CASH HANDLING BASICS AND UPDATES DAN WUSSLER. What is a Cash Collection Point? Any department,...
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CASH HANDLING BASICS AND UPDATES DAN WUSSLER
CASH HANDLING BASICS AND UPDATES DAN WUSSLER. What is a Cash Collection Point? Any department, event, club or other entity which collects more than $1,000
What is a Cash Collection Point? Any department, event, club or
other entity which collects more than $1,000 annually, with the
exception of those whose collections occur infrequently and are for
the recovery of expenditures such as telephone, copies, etc. All
Cash Collection Points must be authorized by the Controllers Office
before collections begin. 2Cash Handling Training
Slide 3
How do you get authorized? Complete a Cash Collection Point
Application (TM-01)Cash Collection Point Application (TM-01) Submit
to Treasury Management for review and approval or
recommendationsTreasury Management Applications should be submitted
at least 4 weeks prior to start of collections Ensure cash handling
staff have: Read and understand the Universitys Cash Management
PolicyCash Management Policy Signed a copy of the Employee
Acknowledgement Form (TM-03)Employee Acknowledgement Form (TM-03)
3Cash Handling Training
Slide 4
Before Collections Begin... The Planning Checklist Departmental
Cash Handling Supervisor Develops Plan: Is a Change Fund Needed?
How Will Cash be Received (Mail or In Person)? Who Will Collect the
Cash? Record the Cash? Who Will Prepare the Deposit? How? Who Will
do Reconciliations? Management Review? Is Training Required? Have
Departmental Policies & Procedures Been Developed? Departmental
P&P TemplateDepartmental P&P Template Cash Handling
Training4
Slide 5
Cash and Equivalents Cash is defined to include: Coins Currency
Checks & Money Orders Credit / Debit Cards Electronic Funds
Transfers (ACH & Wires) 5Cash Handling Training
Slide 6
Cash Handling Policy Changes OP-D-2-B3 Departments are now
required to be re-authorized as Cash Collection Points every three
years. OP-D-2-B3 OP-D-2-B4 C Cash handling duties should be
assigned to different employees for collections, deposit
preparation, and reconciliations. If there is a justifiable reason
for not doing so, alternative or compensating control procedures
must be in place. OP-D-2-B4 C (This section regarding segregation
of cash handling duties is a clarification of similar requirements
in the old policy.) 6Cash Handling Training
Slide 7
Cash Handling Policy Changes OP-D-2-B4 E Deposits are still
required to be made daily. Exceptions may be made when collections
of currency and coin are less than $100 (no change) or checks total
less than $500 (up from $300). However, all collections should
still be deposited within five business days, regardless of amount.
OP-D-2-B4 E OP-D-2-B4 G Detailed written procedures for the
handling and control of cash collections and change funds are to be
developed by the department (not previously specified) and provided
to all persons with assigned cash handling responsibilities.
OP-D-2-B4 G Cash Handling Training7
Slide 8
Cash Handling Policy Changes OP-D-2-B5 B1 In order to validate
the persons identity, checks received from University students,
faculty or staff should have the following information recorded on
them: full name, residence address, phone number, and the last
eight digits of the individuals FSU Card number (changed from the
last four digits of their SSN). Cash Handling Training8
Slide 9
Cash Handling Policy Changes OP-D-2-B6 Departments must request
permission from the Controllers Office for an agency to
electronically transfer payments into the Universitys bank account.
OP-D-2-B6 The Controllers Office will provide the customer with the
necessary banking information. Prior to each receipt, departments
must provide the Controllers Office with a completed Notice of
Expected Electronic Transmission Form (ET3031). This will
facilitate the tracking of the incoming payment and will result in
the proper recording of the funds. (This section is a new
clarification regarding payments received by EFT, ACH or Wire
Transfer.)Notice of Expected Electronic Transmission Form (ET3031)
Cash Handling Training9
Slide 10
Cash Handling Policy Changes OP-D-2-B6 Detailed written
procedures for the handling and control of cash collections and
change funds are to be developed by the department (not previously
specified) and provided to all persons with assigned cash handling
responsibilities. Cash Handling Training10
Slide 11
Cash Handling Policy Changes OP-D-2-B8 D Credit and debit card
collections are to be transmitted daily (not previously specified).
A copy of the summary total report along with a University Revenue
Deposit form should be forwarded to Student Financial Services
within two business days of transmittal (not previously specified).
