Effective Cash Collection Procedures and Controls

 
Cash Collection
Training and Review
Controller’s Office
 
What is Our Purpose?
 
To adhere to the University Cash Collection
Policy
To ensure consistency of cash collection
procedures
To minimize the risk for individuals,
departments, and the University
To better control cash
 
What is Cash?
 
Cash includes:
Currency and coin
Checks
Credit/debit card transactions
Electronic funds – ACH, wires
Money orders
Travelers checks
Funds deposited to Nautilus cards
 
Credit Card Payments
 
Requires Payment Card Industry Data
Security Standards (PCIDSS) compliance
 
Information available on 
Office of
Compliance and Ethics website
 
Cash Handling Controls
 
The principles of good cash handling:
Segregation of Duties
Security
Recordkeeping
Reconciliation
Management Oversight
 
Before Cash Collection Begins
 
Must be authorized as a cash collection point
Must demonstrate the ability to establish
control procedures and comply with cash
handling guidelines
Is a change fund needed?
How will the cash be received?
Who will collect the cash?
Who will prepare the transmittals?
Who is responsible for reconciliation?
Who is responsible for management oversight?
 
Making Change
 
If you are making change, you must have an
authorized change/petty cash fund
Keep the cash secure with limited access
Balance each day of use or at a minimum
once a week
Keep records of all expenses
Never use the change fund for cashing
checks, making loans, or travel advances
 
Segregation of Duties
 
This is the 
most important control 
in the cash
collection process, and often, the most difficult to
manage. A different person should be involved at
each stage of the process. Segregation of duties
minimizes risk.
 
Five stages that should be performed by different
individuals to ensure adequate internal controls:
1.
Recording of charges/billing
2.
Collecting cash
3.
Depositing cash
4.
Reconciling
5.
Management oversight
 
Segregation of Duties
 
If segregation is not possible:
Provide alternative or compensating controls
Design additional procedures to reduce risk
Design system security rules to restrict access
 
Example of a compensating control:
If the receiver of the funds also completes the
deposit – require supervisory review and approval
of the Cash Transmittal Form.
 
 
Collecting the Cash
 
In person collections must be recorded on a
cashiering system or pre-numbered duplicate
receipts
Different employees should not work out of
the same cash drawer; receipts must be
balanced at the end of each shift
Checks should be made payable to UWF or
the University of West Florida
Immediately restrictively endorse checks
Voided transactions must be approved by a
supervisor
 
Collecting the Cash
 
Cash receipts must be balanced daily
Compare the total cash, checks, credit card
receipts, etc. to the cash register total or pre-
numbered receipts
Reconciler investigates and resolves
discrepancies then initials or signs and dates
balancing document.
 
Collecting the Cash
 
For any payments being mailed – payment
should be directed to the Cashier’s Office
If a payment is received in the mail by a
department, the check(s) must be entered on
a Cash Transmittal and taken to the Cashiers
Office 
daily
Cash Transmittals 
cannot
 be sent through
campus mail
Payments must not be held pending
determination of proper accounting
 
Securing the Cash
 
Cash should be secure at all times
Different employees should not work
simultaneously out of the same cash drawer
Cash drawers must be locked when a cashier is
away from their station
Cash drawers must be secured in a safe or other
locked area
Safe combinations should be changed regularly
or whenever an employee who knows the
combination leaves the department
 
Transporting the Cash
 
Secure the deposit in a locked bank bag
Don’t be conspicuous
Don’t be predictable – vary your route and
time of day
If necessary, contact the UWF Police
Department at 2415 for an escort
 
Reconciling
 
Do not overlook this step!
Must be performed by someone with no cash
handling responsibilities
Reconcile the deposits to the cash transmittal
after the deposit has been made
Reconcile receipts to the departmental
reports on a monthly basis to verify the
recording and accuracy of all transactions
Maintain proof of these reconciliations
 
Management Responsibility
 
Establish an effective internal control system
Delegate responsibility for cash handling and
maintain proper segregation of duties
Require that all staff handling cash be
properly trained and follow all procedures of
the University’s Cash Collection Policy
 
Management
 
Responsibility
 
No matter who is collecting, depositing and
reconciling…
Management is ultimately accountable.
 
It is management’s responsibility to regularly
review the cash collection and reconciliation
process to assure timeliness, accuracy, and
resolution of all outstanding issues
 
Staff Certification Responsibility
 
New staff must comply with these
requirements prior to starting cash handling
duties
Current staff are required to review this
training annually
Review current University Cash Collection
Policy
Review department’s cash handling
procedures
Understand your role in your department’s
cash handling process
 
Staff Certification Responsibility
 
Sign and return the Cash Collection Policy
Acknowledgement Statement to:
 
 
Controller’s Office, Bldg. 20E
 
Attn: Jan Bass
 
uwf.edu/controllers
 
 
Questions?
 
