UCSF Cash Policy Highlights This course highlights key cash control policies and practices to be followed at UCSF. It reinforces cash handling performance expectations. It also clarifies and updates cash handling procedures and policies as changes may occur. All UCSF cash handlers and supervisors of cash handlers are required to review this course annually.

The Need for Cash Control Cash and other forms of income are the lifeblood of any organization. They are needed to run any business--including UCSF!  As with any cash-based organization, one of the University's major goals is managing cash and other forms of income from the time it is received until it is deposited in the bank. Effective cash control processes are critical!  Any breakdown in them results in: cumulative losses that can hurt an organization its inability to spend its income in a way that will help it remain competitive investigation, fines and jail time for those prosecuted, and damage to the credibility of an organization and its potential to generate future income. Let’s look at an actual situation.

Quiz 1 The job of the Head Cashier at UCSF is to ensure the security and proper disposition of all university funds. In the 1990s, the Head Cashier at the time took it upon herself to personally handle all tasks associated with the disposition of university funds. This included handling bank statements and bank notices of errors. She handled these tasks for an extended period of time. The university subsequently discovered that she embezzled as much as $4.5 million of the university’s funds! If you were a benefactor of the university, imagine what you would think – you donate money to advance the university’s mission and then discover that your contribution walked out the door in somebody’s pocket! What might be some actions that you can think of to have prevented the above situation from happening? (Check all that apply) Document in greater detail all the actions that were actually taken to dispose of funds Ensure that someone was monitoring her actions to catch it sooner instead of letting it continue undiscovered for such a long period of time Separate the duties among several lower level people rather than just have one person do it. Train the University’s Head Cashier better in the methods of cash control and accountability.

Cash Control Policies The cash policies of UCSF ensure that three major cash control components are present and working together. These components are: ensuring that those who handle cash are properly certified and trained, having effective cash control processes in place and followed, and a means of regular accountability embedded within the process. In the following topics, we'll discuss each of these components.

Cash Control Component 1 Certify and Train Cash Handlers The first of the three major UCSF cash control components is ensuring that cash handlers are properly certified and trained. In performance terms, build cash control accountability by: knowing clearly who is authorized to handle cash in your unit, and setting and annually reinforcing clear cash handling expectations The following steps apply to regular or occasional cash handlers. It applies to "backup depositors" as well. Cash Handlers should be registered by emailing depositor name, phone number, and location to cashcontrolsvcdesk@ucsf.edu. Refer the designated Cash Handler to the UCSF Police Department for fingerprinting and a background check. Cash Handlers are required to complete this online refresher course, "UCSF Cash Policy Highlights" annually. Supervisors/Managers should ensure the employees meet this obligation. The Controller's Office will monitor all participation. Know who your cash handlers are. Equip them with clear performance expectations and guidelines.

Cash Control Component 2 Effective Processes With the cash handler registration process in place, you are now better able to track your cash handlers. By requiring that your cash handler complete the online CASH course, you will also have established performance expectations and guidelines for the performance of these duties. The second component is to ensure that you have sound cash control practices in place that are being followed consistently. The sole purpose of these practices is to protect all cash and cash equivalents from loss AT ALL TIMES from the moment they are received until deposited with the bank. In this section, we will review: Cash and Cash equivalents Physical security of cash Frequency of depositing cash Campus drop safes Validation of cash deposits PCI-DSS and its penalties Practices for petty cash and change funds Unclaimed check processing Ensure that your cash control practices are followed consistently to prevent cash loss.

Cash/Cash Equivalents Received "Cash" covers the various ways in which people pay for products and services at UCSF. These methods are of two general categories: Actual Cash Actual cash is composed of currency (paper money) and coins--the stuff that we're accustomed to carrying in our purses, wallets, and in the crevices of our couches and car seats. Cash Equivalents Cash equivalents are all the other ways in which people pay for products and services at UCSF. These include such payment methods as: checks, money orders, credit or debit cards, Automated Clearing House (ACH) Payments, and wire transfers. "Cash equivalents" all have cash value and are easily converted into cash. Control all methods of payment appropriately.

Maintain Physical Cash Security All cash and cash equivalents need to be physically protected from loss AT ALL TIMES. Enact these major physical security practices: Ensure that all cash and cash equivalents are locked in a secure receptacle or safe, whether the cash handler is present or must step away from it. Ensure that employees who are transporting cash are protected by using Armored Car Services, where appropriate assigning them to transport cash and deposits in teams of two to ensure dual custody using campus drop safes keeping the minimum amount of cash on hand when possible. Mail should be opened in double custody. Make sure your cash is physically secure, whether you are in its vicinity or not.

