Contents
Page
Introduction ............................................................................
2
1
Internal Control Practices .......................................................
2
2
Incoming Cash Procedures......................................................
3-6
3
Change ....................................................................................
7
4
Petty Cash Floats/Till Floats/Safe Floats .................................
7
5
Individual Petty Cash Claims ...................................................
7
6
Security ...................................................................................
8-9
7
Audit Summary .......................................................................
9
8
Payment Card Industry Data Security Standard (PCI DSS) ......
10-16
9
Unidentified Cash....................................................................
17
10
Credit Control Policy for Credit Balances................................
18-19
11
Anti-Money Laundering Rules ................................................
18-19
12
Appendices .............................................................................
21-31
1
Introduction
Purpose of Document
The purpose of this document is to provide a consistent direction for the management of cash and
receivables, ensuring adequate control standards are in place to secure the University’s collections
and funds.
These rules and instructions apply to all staff that process or collect payments on behalf of the
University and forms part of the financial processes documentation, issued from time to time by the
Chief Operating Officer under the authority of the Financial Regulations. Compliance by all Individuals
associated with the University is mandatory and subject to audit. Under the Financial Regulations it is
the responsibility of the Deans of Faculty and Directors of Service to ensure all staff comply with
financial processes.
1) Internal Control Practices
It is recognised that no single control standard effectively or efficiently fits the needs of all cash
collection areas; however, there are standard control procedures that are mandatory. It may be
possible to vary some procedures in this document for specific local conditions but it is expected that
a compensating control procedure be put in place and must have the prior written approval of the
Credit Control Manager. The following is a list of standard procedures for reference (see relevant
section for full procedures) which must be adhered to.
•
•
•
•
Separation of Duties - One of the most important steps to take to protect cash and staff is
separation of duties. With proper separation no single person has control over the entire
cash process. Anyone assigned with cash handling responsibilities should be given training
and clear written procedures regarding their responsibilities with regard to the handling and
control of cash.
Accountability - Cash accountability ensures that cash is accounted for, properly documented,
secured and traceable to specific cash handlers.
Security – Cash access should be restricted to as few people as possible. It should always be
counted in a secure location accessible only by Northumbria staff. Cash should be stored in
an insured safe until it can be transported by Security to the Cash Office for banking.
Collection of cash must be sent to the Cash Office on the same day or following day (CLC is
the exception as security collections are 3 times per week) as per Financial Regulation 16.3.
Reconciliation & Review - All transactions must be recorded through a receipting device and
reconciled on a daily basis. Reconciliation activities confirm that transactions have been
correctly recorded and accounted for.
Prepared by Carol Bonner Credit Control Manager & Janet McAllister Cash Officer Northumbria University June 2014
2
2) Incoming Cash Procedures
Floats – at the start of each shift the float should be checked and agreed between the cashier and
the line manager/supervisor.
Transactions – all sales transactions should be processed through the till/receipting device. This
includes cash, credit/debit cards, cheques, vouchers etc. Any time cash changes hands this must be
agreed verbally by both parties.
Receipts – An official University receipt must be issued if requested by the customer and notices
must be displayed near the point of sale informing customers of this facility.
End of Day Process – at the end of the day a flash/z/terminal reading will be taken by either a
supervisor or team leader. The preferred option is for supervisors/team leaders not to operate the
tills but where they do so then the next line manager should take the reading thereby ensuring
separation of duties. All cash is counted and the fixed float removed from the total. A drawer record
total sheet will be used for this purpose. This information is transferred to the Daily Income
Reconciliation sheet which is also used to record: Date
 Flash/Z/Terminal reading
 Vouchers
 Account Transactions
 Cheques
 Chip & Pin Transactions
 Pay Point Transactions
 Float
The actual cash balance is reconciled to the theoretical cash balance (per
Flash/Z/Terminal reading) and any variances recorded. Refer to section cash
discrepancies particularly with amounts in excess of £5. Any variance requires local
investigation regardless of the amount.
The information (Appendix 2) is recorded daily electronically at the main sites where there is
an administrative function. Recorded manually in smaller units and the information passed
daily to the administrator. The electronic copy must be printed on a daily basis, signed and
filed for 6 years plus current.
There must be no alteration to electronic copies once the worksheet has been printed and
signed for. Random checks will be initiated by senior line management, on instruction from
/or the direction of the Finance Department or Internal Audit
Banking Process – All income however small must be banked on a daily basis. The actual cash figure is used
for the banking process and wherever possible, consolidate as many cash figures onto one banking slip.
Complete the deposit slip with the following :-
 Date
 Name of Payee
 Location
 Breakdown of Denominations
 Total Cash to be Banked (please ensure the total and breakdown tally)
 Security Bag Number
It is essential that the unit copy of the banking slip has all the relevant information legibly
recorded for future audit tracking.
The daily reconciliation sheet together with the Flash/Z report/ Copy Receipts or Car parking
readings should be independently checked to ensure the amount to be banked is accurate and
the deposit slip should be initialed to confirm that the cash agrees with the reports. Two deposit
slips should be placed in the bag with the cash and then sealed. The third deposit slip should be
securely attached to the outside of the bag along with the Daily Income Reconciliation sheet,
Flash/Z and Chip n Pin reading.
