Handbook of Business Procedures
April 20, 2005
6.1. CASH HANDLING INTRODUCTION AND RESOURCES
Cash handling at all University of Texas component institutions is governed by University of Texas Board of Regents' Rules Series 22201.
Each chair or head of a department, office, or laboratory that accepts cash or checks for any purpose is responsible for assuring that proper procedures for handling and accounting for cash are followed. Cash handling requires special control measures. These control measures must be monitored continually by supervisory personnel to detect any weaknesses.
It is the specific responsibility of supervisory personnel to review cash handling documents that are prepared by personnel reporting to them. Anything that appears questionable should be investigated carefully. Normal departmental trends in cash receipt levels should be monitored. If, without an apparent reason, the level of cash receipts reported drops below the normal expected level for a period of time, the records should be carefully reviewed. Assistance from the Office of Internal Audits should be requested, if needed.
Employees who handle cash are required to complete CW 505 — Cashier Training. See the CW 505 Web page for more information.
The cash handling and record-keeping functions should be separated. If the office is small, and separation of duties is impracticable, the supervisory personnel who do not handle cash should perform specific verification that provides for reasonable and sound internal controls.
If a deposit or combined deposits contain more than $5,000.00 cash, you must have a UT police escort. For cash amounts under $5,000 a departmental/center supervisor or other employee may accompany the courier if the department chooses.
Cash processing areas should be secure from entry by unauthorized people. Cash shall be stored in a safe when not in use or in a register, locked drawer, or locked box. Cash in unlocked drawers or boxes should never be left unattended. All safe combinations should be changed and keys retrieved when authorized individuals end employment or are no longer authorized to have access to funds.
Every time funds are transferred, the funds should be counted in the presence of both parties. Both individuals should sign some type of documentation acknowledging that one is relinquishing the funds and the other is accepting responsibility for the funds.
Employees should be familiar with existing alarm systems, including how and when to use it, and be aware that opening and closing times are the most dangerous. The University Police Department should be called at 911 when something appears suspicious or a special risk is present.
Large amounts of cash should not be allowed to accumulate in the cash drawer. Keep reserve cash locked in a safe or other security container. Maintain cash bag security, and place cash in secure containers (safes) as soon after closing as possible. Do not count cash in public view.
Each department accepting cash shall maintain a documentation file. This file shall include:
- Departmental cash handling procedures. The procedure will be reviewed by the Office of Internal Audits in the normal course of its activities.
- An authorization for each petty cash fund used by the department. The funds must be approved by the Associate Vice President or the Vice President and Chief Financial Officer.
- Records indicating who has been assigned custody of the department's petty cash funds and all other correspondence and documentation related to departmental cash handling and cash controls.
- Check logs, sales receipts, cash transfer logs, coin-operated machine logs, and discount/complimentary sales forms.
All "over-the-counter" collections of money for The University must be supported by pre-numbered receipts, pre-numbered tickets, or cash register tapes. Computer-generated bills shall also be pre-numbered unless the Office of Internal Audits certifies that other valid means of cash control are in use. The original copies of receipts are to be issued to the payors, and duplicate copies are to be retained for balancing with cash deposits and for audit purposes. The same principle applies to cash register tapes—the original is issued to the payor, and the duplicate (transaction) tape is retained. Departmental records are to be maintained on all event tickets used in accordance with normal procedures available from the Cashier's Office.
Coin-operated machine collections must be recorded in a log prior to the preparation of a cash receipts voucher. Special control problems arise when sales are made with coin-operated machines. The Office of Internal Audits should be consulted on the proper procedures for this type of sale.
Admission tickets, including complimentary tickets, should comply with the following requirements:
- Price of admission must be on ticket.
- Tickets must be pre-numbered, unless the seat assignment is shown on the ticket.
- Unused tickets should be returned along with a ticket report to the business office within 30 days of the event.
- All persons receiving complimentary tickets should be listed on the ticket report.
Employees who handle cash are required to complete CW 505—Cashier Training. See the CW 505 Web page for more information.
Each cashier is responsible for:
- Any transactions made under his or her name.
- All cash, checks, and credit card charges until a transfer of these funds is made.
- Providing each customer with a register receipt.
- Submitting to a supervisor all sales documentation intact that was recorded during his or her shift.
Cashier's (Bursar's) Office
Office of Accounting Administration Services
Office of Internal Audits
Office of the Vice President and Chief Financial Officer
Office of the Vice President for Resource Development
Records Management and Records Retention Services
Student Accounts Receivable
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