Cash Handling Training11
Slide 12
Internal Controls Basics of Cash Handling Segregation of
Dutiesbilling, collecting, depositing & reconciling duties must
be separated Securitystorage & access to collections as well as
confidential data must be secured at all times Reconciliationensure
collections receipted were properly deposited & recorded in
OMNI departmental ledgers Management Reviewrandomly review receipt
logs, deposits and reconciliations Documentationreceipt logs on
daily collections w/signatures, deposit slips, reconciliations Cash
Handling Training12
Slide 13
The Basics of Segregation of Duties AssignmentSegregation of
Duties A. Biller/InvoicerCannot also be B, C, or D B. CashierCannot
also be A, D, or E C. Cash Point SupervisorCannot also be A or E D.
Deposit PreparerCannot also be A, B, or E E. ReconcilerCannot also
be B, C, or D Cash Handling Training13
Slide 14
Collecting in person Proper receipting devices such as
pre-numbered receipt forms or cashiering terminals are to be used
Employees should not work simultaneously from same receipt book or
terminal Only official University receipt forms obtained from FSU
Printing Services may be used (unless an exception is granted)
Unused pre-numbered receipt forms should be adequately secured and
accounted for Cash Handling Training14
Slide 15
Collecting in person All customers paying in person should be
provided with a receipt or cash register tape Voided receipts or
transactions should be approved by supervisory personnel and all
copies of the voided receipt should be retained Checks should be
restrictively endorsed immediately Collections should be secured at
all times Persons collecting cash should not have other cash
handling duties Cash Handling Training15
Slide 16
Collecting through the mail Upon receipt checks should be
immediately restrictively endorsed and logged Check log should
include Check log Payer Name Check Number Check Amount Check Date
Date Check Received Collectors Initials Date Deposited Deposit Slip
Number Depositors Initials Collections should be secured at all
times and access limited to authorized personnel Cash Handling
Training16
Slide 17
Deposits Persons preparing deposits should not be involved with
collecting cash, opening the mail, or monthly reconciliations
Deposits should generally be made daily. Exceptions may be made
when daily coin & currency are less than $100 or daily checks
are less than $500 No collections should be held more than 5
business days before being deposited Credit / Debit card payments
should be settled daily with Student Financial Services Deposits
should not be sent through campus mail Cash Handling
Training17
Slide 18
Deposits Deposits should be forwarded to the Office of Student
Financial Services or if armored car service is available directly
to the bank Departments should ensure that appropriate security is
provided when deposits are transported across campus or from
off-campus sites Departments not on the cashiering system must
submit a University deposit ticket Revenue Deposit Form (DT118) to
the Office of Student Financial Services regardless of how the
deposit is routed to the bankRevenue Deposit Form (DT118)
Individuals delivering deposits to Student Financial Services
should obtain a validated receipt at the time the deposit is
delivered Cash Handling Training18
Slide 19
Reconciliation Person with no cash handling responsibility
(does not collect or deposit) to do reconciliation Daily Ensure
amount receipted for is equal to actual amount on hand Any
discrepancies to be investigated, resolved, and signed off on
Ensure that all funds receipted for were properly deposited and
recorded Cash Handling Training19
Slide 20
Reconciliation Monthly Compare daily receipt logs to OMNI
departmental ledger reports to ensure that all deposits were
properly recorded and that only appropriate transactions have been
recorded in the ledger Reconciliation should be completed,
reviewed, and signed off on prior to end of second succeeding
month. Individual reviewing and signing off on should not be person
performing reconciliation Reconciling items which cannot be
identified by end of second succeeding month shall be identified
and resolved as soon as possible, but no later than the end of the
third succeeding month Cash Handling Training20
Slide 21
Petty Cash or Change Fund Petty Cash Permanent Fund is a cash
advance from the Revolving Fund that is issued for on-campus
operations, including, but not limited to, small office purchases,
etc. A specified expiration date is not required Temporary Fund is
a cash advance from the Revolving Fund that is issued for limited
on-campus operations, field trips, research projects or other off-
campus projects with a specified expiration date Permanent and
Temporary petty cash funds from sources other than the Revolving
Fund are unauthorized Cash Handling Training21
Slide 22
Petty Cash or Change Fund A Change Fund is a cash advance from
the Revolving Fund that is issued to provide change for cashier
