fsu.edu | Cash Managment Policy

OP-D-2-B CASH MANAGEMENT

OP-D-2-B1 CASH HANDLING

A. OBJECTIVE

Department heads and managers of units that collect University funds remain primarily responsible for ensuring that adequate control procedures have been put in place and maintained to secure University collections and change funds. This policy has been established to provide a framework for guidance and coordination in this area and for establishing minimum control standards relative to cash handling. Only those departments or units who have applied for and have received approval will be authorized to function as a University Cash Collection Point.

B. DEFINITIONS

CASH
For purposes of this policy cash is defined to include currency, checks, money orders, and credit/debit card collections.

CASH COLLECTION POINT
A cash collection point is defined as a department, event, club or other entity which collects more than $1,000 annually and the source of the revenue is other than recovery of expenditures such as telephone, copies, etc., unless these types of reimbursements occur frequently. All Cash Collection points must be authorized by the University Controller's Office before collections begin.
INTERNAL CONTROLS
Internal controls generally comprises the plan of organization and all of the coordinate methods and measures adopted within a business to safeguard its assets, check the accuracy and reliability of its accounting data, promote operational efficiency, and encourage adherence to prescribed managerial policies. For purposes of this policy the emphasis on controls will generally be related to the methods and practices necessary to ensure the safeguarding of University cash collections and change funds.

OP-D-2-B2 CASH COLLECTION POINT

A. Any department or University related entity that wishes to function as a cash collection point must complete a Cash Collection Point Application and submit it to the University Controller's Office for approval. Applications should be submitted to the Controller's Office at least four weeks prior to the start of the collection date. Authorization to establish a new account or to operate an educational related business activity require an additional approval process.

B. Only those departments or University related entities that can demonstrate the ability to establish appropriate control procedures and comply with prescribed cash handling guidelines will be approved as Cash Collection Points.

C. The Controller's Office may make periodic reviews of the cash collection points and/or request that managers of the areas attend periodic training and/or submit completed internal control questionnaires relative to their cash handling procedures. Additionally, the University Inspector General and the staff of the State Auditor General's Office routinely conduct audits of cash collection points. Failure to follow appropriate procedures may result in audit criticism and the loss of authority to serve as an authorized cash collection point.

D. Any department functioning as a cash collection point without receiving the required approval by the Controller's Office incurs the risk of losing budgetary spending authority for the funds collected, in addition to the possibility of incurring other appropriate disciplinary action.

E. Any significant changes within a cash collection point relating to personnel duties or procedures should be brought to the attention of the University Controller's Office.

OP-D-2-B3 GENERAL INTERNAL CONTROL REQUIREMENTS

A. It is recognized that no one control model effectively or efficiently fits the needs of all cash collection areas. However, there are certain standard control procedures that are expected to be in place, unless there is a demonstrated and justifiable reason for not doing so. In such cases, there would be an expectation that alternative or compensating control procedures be put in place. The standard control procedures generally expected to be established at each cash collection point are as follows:

1. For collections not received through the mail, but rather in person, it is expected that proper receipting devices, such as cashiering terminals or prenumbered receipt forms, be used to receipt funds at the initial point of collection and that all customers be provided with a receipt or cash register tape. Cash registers should have appropriate control features and the operator should not have the ability to reset totals. It is recommended that either the Controller's Office or Inspector General's Office be consulted about the control features of any planned cash register purchases. Only official University receipt forms obtained from Union Copy Center may be used unless an exception is granted by the Controller's Office. Unused prenumbered receipt forms should be adequately secured and accounted for. The individual receipting the cash and issuing the individual receipt forms should sign for the prenumbered receipt forms that he or she had been assigned to use. If unused prenumbered receipt forms are no longer needed they should either be returned to Union Copy Center, each receipt individually voided, or destroyed in the presence of a representative from the Inspector General's Office.

2. Voided receipts or transactions should generally be approved by supervisory personnel. All copies of the voided receipt form should be retained.

3. An employee with no cash handling responsibilities (who does not collect or deposit funds) should ensure that all funds receipted for have been properly deposited and recorded. This separation of duties is key to an effective control process. Generally, the individual that provides this check and balance is someone with the accounting responsibility.

4. Collections received through the mail should be receipted or logged and restrictively endorsed at the earliest point in the collection process. These receipts or logs should subsequently be compared with the deposit and collections recorded.

5. Persons with the responsibility for maintaining and billing accounts receivable should not be given responsibility for collecting payments.

6. Different employees should not work simultaneously out of the same cash drawer and whenever funds are transferred among employees responsibility should be fixed through some receipting mechanism.

