Cash Handling Procedures Dont Lose the Lettuce Pepperdine

Cash Handling Procedures “Don’t Lose the Lettuce” Pepperdine University Cashier’s Office TAC 2 nd Floor, Malibu x 4107 1

Cash Handling – It’s your job Whether you take in lots of money or…you collect “pennies” 2

……. . the principles of good cash handling are basically the same. • Documentation • Separation of Duties • Security • Reconciliation • Management Review 3

What is “Cash” ? • Coins • Currency • Checks • Personal • Business • Traveler’s • Cashier’s • Money Orders • Credit Cards • Debit Cards • Electronic Payments 4

First, lets talk about risk and controls…. Who or what is at risk? 5

Risk • Cash is stolen • Cash is lost • Lost revenues • No audit trail • Posted to incorrect chartfields • Finger pointing/Accusations/Disciplinary actions • Lost job! 6

Risk and Controls Remember – In the cash collecting process, YOU are just as important as the cash………. . The controls (rules) that we will discuss are designed to protect both YOU and the cash you are handling. 7

Collecting the Cash • How is cash received? • Who is going to collect the cash? • Who will record the cash? 8

Collecting the Cash In Person • The cash received must be entered on a cash register, if one is available, and a copy of the receipt given to the customer. • If a cash register is not available, then create a dual copy receipt, keep one for balancing, and give one to the customer. 9

Collecting the Cash by Mail • Mail should be opened immediately, cash payments identified and logged by the designated person opening the mail. • Receipt log should be provided to staff for satisfying sales orders or posting data to customer records. 10

Separation of Duties • The cash collection point must maintain a clear separation of duties. One individual should not have responsibility for more than one of the cash handling components: – Billing – Collecting/Depositing – Reconciling 11

Separation of Duties • The individual who receipts payments should not: – Be able to reverse payments (reversals should require supervisory override). – Be able to adjust charges on the student account or general ledger. 12

“Now that we have collected the cash, what do we do with it? ” • Secure • Balance • Deposit • Reconcile 13

How is cash going to be secured? • Cash must be physically protected from loss at all times. Lockable receptacles, with key control and restricted access, must be used. • Amounts exceeding $1, 500 must be in a fire resistant safe. 14

How is cash going to be secured? While in Use… • If making change is necessary, each person collecting cash should have a cash box or drawer that no one else uses. When not in Use… • Secure the cash box in a locked drawer and limit access. • Secure the cash drawer by locking it and limiting access. 15

Balancing • Every day, all cash receipts must be balanced. • Compare the cash (currency, coin, checks, credit card receipts, etc. ) to the records (cash register tapes, receipt copies, sales logs etc. ) • Identify and resolve any discrepancies. 16

Depositing to Cashier’s Office • A Cash Custodian is responsible for the daily deposits of the department. • All deposits must be delivered in a locked cash bag or sealed plastic bag provided by the Cashier’s Office. • The locked cash bag with receipts will be returned or ready for pick-up the next business day. 17

Preparing the Deposit • All deposits must be prepared using the Cashier’s Office deposit forms. • Any individual check for $25, 000 or more requires a separate Deposit Form and immediate notification to the Cashier’s Office. 18

When To Deposit • All deposits must be delivered daily, to the Cashier’s Office. • A second deposit may be required, before the close of business, whenever the sum of $500 or more is accumulated. 19

Reconciliation • Verify that all transactions are complete and recorded. 20

Cash Custodian Responsibilities • Have clear written procedures for cash handling and cashiering functions. • Establish an effective internal control system. • Delegate responsibility for cash handling, while maintaining proper segregation of duties. • Require that staff who handle cash be properly trained and that they follow all of the University’s Cash Handling Policies and Cash Control Procedures. 21

Management Responsibilities • Review reconciliation on a regular basis, then sign & date documentation review. • Prepare and review monthly overage/shortage reports. Look for both frequency and amounts of outage. • No matter who is collecting, depositing, and reconciling cash, management is ultimately accountable. 22

Cash Handling Procedures The End 23