Funds Handling and Deposit Procedures 4305

I. PURPOSE

The purpose of this policy is to establish a responsible system for handling institutional funds, to include the establishment, maintenance and elimination of change fund accounts.

II. DEFINITION

  1. Cash Items: Coins, currency, and checks.
  2. Non-Cash Items: credit/debit card transactions
  3. Change Fund: A set amount of money used by a department to make change for customers who are purchasing goods or services. The selling of such goods or services must have been previously approved through appropriate channels.
  4. Custodian: The department employee who is appointed to operate and maintain the change fund.

III. POLICY FOR STATE AND LOCAL FUNDS

  1. It is the University's policy to minimize the number of departments collecting cash items. Any cash collection location must be approved by the Bursar. Written procedures must be established by each designated cash collection department.

    1. Exceptions: These procedures must be followed in all circumstances, unless the department has requested and been granted permission in writing from the Bursar to change or modify them.
    2. Review: All cash operations are subject to review by the Office of Cashiering, Financial Operations, and the institution's internal and external auditors. Departments must ensure that all receipts can be tied to a transmittal and that all transmittals can be traced to an entry on the University's accounting system. Evidence of continued non-compliance with policy/procedures may result in termination of cash collection privileges.
    3. Banking Arrangements: All University banking arrangements, including acceptance of debit and credit cards, are established by the Office of Cashiering and the Bursar. Departments processing credit/debit card transactions must do so in accordance with Credit and Debit Card Security Policy #1015. Bank accounts may not be established in the University's name, i.e. Longwood University, or any derivative thereof. Additionally, accounts cannot use the University's Federal ID Number.

  2. Cash Handling:

    Departmental collections must be recorded using a cash register, or approved cashiering software and an approved credit/debit card device if applicable. The original receipt generated from the cash register, cashiering software and/or credit/debit card machine should be given to the payer. Copies of receipts must be retained by the department.  If debit/credit cards are accepted, devices are to be closed out/settled daily at the close of business.  A copy of the close-out/settlement report from the machine(s) must be sent to the Office of Cashiering as support for any department transmittal of funds.

    If circumstances necessitate the use of handwritten receipts, duplicate pre-numbered receipts forms should be used and should include department name, dollar amount, description of product/service, date, receipt number, and name of individual remitting payment. Departments are responsible for obtaining receipt forms. Samples are available in the Office of Cashiering.

    Register, cashiering software and credit/debit card receipts must include, at a minimum, the date, dollar amount, receipt/transaction number, cashier identification number, and name of the area in which the good/service is provided.

    Cash, checks, and receipts must be kept in secure locations. To protect the funds, they must be kept in a lockable container, such as a cash box, and stored in an area that is not visible or accessible to unauthorized individuals. The container must not be left unattended during the work day. After business hours, all funds must be kept in a secured storage area, such as a file cabinet or safe.

    Cash Add Value Stations:  Funds must be withdrawn from any cash value add stations on a weekly basis and reconciled to reports produced by the machine(s).  These funds must be submitted for deposit to the Office of Cashiering within twenty-four (24) hours (or the following business day) of withdrawal from the machine(s).

  3. Deposits:

    Funds must be deposited within twenty-four (24) hours (or the following business day) once the total receipts exceed one hundred ($100) dollars, or at least once a week regardless of the amount. Daily receipts exceeding one hundred ($100) dollars should be deposited by 2:00 p.m. each day the Office of Cashiering is open for business.

    The department should assign cash handling responsibilities to at least two (2) employees to guarantee a separation of duties and control of cash receipts. One employee, the cash handler, should receive payments and issue original receipts to customers at the point of sale. Duplicate copies of receipts must be proved to the funds received.

    A second employee, the depositor, should reconcile the funds and receipts, and prepare a Longwood University Standard Transmittal Form. The depositor will complete a transmittal for each deposit with the following information: date, department name, telephone number, name of individual preparing the deposit, description, accounting codes, deposit amounts.

    The completed Longwood University Standard Transmittal form (a copy must be maintained at the department), copies of receipts or register tape, credit/debit card machine close- out reports and funds must be taken to the Office of Cashiering. The receipt obtained from the Office of Cashiering must be verified to the department’s copy of the standard transmittal form. Supporting documentation and/or receipts must be kept and filed by each department.

