CASH HANDLING Training Presentation 1 Cash Handling OBJECTIVES

CASH HANDLING Training Presentation 1

Cash Handling OBJECTIVES Ø Understand the principles of good cash handling Ø Know the types of deposits Ø Follow CSU cash handling policies and procedures 2

Cash Handling A SERIOUS ISSUE If you are responsible for handling cash you are accountable for that cash. You must comply with University policy. 3

Cash Handling What is included in “Cash handling”? It’s not just “cash”. It includes the following: Ø Ø Ø Coins Currency Checks (Cashier Checks, Travelers Checks) Money Orders Credit and Debit Card Transactions Cash Equivalents Ø Stamps Ø Gift Cards Ø Bus Passes 4

Cash Handling Principles Of Good Cash Handling Five Basic Principles Ø Ø Ø Segregation of Duties Security Reconciliation Management Review Documentation 5

Cash Handling Segregation of Duties Is an important aspect of proper handling. Opening the mail, processing deposits, and reconciling accounts should each be done by different individuals. 6

Cash Handling Risk and Controls Who or what is at risk? The money You 7

Cash Handling Risk and Controls What are the risks? Ø Cash is stolen Ø Cash is lost Ø Documentation does not agree with records Ø No audit trail Ø Finger pointing and accusations Ø Loss of revenue 8

Cash Handling Risks and Controls Ø In the cash collecting process, YOU are just as important as the cash… Ø Controls (rules) are designed to protect both YOU and the cash you are handling. 9

Cash Handling Risk and Controls Before cash collection begins… “The planning checklist” Departmental cash handling supervisor develops a plan: Ø Ø Ø Ø Is a change fund needed? How are cash and checks received? Ø Mail or in person? Who opens the mail? Who is going to collect the cash? Ø Record the cash? How is the cash going to be secured? Who is going to prepare the deposit? Ø How? When to deposit at Bursar’s Office? Ø Reconciliation? Management Review? Who needs training? 10

Cash Handling “Making change” Ø Do you have a change fund? Ø Need to keep the cash safe Ø Every week prepare a reconciliation to be retained in your department. Ø Never, Never make change from your personal cash! 11

Cash Handling “Collecting the cash” Ø Ø Ø How are cash and checks received? Ø Mail or in person? Who is going to collect the cash? Ø Record the cash? In person: Ø Ø Ø Enter cash amount on a cash register or pre-numbered triplicate receipts. Give one copy of receipt to customer. RESTRICTIVELY ENDORSE CHECKS ON THE BACK IMMEDIATELY Ø “For Deposit Only Clayton State University” Ø Each department must have a stamp for endorsing 12 checks.

Cash Handling “Collecting the cash” Ø How are cash and checks received? Ø Mail or in person? Ø Who is going to collect the cash? Ø Record the cash? In Person Ø Only one person should have access to the cash register, receipts book or cash drawer during any one shift. Ø Total the receipts in the cash drawer at the end of each shift Ø If there is more than one person receiving cash at the same time, each person must have their own cash drawer and cash receipts book. Ø For proper segregation of duties, the person collecting cash can not have any other responsibilities related to cash handling. 13

Cash Handling “Collecting the cash” Ø Ø Ø How are cash and checks received? Ø Mail or in person? Who is going to collect the cash? Ø Record the cash? By Mail: Ø One person should open the mail and you should immediately RESTRICTIVELY ENDORSE CHECKS Ø “For Deposit Only Clayton State University” Ø Each department must have a stamp for endorsing checks. Ø Enter each check into an accounts receivable system if you are using one. If not, then prepare a daily list of the checks. Provide the receipt #, Payer Name, Date Received, Check Amount, and Received by. 14

Cash Handling “Securing the cash” Ø How is the cash going to be secured? Ø Overnight storage-Ideally your department has a safe close to the area where cash is collected. All collected cash must be kept in safe at all times until deposited. Access should be limited to supervisory and authorized personnel. 15