Use Campus Drop Safes Campus drop safes are highly secure cash holding facilities that are located throughout UCSF. Make deposits to our drop safes located at these locations: Parnassus (Millberry Union G Level) Laurel Heights (near the guard station) Mission Center Building (near the guard station) San Francisco General Hospital (Bldg. 20,4th Floor) Mission Bay (Genentech Hall, near the guard station) Mt. Zion Hospital (near the 1st floor Security Office) Use drop safes that are located throughout UCSF.

Keep Minimum Cash On-Hand Crooks can't steal cash that isn't there! Keep cash secure by keeping only the minimum amount of needed cash on hand. In practice, this means making regular cash deposits, rather than letting cash accumulate at your location. The University of California policy regarding when to deposit cash/cash equivalents is straightforward: Deposit once a week or when you have a total of $500 or more--whichever comes first! Use only deposit slips that are preprinted with special location codes. Give what you have, but let's keep it to a minimum! What is the minimum amount of cash that you need to function each day?

Process Unclaimed Checks The following administrative policies help to maintain the security of unclaimed checks. All outstanding vendor and payroll checks are stale dated after 180 days from the issue date. They are then transferred monthly to Unclaimed Checks accounts, such as 20653, 26457, etc. Checks under $100 are "written off" after 1 year and those $100 and above are "written off" after 4 years (UCOP Policy C-173-78). Practice Credit the original fund sources for non-federal vendor checks or transfer them to #26457 and remit the funds to the US Government. Use drop safes that are located throughout UCSF.

Secure Credit Card Information Whether you receive credit card payments in person or via a website account, lock up all credit card information and receipts. Grant access to this information only on a "need-to-know" basis. It is against UC policy for departments to transmit or receive credit card information by fax. For further information regarding an exception to policy, contact the Campus Cash Coordinator. Lack of proper controls resulting in a breach of credit card information can result in penalties starting at $100,000. To assist you in the credit card security effort, the Campus and Medical Center have implemented strong information access control measures to prevent hacking or unauthorized access to personal information. Starting in the Fall of 2010 mandatory training will be required of everyone that accepts or processes credit cards annually. Secure credit card information.

Cash Control Component 3 Accountability for Validating Cash Deposits Administrative accountability for validating cash deposits is now vested in the following organizations: All funds received for sponsored agreements such as: clinical trials, contracts and grants, etc., are deposited and journalized by the Extramural Funds (EMF) Department. Private gifts are handled by the Gift Administration Department. (For specific instructions see Cash Policy 300-14.) Other miscellaneous receivables or receipts are processed by individual departments. On a regular basis, departments are required to review deposits made to the appropriate GL account on MyReports. The Controller’s Office (CO) has special oversight responsibilities that are discussed next.

Controller’s Office Accountability Practices The Controller’s Office (CO) plays several key accountability roles: Downloads bank deposits daily from Bank of America Direct in an Excel spreadsheet format. It then matches all deposits with the cash journals prepared by the departments. Monitors university assets by reconciling bank accounts on a daily and monthly basis. Reconciles all Balance Sheet related accounts (monthly or quarterly) to ensure our financial statements are accurate, and Clears or resolves within 60 days all un-reconciled items.

Petty Cash and Change Funds Special Procedures Petty Cash and Change Funds Access to Petty Cash and Change Funds is restricted to authorized custodians only. Access to the fund is limited to one custodian. Those to whom fund custodian responsibility is to be delegated must now qualify by: being finger-printed, having their background checked, and completing the online training: "Policies for Petty Cash Handlers". training is mandatory for all custodians annually.

Petty Cash and Change Funds Petty Cash and Change Fund managers should account for all cash movement in and out of these funds accurately, in writing, and in a timely manner. The University closely monitors the creation of new Petty Cash and Change Funds, increases in existing funds, and changes in fund ownership. In addition, the Controller’s Office now conducts periodic verifications AND surprise audits and cash counts to confirm that fund balances are accurate. It also monitors reimbursement requests for accuracy. Please ensure that original receipts are submitted. Department Managers are also required to perform periodic cash counts. Refer to Petty Cash Policy 300.32. All shortages are promptly reported to the Internal Audit Service Department. Follow the Petty Cash Fund procedures.

Summary of Control Practices Implement the following cash control practices described in this course. Safe-guard cash and cash equivalents. Prevent unauthorized access to personal information from checks or credit cards. Deposit once a week or when total on hand reaches $500 or more; whichever comes first. Deposits with currency over $5,000 must be prepared in dual custody. Keep copies of all checks deposited according them the same protection as you would cash. Journalize all cash receipts on-line accurately within 5 working days of deposit. Do not attach copies of checks or credit card information to journals. Review, approve, and submit all cash journals by the close of the 2nd business day following the end of the month. Reconcile cash on a daily/weekly/monthly basis. Resolve outstanding and un-reconciled items on a timely basis. Separate deposit and journal preparation duties among different people (Separation of duties). Perform surprise cash counts and report discrepancies immediately to the manager and to the Controller’s Office. Monitor and ask questions about any un-posted, unidentified, or undistributed items. Rotate assigned tasks among cash handlers. Update internal policies and procedures and inform staff regularly. Ensure Cash Handlers and Petty Cash Handlers take appropriate online courses annually.

