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Longwood
University |
Policy 4305
FUNDS HANDLING AND
DEPOSIT POLICY
I. PURPOSE
The purpose of this policy is to establish a responsible system for handling
institutional funds.
II. DEFINITION
A. Cash Items: Cash items are coins, currency, and checks.
III. POLICY FOR STATE AND LOCAL FUNDS
It is the University's policy to minimize the number of departments collecting cash items. Any cash collection location must be approved by the Director of Cashiering and Student Accounts (CSA). Written procedures must be established by each designated cash collection department.
A. Exceptions: These procedures must be followed in all circumstances, unless the department has requested and been granted permission in writing from the Director of CSA to change or modify them.
B. Review: All cash operations are subject to review by the institution'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 the University's monthly accounting statements.
C. Banking Arrangements: All 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 University's name, ie. Longwood University, or any derivative thereof. Accounts cannot use the 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 the University's bank account.
IV. PROCEDURE
A. Cash Handling:
1. Daily cash and check transactions received by the department must be recorded by using a cash register or duplicate pre-numbered manual receipts. The original manual receipt or register receipt must be given to the payor. Receipt copies of the cash register journal tape is retained by the department.
a. The department will obtain receipts from the Office of Cashiering, which will be standardized and sequentially numbered. 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.
b. 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.
2. 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 employees. The container should not be left unattended during the working day. All funds must be kept in a secured (locked) storage area, such a file cabinet or safe, at night. Upon review, the Director of CSA will recommend an appropriate type of storage.
3. Departments receiving funds by mail must maintain a mail log. 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.
4. Longwood communications, both verbal and written should request checks to be made payable to "Longwood University."
5. Checks must be endorsed immediately upon receipt with the following: "FOR DEPOSIT ONLY, (Department Name), LONGWOOD UNIVERSITY." The endorsement must be on the reverse side of the check. As the payee, the endorsement will be limited to only 1 ½ inches at the top of the back of the check.
B. Deposits:
1. Funds must be deposited within twenty-four (24) hours once the total receipts exceed one hundred (100) dollars, or at least once a week regardless of the amount. Daily receipts exceeding one hundred (100) dollars should be deposited by 2:00 p.m. each day.
2. The department should assign cash handling responsibilities to at least two (2) employees to guarantee a separation of duties and control of cash receipts.
a. One employee, the cash handler, should receive payments and issue a receipt (original) to the customer at the point of sale. The duplicate copy of the receipts are proved to the funds received. The receipt numbers and total funds collected are recorded on a cashier log.
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 or 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.b. A second employee, the depositor, should prove the funds and receipts, verify the amount to the cashier log, and prepare a Transmittal. 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, BANNER account number(s), the dollar amount, and receipt numbers issued. The transmittal ticket should be typed or printed in ink for clarity.
3. 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.
4. 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. 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.
5. Departments collecting any form of payment must reconcile support documentation to BANNER Self Service (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 Cashiering Department. This will provide the payment collecting department with updates on any changes to the cash handling procedures. In addition, petty cash will be collected and then reissued by the Cashiering Department at that time.
C. Cash Over/Short Situations:
1. 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.
2. In addition, a cash over/short log 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 five (5) dollars or that are recurring. The supervisor should sign off on this log as part of the daily routine.
D. Recording and Reconciliation:
1. The transaction will be entered into the cash register/computer upon receipt by the Office of Cashiering. A copy of the cash register/computer receipt will be given to the person delivering the deposit to the Office of Cashiering.
2. Transmittals should be reconciled to monthly BANNER reports from the Office of Financial Accounting and Reporting or online 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.
E. 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.
F. Lost or Stolen Funds:
1. In the case of a loss of funds or if a supervisor suspects irregularities in the handling of funds, the Public Safety Office of Longwood must be contacted immediately.
2. Within five (5) working days from the time of occurrence, the department must file a report with the Director of CSA, 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 the departmental funds handling procedures, if possible, that will prevent the situation from reoccurring. Any questions concerning the funds handling procedures can be directed to the Director of CSA, 434.395.2270.
Revised and approved by the Board of Visitors, September 7, 2002.
Revised and approved by the Board of Visitors, June 15, 2006.
Revised and approved by the Board of Visitors, September 15, 2006.