7. Deposits should generally be made daily. Exceptions may be made when collections of currency and coins are under $100 or checks and money orders total less than $300. No collections should be held more than a week before being deposited. Debit or credit card payments should be settled daily with Student Financial Services.

8. Cash collections and change funds should be adequately secured at all times. Cash drawers should be locked when a cashier must be away from his or her workstation. Safe combinations should be changed whenever staffing changes occur among those that know the combination.

B. Persons with assigned cash handling responsibilities should be given clear written procedures regarding their responsibilities with regard to the handling and control of cash collections or change funds. It should be made absolutely clear to such individuals that personal loans or the cashing of personal checks from cash collections or change funds is prohibited. At a minimum, persons handling cash should be required to read these cash handling procedures and sign a copy acknowledging that they have read and understand them. Police background checks should be performed on any new employees, who will have significant cash handling responsibilities. This should be coordinated through Campus Police.

OP-D-2-B4 ACCEPTANCE OF CHECKS FOR PAYMENT

A. Checks received should be made payable to Florida State University (FSU).

B. The following information should be recorded on checks received from students, faculty or staff:

First and Last Name

Current address and phone number

Last four (4) digits of the Social security number or the last eight (8) digits of the student/faculty/staff ID number (e.g. 5894-3710-1234-5678)

C. For checks received from individuals other than students, faculty, or staff, the following information regarding the identity of the person presenting the check must be written on the check (Does not apply to checks received through the mail):

The presenter's full name

Residence address

Home phone number

Business phone number

Place of employment

Sex

Date of birth

Height

Race

OR - the driver's license number or state identification number, specifying the state of issuance of the person presenting the check. (Ref. 832.07(2)(b), F.S.)

D. The individual receiving the check and obtaining the information in "C" above, should also review appropriate photo ID and initial the check in the upper right-hand corner.

E. Returned check lists provided by the Controller's Office should be used as appropriate to determine if individuals have previously tendered a dishonored check. Checks should not be accepted from individuals on this list.

F. Checks should be restrictively endorsed immediately upon receipt. Restrictive endorsement stamps will be provided by Student Financial Services.

OP-D-2-B5 ACCEPTANCE OF CREDIT/DEBIT CARDS FOR PAYMENT

Arrangements to accept credit and/or debit card payments should be made through the Controller's Office.

OP-D-2-B6 PAYMENTS FROM OTHER STATE AGENCIES

Payments from other State agencies are received by journal transfer (JT) and are recorded at the fund level by the State Comptroller. The Accounting Services section of the Controller's Office is responsible for recording the JT's to university records. The use of the two letter prefix, assigned to each department by Accounting Services, in front of the invoice number will help identify the JT as a payment to a specific university department. This system allows Accounting Services to record promptly and accurately the transfer received.

OP-D-2-B7 PAYMENTS RECEIVED BY "ACH" OR WIRE TRANSFER

Prior to initiating the receipt of payments by ACH or wire transfer, appropriate arrangements should be made with the Controller's Office.

OP-D-2-B8 PREPARING AND TRANSMITTING DEPOSITS

A. As noted earlier, daily sales reports should generally be prepared and overages and shortages appropriately noted. Deposits should be made intact and agree with the totals of the daily sales reports.

B. The deposit is to be forwarded to the Office of Student Financial Services or directly to the bank (if armored car service is available). Deposits should not be transmitted to the Office of Student Financial Services through campus mail.

Departments should ensure that appropriate security is provided when deposits are transported across campus or from off-campus sites.

C. Departments not on the cashiering system must submit a University deposit ticket (form DT118) to the Office of Student Financial Services regardless of how the deposit is routed to the bank. Individuals delivering deposits to Student Financial Services should obtain a validated receipt at the time the deposit is delivered.

D. Credit and debit card collections are to be transmitted. A copy of the summary total report along with a University deposit ticket should be forwarded to the Office of Student Financial Services.

OP-D-2-B9 AUTHORIZATION TO ESTABLISH A PETTY CASH OR CHANGE FUND

If a department has a need for a petty cash or change fund, appropriate arrangements should be made through the Controller's Office.

OP-D-2-B10 SALES AND UNRELATED BUSINESS INCOME TAXES

University departments or related entities should be aware that the sale of certain goods or services may be subject to State sales tax and/or Federal Unrelated Business Income Taxes (UBIT). Concerns or questions regarding tax issues should be addressed to the Tax Administrator within the Controller's Office.

OP-D-2-B11 AUTHORIZATION TO ESTABLISH BANK ACCOUNT

All University funds are required to be deposited through appropriate University accounts. The establishment of bank accounts by State entities outside the State Treasury is tightly regulated and is only authorized under very limited circumstances. University departments should never open an account with a private bank or credit union without the expressed written authorization from the University Controller.