3
Coinage - Areas that receive large amounts of coin should use ‘coin only bags’ and ensure that
individual bags do not exceed £300 in £1 coins and £200 in any other coinage. As many bags as
required can be used and sent to the Cash Office via Security. Banking should be done as
frequently as possible when dealing with heavy coinage so as not to contravene the health and
safety of the staff involved in the transportation. The bags should be made manageable, easy to
transport and not over weighted.
Security officers are only insured to carry £2500 per person (not to exceed £10k) so when staff
request collection they should inform Security the value of cash to be transported.
Non epos till users should now raise separate sales order for cash, cheques and cards
using one of the following accounts:

Cash in Transit Account

Sundry Income Account

Customer Account
Definition of Cash in Transit Account
This account is used when there is no specific/named customer or business to which the financial transaction
relates to. This is an account within SAP that is used mainly by University Outlets such as the catering facilities
where cash is taken over the counter in return for goods received.
This type of account will only be used for actual CASH transactions.
The use of this account enables straightforward monitoring of cash deliveries from all University outlets to
ensure it is received in Finance, banked in a timely manner and sales orders are raised at the same time to
match off the cash received.
Definition of Sundry Income Account
This account is again only used when there is no specific customer or business to which the financial transaction
relates to. This is an account within SAP used by Faculties and most Service departments within the University where
cheques or payment is received via the C&P/Paypoint machines within their own department.
This type of account will only be used for Cheques, C&P and Paypoint transactions
Definition of Customer Account
A customer account is used to record the financial transactions for goods/services relating to specific/named person,
business, etc. The individual person or business will be given a unique customer account. All financial transactions in
relation to the company or person will be recorded against this account.
Any type of payment can be used with this account.
The use of this type of account enables straightforward monitoring of all transactions relating to the specific
customer business.
Non Epos Users SAP Sales Orders – Cash
Once actual cash figures are agreed, a SAP sales order is raised wherever possible by an administrator
unconnected to the direct handling of the cash. The income for each Cost Centre must be entered on to the
University Finance system (SAP) on a daily basis. Within one SAP Sales order it is possible to record income for
multiple cost centres. The link for STT ‘How to create a Sales Order’ is:
http://briseus/sap/repository/lessonportal.html
The subsequent SAP sales order number needs to be recorded on a Daily Income Reconciliation Sheet.
The SAP sales order number must be recorded on the banking slip.
Income, however small, must be recorded through SAP sales order daily. Provision must be made for this
process to continue elsewhere in the event of an administrator being absent.
4
Epos Users
Sales orders should not be raised for Epos till transactions as the interface will electronically transfer the
required data to SAP. Please refer to local instructions for further details.
Personal Items
Staff should ensure personal belongings are stored away from the tills preferably in a locker (see local
instructions for more details).
Lone Working
Where staff work alone the following procedures must be adhered to:
 Area to be secured prior to cash counting
 Money/sheets sealed and signed for supervisor to counter check at first opportunity – not later
than AM of following day.
Cash Discrepancies
In the event of a discrepancy, 10% of the value of the transaction up to a maximum of £10 requires a local
investigation; however anything over this must be reported. The following procedures must be activated
immediately:
•
•
•
•
•
•
•
•
The line manager must be informed the day the discrepancy occurs
No-one should be allowed to leave until the manager gives permission
The Manager will bring in security if they feel this is necessary
No other staff should be allowed to enter the office until the go ahead from the line manager
Carol Bonner the Credit Control Manager must be informed
If the money still cannot be traced Senior Management will take whatever steps they feel
appropriate. Staff Management Procedures may be initiated if Senior Management decides
this is necessary.
Discrepancies over £10 or 10% of the value of the transaction will be reported to Mike
Campion (Campus Services) or the relevant Service Manager for a decision.
Finance will produce a monthly report of all discrepancies under £10 which will be sent to
outlet managers with a copy to Mike Campion.
Refunds/Voids
Any refunds or voids which are required must be completed by a manager or supervisor. The receipt should be
kept with an explanation on the back.
Counterfeit Notes
All outlets were issued with counterfeit detection pens and these should be used as a standard procedure with
all notes taken. Bank of England literature was distributed to all outlets with information on identifying
genuine notes and the process if counterfeit notes are detected. Any counterfeit notes that are taken and not
detected at the point of sale will be charged back to the original source. Further information can be found at
the following websites:
http://www.bankofengland.co.uk/banknotes/educational.htm
http://www.bankofengland.co.uk/banknotes/about/counterfeits.htm
SAP Sales Orders - Cheques
Cheques should be made payable to Northumbria University. Ensure the amount in words & figures match and
that the cheque is signed and dated. Cheque transactions must be entered in to the till.
NB: If the cheque payment is for an individual student account (tuition/accommodation fees) the student
number should be entered on the back of the cheque and sent to the cash office for processing.
A SAP sales order should be raised in the same way as for cash, using Sundry Income account and the correct
material code. The SAP sales order number must be entered on to the back of the cheque or the relevant
5
sundry account number. A banking slip is not completed for cheques. The cheques should be sent to the cash
office attached to a completed Daily Income Reconciliation Sheet and attached to the outside of the security bag
or in an envelope through the internal mail.
