Prepared by the Department of Cash Management and the Office of
Audit ,Compliance and Privacy of the University of Pennsylvania
CASH HANDLING
UNIVERSITY POLICY
RESPONSIBILITY
ACCOUNTABILITY
COMPLIANCE
CASH HANDLING
CASH HANDLING
A SERIOUS ISSUE …
If you are responsible for handling cash,
you are accountable for that cash. You
must comply with University policy.
CASH HANDLING
Essential Reading :
University Policy in the Financial Policy Manual- Policy # 1504
http://www.finance.upenn.edu/vpfinance/fpm/1500/1504.asp
Principles of Responsible Conduct
http://www.upenn.edu/audit/oacp_principles.htm
Human Resources Policy - #007 Fraud
http://www.hr.upenn.edu/policy/Policies/007.aspx
CASH HANDLING
All schools and centers within the University
handle cash. Over $300,000,000 a year
in cash and checks are deposited through the
Cashier’s Office.
Coin
Currency
Money Orders
Checks/Traveler’s
Checks
Credit Card
Transactions
FINANCIAL POLICY #1504
DEPOSIT OF CASH RECEIPTS
Purpose:
Establish sound Cash Management
practices and safeguard cash receipts
against theft or loss.
http://www.finance.upenn.edu/vpfinance/fpm/1500/1504.asp
CASH HANDLING PROCESS
Your department should establish
sound cash handling practices by
segregating and defining duties for each
employee involved in the process.
CASH HANDLING PROCESS
Collect Cash
Reconcile
Make
Deposit
Secure Cash
Prepare BEN
Deposit
FINANCIAL POLICY #1504
DEPOSIT OF CASH RECEIPTS
All cash and checks received must be
deposited with the University’s Cashier
Office the day of receipt.
(Cash and checks received over a weekend
must be retained in a secure location and
deposited the next business day.)
#1504 Tax Records
Internal Revenue Code requires:
The University to file Form 8300 for all cash
payments in the amount of $10,000 or greater
within 15 days of receipt of cash from an
individual or corporation in one or more related
transactions. (Cashier’s Office fills out form per
your written confirmation.)
Depositors must retain images or facsimiles of
checks for 7 years.
#1504 Depositing Coins
and Currency
Cash Depositors must hand deliver daily deposits to the
Cashier’s Office and must wait for a receipt from the cashier
Depositors can not replace cash in a deposit with a personal
check
Deposits that include $20.00 or more in coin must have a
separate deposit for the coins
Depositors making a cash deposit can not receive cash back
from the deposit
#1504 Depositing Checks
Depositors must ensure that checks are prepared accurately:
Checks are signed
Check date is valid, not post-dated
Numeric amount and written amount are
consistent ( credit given for written amount)
#1504 Depositing Checks
Endorse checks immediately with your department endorsement
stamp
Include an adding machine tape with deposit
Limit deposits to 100 checks per deposit
Foreign checks must be prepared on a separate deposit
Do not include UPENN checks in deposits, forward to Accounts
Payable
#1504 Cash Administration
Departments will be
charged a returned
check fee for any check
returned unpaid for any
reason
Depositors must notify
the Cashier’s Office if
they do not receive an
electronic receipt within
two business days
Financial Administrator
must reconcile deposit
accounts monthly per
policy #1402
Depositors must notify
Public Safety of stolen
cash or checks
FINANCIAL POLICY #2703
SAFEGUARDING UNIVERSITY ASSETS
University and Health System
management at all levels are responsible
for safeguarding financial and physical
assets and being alert to possible
exposures, errors and irregularities.
Management must be aware of internal
control weaknesses which can lead to or
permit misuse, misappropriation, or
destruction of assets.
http://www.finance.upenn.edu/vpfinance/fpm/2700/2700_pdf/2703.pdf
FRAUD TRIANGLE
CASH CONTROLS
•Develop & implement written procedures for
receiving, recording, reconciling, safeguarding and
depositing cash
•Ensure SEGREGATION OF DUTIES throughout
the process
•Employ a system to determine completeness of
cash receipts:
•e.g. a computerized point of sale system, a cash
register, means of pre-numbered receipt forms,
or on a handwritten log.
•Account for all cash immediately upon receipt
CASH CONTROLS (continued)
•Require that receipts be provided for all
transactions (& post signs).
•Each person collecting cash should have their own
cash drawer to establish accountability.
•Close out cash registers/drawers at the end of day
or end of shifts.
•Secure cash in a safe or locked cash box stored in a
locked, fire resistant location.
•Ensure sufficient Supervisory oversight through
daily reconciliation of cash to point of sale
system/cash register/receipt log, surprise cash
counts, periodic audits, etc.
CASH CONTROLS – SEGREGATION
OF DUTIES
•No individual has control over the entire
transaction cycle
•Segregate responsibilities of receiving, depositing,
recording, and reconciling.
•Ensure proper Management oversight by
performing monthly reconciliations of sales, cash
receipts and deposits.
FRAUD RED FLAGS
•Untimely or lagged deposits
•Employee standard of living changes
•Customer complaints increase (bill already paid)
•Employee regularly works late, on weekends,
refuses to take vacations (for fear of detection)
•Increase in or excessive number of refunds or
voided transactions
•Unusual decrease in revenue
•Missing supporting documentation
•Known employee issues (gambling, drinking, etc.)
CASH HANDLING CONTACTS
Cashier’s Office
3451 Walnut Street
Franklin Building Lobby
215.898.7258
Department of Cash Management
215.898.7256
Office of Audit, Compliance and Privacy
215.P.COMPLY
http://www.upenn.edu/215pcomply
WEB REFERENCES
http://www.finance.upenn.edu/vpfinance/fpm/1500/1504.asp
http://www.finance.upenn.edu/treasurer/cashier/
http://www.upenn.edu/audit/oacp_principles.htm
http://www.hr.upenn.edu/policy/Policies/007.aspx
http://www.upenn.edu/215pcomply