	Business Operations Facilities/Space Faculty & Staff Financial General University Records/Information Safety/Insurance Technology			OP-D-2-B CASH MANAGEMENT OP-D-2-B1 CASH HANDLING A. OBJECTIVE Department heads and managers of units that collect University funds remain primarily responsible for ensuring that adequate control procedures have been put in place and maintained to secure University collections and change funds. This policy has been established to provide a framework for guidance and coordination in this area and for establishing minimum control standards relative to cash handling. Only those departments or units who have applied for and have received approval will be authorized to function as a University Cash Collection Point. B. DEFINITIONS CASH For purposes of this policy cash is defined to include currency, checks, money orders, and credit/debit card collections. CASH COLLECTION POINT A cash collection point is defined as a department, event, club or other entity which collects more than $1,000 annually and the source of the revenue is other than recovery of expenditures such as telephone, copies, etc., unless these types of reimbursements occur frequently. All Cash Collection points must be authorized by the University Controller's Office before collections begin. INTERNAL CONTROLS Internal controls generally comprises the plan of organization and all of the coordinate methods and measures adopted within a business to safeguard its assets, check the accuracy and reliability of its accounting data, promote operational efficiency, and encourage adherence to prescribed managerial policies. For purposes of this policy the emphasis on controls will generally be related to the methods and practices necessary to ensure the safeguarding of University cash collections and change funds. OP-D-2-B2 CASH COLLECTION POINT A. Any department or University related entity that wishes to function as a cash collection point must complete a Cash Collection Point Application and submit it to the University Controller's Office for approval. Applications should be submitted to the Controller's Office at least four weeks prior to the start of the collection date. Authorization to establish a new account or to operate an educational related business activity require an additional approval process. B. Only those departments or University related entities that can demonstrate the ability to establish appropriate control procedures and comply with prescribed cash handling guidelines will be approved as Cash Collection Points. C. The Controller's Office may make periodic reviews of the cash collection points and/or request that managers of the areas attend periodic training and/or submit completed internal control questionnaires relative to their cash handling procedures. Additionally, the University Inspector General and the staff of the State Auditor General's Office routinely conduct audits of cash collection points. Failure to follow appropriate procedures may result in audit criticism and the loss of authority to serve as an authorized cash collection point. D. Any department functioning as a cash collection point without receiving the required approval by the Controller's Office incurs the risk of losing budgetary spending authority for the funds collected, in addition to the possibility of incurring other appropriate disciplinary action. E. Any significant changes within a cash collection point relating to personnel duties or procedures should be brought to the attention of the University Controller's Office. OP-D-2-B3 GENERAL INTERNAL CONTROL REQUIREMENTS A. It is recognized that no one control model effectively or efficiently fits the needs of all cash collection areas. However, there are certain standard control procedures that are expected to be in place, unless there is a demonstrated and justifiable reason for not doing so. In such cases, there would be an expectation that alternative or compensating control procedures be put in place. The standard control procedures generally expected to be established at each cash collection point are as follows: 1. For collections not received through the mail, but rather in person, it is expected that proper receipting devices, such as cashiering terminals or prenumbered receipt forms, be used to receipt funds at the initial point of collection and that all customers be provided with a receipt or cash register tape. Cash registers should have appropriate control features and the operator should not have the ability to reset totals. It is recommended that either the Controller's Office or Inspector General's Office be consulted about the control features of any planned cash register purchases. Only official University receipt forms obtained from Union Copy Center may be used unless an exception is granted by the Controller's Office. Unused prenumbered receipt forms should be adequately secured and accounted for. The individual receipting the cash and issuing the individual receipt forms should sign for the prenumbered receipt forms that he or she had been assigned to use. If unused prenumbered receipt forms are no longer needed they should either be returned to Union Copy Center, each receipt individually voided, or destroyed in the presence of a representative from the Inspector General's Office. 2. Voided receipts or transactions should generally be approved by supervisory personnel. All copies of the voided receipt form should be retained. 3. An employee with no cash handling responsibilities (who does not collect or deposit funds) should ensure that all funds receipted for have been properly deposited and recorded. This separation of duties is key to an effective control process. Generally, the individual that provides this check and balance is someone with the accounting responsibility. 4. Collections received through the mail should be receipted or logged and restrictively endorsed at the earliest point in the collection process. These receipts or logs should subsequently be compared with the deposit and collections recorded. 5. Persons with the responsibility for maintaining and billing accounts receivable should not be given responsibility for collecting payments. 