Cash Handling Cash Handling Policies and Procedures

Cash Handling Cash Handling Policies and Procedures

Cash Currency Coin Checks Money Orders Travelers Checks Credit Cards/Debit Cards

Cash Handling Processes involving cash that may include any of the following: Accepting Cash Payments Endorsing Checks Issuing Receipts Having Access to Cash Preparing the Departmental Deposit Ticket Reconciling Receipts to the Departmental Deposit Ticket Reviewing the Department Deposit Ticket Making the Cash Deposit Comparing the Departmental Deposit Ticket to the Amount in Banner

Cash Collection Center University department responsible for handling cash Only official cash collection centers are permitted to handle cash A department is not considered a cash collection center without the prior approval of the Controller or Vice President for Business Affairs

Cash Handling Policy Cash must be properly safeguarded and deposited timely Only University employees (full, part-time, or student) are permitted to handle cash The full amount of cash collected, including cash collected by departments, must be deposited with LaCap. Cash collected is not to be used to make disbursements or refunds, and deductions may not be made to pay expenses. If a department requires a petty cash fund to provide change to customers or to make small purchases, a request for a Permanent or Temporary Petty Cash may be requested from the Controller.

Cash Handling Policy (cont’d) Access to cash should be restricted All cash, including cash collected by individual departments, must be safeguarded from fire and theft and stored in a locked safe, cabinet or drawer depending on the amount of cash When possible, departments should encourage the use of check payments instead of currency An individual should not accept payments by cash without prior approval of the Controller’s Office All checks should be made payable to “The University of Louisiana Monroe” or “ULM” Checks payable to The University of Louisiana Monroe cannot be deposited with the ULM Foundation and checks payable to the University Foundation cannot be deposited with ULM

Cash Handling Policy (cont’d) All bank accounts for the University must be set up by the Controller’s Office. No employee may establish a University bank account or deposit University funds into an unauthorized bank account. Only the President, Vice President for Business Affairs, and the Controller can establish a University bank account. If anyone else establishes a bank account using the University’s name or Tax ID number, the account will be considered an unauthorized bank account.

Departmental Procedures Currency/checks received should be immediately receipted in triplicate. Original for the customer One copy for the department One copy to be sent to LaCap Federal Credit Union with the deposit Checks received by the department must be recorded on a check receipt log. The log must, at minimum include the following: The payer of the check The check number The check date The amount of the check The date the check was received by the department All checks and money orders should also immediately be restrictively endorsed. An endorsement stamp may be ordered if you do not have one All new endorsement stamps should contain “For Deposit Only University of Louisiana Monroe” as the first line and “Department Name” as the second line

Departmental Procedures (cont’d) All cash received by the department and submitted to LaCap requires a completed departmental deposit ticket. The department must maintain a record of all deposit tickets. The department must complete: The name of department Date Name of person preparing the deposit The department telephone number located at the top of the deposit ticket To ensure proper credit, the departmental deposit ticket should include the correct University Banner fund, organization, and account (or index and account), along with a brief description of the transaction. Any questions concerning the completion of the form should be addressed to the Controller’s Office at (318) 342-5100

Departmental Procedures (cont’d) The Cashier will verify that the deposit ticket total agrees with the cash received and stamp all copies of the ticket. One copy will be returned to the department and the Cashier will retain the original. All cash received by departments must be supported by appropriate documentation as listed below: All deposits must be accompanied by departmental deposits. Credit card transactions must be supported by the individual credit card sales receipts. Any other documents which will help to ensure the proper documentation and coding of the funds should be included with the deposit This supporting documentation may include a copy of the check, computer printout, supporting spreadsheet or itemized list, reconciliation, internal memorandum, or letter from the payer The department must retain copies of supporting documentation, including any receipts issued to students or other customers

Departmental Procedures (cont’d) When departments find discrepancies or have questions about their deposits, they should contact LaCap at (318) 342-5130 (if found the same day the deposit was made) or the Controller’s Office (if found after the date the deposit was made) A department should immediately contact the appropriate Dean or Division Head if monies are found to be missing, or if there is suspicion of theft or diversion of funds. The Controller, University Police, and the Office of Internal Audit should be notified once the Dean or Division Head is aware.

Cash Handling – Segregation of Duties Departments handling cash should separate, to the extent possible, all duties relating to cash handling. A system of checks and balances should be established in which tasks are performed by different individuals in order to assure adequate controls. For example: One person should prepare the deposits and a second person should review the department’s monthly ledger verifying the deposits It is the department head’s responsibility to ensure that any amount deposited with LaCap includes all monies received The department head or his designee should review the department’s account on a regular basis, but not less than monthly The department head may access the departmental accounts and transactions online

Roles in the Cash Handling Process Handling Cash – Individual who accepts cash payments, endorses checks, and issues a receipt This individual has access to cash. Preparing the Deposit – Individual counting the cash and preparing the departmental deposit form or the bank deposit form This individual has access to cash Reconciling Receipts to Deposit – Individual comparing amount of cash collected based on register tape totals, manual receipt book total, or listing of cash receipts Reviewing Departmental Deposit Form – Individual approving the departmental deposit form to ensure the individual preparing the deposit is different from the individual handling cash; this individual may not handle or have access to cash. Making Cash Deposit – Individuals making cash deposit at LaCap This individual has access to cash Verifying Deposit in Banner – Individual comparing the departmental deposit form to the amount recorded in Banner

Examples of Segregation of Duties 3 Employees Handling Cash Individual #1 Individual #2 Individual #3 Preparing Deposit Reconciling Receipts to Deposit Reviewing Departmental Deposit Form X Making Cash Deposit Verifying Deposit in Banner X X X X X 2 Employees Individual #1 Individual #2 Handling Cash Preparing Deposit X X Reconciling Receipts to Deposit Reviewing Departmental Deposit Form Making Cash Deposit Verifying Deposit in Banner X X X X

Returned Checks Checks returned by the depository bank for non-sufficient funds (NSF), stop payments, or closed accounts result in additional service fees to the University. Students or staff whose checks are returned to the Controller’s Office for any of these reasons will be assessed a returned check fee has set by the Controller’s Office. Students or staff who have several returned checks may permanently lose their check writing privileges at the University. Each department is responsible, when appropriate, for collecting funds owed when checks they accepted are returned by the depository bank.

Cash Handling Training All employees, including student workers, who handle cash are required to complete cash handling training periodically. The departments are designated as “cash collection centers” are responsible for notifying the Controller’s Office of any employees, including student workers, involved in the cash handling process. It is the responsibility of the cash collection centers to ensure that all employees involved in the cash handling process receive training.

Controller’s Office Contact Information Associate Controller – Amy Estes Accounting Data Coordinator – Sarah Sellers [email protected] [email protected] #5104 #5115