Cash Handling Policy and Procedures

7/25/2019 Cash Handling Policy and Procedures

1/15

Cash HandlingCash Handling

Policy andPolicy and

ProceduresProcedures

OP 62.07OP 62.07


2/15

PolicyPolic

y

All Mississippi State Uniersity units thatAll Mississippi State Uniersity units thathandle cash !ust hae "oth an a#areness o$handle cash !ust hae "oth an a#areness o$and sho# a co!!it!ent to strong internaland sho# a co!!it!ent to strong internal

controls $or cash receipts.controls $or cash receipts. %nternal controls are necessary to preent%nternal controls are necessary to preent

!ishandling o$ $unds and to!ishandling o$ $unds and to sa$eguardsa$eguardagainst lossagainst loss. Strong internal controls also. Strong internal controls also

protect e!ployeesprotect e!ployees$ro!$ro! inappropriateinappropriatechargeschargeso$ !ishandling $unds "y de&ningo$ !ishandling $unds "y de&ningresponsi"ilities in the cash handling process.responsi"ilities in the cash handling process.


3/15

PolicyPolic

y

''CashCash' includes' includes coin( currency(coin( currency(chec)s( !oney orders( and creditchec)s( !oney orders( and credit

cardcardtransactions.transactions. All Uniersity units collecting cashAll Uniersity units collecting cash

!ust address the $ollo#ing cash!ust address the $ollo#ing cash

receipt controls "y deeloping andreceipt controls "y deeloping andi!ple!enting procedures in supporti!ple!enting procedures in support

o$ these controls.o$ these controls.


4/15

ProceduresProceduresI. Department ResponsibilitiesI. Department Responsibilities

A. Accounting for Cash as it is ReceivedA. Accounting for Cash as it is Received1.1. If received in person,If received in person,ring up on aring up on a cashcash

registerregisteroror recordrecordon aon a pre*nu!"eredpre*nu!"ered

!ultiple*copy receipt!ultiple*copy receipt$or!. +ie a$or!. +ie a copycopyo$o$

the receiptthe receipt to the custo!erto the custo!er..

2.2. If received by mail or phone i.e.,If received by mail or phone i.e.,credit card payments!,credit card payments!,enterenterthethe

pay!entpay!ent i!!ediatelyi!!ediatelyinto a registrationinto a registrationor order syste!( or cash receipt ,ournal .or order syste!( or cash receipt ,ournal .


5/15

ProceduresProceduresI. Department ResponsibilitiesI. Department Responsibilities

A. Accounting for Cash as it isA. Accounting for Cash as it is

ReceivedReceived-.-. %ndicate the%ndicate the type o$ pay!enttype o$ pay!entcurrency(currency( chec)( credit card( etc./chec)( credit card( etc./

.. 1estrictiely endorse chec)s1estrictiely endorse chec)si!!ediatelyi!!ediately as 'as 'Deposit only-Deposit only-

Payable toPayable to Mississippi StateMississippi State

University, Dept of _________"University, Dept of _________"on theon the"ac) o$ the chec)."ac) o$ the chec).


6/15

". #eparating Individual Cash". #eparating Individual Cash

$andling$andling DutiesDuties

Separate the co!ponents o$ cashSeparate the co!ponents o$ cashhandling * collecting( depositing( andhandling * collecting( depositing( and

reconciling * so thatreconciling * so that one indiidualone indiidualdoes not hae responsi"ility $or !oredoes not hae responsi"ility $or !ore

than one co!ponentthan one co!ponent..

%n s!all depart!ents%n s!all depart!ents separateseparatethethehandlinghandlingo$ the actual cash $ro! theo$ the actual cash $ro! the

reconciliationreconciliation..


7/15

C. #afeguarding the $andling andC. #afeguarding the $andling and

#toring of Cash#toring of Cash

.. 3uring3uring hours o$hours o$ operationoperation( secure( securecoins( currency and chec)s tocoins( currency and chec)s to restrictrestrict

accessaccess..2.2. At other ti!es(At other ti!es( storestoreall coins( currencyall coins( currency

and chec)s inand chec)s in a sa$e or other loc)eda sa$e or other loc)ed

secure placesecure placeuntil they are deposited.until they are deposited.

-.-. 4ach cashier should "e assigned their4ach cashier should "e assigned theiro#n cash dra#ero#n cash dra#er..


8/15

D. Revie%ing&ApprovingD. Revie%ing&Approving

'oided Cash Receipts'oided Cash Receipts

5he5he superisorsuperisor o$ the cash collectionso$ the cash collections

area has thearea has the responsi"ilityresponsi"ility $or$or

reie#ing and approingreie#ing and approingoidedoidedcashcashreceiptsreceiptsand docu!enting all actionsand docu!enting all actions

per$or!ed.per$or!ed.


9/15

(. Depositing Cash Promptly(. Depositing Cash Promptly

..3eposit3epositcash receiptscash receipts at least #ee)lyat least #ee)lyoror#hen the total on hand#hen the total on hand reaches 200reaches 200..

).).Deposit all funds received.Deposit all funds received. 3o3o notnot

!a)e re$unds!a)e re$unds(( pay ependiturespay ependitures( or( orcreate a change $undcreate a change $und $ro! cash$ro! cash

receipts. 3o notreceipts. 3o not hold chec)shold chec)s $or $uture$or $uture

processing. 3o notprocessing. 3o not useusecash receipts tocash receipts to

cash chec)scash chec)s $ro!$ro! e!ployeese!ployees andand

custo!erscusto!ers..


