Topics
• Procedures & Responsibilities
• Safeguarding of Cash Receipts
• Segregation of Duties • Record of Receipt • Restrictive
Endorsement
• Depositing Cash Receipts
• Counterfeit Currency • Debit/Credit Cards • Refunds • Reconciliation
Why are cash receipt internal controls important?
• Prevents mishandling of funds and to safeguard
against loss (via theft or inaccuracy)
• Protects employees from allegations of impropriety by defining responsibilities
“Internal controls are actions taken to make sure the right things happen and the wrong things do not.”
Procedures & Responsibilities
• Established procedures for each funding source • State (IFR) • Research Foundation for SUNY (RF) • University at Buffalo Foundation (UBF)
• Define AND document cash receipt responsibilities of staff
• Ensure staff’s understanding of cash receipts policies and procedures
Safeguarding of Cash Receipts
• Locked safe or lockbox (access should be limited) • Deposit cash frequently (preferably daily; not less
than weekly) • Never keep large amounts of cash on hand, even if
kept in safe or lockbox
Segregation of Duties
• Responsibilities should be split for each level of collections • Receiver/collector of cash • Deposit preparer • Cash reconciler
• Small staff – compensating controls • Additional management supervision • More frequent reconciliation/reviews • Reassignment of responsibilities
Record of Receipt
• Cash must be recorded immediately • Methods:
• Pre-numbered receipts • Cash Receipt Books
• Cash registers • Adequate supervision
• Event tickets • Concerts, lectures, sporting events, etc.
Restrictive Endorsement
• Checks or money orders received should be restrictively endorsed immediately
• Use phrase “For Deposit Only…” • Preferred method - endorsement stamp
Depositing Cash Receipts
• Depositing should be done daily • Reasons for less frequent depositing (no less than once
per week) • Location • Minimal collections • Receipts not in the form of currency/coin
• Use pre-numbered deposit transmittal forms if depositing regularly
• Always deposit “in total” - never use cash receipts for change, petty cash, or refunds
Counterfeit Currency
• Be aware – it happens! • Examine all currency carefully • Take time to process cash transactions • Use counterfeit marking pens on:
• Bills in denominations above $20 • Any bills that look suspicious
• Never pass counterfeit note back to person who passed it to you – contact Campus Police immediately
Debit/Credit Cards
• Procedures should mirror cash receipt internal controls
• Always batch out terminals at end of day • Transmitted batches should always match amounts
on deposit transmittals • Credit/Debit Card Merchant Requirements Policy • Payment Card Industry Data Security Standards (PCI
DSS)
Refunds
• Refunds are never to be made from cash receipts • Should follow appropriate procedures based on
funding source • Should not be made within the first ten (10) days
past the original deposit date • Allows time for processing • Allows time for bank reconciliation
Reconciliation
• Procedures defined and documented • Staff designated (remember segregation of duties) • Performed regularly & timely (at least monthly) • Procedures should include:
• Receipts versus accounting records • Record of receipts matched to cash deposited
Important Links University Documents: State Cash Receipts and Petty Cash Reimbursement Procedures RF Preparing Cash Receipts for Deposit Procedures UBF Deposit Procedures Credit/Debit Card Merchant Requirements Policy Red Flags Identity Theft Prevention Policy Other Documents: NYS Accounting System User Procedures Manual - 3.0210 Internal Controls - Cash Receipts SUNY Audit Guidance - Key Controls Over Cash Receipts Related Links: Cash Receipt Books Order Form State Cash Receipt Transmittal Form Instructions UBF Deposit Transmittal Form RF Cash Receipts Function United States Secret Service – How to Detect Counterfeit Money United States Secret Service – If You Receive a Counterfeit
Contacts • Cash Management
• Mark Mariglia, 645-2620, [email protected]
• Bank Reconciliation & Merchant/Credit Card Officer • Lance Mahalic, 645-2626, [email protected] • Patti O’Farrell, 645-2658, [email protected]
• PCI Compliance • Valerie Dennis, 645-2604, [email protected]
• Cash Receipts Deposits/Transmittals
• Sean Gardner, 645-2621, [email protected]
Top Related