NB: The Finance Department will perform random audits to ensure these procedures are being adhered to.
Sundry Income Account Refer to Drawer Cheques
Departments will be sent an email notifying of any cheques entered on to a Sundry Income Account which are
returned from the bank when there are insufficient funds to honour the cheque. It is the responsibility of the
relevant department to ensure a credit note request is completed and forwarded to the IT helpline to clear
this transaction from the sundry account. The relevant department must raise a sales order on to an
individual customer account to enable the debt collection process to take effect. If a new Customer account is
required it can be raised within 48 hours by completing a Customer Master input found at:
https://intranet.northumbria.ac.uk/facultiesandservices/iti/sapsupport/appamendsapmasterdata
SAP Sales Orders – Chip & Pin (Credit /Debit Cards)
All transactions undertaken with Credit/Debit card payments have to be put through the till as well as the
C&P machine. The end of day ‘Z’ reading of the C&P machine must take place at the same time as the ‘Z’
reading of the till. The ‘Z’ reading from the C&P machine and the C&P payments on the till ‘Z’ reading must
agree. Any discrepancies are investigated and recorded. The C&P value is entered on to the Daily Income
Reconciliation sheet. A SAP sales order must be raised in the same way as for cash using Cash Office Sundry
Income Account. The ‘Z’ reading from the C&P machine is attached to the Daily Income Reconciliation sheet
and filed. A banking slip is not completed for C&P transaction total. The C&P transaction slip should be filed
locally.
We accept Visa, MasterCard, Switch, and Maestro
N.B. We do not accept American Express.
• The Cash in Transit and Sundry Account MUST NOT be used for the following:
• Any Income where an individual customer account already exists
• Individual cheques >£5000 – These should be put to the relevant customer account.
• Refundable Locker Key Deposits
• Refundable Halls Deposits
• Advance Rents
• Advance Tuition Payments
• Invoiced Sales
• Tuition Fees Invoiced through SITS
• Field Study Visits
In the case of the above items the sales orders should be raised on established customer accounts. If a new
customer account is required it can be raised within 48 hours. The Customer Master Input Form can be found
at: https://intranet.northumbria.ac.uk/facultiesandservices/iti/sapsupport/appamendsapmasterdata
Cash Collection Book
The book should be completed with the following information:
Faculty/Department
Member of staff responsible for the cash
Number of sealed bags of cash
Security Bag Number
When Security collect the bags they will sign the book that has 3 self-carbonated numbered copies. The top
two copies are given to Security and the third copy remains in the department.
Either on a daily basis or at least weekly the Security Bag Numbers listed in the Cash Collection Book will be
matched against the corresponding banking slips, both documents being initialled to acknowledge that the
reconciliation has taken place. Any omissions must be reported to the line manager immediately.
Senior Managers will spot check this process at least once a month.
6
3) Change
Telephone change requests are made to the Finance Cash Office 24 hours prior to requirement. The Cash
Office will always try and accommodate any emergency requests.
Outlet Managers should continuously monitor cash floats and order to requirements from the Cash Office.
Money in notes to the value of the change required is placed in a Security Bag. NB: Coinage should not be used
for the exchange.
The Cash Collection book should now be completed with the following information:
•
Upon receipt of the change from security the carbonated white and blue copies from the Cash
Collection book need to be signed.
•
The blue copy is retained and stapled to the corresponding yellow copy (change requests) in the
Cash Collection book.
•
When the change is counted and agreed, the amount received is entered on to the blue copy and
initialled as being correct.
4) Petty Cash Floats/Till Safe Floats
Access to the floats should be restricted to designated personnel and kept in a secure area.
The petty cash float should be balanced on at least a weekly basis and any major discrepancies should be
reported to a Senior Manager (Appendix 3). As the petty cash floats vary in amount a benchmark to use for
discrepancies is 10% up to a maximum of £10. Anything over £10 should be reported.
When the float requires a top-up the petty cash claims should be presented to the Cash Office to be
reimbursed. The claims must have:
•
Original receipt(s) attached
Cost centre & general ledger code(s)
•
Authorised signature
•
Claimant’s signature
•
The till/safe float should be balanced on a daily basis and any major discrepancies should be reported to a Senior
Manager (Appendix 3). As these floats are fixed amounts all discrepancies must be reported to Finance.
At the financial year end every departmental manager (not the float administrator) will be requested to sign a
confirmation of the float held (Appendix 4). They should check at this time that the float is correct but they
should spot check the float at least four times each year. If the float is no longer required it should be
returned to the Cash Office for the appropriate documentation to be cancelled. Should the responsibility
change to another member of staff or transferred to a different location the Cash Office must be notified
immediately to ensure the records are amended.
The Finance & Planning Department will carry out random checks throughout the year across the campus.
An audit sheet will be completed and action taken if there are any variances (Appendix 5).
