Texas Woman’s University

Cash Receipts Policy

Purpose

The Cash Receipts Policy provides procedures and guidelines to all University departments handling cash collections.  Procedures have been established to encourage an effective administration and internal control of cash handling operations throughout the University.  Note:  The term, “cash,” as referenced in this policy, is deemed to include currency, coins, personal checks, bank drafts, money orders, traveler’s checks, cashier’s checks and credit card transactions.

Authority and Responsibility

Texas Woman’s University has delegated the authority and responsibility for establishing policies and procedures for all cash handling activities to the Controller’s Office.  In carrying out this duty, the Controller’s Office is responsible for: 

1. Establishing and enforcing policies and procedures governing the receipt, handling, custody, and disbursement of funds.
   
    
2. Requiring the establishment and maintenance of records accounting for funds received and paid by the University.
   
    
3. Performing periodic audits of departments with any cash handling operations.
   
    
4. Establishing and authorizing banking depositories to be used for University funds.
   
    
5. Establishing and authorizing procedures for granting, maintaining, and terminating the departmental collection of University funds.

Applicability

This policy is applicable to every University department, administrative office, and affiliated organization that handles the receipt of cash for any University related function.  Employees that collect cash on behalf of the University are required to be familiar with the requirements of this policy.

Summary

Any individual handling university cash is responsible to Texas Woman’s University for proper security and accountability.  Due to the personal liability involved in performing cash handling functions, it is important that only authorized employees accept funds for university business.  Employees are required to appropriately safeguard, account for and document all cash received on behalf of the University.  All University monies should be maintained in a secure, locked device or some other location appropriately approved by the Controller’s Office.

Guidelines

Segregation of Duties

Cash handling operations must be subject to daily supervisory review and management.  To minimize the potential for mistakes or misappropriation of cash, the segregation of cash handling duties is recommended.  The duties of collecting cash, maintaining documentation, preparing deposits, and reconciling records should be separated among different individuals.  In departments where the separation of duties is not feasible, strict individual accountability and thorough management supervision and review is required.

Written Departmental Procedures

In addition to the cash handling procedures established in this document, it is highly recommended that each department who handles cash, have its own specific procedures.  Written procedures should minimally include authorization of person(s) to collect cash; maintenance of cash receipt books; security and reconciliation of cash; preparation, approval, and depositing cash within the Cashier’s Office; over/short procedures; and a procedure to notify the appropriate campus authority in the event of a loss.

Safekeeping

Departments handling cash are responsible for the safekeeping of these University assets.  Physical security should be emphasized to every employee involved in cash handling.  The following general guidelines should be followed to help maintain the integrity of those areas handling cash:

• Unauthorized persons are not allowed in areas where cash is handled.
    
• Doors should be locked at all times in areas where cash is handled.  Safe doors should be kept closed during working hours and locked at times when it is not necessary to be in and out of the safe.
    
• Large sums of cash should be counted and handled out of sight of the general public.
    
• Individuals should keep working funds to a minimum at all times.  Excess funds should be in a locked device or deposited in the Cashier’s Office.
    
• Cash should NEVER be unattended.  This applies to cash registers, desktops, and cash drawers.  If an employee leaves his or her workstation for any reason, regardless of how briefly, cash must be appropriately secured in a locked place.
    
• For overnight storage and during other periods when cash is not being used, it should be kept in a safekeeping device, either a safe or locked container. 
•  
• If a safe location is not available within the department, the cash and receipts should be brought to the Bursar/Cashier Office on campus for safekeeping.
  • The revenue and receipts should be sealed in an envelope
  • The preparing staff member should sign their name across the seal of the envelope
  • The department name and responsible party should be noted on the outside of the envelope
  • If the Bursar/Cashier is closed, the funds should be dropped in the night repository
  • The funds should be picked up on the next business day by the responsible party
  • The Bursar/Cashier will verify the identity of the person receiving the funds and will require a signature on a log
      
• Under no circumstances should an individual keep University cash with their own personal funds, deposit University funds in a personal bank account or take University funds to one’s home for safekeeping.
    
• Checks should always be properly endorsed upon receipt.

Custodian Responsibilities

The custodian or designated individual responsible for a department’s cash handling operations is responsible for:

1.  The adequate and appropriate safekeeping of the University monies – While using cash funds for daily operational activities, procedures should be established to maintain a safe and secure working environment to ensure the safeguarding of funds and safety of personnel.  Employees should be well informed of their responsibilities for handling cash transactions and being accountable for those funds.  The custodian must see that appropriate internal control measures are enforced.