 
 
 
 
Jan Bass
Assistant Controller
850-474-3031
jbass@uwf.edu
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Adhering to the University Cash Collection Policy is crucial to minimize risks and ensure consistency in cash handling procedures. Cash includes various forms like currency, checks, and electronic funds. Maintaining PCI DSS compliance for credit card payments is essential. Implementing segregation of duties, security measures, and proper recordkeeping are key principles for effective cash handling. Before starting cash collection, authorization, control procedures, and fund management need to be in place. Making change requires an authorized fund, secure handling, and strict record-keeping practices to prevent misuse. Segregating duties among different individuals at each stage of the process enhances internal controls and reduces risks.


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  1. Cash Collection Training and Review Controller s Office

  2. What is Our Purpose? To adhere to the University Cash Collection Policy To ensure consistency of cash collection procedures To minimize the risk for individuals, departments, and the University To better control cash

  3. What is Cash? Cash includes: Currency and coin Checks Credit/debit card transactions Electronic funds ACH, wires Money orders Travelers checks Funds deposited to Nautilus cards

  4. Credit Card Payments Requires Payment Card Industry Data Security Standards (PCIDSS) compliance Information available on Office of Compliance and Ethics website

  5. Cash Handling Controls The principles of good cash handling: Segregation of Duties Security Recordkeeping Reconciliation Management Oversight

  6. Before Cash Collection Begins Must be authorized as a cash collection point Must demonstrate the ability to establish control procedures and comply with cash handling guidelines Is a change fund needed? How will the cash be received? Who will collect the cash? Who will prepare the transmittals? Who is responsible for reconciliation? Who is responsible for management oversight?

  7. Making Change If you are making change, you must have an authorized change/petty cash fund Keep the cash secure with limited access Balance each day of use or at a minimum once a week Keep records of all expenses Never use the change fund for cashing checks, making loans, or travel advances

  8. Segregation of Duties This is the most important control in the cash collection process, and often, the most difficult to manage. A different person should be involved at each stage of the process. Segregation of duties minimizes risk. Five stages that should be performed by different individuals to ensure adequate internal controls: 1. Recording of charges/billing 2. Collecting cash 3. Depositing cash 4. Reconciling 5. Management oversight

  9. Segregation of Duties If segregation is not possible: Provide alternative or compensating controls Design additional procedures to reduce risk Design system security rules to restrict access Example of a compensating control: If the receiver of the funds also completes the deposit require supervisory review and approval of the Cash Transmittal Form.

  10. Collecting the Cash In person collections must be recorded on a cashiering system or pre-numbered duplicate receipts Different employees should not work out of the same cash drawer; receipts must be balanced at the end of each shift Checks should be made payable to UWF or the University of West Florida Immediately restrictively endorse checks Voided transactions must be approved by a supervisor

  11. Collecting the Cash Cash receipts must be balanced daily Compare the total cash, checks, credit card receipts, etc. to the cash register total or pre- numbered receipts Reconciler investigates and resolves discrepancies then initials or signs and dates balancing document.

  12. Collecting the Cash For any payments being mailed payment should be directed to the Cashier s Office If a payment is received in the mail by a department, the check(s) must be entered on a Cash Transmittal and taken to the Cashiers Office daily Cash Transmittals cannot be sent through campus mail Payments must not be held pending determination of proper accounting

  13. Securing the Cash Cash should be secure at all times Different employees should not work simultaneously out of the same cash drawer Cash drawers must be locked when a cashier is away from their station Cash drawers must be secured in a safe or other locked area Safe combinations should be changed regularly or whenever an employee who knows the combination leaves the department

  14. Transporting the Cash Secure the deposit in a locked bank bag Don t be conspicuous Don t be predictable vary your route and time of day If necessary, contact the UWF Police Department at 2415 for an escort

  15. Reconciling Do not overlook this step! Must be performed by someone with no cash handling responsibilities Reconcile the deposits to the cash transmittal after the deposit has been made Reconcile receipts to the departmental reports on a monthly basis to verify the recording and accuracy of all transactions Maintain proof of these reconciliations

  16. Management Responsibility Establish an effective internal control system Delegate responsibility for cash handling and maintain proper segregation of duties Require that all staff handling cash be properly trained and follow all procedures of the University s Cash Collection Policy

  17. Management Responsibility No matter who is collecting, depositing and reconciling Management is ultimately accountable. It is management s responsibility to regularly review the cash collection and reconciliation process to assure timeliness, accuracy, and resolution of all outstanding issues

  18. Staff Certification Responsibility New staff must comply with these requirements prior to starting cash handling duties Current staff are required to review this training annually Review current University Cash Collection Policy Review department s cash handling procedures Understand your role in your department s cash handling process

  19. Staff Certification Responsibility Sign and return the Cash Collection Policy Acknowledgement Statement to: Controller s Office, Bldg. 20E Attn: Jan Bass uwf.edu/controllers

  20. Questions? Jan Bass Assistant Controller 850-474-3031 jbass@uwf.edu

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