5) Individual Petty Cash Claims
Petty cash claims are paid out in cash for a maximum of £100 per day. (Exclusions apply – see list below). The
claim (Appendix 6) must be presented to the Cash Office for reimbursement as soon as possible following the
purchase. Identification will be required upon collection of the cash. Money cannot be sent through the
Internal Post. The claims must have the following details:
Original receipt(s) attached
Cost centre/Internal Order & general ledger code(s)
Brief description of the goods
Authorised signature
Claimant’s signature
Failure to provide these details will result in the rejection of the claim until all information provided.
Petty cash claim forms can be found on the Intranet under Forms>Finance and Legal>Procurement,
Purchasing and General Finance Forms.
7
NB: The following is a list of items that should not be processed through petty cash:
•
•
•
•
•
•
Taxi Fares
Business Entertainment (including deposits for meals)
Hotel Fees
Train/Air Fare
Alcohol
Parking Fees
6) Security
The identity of Security ‘Cash Escorts’ should be checked when staff are handing over cash to be escorted
to the cash office. (Appendix 7 ‘Cash Escorts Procedure’).
Cash draws /tills must be locked and the key removed whenever staff are not present or in a close proximity.
Cash counting should be undertaken in secure location with no interruptions during the process.
Where Supervisors recognise an increase in cash taken that contravenes the insurance limit of the safe they
should immediately contact the insurance officer.
Safe Locations
•
All safes should be located in a secure area and easily accessible for staff to secure the income.
•
•
There should be no public access.
Out of view (not located near a window or visible through a window).
•
Location of safes should not be publicised.
•
The Insurance Officer and Security should be notified of any changes of location of the safe.
•
Ordering of new safes should be actioned through the Campus Services and the Insurance Office
notified to ensure we have adequate insurance cover in place.
Safe Inventory
An inventory of all the contents of the safe should be held and updated on a daily basis when changes occur.
This should be kept in the safe.
Overnight Security of Floats/Cash
When it is necessary to lodge floats or cash overnight with Security the following information is required:
•
Write clearly on the top of the page ‘Float/Cash Deposit’
•
Member of staff responsible for the cash
•
Faculty/Service
•
Number of sealed bags of cash
•
Security bag numbers
When security collect the bag they will sign the book which has 3 self- carbonated copies. The top two copies
are given to Security and the third copy remains in the department.
On receipt of the float bag from security the carbonated white and blue copies from the Cash Collection
book need to be signed.
The blue copy is retained and stapled to the corresponding yellow copy (float deposit) in the Cash Collection
book.
The security bag should be checked to ensure it is sealed and that no tampering has taken place.
Floats should be held with Security in the event of the cash exceeding local safe limits.
8
Safe – Insurance Limits
It is important that insurance limits are not exceeded, therefore Supervisors and Managers should be aware of
the limits and if inadequate request further cover, or make alternative arrangements through the Insurance
officer.
Safe – Checks
A reconciliation of Safe contents, Petty Cash Floats and Till Float values needs to be undertaken by the
supervisor on a daily basis and a management check a minimum of twice a week to ensure there are no
discrepancies. Senior Management will perform annual checks. Appendix 2 should be used for this
purpose, once completed and signed the documents needs to be retained at local level for 6 years plus
current.
Random safe checks will be undertaken by the Finance Department (see section 3).
Safe – Keys & Combinations
It is important that when key personnel changes occur that the unit manager or his/her line manager ensure
that combinations/keys are changed promptly. The Insurance Officer (Anne Hudson) should be informed on
completion.
Safe Keys:
• The access to safe keys should be limited to designated personnel, no more than 2 staff, the Manager,
and a set held with Security.
• Security will always hold a set of keys.
• When the safe keys change hands they must be signed for. (see Appendix 8)
• During working hours keys should be kept in a locked drawer and not left lying around the office.
• The overnight storage of keys must not be kept in the same office as the safe. Keys should be stored in a
secure environment either in a locked drawer in another location or left with security.
• The loss of keys must be reported immediately to the Deputy Finance Director (Accounting).
Safe Combinations:
• The safe combinations should be limited to designated personnel, no more than 2 staff and the
Manager.
• The combination of the safe should always be changed when a staff member leaves and every six
months thereafter.
• A log should be kept of the dates when the changes occur.
• The sequence of the safe combination numbers should be selected using random numbers rather than
for e.g. birthdays, anniversaries etc.
7)
Audit Summary
Unit Level
Complete, sign and file Daily Income Reconciliation sheet, ensure all sections completed. Administrator
Flash/Z/Terminal reading – consecutive numbers/dates – daily
Flash/Z/Terminal reading Variations – daily –discrepancies noted – over £10 reported.
Complete, sign and file Daily Income Reconciliation sheet ensure all sections completed.
Unit Manager/Supervisor
Flash/Z/Terminal reading – consecutive numbers/dates – weekly
Flash/Z/Terminal reading Variations Z’ Reading Variations – daily discrepancies noted – over £10 investigated
and reported to line manager.
Reconcile security bag numbers with Banking Book and Cash Collection Book – weekly. Complete twice
weekly safe/float checks – complete paperwork, sign and file.
Safe Insurance levels not to be exceeded daily.
Senior Management
Reconcile security bag numbers with Banking Book and Cash Collection Book – monthly on a spot check basis.