When not being used for operational activities, all cash should be kept in a safekeeping device, either a safe or locked container.  Lock combinations and the custody of keys should be maintained by one person, however, these items should not be stored in an unlocked desk drawer or unsupervised area.  For strictly emergency situations, the department head or other designated employee should have the safe combination or an extra set of keys.

2.   Maintaining current and accurate records of the funds - The records should provide clear documentation of cash receipts from the time of collection to the time of deposit.  Specific information on appropriate documentation can be found under the heading, “Cash Receipts Procedures.”  This information should always be readily available for audits by the Controller’s Office, Internal Audit, or Department Head. 

3.  Performing, at a minimum, a monthly reconciliation - Depending upon the volume of transactions, weekly or daily reconcilements may be more appropriate.  The Controller’s Office will assist in determining the frequency.  Please use the Cash Receipts Reconciliation Form for reconciling the cash.

Overages and Shortages

Both overages and shortages should be noted and tracked by the custodian and then reviewed and certified by a department supervisor.  Significant amounts should be immediately reported to the Department Head and the Controller’s Office.  If there appears to be a growing pattern or anything unusual or strange about the overages and shortages, that information must be disclosed immediately.  

Refunds

Refunds cannot be made directly through the use of petty cash funds, change funds, nor funds received from cash receipts, unless specifically authorized.  A refund is the return of funds for a transaction that occurred on a prior business day.  All refunds should be processed by the completion of a Check Request form and adherence to the procedures as established by the Controller’s Office, depending upon the type of transaction involved.  These funds will not be used to reimbursement employees for out-of-pocket expenditures.

Cash Receipts Procedures

Training Requirements

Mandatory Cash Handling Training is REQUIRED of all employees whose job duties include the acceptance, record keeping and deposit of university revenue.  Training should be arranged with the Bursar.  Employees are required to do follow-up training annually.

New hires will be given information stating the need for cash training at the new employee orientation.  (This process is currently under development by an orientation committee under the direction of the Controller's Office.)

Receipting Revenues

University departments that collect cash must have an established departmental procedure for documenting all receipts.  Computer generated receipts, cash register receipts, or pre-numbered receipt books or tickets are acceptable forms of documentation.  All receipts issued must be approved by the Controller’s Office as to form.

As a minimum, receipt documentation should include:

·        Payer’s name

·        Amount of payment

·        Mode of payment (cash, check, money order, etc.)

·        Purpose of payment

·        Date of payment

·        Initials of employee collecting funds

This applies to receipts collected directly from individuals, as well as cash receipts received through the mail, by fax, by email or by phone. 

With prior approval by the Bursar, departments who receive large volumes of checks by mail (such as application fees) may document their receipt by creating a spreadsheet which contains the information above.  The check number, date of receipt, initials of the employee and the amount must be noted on the face of the application or documentation received with the payment.  The spreadsheet must be reconciled to the group of checks.

Cancelled/Voided Transactions

The same day cancellation of a transaction must be approved by a supervisor.  Upon approval, the original receipt should be voided and the payment returned to the customer.  The customer should sign the voided receipt acknowledging the transaction.  

Manual Cash Receipt Books

Manual cash receipt books must be obtained from the Bursar's Office.  Receipt books purchased elsewhere are not acceptable.  The cost of these books is $4.00 each.  The appropriate departmental account number to which the expense for the books should be charged must be presented to the Bursar at the time of purchase.  An online IDT will be generated by the Bursar to debit the account for the receipt books.

The distribution of the books will be recorded in the Bursar's Office as follows:

a)    Department

b)    Department account number

c)    Numbers of each book distributed

d)    Signed for by the person receiving the book(s)

e)    What the receipt book(s) will be used for

f)     Receipt books may not be placed in campus mail (Dallas and Houston receipt books will be sent by University courier in a sealed package to the direct attention of the requesting party.

1.  Each person issuing receipts and/or making deposits MUST have cash handling training in order to facilitate the proper procedures are followed. 

(See Training Requirements)

2.  The receipts MUST be used in consecutive order.  If more than one person in a department is issuing receipts, each person should be assigned their own book, and be responsible for the maintenance, and deposit of revenue recorded in that book.  All receipts, including voided receipts, MUST be accounted for.  The pink copy of each receipt should remain in the receipt book for reference purposes.

