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Business and Financial Policies and Procedures

10.1.2 Implement Internal Controls for Handling Cash and/or Checks

Policy Statement

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.

Procedure

To implement internal controls for handling cash and/or checks:

  • Do not cash personal checks for any reason or amount or return cash to a customer if the check exceeds the amount due the University.
  • Do not accept checks from anyone on the Returned Check List available, upon request, from USFSCO.
  • Deposit all cash and/or checks received. Do not use cash and/or checks received to pay bills or expenses of any kind.
  • Immediately report significant, recurring, or problematic cash shortages to your manager, campus USFSCO Cashier Office, campus police, or University Audits.
  • Keep each cashier's cash drawer accessible by assigned cashier.
  • Make sure that someone other than the person receiving cash and/or checks is responsible for a daily reconciliation of receipts and/or authorizing refunds.
  • If your unit has multiple cash receiving areas, periodically rotate the cashiers' responsibilities and locations to reduce the risk of fraud.
  • Obtain approval from Merchant Card Services before accepting credit or debit cards. Work with Merchant Card Services to ensure your unit complies with all Merchant Card Services policies and procedures.
  • Record all cash and/or checks when received on approved pre-numbered cash receipt forms or electronic or mechanical means such as cash registers.
  • Lock cash and/or checks in a fireproof safe or cabinet when it is not possible to deposit them on the day received. Your unit is responsible for any loss due to theft, fraud, or negligence.

Related Policies and Procedures

10.1.1 Obtain Approval as a Cash Handling Unit
9 Audits and Internal Control
21 Merchant Cards
19.2.3 Verify Identity for In-Person Services

Last Updated: June 19, 2017 | Approved: Senior Associate Vice President for Business and Finance | Effective: February 2008

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