Verify consistency and accuracy of the Daily Income Reconciliation sheet – monthly spot checks, with a report
to Finance on completion.
Safe checks – to be completed annually.
9
8) Payment Card Industry Data Security Standard (PCI DSS)
The Payment Card Industry Data Security Standard (PCI DSS or simply PCI) was published nearly ten years ago,
and in that time has undergone a series of revisions as technology, and information security best practises have
developed. It is now updated every 3 years, with the current version (3.0) released in November 2013.
PCI DSS was introduced to help prevent increasing levels of Credit and Debit Card fraud. In the years since its
introduction, card theft has become increasingly sophisticated and is now the domain of organised crime. The
threat has not reduced, however, the introduction of improved security through PCI DSS has been a significant
factor in managing the risk. “The PCI DSS is a multifaceted security standard that includes requirements for
security management, policies, procedures, network architecture, software design and other critical protective
measures. This comprehensive standard is intended to help organizations proactively protect customer account
data.”
PCI DSS compliance is required to do business with credit card providers.
Background
A security breach and subsequent compromise of payment card data has far-reaching consequences for
affected organisations, including:
1. Regulatory notification requirements;
2. Loss of reputation;
3. Loss of customers;
4. Potential financial liabilities (for example, regulatory and other fees and fines); and litigation.
However:
•
•
•
•
•
•
•
is not a regulation or law, more of a contractual obligation, as such, adoption has been slow
Compliance does not guarantee complete Security - Systems are never "secure", only "more secure“.
There have been a number of high profile, large data breaches, mainly in the US (TK Maxx, Heartland,
and Target).
Compliance can be costly, both initially gain and to maintain.
Compliance and security is a process, not an end state.
If outsourcing is used, it is important to note that responsibility for the security of cardholder data is
not removed. An organisation must ensure that the outsourced service is also PCI DSS compliant.
As of PCI 3.0, SAQ covers using a Third-Party Website for Payment Processing.
Key Definitions
PAN – Primary Account Number - Unique payment card number
CDE - Cardholder Data Environment
CHD – Cardholder Data
CNP – Card Not Present
SAD - Sensitive Authentication data
CAV/CVC/CVV/CSC/CID/CAV2/CVC2/CVV2 – Card Verification Codes
MO/TO - Mail-Order/Telephone-Order
SAQ - Self-Assessment Questionnaire
VPT - Virtual Payment Terminal
POS - Point of sale hardware and/or software used to process payment card transactions at merchant
locations.
PDQ – Point of Sale terminal for card authentication (stands “for Pretty Damn Quick”).
Merchant - Entity that accepts payment cards.
Acquirer - Also referred to as “merchant bank,” “acquiring bank,” or “acquiring financial institution.” Entity
that initiates and maintains relationships with merchants for the acceptance of payment cards.
10
11
Compliance Levels
1 - Any merchant -- regardless of acceptance channel -- processing over 6M Visa transactions per year. Any
merchant that Visa, at its sole discretion, determines should meet the Level 1 merchant requirements to minimize
risk to the Visa system.
2 - Any merchant -- regardless of acceptance channel -- processing 1M to 6M Visa transactions per year.
3 - Any merchant processing 20,000 to 1M Visa e-commerce transactions per year.
4 - Any merchant processing fewer than 20,000 Visa e-commerce transactions per year, and all other merchants
-- regardless of acceptance channel -- processing up to 1M Visa transactions per year.
Any merchant that has suffered a hack that resulted in an account data compromise may be escalated to a higher
validation level.
12
Proving Compliance
(Self-Assessment Questionnaires & Attestation of Compliance)
13
Scope
14
Examples
15
Do’s & Don’ts
Do
•
•
Understand the risks to card data.
Follow procedures.
•
•
•
Write down PANs.
Email PANs.
Implement procedures which permit staff to come into contact with the PAN.
Do Not
NB: The merchant paper copy should be kept for 18 months in secure environment and then destroyed as
confidential waste.
https://www.pcisecuritystandards.org
(Official source of standards, but also Fact Sheets and Information Supplements)
http://www.barclaycard.co.uk/business/accepting-payments/pci-dss
(Our current Acquirer)
https://www.barclaycarddatasecuritymanager.co.uk
(Videos)
http://www.pcicomplianceguide.org
For further information and advice please contact:
Steven Gilray
IT Security Manager
0191 227 4343
steven.gilray@northumbria.ac.uk
16
9) Unidentified Cash
Process for Clearing Unidentified Cash Account 8945 Summary:
Account 8945 is a holding account where Bank payments are transferred to as no account details have been
provided. The payments are held on this account pending investigation to ascertain the correct account details.
Money received can be for the following customers, Commercial, Sponsor, Franchise and Student. Upon
completion of the investigation the money will either be transferred to the appropriate account or will remain
here until the customer claims the payment, sometimes this may not be until we receive the remittance receipt
or when we commence chasing the overdue debt.
Actions:
• Payments receipted into the University Bank Account daily.
• Daily drop down of the overnight banking allows us to identify & allocate payments prior to posting to
SAP.
• Check remittances already received to see if they match bank information
• If a payment cannot be identified on the daily banking drop down, it will be allocated to 8945.
