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Funds Handling & Deposit Procedures

State and Local Funds

It is Longwood University policy to minimize the number of departments collecting cash items (currency, coins and checks). Any cash collection location must be approved by the Director of Cashiering and Student Accounts. It is these departments and personnel to which these procedures are directed. Using this document as a guideline, written procedures should be established by each designated cash collection department.

These procedures should be followed in all circumstances, unless the department has requested and been granted permission in writing from the Director of Cashiering and Student Accounts to change or modify them.

Reviews conducted by the Financial Reporting Department and the Office of Cashiering that reveal non-compliance with the procedures outlined in this policy will be reported to the department head, Director of CSA, AVP for Financial Operations, area Vice President and the Internal Auditor. Continued evidence of non-compliance may result in the termination of cash collection privileges.

All cash operations are subject to review by Longwood University's internal and external auditors. Therefore, ensure that all receipts can be related to a transmittal and that all transmittals can be directly traced to an entry on Longwood University's monthly accounting statements. All Longwood University banking arrangements, including acceptance of credit cards, are established by the Office of Cashiering and Office of Financial Accounting and Reporting. Bank accounts may not be established at the department level in the school's name, i.e. Longwood University, or any derivative thereof. Accounts cannot use Longwood University's Federal ID Number and cannot have faculty or staff on the authorized signature list. Existing accounts must be closed and funds deposited in Longwood University's bank account.


Cash Handling

  • Daily cash and check transactions received by the department must be recorded by using a cash register, approved cashiering software or duplicate pre-numbered manual receipts. The original manual receipt or register receipt must be given to the payer. Receipt copies of the cash register journal tape is retained by the department.
  • The department may purchase receipts from the Office of Printing Services. The completed receipts must include: department name, a dollar amount, a description of the service or product, the date and receipt number, and the name of the person paying for the transaction. The Office of Cashiering has a variety of sample receipt forms that may be used as an example for having receipt forms printed.
  • Register receipts must provide, but are not limited to, the following information: the date, a dollar amount, a receipt / transaction number, a cashier identification number, and the name of the area in which the service is provided.
  • Cash, checks, and receipts must be kept in secure locations. To protect the funds, they should be kept in a lockable container, such as a cash box, and stored in an area that is not visible to unauthorized personnel. The container should not be left unattended during the working day. All funds must be kept in a secured (locked) storage area, such as a file cabinet or safe, at night. Upon review, the Director of Cashiering and Student Accounts will recommend appropriate type of storage.
  • Departments collecting cash should bring their receipt bags to the Cashiering office in non-descript packages at varied times so to not draw attention to the receipts being delivered. An example would be a manila envelope. It is also recommended that two employees from the cash collecting department go together to deliver the receipts to the Cashiering office.
  • Departments receiving funds by mail must maintain a mail log (sheet 1). The mail log should provide the following information for each check: the date received, a dollar amount, the name of the person or company paying for the transaction, a description of the service or product, the account to be credited, and the date remitted to the Office of Cashiering.
  • Longwood University communications, both verbal and written should request checks to be made payable to "Longwood University". The Office of Cashiering will electronically endorse each check when processing the departmental transmittal.



Funds must be deposited within 24 hours once the total receipts exceed $100, or at least once a week regardless of the amount. Daily receipts exceeding $100 should be deposited by 2:00 p.m. each day.

The department should assign cash handling responsibilities to at least two employees to guarantee a separation of duties and control of cash receipts.

Cash Handler

  • Should receive payments and issue a receipt (original) to the customer at the point of sale. The duplicate copy of the receipt is proved to the funds received. The receipt numbers and total funds collected are recorded on a cashier log - sheet 2 (xls).
  • The cashier log should include the following information: date of collection, receipt number(s), total amount of funds collected, name of the cash handler, name of the depositor, and the date funds were remitted to the Office of Cashiering.
  • If a correction is made on a receipt or if a receipt is voided, the receipt number must be recorded on the cashier log and clearly state: the correction or void, the date, signature of the person making the change, reason for the change, and the signature of an approving manager of supervisor. (The approval should be from a different person than the one initiating the correction.) All copies of voided receipts (except the transmittal copy) should be kept together and filed for audit.


  • Should prove the funds and receipts, verify the amount to the cashier log, and prepare a Transmittal (pdf). The depositor should also record the date remitted and sign the cashier log.
  • The depositor will complete a Transmittal for each deposit with the following information: the date, department name, telephone number, name of the person preparing the deposit, a description, account number(s) and detail code(s), the dollar amount, and receipt numbers issued. The transmittal form can be populated and printed from the electronic version or printed and completed in ink for clarity. 
  • The completed transmittal (a copy should be maintained at the department), copies of receipts or register tape, and funds are taken to the Office of Cashiering. Checks are batched together with an adding machine tape listing each check amount. Receipts should be batched together in numerical order with an adding machine tape attached. The receipt obtained from the Office of Cashiering should be verified to the cashier log by the cash handler and retained with the cashiers log. Supporting documentation and / or receipts should be kept and filed by each department.
  • Transmittals should be made in person. Campus mail must not be used to deliver funds to the Office of Cashiering. The person making the deposit will be asked to remain in the Office of Cashiering until verification of the funds has been made. If at all possible, we request that transmittals be brought during the morning hours.

Departments collecting any form of payment must reconcile support documentation to Longwood's Financial System. Each day the cash collecting department should be able to reconcile what is on their daily cash sheet to related support documents. The following day a reconciliation should be completed of what was posted in Banner by cashiering to the amount shown on the cash sheet. These reconciliations should be documented by a supervisor's signature and will be reviewed by the Financial Reporting Department on a periodic basis.

Yearly training on the cash collection and reconciliation procedures will be conducted by the Financial Reporting Department. This will provide the payment collecting department with updates on any changes to the cash handling procedures.


Cash Over/Short Situations

  • All deposits are made intact, inclusive of any over/short amount.
  • These amounts increase (overage) or decrease (shortage) revenues for the accounts listed on the transmittal. Departments must remember that any over or short amounts are not charged to a separate account.
  • In addition, a cash over/short log - sheet 3(xls) should be kept for each cash collection area. This record is to be used for any unexplained differences between the total of funds and receipts. The supervisor should investigate and document overages or shortages that have a minimum value of $5.00 or that are recurring. The supervisor should sign off on this log as part of the daily routine.


Recording and Reconciliation

The transaction will be entered into the computer upon receipt by the Office of Cashiering. A copy of the computer receipt will be given to the person delivering the deposit to the Office of Cashiering.

Transmittals should be reconciled to monthly Banner reports from the Office of Financial Accounting and Reporting or on line access to Banner. Reconciliations should be performed by someone other than the person receiving funds or making the deposits. Reconciliations should be dated and signed by the preparer, and reviewed, dated, and signed by a manager or supervisor on a monthly basis. This applies to departments in which revenues are recorded to a specific department revenue account.


Checks and Money Orders

All checks and U.S. Money Orders must be made payable to Longwood University and be payable through a U.S. bank.


Lost or Stolen Funds

In the case of a loss of funds or if a supervisor suspects irregularities in the handling of funds, the Office of Longwood University Campus Security must be contacted immediately.

Within 5 working days from the time of occurrence, the department must file a report with the Director of Cashiering and Student Accounts, giving a brief description of the loss. A copy of this memorandum should be sent to the Office of Internal Audit, Attention: Internal Auditor.

Additionally, the department must include changes in their departmental funds handling procedures, if possible, that will prevent the situation from reoccurring.