Cash Receipts

CASH RECEIPTS Purpose The purpose of this policy is to ensure that all monies are collected, receipted, recorded and banked promptly. This procedure applies to all College staff involved in the receipting and banking of monies collected on behalf of the College. These policies and procedures are established to: • Provide accurate record keeping and accountability for funds received in accordance with accepted standards of internal accounting controls. • Protect both the college and employees handling cash. Policy Definitions Cash. For purposes of this policy, cash includes funds in the form of currency, coins, checks, money orders, credit/debit cards, and electronic funds transfers. Cash Receipts. Cash (as defined above) received by a department or activity from all sources including, but not limited to, payments for fines, fees, merchandise, or services provided. General Statement All departments receiving cash in any form are responsible for complying with the cash receipting requirements of this policy. In addition, departments receiving cash as a part of their normal operation are responsible for maintaining a receipting process consistent with college policy, which may include additional policies and procedures with key internal controls tailored to the specific unit. Any variations or exceptions to OC regulations must have written consent from the Cashiers Manager. Procedures Approval and Training for Cash Receipting Privileges All departments that intend to receive cash receipts as a part of their normal operation must request cash receipting privileges from the Cashier Manager and receive advance approval for conducting each receipting purpose. The Cashier's Office will schedule a meeting with the department to provide the mandatory training for all employees authorized to receive cash receipts who have not already received the mandatory training. During the training session, the Cashier's Office will review the Departmental Record-Keeping Guidelines for Cash Receipting and provide instructions for, but not limited to, the following: Page 1 of 4 • • • • • Maintenance of a log, receipt book, or other methods to record transactions Reconciliation procedures Use of Deposit Transmittal for deposits Cash shortages and overages Receipt of electronic payments If appropriate, the Cashier's Office will provide an initial receipt book, endorsement stamp, and locked bank bags at no charge to the department. When receipting purposes change or when there are receipting personnel changes, departments must notify the Cashier Manager by submitting a new request for receipting privileges. This will enable the Cashier Manager to conduct appropriate training of new personnel as changes in staff occur.. Cash receipting privileges must be renewed annually. Recording of Receipts All college departments and activities shall record all cash receipts as soon as the funds are received. Departments and activities that receive cash receipts as a part of their normal day-to-day operations must establish an audit record through the use of a receipt book or an electronic cash register. When the use of receipt books is appropriate, departments must use official OC receipt books purchased or approved for purchase through the Cashier's Office. The Cashier's Office requires departments to keep unused receipt books in the Cashier's Office for safekeeping. Remittances Received through the Mail If practicable, all correspondence received through the mail shall be opened by an employee who is not responsible for cashiering and recorded in the Register of Checks by Mail. The Register should include the date received, drawer of check, details of payment, amount, comments, date given to cashiers, and name of receiving cashier. All payments must be recorded in the Register daily and the initialed by the person opening the mail. Safeguarding of Undeposited Funds The department head is responsible for the safekeeping of all undeposited cash receipts held by the department or activity and must ensure that such items are placed in a locked safe or other adequately secured container at all times when the items are unattended. College staff shall not permit any private moneys to be housed in a college vault or lockbox. Page 2 of 4 Loss or Theft of Undeposited Funds Failure to adhere to the provisions of this policy in the event of a loss or theft of funds and other valuables could result in the department having to cover the loss from department funds. Such losses may not be charged to state or federal funds. All losses or thefts must be reported immediately to both the College Police Department and the Cashier Manager. Improper Use of Cash Receipting Funds Cash receipting funds may never be used for any of the following: • • • Personal transactions, including but not limited to, loans or "borrowing" (via IOU's) and cashing of personal checks. Making change. Petty cash. Depositing Funds with the Cashier's Office a. Documentation Carbons of manual receipts or cash register sales reports that adequately document the total amount deposited must accompany all cash receipts deposited with the Cashier's Office. Inadequate documentation will result in delays in processing receipts and making funds available for expenditures. b. Transporting of Funds Once the department has received funds, the funds must not be sent via campus mail or U.S. mail, and all deposits shall be hand-carried to the Cashier's Office. Upon request, the College Police will assist with escorting of funds when an appropriate safety need exists. c. Required Frequency of Deposits Departments are required to deposit cash receipts from any source with the Cashier's Office at least once per week. More frequent deposits are required as noted below: o o Departments and activities with cash receipts of $100.00 or more must deposit funds that day. Credit Card deposits must be made daily regardless of amount. (Note: Not applicable to authorized petty cash and change funds.) d. Verification of Deposit The department remains responsible for all funds to be deposited until its cash receipts are counted and verified by the Cashier's Office. Once the deposit has been verified, an official numbered receipt is sent via e-mail or campus mail to the department. If a discrepancy is found when the cash receipts are counted, the Cashier's Office will notify the department immediately by telephone. Page 3 of 4 Cash Gifts, Awards, and Grants Departments receiving cash donations, awards, and grants must adhere to the following, regardless of whether the department is registered and approved for cash receipting privileges: • • Coordination through the Office of Institutional Advancement is required for all cash gifts to the OC Foundation. Coordination through the Office of Student Financial Aid is required for funds received for the purpose of scholarships, tuition remission, or monetary awards to students where OC determines the recipient. Coordination through the Office of Grants Development is required for all grant and contract activity, with the exception of financial aid grants administered by the Office of Student Financial Aid. Departments must deliver funds from grant and contract activity to the Office of Grants Development. The Office of Grants Development will coordinate the deposit of funds with the Cashiers Manager's Office. Coordination through Financial Aid & Veterans Services is required for all funds awarded to a student for loans, scholarships, etc. by an outside entity where the outside entity determines the recipient. Departments must receipt such funds through Financial Aid & Veterans Services to ensure compliance with federal requirements. • • G/L Account Numbers Departments must not deposit funds to G/L expense account numbers unless authorization is received from the Cashiers Manager. (Note: the object portion – the last 4 digits – of G/L expense account numbers always start with 5 or 6 (example: XXXXXXX-5XXX). All unidentifiable and surplus remittances shall be credited to the Business Office clearing account and action taken by the person responsible to identify what the remittance relates to. Once identified, the remittance should be either transferred by journal entry to the correct College account, refunded to the payee or paid to the person entitled. Opening of Bank Accounts No school, department, or activity of the college is to open a bank account without prior written approval from the Vice President for Business Affairs. Subject to Audit All funds and receipting procedures are subject to audit by the authorized college personnel and the College’s independent accounting firm. Page 4 of 4