The following procedure is carried out:
• Check any new remittances received, as they come in daily, these are checked against 8945 and once the
payment is verified against the remittance, the account is cleared against the payment indicated.
• If the payment on 8945 represents a down payment or partial payment then these are transferred to the
appropriate account without clearing.
• Remittances can be for single payments to individual accounts or multiple payments to multiple accounts.
• Check with the Treasury Officer to see if any further information received from the bank.
• On occasions we do not receive remittances from the sender; we have to check SAP to see if we can identify the
organisation and the invoices the payment covers. If we can identify them, then we clear them down, if we cannot
identify them then we will contact the organisation directly to ask them to identify the invoice the payment covers.
Process for Clearing Unidentified Cash Account 13830 Summary
Account 13830 is a holding account for International student payments where no account details have been
provided. The payments are held on this account pending investigation to ascertain the correct account details.
Upon completion of the investigation the money will either be transferred to the appropriate account or will
remain here until the customer claims the payment, sometimes this may not be until we commence chasing the
overdue debt.
Actions:
• Payments receipted into the University Bank Account daily.
• Daily drop down of the overnight banking allows us to identify & allocate payments prior to posting to
SAP.
• If a payment cannot be identified on the daily banking drop down or cheques and bank transfers received in
the cash office the payment will be posted to 13830.
The following procedure is carried out:
• Check with the Treasury Officer for any bank letters received from Barclays to see what information has been
provided to identify the student.
• If a student name has been provided we will search on SITS
• Check with the International Office for any information that may identify the student
• Students come into Finance & Planning office for statements of accounts and receipts for payments and
many of the payments are identified.
17
10) Credit Control Policy for Credit Balances Introduction Background
As the University has a policy to request advance payments from students in respect of tuition fees, it is expected
that credit balances will exist in the debtor’s ledger. However, credits may also exist for other reasons e.g. nonrefundable deposits, overpayments or suspended studies.
The credit balances could result in the debt of the University being understated and will cause inconsistencies
within the ageing of the debt. Therefore, these balances must be kept to a minimum while taking into
consideration any money laundering issues connected to the payment. (See section 10). To achieve this, the
balances must be reviewed on an individual basis to ensure they are justifiable, then action taken to clear the
credits.
Procedures
The following procedures must be performed on a regular basis by Credit Control to reduce the volume of
credit balances.
1. Review of down payments using the General Ledger accounts and ageing
2. Review customer accounts for credit balances
3. Raise invoices/credit notes on receipt of a withdrawal notification
Some students select to suspend their studies and this may result in the down payments being utilised in later
years. These credits can be dealt with using 3 options
1. If the student requests a refund, this will be administered immediately.
2. If the Faculty or Student informs Credit Control that this balance will be utilised in later years, a note will
be entered onto their account and the balance will remain in down payments.
3. If neither options 1 or 2 have occurred, the balance will be investigated after 3 years for refund, write off
or invoice to be raised.
All credit balances >3 years must be investigated using the following procedure:
1. Review all credit balances by account
2. Raise invoices for all non-refundable deposits.
3. Attempt to refund the money to the original source – these actions must be documented
4. Write off all refunds that can’t be refunded to source after thorough investigations
5. Clear balances within the account
The Credit Control Manager will sign off all refunds under 5k, write offs and invoices created directly into
SAP for the purpose of clearing credit balances. The Deputy Finance Director (Accounting) will sign off
refunds £5k - £10k and the Chief Operating Officer will sign off refunds over £10k.
Invoices for non-refundable deposits will be raised to administration income within the Finance & Planning
Department’s profit centre.
11) Anti-Money Laundering Rules Cash
Payments:
When accepting large quantities of cash e.g. to pay for fees or accommodation, the following questions
should be asked and the response recorded.
1. Why isn’t the payment being made by cheque, bank transfer or credit/debit card?
2. If the student doesn’t have a bank account, why not?
3. The student and the cashier must complete and both sign off the form.
Further consideration is required regarding the country which the student is from. Is the student from a high risk
country? For a summary of the high risk countries (See Appendix 10).
Do not accept overpayments in cash unless you are aware that an invoice is due to be raised.
If the cashier is in any doubt regarding the source of the funds, they should probe further or refuse to accept
the cash.
Refunds:
All refunds must be returned to the original payment source. Agents:
1. Franchise partners/agents should be on the British Council’s approved list (procedure to be
confirmed by the International Office).
18
2. Agents demanding special arrangements for payments of deposits and tuition fees should be viewed with
suspicion.
Reasons for a Student Requiring a Refund of Overpayment:
1. Visa refusal
2. Withdrawal from University
3. Sponsor paid too much to include living expenses (discouraged but sometimes unavoidable)**
4. Discount and/or scholarship applied to account (refund procedure not applicable to this document as
payment due to student by any method that they require. However, ensure that original payment has
“cleared”).
Make as many checks as possible that reasons are genuine. Checks may include:
1. Verification of reason given for withdrawal with Registrars.
2. Check of any official documentation.
3. If payment is federal loan then check ID of students and allow refund.
4. If payment is from unknown third party ask for documentary evidence of who the person is that made the
payment and that they wish the overpayment to be made to the student. A letter of authorisation should
cover our requirements.
