Cash Handling Its my job

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Cash Handling Its my job

• Whether you take in lots of money oryou collect
  pennies

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..the principles of good cash handling are
basically the same.

• Segregation of Duties
• Security
• Reconciliation
• Management Review
• Documentation

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What is included in Cash Handling ?

• Coins
• Currency
• Checks
• Money Orders
• Credit Cards
• Cash Equivalents
• Tokens
• Tickets
• Stamps
• Gift Cards

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First, lets talk about risk and controls.
Who or what is at risk?
Money
Why?
YOU
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Risk?

• Cash is stolen
• Cash is lost
• Lost revenues
• No audit trail
• Finger pointing/Accusations
• Lost job!

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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.
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Before cash collection begins..The planning
checklist

• Is a change fund needed?
• How is cash received? Mail or in person?
• Who is going to collect the cash? Record the
  cash?
• How is the cash going to be secured?
• Who is going to prepare the deposit? How?
• Deposit at the Bank or Treasurers Office?
  When?
• Reconciliation? Management Review?
• Who needs training?

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Making Change

• Is a change fund needed?
• If so, then you need to
• Send a written request for change fund to
  Accounting
• Keep amount at a bare minimum
• Keep the cash safe
• Never make change from your personal cash!

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Collecting the Cash

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

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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.

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Collecting the Cash In Person

• The cash collection point must maintain a clear
  separation of duties.
• An individual should not have responsibility for
  more than one of the cash handling components
• Collecting/Depositing
• Reconciling

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Collecting the Cash In Person

• Immediately endorse all checks with a restrictive
  endorsement payable to Iowa State University
  and the corresponding departmental fund/account
  number.

For Deposit Only Iowa State University 201 00 00
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Collecting the Cash by Mail

• Designated staff should open the mail and
  immediately restrictively endorse each check with
  For deposit only to Iowa State University.
• Log into the Deposits Online system and enter the
  details of each check
• Alternatively, departments may enter the detail
  in their own database system and enter only
  summary information into the Deposits Online
  system.

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Collecting the Cash by Mail

• Checks received that were intended for another
  department should be restrictively endorsed to
  Iowa State University and forwarded to that
  department for deposit.
• If the intention is unclear, the check should be
  restrictively endorsed to Iowa State University
  and sent to the Treasurers Office to handle.

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Now that we have collected the cash, what do we
do with it?

• Secure
• Balance
• Deposit
• Reconcile

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How is cash going to be secured?

• Cash must be stored in a safe or other secure
  place until it is deposited.
• Whether your department uses a safe or a locked
  cash box, it is very important to change the
  combination when someone who knew the combination
  leaves the department.

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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.
• When Collecting
• When collecting payments in a high traffic area,
  you may want to consider installing an alarm
  system. (Contact Department of Public Safety for
  guidance)

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Balancing
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.
• Sign and date to provide evidence of balancing.

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How to prepare the deposit.

• All cash sales must be recorded through the use
  of the Deposits Online System (https//accessplus.
  iastate.edu/frontdoor/login.jsp).
• An adding machine tape of the individual checks
  with the total of all the checks must be included
  with the deposit.
• The currency must be sorted by denomination
  bundled into groups of 100.

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How to prepare the deposit.

• Once the deposit has been submitted from the
  Deposits Online system, a deposit number is
  assigned.
• This deposit number, along with the cash and
  checks, must be delivered to the Treasurers
  Office (1220 Beardshear).
• For those departments that are not conveniently
  located to the Treasurers Office, checks may be
  sent by campus mail.
• All currency and coin must be hand delivered to
  the Treasurers Office (1220 Beardshear).

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How to prepare the deposit.

• When cash receipts are less than 100, the
  deposit must be delivered within 5 days.
• Monies exceeding 100 should be delivered within
  2 days.
• Employees are held personally liable under their
  bonds for all monies handled.
• The responsibility for monies does not cease
  until the monies are deposited with a completed
  and correct Deposits Online transaction and
  verified by the Treasurers Office.

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Reconciliation

• Verify that all transactions are complete,
  recorded, and deposited on a timely basis.
• This function must be performed by an employee
  who has no cash handling responsibilities.
• Reconciler investigates and resolves
  discrepancies, and initials (or signs) and dates
  documentation reconciled.

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Reconciliation

• Monthly, compare the deposits submitted per
  Deposits Online with your Departmental Statement.
  
• Evidence of reconciliation must be maintained by
  the department.

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Management Responsibilities

• 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
  Universitys cash handling policies and
  procedures.
• Review reconciliation on a regular basis, then
  sign date documentation review.
• No matter who is collecting, depositing, and
  reconciling cash, Management is ultimately
  accountable.

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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
  in each step recording of charges/billing, cash
  receipting, cash depositing, and reconciliation.
• If the segregation of duties is a problem for
  your department, please contact Internal Audit
  for guidance.

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Record Retention

• Keep the following documents for five years
• Cash Register total tapes
• Departmental Copy of receipt
• Electronic Sales Log
• Cash over/short record
• Credit Card receipts must be kept 18 months.

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Transporting Cash

• If you have responsibility for taking the cash
  deposit to the Treasurers Office, please
• Put deposit in a cash bag or envelope
• Do not be conspicuous
• Do not take the same route or go at exactly the
  same time every day

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Cash Equivalents

• If you have the responsibility for cash
  equivalents such as parking passes or gift cards,
  remember that they must be treated as if they are
  cash
• Secure in a locked safe or drawer.
• Record the sale.
• Balance sale.
• Deposit cash promptly.
• Reconcile sales against statement of accounts.
• Resolve all outstanding issues.

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Cash Handling Policy

• Please take the time to read and review the
  Universitys Cash Handling Policy online at
• http//www.ats.iastate.edu/vpbf/treas/treasurer/c
  ashpro.htm