    Departments collecting cash must bring their receipt bags to the Cashiering Office in non-descript packages at varied times so to not draw attention to the receipts being delivered. An example would be a manila envelope. It is also recommended that two employees from the cash collecting department go together to deliver the receipts to the Cashiering Office. Transmittals must be made in person. Campus mail must not be used to deliver funds to the Office of Cashiering. The person making the deposit will be asked to remain in the Office of Cashiering until verification of the funds has been made. If at all possible, transmittals should be brought during the morning hours.

    For departments that have been set up as TouchNet Web Departmental Depositors, funds and receipts must be attached to a completed Longwood University Web Departmental Transmittal Form and copies of receipts or register tape, credit/debit card machine close out reports and funds must be taken to the Office of Cashiering.

  4. Correcting or Voiding Receipts:

    If a correction is made on a receipt or if a receipt is voided, the voided receipt must include the signature of an approving manager. The approval must be from an individual other than the one initiating the correction. All copies of voided receipts (except the transmittal copy) must be kept together and filed for audit.

  5. Cash Over/Short Situations: All deposits are made intact, inclusive of any over/short amount. These amounts increase (overage) or decrease (shortage) revenues for the accounts listed on the transmittal.

    A cash over/short log must be kept for each cash collection area. This record is to be used for any unexplained differences between the total of funds and receipts. The supervisor must investigate and document ALL overages or shortages. The supervisor must sign off on this log as part of the daily routine. The log must be retained by the supervisor.  Any overages or shortages must be noted on the Standard Transmittal Form or the Web Departmental Transmittal Form with supporting documentation.

  6. Recording and Reconciliation:

    The transaction will be entered into the University's financial system upon receipt by the Office of Cashiering. A copy of the computer receipt will be given to the individual delivering the deposit.

    All departments collecting payments or involved in specific revenue generating activities must reconcile transmittals and other supporting documentation to the University's financial system. Ideally, reconciliations should be performed by someone other than the person receiving funds or making deposits. Reconciliations should be dated and signed by the preparer, and reviewed, dated, and signed by a manager or supervisor on a monthly basis. Reconciliations are subject to audit and internal control review.

  7. Checks and Money Orders:

    All checks and money orders must be made payable to "Longwood University" and be payable through a U.S. bank. No employee member’s name is to be used on these payment items.

  8. Stolen Funds:

    If a supervisor suspects irregularities in the handling of funds, the supervisor must contact the Longwood Police Department and the University Bursar immediately.

    The department must file a report with the Bursar at the time of the occurrence or the next business day (if applicable), giving a brief description of the loss. A copy of this report must be sent to the Internal Auditor. Additionally, the department must include changes in the departmental funds handling procedures, if necessary, to prevent the situation from reoccurring.

  9. Change Funds:

    1. Change funds are established through the Office of Cashiering by request in writing with justification for the need of the fund. If approved, Cashiering will make the necessary arrangements to issue a check to the requesting unit. Change funds are issued specifically to a designated custodian. Funds must always be held separately and must not be comingled with personal money. If for any reason a fund is no longer required, the fund must be returned to Cashiering terminating the responsibility of the present custodian. A receipt will be issued relieving the custodian of his/her responsibilities. If there is a change in the custodian, custody of the change fund may be transferred to the new custodian. A count of the cash drawer will be completed by a Longwood Cashier to verify the change fund amount for the original custodian. The verification will be documented on a Longwood Cash Collection Site Change Fund Verification Form.  A copy of the change fund verification form will be attached to the Application for Cash Collection Site Change Fund signed by the original custodian thus terminating his/her responsibility.  A new Application for Cash Collection Site Change Fund will be completed and signed by the new custodian accepting responsibility for the change fund.  A copy of the change fund verification form will also be attached to the new application denoting the funds being transferred. The custodian of a change fund is responsible for ensuring funds are adequately safeguarded.

      If oversight of the change fund and/or funds handling is temporarily delegated to another individual, the custodian is still ultimately responsible. The custodian is also responsible for ensuring the designee is properly trained and knowledgeable of University policies and procedures.

    2. The Office of Cashiering will maintain a separate change fund for the purpose of making change for Longwood’s designated cash collection sites. This change fund will be established and maintained as all other designated change funds.

Revised and approved by the Board of Visitors, September 7, 2002.
Revised and approved by the Board of Visitors, June 15, 2006.
Revised and approved by the Board of Visitors, September 15, 2006.
Revised and approved by the Board of Visitors, March 26, 2010.
Revised and approved by the Board of Visitors, December 03, 2010.
Revised and approved by the Board of Visitors, June 15, 2012.
Revised and approved by the Board of Visitors, September 15, 2017.