5. If a large amount is required and previously paid by cash this should be forwarded to financial accounts to
refer to SOCA for a decision to refund.
For tuition fees two bands of refund amounts have been identified with control over each band as follows;
(i) Refunds less than £5,000
Credit Control Manager for authorisation.
(ii) Refunds over £5,000
Deputy Finance Director (Accounting) for authorisation.
(iii) Refunds over £10,000
Chief Operating Officer for authorisation.
Payment procedure:
Payment made by bank transfer
Refund to originating bank via cashiers
If payment made by cheque
Proof required of account that cheque
came from
Refund to that account
Refund to original card through web via cashiers
If payment made via the web
If payment made by credit card
through the cash Office
Refund to original card via cashiers
If payment made in cash
Refund by cheque.
International students cheque >£500 sent to home
country address
NB For high business risk category customers then check and verify all transactions over £100.
Who does this policy apply to?
These rules are applicable to all areas of the University accepting cash or dealing with agents who are
collecting cash on the University’s behalf.
Who do I contact for further information?
For further information, please contact Carol Bonner, Credit Control Manager.
Email: carol.bonner@northumbria.ac.uk
Tel: 0191 243 7594
19
Appendix 1
20
Appendix 2
21
22
CHECKED
TOTAL
FLOAT
MONDAY
TUESDAY
Completion Date: DD / MM / YYYY
SUPERVISOR
£50
£20
£10
£5
£2
£1
50p
20p
10p
5p
1p
28/04/2014
WEDNESDAY
THURSDAY
1000
FRIDAY
WEEKLY SAFE FLOAT CHECK
SATURDAY
SUNDAY
PETTY CASH
Appendix 3
Appendix 4
I certify that as at 31 July 2013 hold a petty cash float/imprest to the sum of
£........................................... Comprised as follows:£
p
Cash in hand Paid vouchers
Signed by Float
Administrator .
Name in Block Capitals ..........................................................................
Signed by Budget Holder .......................................................................
Name in Block Capitals ..........................................................................
Date .......................................................................................................
Dept/Service: «Dept»
Please return this certificate to the Cash Section, Finance Department no later than
9 August 2013.
Thank you
Cash Office Use Only
Record no:
Venue:
Contact:
Email:
«Voucherno»
«Venue»
«Contact»
«Email_Address»
23
Appendix 5
TILL FLOAT AUDIT
Date:
FLOAT NUMBER
AMOUNT
FLOAT
ADMINISTRATOR
OUTLET/SCHOOL
LOCATION
RECONCILIATION
Z Reading
Float
Amount
£50
£20
£10
£5
£2
£1
0.50p
0.20p
0.10p
0.05p
Bronze
TOTAL
TOTAL FLOAT
SIGNATURE
FLOAT CHECKED BY
PRINT NAME
AGREED
CORRECT

INCORRECT

ACTION TAKEN
REASON
24
Appendix 6
To be presented to the Cash Section, Finance Department, by the claimant in person
NAME
DEPARTMENT
I hereby acknowledge receipt of the sum of £
As per the voucher(s) attached, which was expended on behalf of
Northumbria University in connection with its approved and authorised activities.
Signature of Claimant:
NB: WHERE ITEM(S) PURCHASED INCLUDE VAT, THE RECEIPT MUST BE A VAT RECEIPT (VAT REGISTRATION NUMBER SHOULD BE SHOWN). RECEIPTS
SHOULD BE SECURELY ATTACHED TO THE BACK OF THE CLAIM & NUMBERED.
Description of Goods
Value
Cost Centre
Internal Order General Ledger
A LIMIT OF £100 PER CLAIM FOR RECEIPTS DATED ON SAME DAY
AUTHORISED .....................................
_______________________________________________________________________________________________
FINANCE DEPARTMENT USE ONLY
NET AMOUNT £…………………….
VAT AMOUNT £……………………
BATCH NO: 19/
25
Appendix 7
University of Northumbria
Campus Services Security CASH ESCORTS PROCEDURE
Description
Cash escorts are an area of particular risk where precautions can be taken to minimise that risk.
Procedure
A minimum of two officers are to be deployed for the task, one to carry, and the other to observe and protect. The
appropriate cash handling bag should be used to contain the cash. Where there are staffing problems, another
able bodied, suitable employee from another department can be utilised as the second person e.g. Caretaker,
Finance employee etc: Where this method is utilised, the Security officer should perform the ‘observe and protect’
role.
Escorts should be carried out as discreetly as possible, varying times and routes as necessary.
The escorting team must maintain radio checks with Security Control at a maximum of 5 minute intervals.
The Control Room Operator should, as far as is practicable, cover the escorting team by CCTV during the
operation.
The escorting team should remain alert, and beware of complacency, and if threatened or attacked, the
following procedure should be used.
• Personal safety of the security team is paramount
• Using professional judgment, consider the risk to the team.
• If judged at risk of injury or harm, surrender the cash
• Note description of individuals responsible, and method / direction of travel
• Contact Security Control by radio with details as soon as is practicable
• Security Control to inform Police immediately
When taking a request for a cash escort, the Control Room Operator is to balance the needs of the customer
with the operational requirements of the Security team, and a time should be mutually agreed for the
collection.