Cash Handling “Securing the cash” Ø What if your department does not have a safe for overnight cash storage? Ø Department must have a cashbox with a lock and it must be in a secure drawer that locks. Access is limited to supervisory and authorize personnel only. 16

Cash Handling “Securing the cash” Ø Whether your department uses a safe or a locked cashbox, it is very important to change the combination on a regular basis. Change the combination at least once a year or when someone leaves your department. Ø If you use keys to access the safe, cashbox, or a locked drawer, then make sure that the key is kept in a secure, secret place. 17

Cash Handling “Securing the cash” Ø Each person collecting cash should have their own money when making change is necessary. Ø Cash must be kept in a secured cashbox or register drawer with limited access; only the person assigned should have access. Ø Cash must be counted at the end of the persons shift or before another employee comes on duty. Ø Discrepancies should be documented and resolved by cashier and supervisor must review and approve. 18

Cash Handling “The deposit” Ø Who is going to prepare the deposit? Ø Deposit must be prepared by someone who didn’t collect the cash or open the mail. If that is not possible then it must be reviewed by someone other than the preparer. Ø Ø Hand deliver the deposit to the Bursar’s Office. (Never, use interoffice mail for deposits) You should make deposits daily even if it’s a small amount. Deposits should never be held longer than five days. Ø Document reason for delay. Ø THIS IS AN AUDIT ISSUE 19

Cash Handling “The deposit” Ø Preparing the deposit Ø Ø Ø Ø Ø Most departments can use the Miscellaneous Deposit Form found on the Bursar’s Webpage. (The deposit form is user friendly and downloadable for easy use). All deposits must be separated by Cash, Checks, and Credit Cards Signed credit card slips should accompany the credit card close out and the detail breakdown. Two adding machine tapes must accompany each form of currency. If you have a Detail Code for your department enter it on the line. If no detail code, you must include the entire account string. FUND, PROG, CLASS, DEPT, AND ACCT All checks and money orders must be stamped “for deposit only” Sign and Date the deposit Put loose change in an envelope Make sure you keep a copy of transactions 20

Cash Handling Reconciling Ø Verify the processing or recording of transactions to ensure that all transactions are complete, authorized, recorded, and deposited timely. Ø Please resolve all discrepancies, sign and date reconciled records. Ø The person who reconciles, should not receive cash or make deposit. (If that is not possible the supervisor must review all deposits. ) 21

Cash Handling Management Responsibilities Ø Establish an effective internal control system Ø Delegate responsibility for cash handling duties, maintain proper segregation of duties Ø Require that staff handling cash be properly trained & follow all of the University’s policies and procedures Ø Review receipts and reconciliations on a regular basis, then initial (or sign) and date documentation reviewed 22

Cash Handling Management Review Ø No matter who is collecting, depositing, and reconciling, Management is ultimately accountable Ø It is management’s responsibility to regularly review the reconciliation process to assure timeliness, accuracy and resolution of all outstanding issues. 23

Cash Handling Keeping Records and Record Retention University policy states that the following documents must be kept in the department for the current year plus three more: Ø Ø Ø Cash register “total” tapes Carbon copy of a pre-numbered receipt Electronic sales log, if applicable Deposit receipts Credit card receipts 24

Cash Handling Transporting Cash If you have the responsibility for taking the cash deposits to the Bursar’s Office, please use good common sense. Ø Ø Ø Secure the cash and checks in a cash pouch or envelope Don’t be conspicuous, don’t be predictable Get Public Safety to walk with you 25

Cash Handling CSU Cash Handling Policies & Procedures Ø Review the CSU Cash Handling Presentation online at http: //www. clayton. edu/bursar/Cash-Handling-Policies-Procedures Ø Review Departmental Deposits and Cash Receipting online at http: //www. clayton. edu/bursar/Forms 26

Cash Handling QUESTIONS ? ? 27