Effective Cash Collection Procedures and Controls
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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Presentation Transcript
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