6. Different employees should not work simultaneously out of the same cash drawer and whenever funds are transferred among employees responsibility should be fixed through some receipting mechanism. 7. Deposits should generally be made daily. Exceptions may be made when collections of currency and coins are under $100 or checks and money orders total less than $300. No collections should be held more than a week before being deposited. Debit or credit card payments should be settled daily with Student Financial Services. 8. Cash collections and change funds should be adequately secured at all times. Cash drawers should be locked when a cashier must be away from his or her workstation. Safe combinations should be changed whenever staffing changes occur among those that know the combination. B. Persons with assigned cash handling responsibilities should be given clear written procedures regarding their responsibilities with regard to the handling and control of cash collections or change funds. It should be made absolutely clear to such individuals that personal loans or the cashing of personal checks from cash collections or change funds is prohibited. At a minimum, persons handling cash should be required to read these cash handling procedures and sign a copy acknowledging that they have read and understand them. Police background checks should be performed on any new employees, who will have significant cash handling responsibilities. This should be coordinated through Campus Police. OP-D-2-B4 ACCEPTANCE OF CHECKS FOR PAYMENT A. Checks received should be made payable to Florida State University (FSU). B. The following information should be recorded on checks received from students, faculty or staff: First and Last Name Current address and phone number Last four (4) digits of the Social security number or the last eight (8) digits of the student/faculty/staff ID number (e.g. 5894-3710-1234-5678) C. For checks received from individuals other than students, faculty, or staff, the following information regarding the identity of the person presenting the check must be written on the check (Does not apply to checks received through the mail): The presenter's full name Residence address Home phone number Business phone number Place of employment Sex Date of birth Height Race OR - the driver's license number or state identification number, specifying the state of issuance of the person presenting the check. (Ref. 832.07(2)(b), F.S.) D. The individual receiving the check and obtaining the information in "C" above, should also review appropriate photo ID and initial the check in the upper right-hand corner. E. Returned check lists provided by the Controller's Office should be used as appropriate to determine if individuals have previously tendered a dishonored check. Checks should not be accepted from individuals on this list. F. Checks should be restrictively endorsed immediately upon receipt. Restrictive endorsement stamps will be provided by Student Financial Services. OP-D-2-B5 ACCEPTANCE OF CREDIT/DEBIT CARDS FOR PAYMENT Arrangements to accept credit and/or debit card payments should be made through the Controller's Office. OP-D-2-B6 PAYMENTS FROM OTHER STATE AGENCIES Payments from other State agencies are received by journal transfer (JT) and are recorded at the fund level by the State Comptroller. The Accounting Services section of the Controller's Office is responsible for recording the JT's to university records. The use of the two letter prefix, assigned to each department by Accounting Services, in front of the invoice number will help identify the JT as a payment to a specific university department. This system allows Accounting Services to record promptly and accurately the transfer received. OP-D-2-B7 PAYMENTS RECEIVED BY "ACH" OR WIRE TRANSFER Prior to initiating the receipt of payments by ACH or wire transfer, appropriate arrangements should be made with the Controller's Office. OP-D-2-B8 PREPARING AND TRANSMITTING DEPOSITS A. As noted earlier, daily sales reports should generally be prepared and overages and shortages appropriately noted. Deposits should be made intact and agree with the totals of the daily sales reports. B. The deposit is to be forwarded to the Office of Student Financial Services or directly to the bank (if armored car service is available). Deposits should not be transmitted to the Office of Student Financial Services through campus mail. Departments should ensure that appropriate security is provided when deposits are transported across campus or from off-campus sites. C. Departments not on the cashiering system must submit a University deposit ticket (form DT118) to the Office of Student Financial Services regardless of how the deposit is routed to the bank. Individuals delivering deposits to Student Financial Services should obtain a validated receipt at the time the deposit is delivered. D. Credit and debit card collections are to be transmitted. A copy of the summary total report along with a University deposit ticket should be forwarded to the Office of Student Financial Services. OP-D-2-B9 AUTHORIZATION TO ESTABLISH A PETTY CASH OR CHANGE FUND If a department has a need for a petty cash or change fund, appropriate arrangements should be made through the Controller's Office. OP-D-2-B10 SALES AND UNRELATED BUSINESS INCOME TAXES University departments or related entities should be aware that the sale of certain goods or services may be subject to State sales tax and/or Federal Unrelated Business Income Taxes (UBIT). Concerns or questions regarding tax issues should be addressed to the Tax Administrator within the Controller's Office. OP-D-2-B11 AUTHORIZATION TO ESTABLISH BANK ACCOUNT All University funds are required to be deposited through appropriate University accounts. The establishment of bank accounts by State entities outside the State Treasury is tightly regulated and is only authorized under very limited circumstances. University departments should never open an account with a private bank or credit union without the expressed written authorization from the University Controller.