Cash Handling Controls

Six important controls are:

1. There should be segregation of cash handling duties. An individual should not have responsibility for all of the cash handling components: collecting, depositing, and reconciling. (For clarification purposes, the term “Cash” will mean all currency, checks, credit cards, wires, etc. received.) All checks received should be made payable to “UNI”and for payments received in person, identification (driver's license or U-ID) should be verified upon receipt of check.
   
   
2. The funds should be accounted for/recorded as they are received. Individuals giving actual cash must be given a receipt, preferably a pre-numbered one, and then the funds are logged into an accounts receivable/sales system along with other forms of payment. If such a system is not available, a listing or photocopies should be prepared. This listing should be used for reconciliation purposes.
   
   
3. Checks must be restrictively endorsed to UNI upon receipt. A restrictive endorsement contains the text “for deposit only.” It can be handwritten or a stamp can be ordered from an office supply store, customized for a specific department. We also ask that the department name and account number be listed on the back of the check under “for deposit only.” This will be utilized in case the check is returned from the bank as unpaid.
   
   
4. Funds must be kept secured until deposited. Funds should be kept in a locked safe, if one is not available, then in a locked file cabinet. Copies of checks or credit card slips should not be maintained by departments, the Cashier should be able to provide copies if necessary. If there is an identifiable need to maintain copies, all personal information must be blacked out including account number on check or credit card receipt and SSN if present on check. Additionally, copies must also be secured in a locked file cabinet or desk.
   
5. Timely deposit of cash receipts must be made. It is University policy that departments and related organizations make daily deposits if funds on hand equal or exceed $250.00. Deposits must be made at least weekly. All credit card transactions are required to be deposited daily, regardless of amount. Failure to comply with this guideline could result in stricter requirements.
   
6. All funds must be reconciled. Each day’s collected cash needs to be verified. Each deposit ticket processed needs to be reconciled to the departmental statement of account for each fund.

Last Revision: May 6, 2005