functions within the University. Change funds from sources other
than the Revolving Fund are unauthorized. To request cash for
either a petty cash fund or a change fund, complete FSU form FA
252, Request for Revolving Fund Advance, and submit to General
Accounting UCA 6310. If requesting a Temporary Petty Cash fund,
supporting documentation detailing how the money will be used is
requiredFA 252 Cash Handling Training22
Slide 23
New Treasury & Cash Management Website
http://control.vpfa.fsu.edu/Treasury-Cash- Management Policies
& Procedures Forms Cash Handling Resources Guidelines
Guidelines Internal Control Questionnaire Internal Control
Questionnaire Templates Procedures Procedures Check Log Check Log
Cash Drawer Reconciliation Cash Drawer Reconciliation FAQs FAQs
23Cash Handling Training
Slide 24
Treasury Management Contacts Gayla Burdick Accounting
Specialist A6314 University Center Mail Code: 2390 Phone:
850-644-9480 [email protected][email protected] Dan
Wussler Assistant Controller A6315 University Center Mail Code:
2390 Phone: 850-644-1823 [email protected][email protected] Michelle Hill Accounting Specialist A6312
University Center Mail Code: 2390 Phone: 850-644-1821
[email protected][email protected] Cash Handling
Training24
Slide 25
CASH HANDLING INTERNAL CONTROLS JANICE FOLEY 25
Slide 26
Without controls: Cash can be stolen Cash can be lost Revenues
can be lost The University or programs reputation can be damaged
26Cash Handling Training Internal Controls Protect the
University
Slide 27
Without controls: Trust can be lost Individual reputations can
be damaged Finger pointing/Accusations can be directed at
individual employees You could lose your job! 27Cash Handling
Training Internal Controls Protect the Employee
Slide 28
Segregation of Duties Security Reconciliation Management Review
Documentation 28Cash Handling Training Internal Controls Basics of
Cash Handling
Slide 29
Simple Segregation of Duties OMNI Cash Log University
Cashiering Deposit Reconcile Cash Handling Training29
Security Background Checks University Policy OP-C-7-G12(A)
1.Pre-employment criminal history background checks shall be
required for the following categories of staff employees:
a.A&P, USPS, and OPS positions that handle cash (except petty
cash), checks, or credit/debit cards 2.Effective for all persons
hired into positions with cash handling responsibilities after
January 30, 2007 31Cash Handling Training
Slide 32
Security Background Checks Need for background check should be
in job description and in OMNI For OPS: Complete the Background
Request Form Complete the Background Request Form Contact your
individual recruiter Contact your individual recruiter $27.00
Usually 48 hours turnaround time 32Cash Handling Training
Slide 33
During Working Hours Should have a separate cash box with a
lock Cash box should be secured when not in use Overnight Secure
the cash box in locked drawer Secure the cash box in a safe Secure
keys Change combinations periodically and after someone leaves
33Cash Handling Training SecurityCash
Slide 34
Payment Card Policy (OP-D-2-G) PCI-DSS Security Requirements
Employee Training Requirement Other Policies Records Management
(OP-F-3) Records Management (OP-F-3) Destruction and Shredding of
Confidential Documents and Records (OP-F-6) Destruction and
Shredding of Confidential Documents and Records (OP-F-6)
Safeguarding of Confidential and Personal Information (OP-F-7)
Safeguarding of Confidential and Personal Information (OP-F-7)
34Cash Handling Training Security Credit Cards
Slide 35
Secure your cash logs If electronic: Limit access Write protect
35Cash Handling Training Security Cash Log
Slide 36
Reconciliation Basics Person who does not receive cash, record
the financial transaction or prepare the deposit should: Compare
the receipt received from the University Cashier to the department
deposit Compare the cash log/receipt book to OMNI financial records
Initial and date these reconciliations! 36Cash Handling
Training
Slide 37
Reconciliation Management Review Review reconciliation
documentation Add your initials and the date reviewed 37Cash
Handling Training
Slide 38
Document Procedures Helps to ensure consistency with laws,
rules, and University policies and procedures Records the knowledge
of experienced staff Provides a tool to assist new staff perform
regular duties 38Cash Handling Training
Slide 39
Tips on Documenting Cash Handling Procedures Complete the Cash
Handling Procedures TemplateCash Handling Procedures Template
Compare your procedures to the Universitys Cash Handling Policy
Universitys Cash Handling Policy Identify needed changes Record or
revise written procedures Implement 39Cash Handling Training
Slide 40
Recent Audit Observations Credit card transactions not handled
properly Credit card numbers are: Being taken over the phone
Written down and not destroyed Written down and scanned to files
Old credit card documents containing full information not
adequately secured Background Checks not completed 40Cash Handling
Training