0 Cash Management: Information Session

1 Agenda Introduction 5 minutes Topic 1: Why is the University Implementing the Cash and Billing Policy? 5 minutes Topic 2: Cash Management Procedures/Key Points30 minutes Topic 3: Questions/Comments?10 minutes Next Steps 10 minutes 1

2 Logistics  Participate  Ask questions  Turn off cell phones  Location of washrooms  Emergency procedures

Session Objectives  At the completion of this session, you will be able to –Explain why the University is implementing the new Cash and Billing Policy –Explain the key points within the Cash Management procedures –Manage and process cash payments effectively and efficiently –Explain where to go for assistance and help on the policy and procedures Accounts Receivable Can Help You! 3

4 Information Session Format Review/Questions /Answers Presentation

Why is the University implementing a new Cash and Billing Policy?  Auditor General’s Report –Address potential fraud issues –Provide clear guidelines and proper controls to ensure employees are not placed in a harmful position  Decentralized processes –Receipt of cash is managed in a variety of ways –Results in lack of internal controls –Creates risk for employees handling cash 5

Why is the University implementing a new Cash and Billing Policy?  Clarify accountability  Implement best practices  Improve internal controls  Ensure employees are equipped with information to perform their job correctly  Ensure the University is compliant with legislation  Create efficiency through standardization of processes and procedures 6

7 Topic 2: Cash Management Procedure: Key Points  Receipting  Cash Register Compliance  Float Management  Cheque Handling/Acceptance Guidelines  Currency (Acceptable and Not Acceptable)  Dishonoured Cheques  Deposit Frequency  Reconciliation Expectations  Refund

8 Receipting A receipt must be issued for every cash transaction made on behalf of the University of Calgary –Every Receipt Must Meet this Criteria: University of Calgary clearly imprinted on receipt Uniquely Numbered Receipt University’s GST # is clearly displayed Amount, GST Amount and Total are Displayed Transaction Date Description of good/service

9 Cash Register Compliance The cash register must produce 2 summarized totals for each batch close out: X-tape and Z-tape –There are several cash registers that are not compliant and these must be changed Contact Financial Services if you are uncertain whether the cash register is compliant Follow existing Disposal procedures to remove the non-compliant cash register: New Cash Register Cost is Department/Faculty Dependant

10 Float Management A float can only be used to provide change for the purpose of concluding currency transactions –The float should remain at the requested amount as approved by Financial Services If you need to change the float amount, please complete the Cash Float Request Form Do not add/include funds from another source to the float The float is not a substitution for Petty Cash

11 Cheque Handling/Acceptance Guidelines The cheque is made payable to ‘University of Calgary” –Cheques must include payable to “University of Calgary” or they will be sent back to the department or faculty –Accounts Receivable will not deposit this cheque –Acceptable: Payable to: University of Calgary –Acceptable: Payable to: University of Calgary - Dr. John Smith

12 Cheque Handling Departments and faculties are responsible for ensuring the acceptability of each cheque –Please ensure that the information is accurate and current: Valid Date, avoid Stale Dated cheques older than 6 months Payable “University of Calgary” Body and Figure Match Cheque is Signed Appropriate Currency

13 Acceptable Currency Forms of Acceptable Canadian Currency Cheques –Canadian currency cheques (with or without micro-encoding) drawn on a Canadian Bank –Canadian currency cheques (with or without micro-encoding) drawn on a foreign bank and negotiated through an affiliated Canadian bank with a Canadian Address –Collection Item: Canadian currency cheques (with or without micro-encoding) drawn on a foreign bank must be sent for collection through the Treasury Unit of Financial Services

14 Acceptable Currency Three forms of Acceptable Foreign Currency Cheques –US currency cheques drawn on a US bank with micro-encoding –US currency cheques drawn on a Canadian bank with micro-encoding –US currency cheques drawn on a foreign bank and negotiated through an affiliated US bank with micro-encoding

15 Not Accepted The following forms of payment are NOT accepted  Travelers Cheques  Money Order and Bank Drafts from any Foreign Bank –This type of documentation is not considered legal tender –Cashiers will not accept this type of payment –AR will return these types of payments to the customer

Incoming Wire Payments  Banking Information –Only AR are authorized to give out University banking information –Against policy to forward University’s banking information to a Department, Faculty or Customer –Requests must be send to AR via Request for Banking Information Form  Form –Accounts Receivable sends out form to customer which outlines all information AR requires to accept and allocate payments 16

17 Dishonoured Cheques –NSF invoice payments will be reversed from the customer account and a $25 service charge will be added –If a payment is received for a previous NSF invoice payment it must be sent to AR for proper processing –If a payment is received for a previous NSF cash payment (that was originally deposited at the Cashiers’ Office), it must be deposited at the Cashiers’ office again and coded to the department’s bad debt account.

18 Deposit Frequency All departments and faculties must make their deposits based on the following guideline –$ or more must be deposited within 2 business days of receipt –$99.00 or less may be held for a maximum of 5 business days

19 Deposit Over / Short Cash differences in excess of $10 must be accompanied by a Cash Over / Short Form –Overages and shortages should also be recorded in Section E of the deposit sheet –The form is posted on the website Example: $200 Receipted $175 Cash (Actual) $25 Shortage

20 Reconciliation Expectations When the deposit is accepted by the Cashier’s Office, the Cashier will issue a receipt that will indicate the amount and date of the deposit. This receipt must be retained by the depositing department. –You must remain at the Cashier’s Office until the receipt has been obtained –This receipt is your proof of deposit and protection against Fraud –This receipt must be used by a manager in your department to reconcile the receipts and deposit slips to the amount deposited. This reconciliation must happen at least weekly

21 Refund Method of Recording Refunds –Please use the same method to refund the transaction that was used for the original transaction –In-person refunds require a refund slip –Store refund books in a secure location –Refund slips or supporting documentation should remain in the original form therefore –Please do not use white-out or alter in any manner

22 Topic 3: Any Additional Questions?

23 Next Steps Consult the Cash Management Procedures Manual: Controller’s Office > Accounts Receivable > Cash Management and Billing Consult the Appropriate Cash Management Forms: Accounts Receivable > Forms

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25 Where to go for Help Accounts Receivable Help Desk Hours: 8:30 – 4:30* *(Excluding 12:00 – 1:00)

26 Session Evaluation  Please complete the session evaluation