Contacts and Assistance http://controller.ucsf.edu/cash_handling/ If you need assistance with… Refer to the Controller’s Office website… Cash Coordination and General Questions Cash Handling and Deposits Contacts page Cash Reconciliation Cash/Check Deposits Unclaimed Checks Credit Card Charges Petty Cash Cash Journals Approval Sundry Receivables Financial Reporting Contacts page Intercampus / Financial Control Account Fund Profile

Policy and Procedural References Topic References UCOP Policies BUS 49 Policy for Handling Cash and Cash Equivalents C-173-78 Unclaimed and Uncashed Checks UCSF Financial Administrative Policies 300-14 Cashiering 300-15 Change Funds 300-32 Petty Cash Funds 300-34 Special Cash Funds Resources Controller's Office website: http://controller.ucsf.edu/ Understanding Internal Controls - a Reference Guide for Managing University Business Practices www.ucop.edu/ctlacct/

Translate policies into daily actions! Implementation Translate policies into daily actions! Thank you for reviewing carefully the contents of this course! The next step is IMPLEMENTATION! The University relies upon you to implement the policies outlined in this and the other courses sponsored by the UCSF Controller's Office. By doing so, you are protecting the assets used to advance the University's important mission. You are also protecting the University's credibility and ability to attract future funding. To complete this course, all that's needed is for you to complete the final quiz. Please continue to the final quiz.

Final Quiz – Question 1 What three requirements must a Cash Handler meet to comply with the UCSF Cash Handling Policy? (Choose three.) Take the course “Working with Integrity: Ethics for the UCSF Community.” Have fingerprints taken and background check processed by the UC Police Department. Take the online course “Policies for Petty Cash Handlers.” Register with the Controller’s Office. Sign up with Human Resources as working in a sensitive position. Take the mandatory refresher course “UCSF Cash Policy Highlights” annually.

Final Quiz – Question 2 Policy says that certain deposits must be prepared in dual custody. In what circumstance is dual custody required? Checks that total over $5,000 Total deposits over $100,000 Currency over $5,000 Deposits that consist of currency

Final Quiz – Question 3 Which statement best describes the University of California’s deposit policy? You should deposit every week regardless of the amount. You should deposit currency weekly regardless of the amount. You should deposit when the total of your checks reach $500 or more. You should deposit once a week or when the total is $500 or more – whichever comes first.

Answer Quiz 1 The job of the Head Cashier at UCSF is to ensure the security and proper disposition of all university funds. In the 1990s, the Head Cashier at the time took it upon herself to personally handle all tasks associated with the disposition of university funds. This included handling bank statements and bank notices of errors. She handled these tasks for an extended period of time. The university subsequently discovered that she embezzled as much as $4.5 million of the university’s funds! If you were a benefactor of the university, imagine what you would think – you donate money to advance the university’s mission and then discover that your contribution walked out the door in somebody’s pocket! What might be some actions that you can think of to have prevented the above situation from happening? (Check all that apply) Document in greater detail all the actions that were actually taken to dispose of funds Ensure that someone was monitoring her actions to catch it sooner instead of letting it continue undiscovered for such a long period of time Separate the duties among several lower level people rather than just have one person do it. Train the University’s Head Cashier better in the methods of cash control and accountability.

Answer Final Quiz – Question 1 What three requirements must a Cash Handler meet to comply with the UCSF Cash Handling Policy? (Choose three.) Take the course “Working with Integrity: Ethics for the UCSF Community.” Have fingerprints taken and background check processed by the UC Police Department. Take the online course “Policies for Petty Cash Handlers.” Register with the Controller’s Office. Sign up with Human Resources as working in a sensitive position. Take the mandatory refresher course “UCSF Cash Policy Highlights” annually.

Answer Final Quiz – Question 2 Policy says that certain deposits must be prepared in dual custody. In what circumstance is dual custody required? Checks that total over $5,000 Total deposits over $100,000 Currency over $5,000 Deposits that consist of currency

Answer Final Quiz – Question 3 Which statement best describes the University of California’s deposit policy? You should deposit every week regardless of the amount. You should deposit currency weekly regardless of the amount. You should deposit when the total of your checks reach $500 or more. You should deposit once a week or when the total is $500 or more – whichever comes first.