3.  Each time a deposit is made, the receipts being sent with the cash receipt transmittal form to the Bursar' Office should be noted inside the receipt book.  For example:

12/10/02    12345-12350    $500.00    Bursar Document #

4. When the cash receipt transmittal form is returned to the department from the Bursar's Office, the document number should be noted beside the corresponding information in the receipt book

5. Used receipt books will be retained in the departments for the past three consecutive years plus the current year.

Note:  All documentation, including copies of receipts, pertaining to deposit will be returned to the department for retention.

Check Acceptance

There are several different categories of checks.

    Acceptable with Proper Identification

Cashier's Check A check purchased at a bank for any amount; the bank completes all information on the face of the check with a bank officer signing as the maker.

Certified Check A personal check guaranteed by the bank; the check is stamped "certified" and signed by a bank officer.

Money Order An item purchased at a bank, post office, or other business establishment for any amount up to and including $200.  The bank completes only the amount information.

Traveler's Check A special check supplied by banks or other companies for the use of travelers; these checks already bear the purchaser's signature and must be countersigned in the cashier's presence.

Personal Check A written order payable on demand, drawn on a bank by a depositor; a personal check is written against an individual's funds as opposed to a cashier's check, certified check, money order, or traveler's check, all of which are written against bank funds.

Starter Check A non-personalized encoded check that a person receives from a bank when they establish a checking account.  These are for the person's use prior to receiving encoded checks from the bank.  Starter checks should only be accepted if the bank has encoded the routing number and account number on the bottom of the check. 

         Unacceptable

Counter Check A non-personalized, non-encoded check that is available at most banks.

Third Party Check A checks made payable to a person or organization other than the one accepting or cashing the check (for example, a paycheck).

Foreign Check A check written on a foreign bank (e.g., a Canadian bank) not specifically prepared as U.S. currency.  The maker's address might be outside the United States; however, it is the bank's address that must be examined.

Every check or money order must be reviewed for completeness as follows:

NOTE: All departments receiving mail remittances should review the check for completeness given the applicable items stated above.

Display of a Return Check Notification

Any University department accepting checks should post a sign stating that a $30 fee will be assessed against the maker of any returned checks.  A copy of the sign can be found at the link below:

http://dev.twu.edu/o-controller/cashiers/returned_check_fee_sign.doc

Endorsement Stamps

Each department must restrictively endorse all checks immediately upon receipt.  This prohibits the negotiation of the check if it is stolen.  Endorsement stamps should be purchased from the Cashier’s Office.

Accepting Credit Cards

 Texas Woman’s University accepts the following credit cards: 

1. VISA
2. MasterCard
3. Discover (For tuition, room and meals only)

 When accepting credit cards, the following guidelines should be observed:

1. Charge cards shall be accepted for no more than the amount of purchase.
2. The expiration date is required.
3. If information is received by phone or fax, a contact phone number must be included.

Credit card handling procedures are provided to assist TWU departments in the acceptance of credit card payments.

Reconciling Cash and Receipts

Cash receipts must be reconciled.  On the days in which cash is collected, a reconcilement must be performed at the close of the business day when possible, and no later than the beginning of the next business day.  Cash, checks and credit cards must reconcile with the daily receipts.  All receipt numbers (including voids) utilized for the day’s business must be accounted for.   

Deposits of Cash and Checks

1.      Deposits of all transactions must be made at the Bursar’s office within 5 calendar days or when $200 or more in cash and checks has accumulated, whichever comes first.

2.      All checks must be restrictively endorsed immediately upon receipt.    

Preparing and Making the Deposit

It is the responsibility of the department to accurately count all currency and checks collected.  It is recommended that a second individual recount the currency and checks before completing the deposit. 

A CASH RECEIPT TRANSMITTAL must be completed with the appropriate account numbers and submitted to the Cashier's Office with each deposit.

Currency

All currency must be separated by denomination and presented face up and facing the same direction.  An adding machine tape should be included with the breakdown of the amounts for each denomination.  Coins should be counted and secured in an envelope with the enclosed amount noted.

Checks

1. All checks must face the same direction for expediting the bank processing.
2. An adding machine tape must be run to determine the total amount of checks being deposited. 
3. The adding machine tapes must have a clear 0.00 at the top.   
4. A second adding machine tape must be run to verify the total previously calculated. 

Revised 07/10/07 K. Woods, Bursar