All Cash Handling Policies
Accepting Cash and Checks
Before units can engage in cash handling activities, they must develop and implement detailed, written internal operating procedures that must be approved by University Student Financial Services and Cashier Operations (USFSCO).
Units that receive cash or checks for a different unit, unknown reason, or for an unknown recipient must securely deliver the money to its campus University Student Financial Services and Cashier Operations (USFSCO) Cashier Office within one business day of receiving it.
If your unit receives money but is not authorized to receive money, or if you receive money designated for other than authorized purposes, deliver it immediately to your campus University Student Financial Services and Cashier Operations (USFSCO) Cashier Office.
Do not send cash or checks through campus mail.
All checks, money orders, or drafts given to any University unit for any and all purposes are made payable to the University of Illinois. Student loan checks do not need to be payable to the University of Illinois.
To ensure all funds are properly accounted for, units must reconcile received funds daily. Someone other than the person receiving the money must perform the reconciliation.
To ensure all funds are properly accounted for, units must reconcile all deposited and recorded funds monthly.
All units authorized to receive cash must screen cash transactions for counterfeit currency. If a unit accepts counterfeit currency, it will be liable for the loss and the unit C-FOAP will be charged accordingly.
Depositing Money
Checks are a form of cash and should be handled with the same level of security and deposited with the same frequency as cash. You must deposit cash and checks whenever you have collected $200, or at least once a week.
Units should take steps to ensure the safety of their employees and the deposit. This may include having two people transport the deposit or making arrangements for armored car services or campus police escort. Contact your campus University Student Financial Services and Cashier Operations (USFSCO) to obtain more information about recommended security options.
All debts and obligations to the University of Illinois are due and payable in United States currency. Any check not drawn on a U.S. or Canadian bank or that does not have a U.S. clearing bank listed on it, is considered a foreign check—even if the check is payable in U.S. funds. The payor must make up any shortfall in the amount of a transaction due to foreign exchange and/or expenses of collection.
Do not accept foreign checks for $200 or less. It is not cost effective for the University to process checks below that amount.
If your unit has been authorized to deposit funds directly to the bank, you must deposit whenever you have collected $200, or at least once a week. Deposit all foreign checks with University Student Financial Services and Cashier Operations (USFSCO).
Petty Cash and Change Funds
The custodian of the change fund is responsible for the fund’s safekeeping and proper usage. The custodian is personally liable for cash losses and discrepancies in the change fund. Petty cash and change funds are subject to an audit by the Office of University Audits and/or verification by OBFS at any time.
All petty cash and change funds must be renewed by July 1 each year. The renewal must be authorized by both the custodian and their unit head or supervisor.
Change Funds
A change fund is to be used only for making change for cash sales. Change funds are issued only to authorized cash handling units.
If your unit needs extensive change funds (for example, large operations such as Housing or student centers/unions), your unit may use its own cash, with the approval of your campus OBFS executive officer. Otherwise, all change funds are authorized and issued by University Student Financial Services and Cashier Operations (USFSCO).
The custodian of the change fund is responsible for the fund’s safekeeping and proper usage. The custodian is personally liable for cash losses and discrepancies in the change fund. The custodian does not use the change fund for purchases, travel advances, or check cashing.
The custodian may delegate authority for the change fund in his or her absence. However, the custodian remains responsible for the fund.
Notify the University Student Financial Services and Cashier Operations (USFSCO) Cashier Office immediately when you are no longer the custodian or change your office address.
The change fund custodian must ensure that the fund is reconciled daily.
Change funds can only be increased, decreased, permanently transferred, or closed by using the University Student Financial Services and Cashier Operations (USFSCO) Petty Cash and Change Fund website.
If your unit ceases to be an authorized cash handling unit, you must close the change fund.
Before changing the custodian of a change fund, verify the fund by reconciling it with both the current and new custodians present. The current custodian remains responsible for the fund until this reconciliation is performed and the new custodian assumes his or her duties.
When your unit no longer needs a change fund, close the fund rather than allowing it to remain inactive. University Student Financial Services and Cashier Operations (USFSCO) may close the fund if your unit no longer has a business need for it.
You must return the full amount of the change fund when closing an account. For example, if your change fund is for $100, you must return $100 to USFSCO.
