at the time the deposit is
delivered except during the week of drop/add (due to the heavy volume of
students).
There is a drop box on campus for departments to deposit their deposit bags
and transmittals. Make sure deposit bags are sealed before placing in the
drop box. These are retrieved each morning by Cashier Office personnel.
Departments using the Wachovia RDC (Remote Deposit Capture) system, will
scan the detail report and post it and their transmittal on the Q:Drive in their
unprocessed folder within the Controller Transmittal Forms folder. Once the
Cashier Office staff process the transmittal, the department will be able to
view the receipt in their processed folder. All files names contain the
transmittal date. Do not delete files in the Controller Transmittal Forms
folder.
Credit and debit card collections are transmitted at the point of sale. The
totals for each type of credit card must be indicated on the transmittal to
ensure proper recording by the Cashier Office staff. A copy of the summary
total report along with a University deposit slip and transmittal must be
forwarded to the Cashier’s Office daily. Deposits must be made daily.
Online Departmental Deposits
Those departments posting their deposits online via the iPayment portal must
adhere to the same cash handling and internal control procedures as noted
above. Different employees cannot share the same payfile or cash drawer.
Deposits are completed in the same manner as noted above. Departments
must prepare their deposits and send the necessary back-up information to
the Cashier’s Office to process the daily cash receipts package.
AUTHORIZATION TO ESTABLISH A PETTY CASH OR CHANGE
FUND
If a department has a need for a petty cash or change fund, appropriate
arrangements must be made through the Controller’s Office. Temporary funds
for special events can be arranged through the Cashier’s Office as well with
timely notification.
SALES AND UNRELATED BUSINESS INCOME TAXES
University departments or related entities must be aware that the sale of
certain goods or services may be subject to State sales tax and/or Federal
Unrelated Business Income Taxes (UBIT). Concerns or questions regarding
tax issues must be addressed to the Accounting Services section within the
Controller's Office.
AUTHORIZATION TO ESTABLISH BANK ACCOUNT
All University funds are required to be deposited through appropriate
University accounts. The establishment of bank accounts by State entities
outside the State Treasury is tightly regulated and is only authorized under
very limited circumstances. University departments should never open an
account with a private bank or credit union without the expressed written
authorization from the University Controller.
RESOURCES
Deposit slips, endorsement stamps, transmittals and cash count will be
provided by the Controller’s Office. Bags are available at the Cashier’s Office.
Training will be provided by the Cashier’s Office as needed.
Any questions, comments or requests for supplies should be directed to the
Bursar (or designee) or via e-mail cashier@unf.edu.