10/15


*.If a*.If a departmental depositordepartmental depositor,,delierdelierthethe depositdepositto the designatedto the designated

Uniersity depository "an)( usingUniersity depository "an)( using

your se8uentially nu!"ered deposityour se8uentially nu!"ered depositslips. 3eposits !ay "e !ade in*slips. 3eposits !ay "e !ade in*

person at the "an) or deliered toperson at the "an) or deliered to

Account Serices inAccount Serices in loc)ed "an) "agsloc)ed "an) "ags$or transport to the "an).$or transport to the "an).


11/15


+.+. If a depositor at Account #ervices i.e.,If a depositor at Account #ervices i.e.,

eneral Receipts depositor!,eneral Receipts depositor!, delier thedelier thedeposit and the cash receipt oucher to Accountdeposit and the cash receipt oucher to Account

Serices in +arner Hall.Serices in +arner Hall. 3eposits should not "e3eposits should not "e

deliered through ca!pus !ail.deliered through ca!pus !ail. 3eposits should3eposits should

only "e deliered "y U.S. !ail "y o9 ca!pus unitsonly "e deliered "y U.S. !ail "y o9 ca!pus units#ithout local "an) depository access.#ithout local "an) depository access. 3eposits3eposits

that include currency !ust "e deliered in*that include currency !ust "e deliered in*

person.person. 5hose deposits deliered to the Account5hose deposits deliered to the Account

Serices o:ce #ill "e gien a deposit receipt.Serices o:ce #ill "e gien a deposit receipt. %$%$

you do not receie a receipt( please in$or! theyou do not receie a receipt( please in$or! the

!anager or assistant !anager( i!!ediately.!anager or assistant !anager( i!!ediately.


12/15

-. Reconciling Daily and onthly-. Reconciling Daily and onthly

ActivityActivity.. 3aily "alancing3aily "alancing; "alance each deposit "y; "alance each deposit "y

co!paringco!paring;;

< thethe cash receipt recordscash receipt recordscash registercash register

tapetape(( pre*nu!"ered receiptspre*nu!"ered receipts( or receipt log( or receipt log

totals/totals/

< the co!pletedthe co!pleted cash transmittal&depositcash transmittal&deposit

< thethe validated deposit documentvalidated deposit documentse8uential deposit slip i$ a depart!entalse8uential deposit slip i$ a depart!ental

depositor( cash trans!ittal=deposit i$ adepositor( cash trans!ittal=deposit i$ a

depositor at Account Serices/depositor at Account Serices/


13/15

-. Reconciling Daily and onthly-. Reconciling Daily and onthly

ActivityActivity2.2. Monthly "alancing;Monthly "alancing; !onthly reconcile!onthly reconcilethethe

MSU >udgetary Status 1eport >S1/ #ithMSU >udgetary Status 1eport >S1/ #ith

thethe alidate deposit docu!entsalidate deposit docu!ents..

.. 3ocu!ent unidenti&ed di9erences or3ocu!ent unidenti&ed di9erences or

discrepanciesdiscrepancies


14/15

. onitoring the Cash Receipts. onitoring the Cash Receipts

ProcessProcessAd!inistratorsAd!inistrators oror ManagersManagersnot directlynot directly

inoledinoled#ith the cash receipt process#ith the cash receipt process haehae

the responsi"ilitythe responsi"ilityto periodically;to periodically;

..1eie#1eie#the nature and etent o$the nature and etent o$

oerages and shortagesoerages and shortages..

2.2.Co!pareCo!pareactualactual depositsdepositsrecordedrecorded

#ith#ith epected receiptsepected receipts..

-.-.1eie#1eie#daily and !onthly cashdaily and !onthly cashactiityactiity reconciliationreconciliation..


15/15

. onitoring the Cash Receipts. onitoring the Cash Receipts

ProcessProcessAd!inistratorsAd!inistrators ==ManagersManagersresponsi"ilityresponsi"ility;;

..Co!pareCo!parethe !ode o$the !ode o$ pay!entpay!entat the ti!e theat the ti!e thecash #ascash #as receiedreceied#ith the#ith the coin=currency andcoin=currency and

chec) totals on thechec) totals on the alidated deposit docu!entalidated deposit docu!ent..

?.?. 4aluate4aluateoerall internaloerall internalcontrolscontrolsto ensure thatto ensure that

reasona"le controls eistreasona"le controls eistto sa$eguard cash( andto sa$eguard cash( and

thatthat employees understand and follo%employees understand and follo%

them.them.

6.6. @oti$y the head@oti$y the heado$ the depart!ent or ano$ the depart!ent or an

ad!inistratorad!inistrator o$ the Controller and 5reasurerso$ the Controller and 5reasurersO:ce o$ any depositO:ce o$ any deposit or recording o$or recording o$ depositsdeposits

discrepancydiscrepancythat can not "ethat can not "e readily eplainedreadily eplained

and=or corrected.and=or corrected.

7.7. %n the eent o$ a%n the eent o$ a loss or the$t o$ $undsloss or the$t o$ $unds((ImmediatelyImmediately noti$ynoti$y Uniersity PoliceUniersity Police andand

Documents

Cash Handling Policy and Procedures