Petty Cash Funds
Units may keep petty cash funds of up to $1,000 for the purchase of miscellaneous and incidental items of small value. University Student Financial Services and Cashier Operations (USFSCO) advances this money at each campus. Petty cash funds are subject to an audit by the Office of University Audits and/or verification by the USFSCO at any time.
The custodian of the petty cash fund is responsible for the fund’s safekeeping and proper usage of the fund. The custodian is personally liable for cash losses and discrepancies in the petty cash fund. In the custodian’s absence, the custodian may delegate authority to disburse funds to another staff member. However, the custodian remains responsible for the fund.
Notify the University Student Financial Services and Cashier Operations (USFSCO) Cashier Office immediately when you are no longer the custodian or your office address changes.
Petty cash funds may not be replenished (reimbursed) for amounts greater than the original amount of the fund. Replenish the fund regularly, but at least quarterly. In addition, always include replenishing the petty cash fund in your fiscal year-end procedures.
All petty cash funds must be reconciled monthly by someone other than the custodian, with the custodian present.
The unit head or delegate verifies the fund by reconciling it each quarter in the presence of the custodian. The fund custodian cannot, under any circumstances, perform the quarterly reconciliation. University Student Financial Services and Cashier Operations (USFSCO) monitors the completion of quarterly reconciliations and will notify the fund custodian if the quarterly reconciliation has not been received.
Reimbursements will not be approved if reconciliations are not current. Quarterly reconciliations are due October 15, January 15, April 15, and July 15.
The amount of a petty cash fund can be increased or decreased. However, there is still a $1,000 limit.
Before changing the custodian of a petty cash fund, verify the fund by reconciling it with both the current and new custodians present. The current custodian remains responsible for the fund until this reconciliation is performed and the new custodian assumes his or her duties.
If your unit’s petty cash fund is inactive, University Student Financial Services and Cashier Operations (USFSCO) may close the fund. When your unit no longer needs a petty cash fund, close the fund rather than allowing it to remain inactive.
You must return the full amount of the petty cash fund when closing an account. For example, if your petty cash fund is for $100, you must return $100 to USFSCO.
When closing a petty cash fund, do not send cash to University Payables.
Cash Handling Units
Units with a business need to handle cash and checks must first obtain approval from University Accounting and Financial Reporting (UAFR) and University Student Financial Services and Cashier Operations (USFSCO).
Cash handling units are subject to audit by the Office of University Audits and/or review by USFSCO at any time.
Each unit authorized to collect cash and/or checks is responsible for exercising internal controls to ensure appropriate stewardship of public funds and provide employee protection.
Cash handling units are subject to an audit by the Office of University Audits and/or a review by University Student Financial Services and Cashier Operations (USFSCO) at any time.
All money received on behalf of the University from any source must be deposited with University Student Financial Services and Cashier Operations (USFSCO). Cash handling units are subject to an audit by the Office of University Audits and/or a review by USFSCO at any time.
Unit heads are responsible for all cash handling activities engaged in by their units.
When writing payment instructions for your customers or vendors, include information to help them write checks correctly. All checks, money orders, or drafts given to any University unit for any and all purposes must be made payable to the University of Illinois. Student loan checks do not need to be payable to the University of Illinois.
“Deposit only” endorsement stamps should contain:
- The words “University of Illinois”
- Unit name/identification
- C-FOAPAL
Returned Check Handling
University Student Financial Services and Cashier Operations (USFSCO) recovers and collects all returned checks received and deposited by cash handling units.
USFSCO may grant permission for some authorized cash handling units to assume responsibility for any/all returned check handling and related recovery activities. The decision to do this would apply to all cash handling units within a college, unit, or administrative level. The units will also assess and retain the $30 administrative service fee.
Regardless of what a unit decides, if a check is returned from the bank and USFSCO determines the unit did not process it according to the policies and procedures in Accept Checks as Payment, it may be returned to the unit for recovery.
A unit must first be a cash handling unit to be authorized to assume responsibility for returned check handling. This procedure does not apply if University Student Financial Services and Cashier Operations (USFSCO) handles the unit’s returned checks.
Last Updated: October 21, 2011 | Approved: Senior Associate Vice President for Business and Finance - February 2008