Cash for collection must be in appropriate cash bags closed with the correct seal, and a cash collection receipt,
which records the seal numbers, must be signed by both the person releasing the cash, the Security officer
collecting, and on delivery, the person receiving the cash. The receipt is to be filed within Security Control in the
correct file.
Limits for transporting cash
The amount of cash carried, is limited by the number of Security officers escorting same. Limits are set
by the University Insurers via the Finance office, they are not to be exceeded under any circumstances,
and are as follows.
Up to £2500.00 – 1 person Up to £5000.00 – 2
persons Up to £7500.00 – 3 persons Up to
£10000.00 – 4 persons
When taking a request for a cash escort, the Control Room Operator is to enquire as to the amount of cash
to be transported.
Under no circumstances is the £10000.00 limit to be exceeded. If there is a greater amount, the
customer must be instructed to divide the cash into amounts which fall within the limits.
The duty Senior Security Officer, or in his absence, the nominated supervisor, should ensure that THE
ESCORTING TEAM ARE FULLY AWARE OF THIS PROCEDURE BEFORE ESCORTS ARE PERFORMED.
P.P.E
Security staff are to familiarise themselves with the risk assessment and any remedial actions plans in
relation to this task, in particular, the instructions and guidance relating to the wearing of personal body
armour.
26
Appendix 8
KEY TRANSFERS
SAFE KEY
CURRENT KEY HOLDER:
TRANSFERRED TO:
DATE:
SIGNED:____________________________
SIGNED:____________________________
27
Appendix 9
Risk by Country
Country ranking by risk category, A is for Low Risk, D is for High Risk
Country
Risk
Country
Risk
Australia
A
Algeria
B
Afghanistan
D
Austria
A
Bangladesh
B
Albania
D
Belgium
A
Benin
B
Belarus
D
Canada
A
Brazil
B
Bolivia
D
Denmark
Finland
A
A
Bulgaria
Burkina Faso
B
B
Bosnia Herzegovina
Burundi
D
D
France
A
Cameroon
B
Cambodia
D
Hong Kong
A
Colombia
B
Central African Rep.
D
Iceland
A
Costa-Rica
B
Comoros
D
Ireland
Japan
A
A
Egypt
Gabon
B
B
Cuba
Dem. Rep. of Congo
D
D
Luxemburg
A
Guatemala
B
Equatorial Guinea
D
New Zealand
A
Indonesia
B
Gambia
D
Norway
A
Iran
B
Georgia
D
Singapore
A
Jordan
B
Guinea
D
Spain
A
Kazakhstan
B
Guinea Bissau
D
Sweden
A
Lesotho
B
Guyana
D
Switzerland
A
Mali
B
Haiti
D
Taiwan
A
Mozambique
B
Iraq
D
United Kingdom
A
Peru
B
Ivory Coast
D
United States
Botswana
A
A
Philippines
Romania
B
B
Korea (North)
Kyrgyzstan
D
D
Chile
A
Russia
B
Laos
D
Czech republic
A
Salvador
B
Liberia
D
Estonia
A
Senegal
B
Malawi
D
Greece
Hungary
A
A
Tanzania
Turkey
B
B
Mongolia
Myanmar
D
D
Italy
A
Vietnam
B
Nepal
D
Korea (South)
A
Uruguay
B
Nicaragua
D
Kuwait
A
Papua New Guinea
C
Nigeria
D
Country
Malaysia
Risk
A
Country
Angola
Risk
C
Country
Country
Rwanda
Risk
Risk
D
Netherlands
A
Argentina
C
Sierra Leone
D
Portugal
A
Armenia
C
Somalia
D
Qatar
A
Azerbaijan
C
Sudan
D
Slovenia
Thailand
A
A
Cape Verde
Chad
C
C
Tajikistan
Turkmenistan
D
D
United Arab Emirates
A
Congo
C
Uzbekistan
D
Bahrain
A
Djibouti
C
Zambia
D
China
A
Dominican Rep,
C
Zimbabwe
D
28
Cyprus
India
A
A
Ecuador
Ethiopia
C
C
Italy export
A
Ghana
C
Latvia
A
Honduras
C
Lithuania
A
Jamaica
C
Mauritius
A
Kenya
C
Malta
A
Lebanon
C
Namibia
A
Libya
C
Oman
A
Macedonia (FYR)
C
Poland
A
Madagascar
C
Slovakia
A
Mauritania
C
South Africa
Trinidad
A
A
Niger
Pakistan
C
C
Croatia
A
Paraguay
C
Israel
A
Sao Tome
C
Mexico
A
Serbia Montenegro
C
Morocco
Panama
A
A
Seychelles
Syria
C
C
Saudi Arabia
A
Togo
C
Swaziland
A
Uganda
C
Tunisia
A
Venezuela
C
Overseas students paying large sums of cash at the Cash Office will be asked a number of questions. The information will be
transferred on to a form for the student to sign to ensure we have adhered to all the regulations (Appendix 10). The form will
be scanned and kept electronically for audit purposes.
29
Appendix 10
30
31
32
northumbria.ac.uk