Cash Collection and Deposit Training Financial Services

What is our purpose? To ensure consistency of cash collection procedures To minimize the risk for individuals, departments, and the University To better control our cash

Cash Handling – Its your job!! Whether you take in lots of money…… or you collect pennies

What is cash? Its not just cash but includes: Currency and coin Checks Money orders Travelers checks Credit/debit card transactions Electronic funds Nautilus cards P-cards

Credit card payments Requires Payment Card Industry Data Security Standards (PCIDSS) compliance Information at uwf.edu/financial/internal/creditcard.cfm

Cash Handling Controls ……the principles of good cash handling are: Segregation of Duties Security Recordkeeping Reconciliation Management Oversight

Risk and Controls!! Remember – In the cash collection process – YOU – are just as important as the cash. CONTROLS are designed to protect both you and the cash. You Cash

Before cash collection begins… Must be authorized as a cash collection point Must demonstrate the ability to establish control procedures and comply with cash handling guidelines Is a change fund needed? How will the cash be received? Mail or person? Who will collect the cash? Who will prepare the transmittals? Who is responsible for reconciliation? Who is responsible for management oversight?

Making change If you are making change, you must have an authorized change/petty cash fund Keep the cash secure with limited access Balance each day of use or at a minimum once a week Keep records of all expenses Never use the change fund for cashing checks, making loans, or travel advances =

Segregation of duties Five stages that should be performed by different individuals to ensure adequate internal controls: 1.Recording of charges/billing 2.Collecting cash 3.Depositing cash 4.Reconciling 5.Management oversight

Segregation of duties This is the most important control in the cash collection process, and often, the most difficult to manage. A different person should be involved at each stage of the process. Segregation of duties minimizes risk.

Segregation of duties If segregation is not possible: Provide alternative or compensating controls Design additional procedures to reduce risk Design system security rules to restrict access

Segregation of duties Example of a compensating control: If the receiver of the funds also completes the deposit – require supervisory review and approval of the Cash Transmittal Form

Collecting the cash In person collections must be recorded on a cashiering system or pre-numbered duplicate receipts Immediately restrictively endorse checks Checks should be made payable to UWF or the University of West Florida Voided transactions must be approved by a supervisor Different employees should not work out of the same cash drawer and receipts must be balanced at the end of each shift

Collecting the cash Cash receipts must be balanced daily Compare the total cash, checks, credit card receipts, etc. to the cash register total or pre-numbered receipts Reconciler investigates and resolves discrepancies then initials or signs and dates balancing document.

Collecting the cash Mail payments should be directed to the Cashiers office If a payment is received in the mail by a department, the check(s) must be entered on a Cash Transmittal and taken to the Cashiers office daily Payments must not be held pending determination of proper accounting Cash Transmittals cannot be sent through campus mail

Securing the cash Cash should be secure at all times Different employees should not work simultaneously out of the same cash drawer Cash drawers must be locked when a cashier is away from their station Cash drawers must be secured in a safe or other locked area Safe combinations must be changed regularly or whenever an employee who knows the combination leaves the department

Transporting the cash Secure the deposit in a locked bank bag Dont be conspicuous Dont be predictable – vary your route and time of day If necessary, contact the UWF Police Department at 2415 for an escort

Reconciling Do not overlook this step!! Must be performed by someone with no cash handling responsibilities Reconcile the deposits to the cash transmittal after the deposit has been made Reconcile receipts to the departmental reports on a monthly basis to verify the recording and accuracy of all transactions Maintain proof of these reconciliations

Management Responsibility Establish an effective internal control system Delegate responsibility for cash handling and maintain proper segregation of duties Require that all staff handling cash be properly trained and follow all procedures of the Universitys Cash Collection Policy

Management Responsibility No matter who is collecting, depositing and reconciling… Management is ultimately accountable It is managements responsibility to regularly review the cash collection and reconciliation process to assure timeliness, accuracy and resolution of all outstanding issues

Staff Certification Responsibility Current staff are required to review this training annually Review current University Cash Collection Policy Review departments cash handling procedures Understand your role in your departments cash handling process New staff must comply with these requirements prior to starting cash handling duties

Staff Certification Responsibility Finally, sign and return the Cash Collection Policy Acknowledgement Statement to the Financial Services Office Bldg. 20-E Attn: Linda Howard uwf.edu/financial/internal

Questions??? Linda Howard, Assistant Controller Financial Services