local_desktop_procedure

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					Org #: __ Desc:_____________________________ Dept/Sub #: _________ Desc: ______________________________
                                   Local Desktop Procedures for Cash Handling


      PURPOSE OF THIS DOCUMENT:
      To define departmental cash handling procedures that parallel the UI Cash Handling Policies and
      Procedures (http://www.bo.uiowa.edu/cashhandling/cash_handle_policy.pdf). The establishment of
      strong internal controls for cash collections is necessary to prevent mishandling of funds and to
      safeguard against loss. Strong internal controls are also designed to protect staff from inappropriate
      charges of mishandling funds by defining responsibilities in the cash handling process. Cash is
      considered to be any type of payment for goods or services including: coin, currency, checks, money
      orders, credit card transactions, accounts receivable charges, electronic funds transfers and all cash
      equivalents (tokens, tickets, stamps, gift cards).

      Departmental policies and procedures may be more restrictive than the “UI Cash Handling Policies and
      Procedures.” Please inquire as to what policy your unit is to follow and maintain a copy of the
      appropriate policy for referral and guidance in developing the following procedures.

      Instructions: Each cash collection point supervisor or his/her designate should initiate completion and
      submission of their local desktop cash handling procedures for review and approval by UI Accounting
      Services. Each unit is required to use this template to document local procedures.

      Complete all applicable areas highlighted in yellow in as much detail as necessary. You may expand
      each yellow area to include as much text as necessary to document your procedures. Note: Org and
      Dept/Sub info at the top of the form must be completed by going into: View/Header and Footer and
      modifying the Header. Each unit’s local procedures should be submitted through the UI Workflow
      engine to Accounting Services for approval. Notification will be sent by email of the approval or denial
      of procedures. Approved procedures will be accessible through workflow; however it is each unit’s
      responsibility to retain their approved procedures indefinitely for audit purposes.

      Each unit is responsible for an annual review to determine if any procedural changes have occurred.
      Changes to procedures must be resubmitted through workflow for approval. Changes do not need to
      be resubmitted if it only involves a change in the staff assigned to specific cash handling
      duties. Document the staff changes and retain this with your local procedures.

      Any questions about documenting local cash handling procedures should be directed to: cash-
      handling@uiowa.edu. In addition, you may contact Shelly Michel (335-0195), Jennifer Kooker (335-
      0630), or Tamara Buchmayer (335-0108) in UI Accounting Services.

      NOTE for UIHC ambulatory clinic and non-clinic units: Separate policies and procedures exist for
      cash collection in ambulatory clinics. UIHC clinics’ local cash handling procedures have already been
      documented and approved by the appropriate hospital personnel. Therefore, submission and approval
      by UI Accounting Services is not required. Ambulatory clinics should contact Gary Hansen or Terri
      Terrill in Ambulatory Care Services for questions.

      All other UIHC units are required to follow the same procedures for certification and approval as the
      rest of the University of Iowa outlined above. All non-clinic hospital units should contact Tadd Miller in
      the Joint Office of Patient and Financial Services for questions.

      REQUIRED SEPARATION OF DUTIES
      The cash collection point must maintain a clear separation of duties. An individual may not have
      responsibility for more than one of the cash handling components: recording of charges/billing,
      collecting, depositing and reconciling.

      RESPONSIBILITIES OF ASSIGNED CASH HANDLING FUNCTIONS:

      Biller/Invoicer (if applicable): Creates and sends invoices. Records and makes changes to the
      Accounts Receivable system. The Biller/Invoicer should not have access to cash.
                                                       Page 1 of 6
Org #: __ Desc:_____________________________ Dept/Sub #: _________ Desc: ______________________________
                                   Local Desktop Procedures for Cash Handling

       Cash Collection Point Cashiers: Conducts cash transactions with customers. Cash can be received
       in person and/or the mail. Enters each transaction into an approved accounts receivable system, cash
       register or cash receipt journal/log. Provides a receipt to everyone paying in person. Endorses all
       checks immediately upon receipt with a restrictive endorsement. Counts the Cash and turns Cash and
       supporting documentation over to the Cash Collection Point Supervisor at the end of his/her shift. If
       a Cash Collection Point Supervisor is not assigned, the Cash goes to the Deposit Preparer and the
       supporting documentation goes to the Reconciler. If there are multiple cashiers on the same shift,
       each person must have their own cash drawer and cash receipts book.

       Cash Collection Point Supervisor (if applicable): Monitor cash receipting functions and authorize
       various transactions, such as refunds, voids, and cash drawer reconciliations. Have access to the cash
       drawers and safe.

       Deposit Preparer: Retrieves and counts the cash receipts from the current or previous business day,
       prepares the deposit, and delivers it to the bank or designated deposit drop location. Prepares the
       eDeposit form and delivers it to the Reconciler. Stores the Cash in a secure location until it is
       deposited. Follows UI policy or departmental (if more restrictive) deposit restrictions.

       Reconciler: Verifies that the Deposit Preparer has deposited all cash received (daily on weekdays).
       On a monthly basis, reconciles eDeposit forms to the supporting documentation and to the General
       Ledger Statement of Account. The Reconciler should not have access to cash.

       Complete the following roles that are applicable within your unit:

 Assignment                        Primary Individual(s)                      Separation of Duties
                                   Name or Position Title
 A) Biller/Invoicer
                           ________________________________            Cannot also be B, C, or D

 B) Cash Collection
                           ________________________________            Cannot also be A or E
    Point Cashier

 C) Cash Collection
                           ________________________________            Cannot also be A or E (Enter N/A if
    Point Supervisor
                                                                       assignment is not applicable)
 D) Deposit Preparer
                           ________________________________            Cannot also be A or E

 E) Reconciler
                           ________________________________            Cannot also be B, C, or D


       Describe any deviation in duties from the “Responsibilities of Assigned Cash Handling Functions”
       outlined above. _____________________________________________________________________
       __________________________________________________________________________________


   CASH RECEIPT PROCEDURES

       All transactions are to be recorded in a cash register or a cash receipt journal/log at the point of
       collection. If a cash register is used, develop operating procedures to be used for cashier training.
       Also, keep a copy of the procedures at each cash register for quick referral.

       At the beginning of each designated "shift" the Cashier will ask the Cash Collection Point Supervisor
       to retrieve the locked register drawer/cash bag containing the approved change fund advance from the
       secure location. The Cashier should count the beginning till money to verify accuracy. If there are

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Org #: __ Desc:_____________________________ Dept/Sub #: _________ Desc: ______________________________
                                  Local Desktop Procedures for Cash Handling
      multiple cashiers on the same shift, each person must have their own cash drawer and cash receipts
      book.

      Procedures for Cash/Checks received through the mail:

             All Checks must be endorsed immediately with a restrictive endorsement that includes
              department. (i.e. “For deposit only, University of Iowa, Department of ______________”). You
              can use a stamp with this message or it can be handwritten.
             Enter all cash and checks received into an approved accounts receivable system, cash register,
              or a cash receipt journal/log (a cash receipt journal template is provided).

      1) Are checks immediately endorsed with a restrictive endorsement? Yes     No
         Restrictive endorsement used _________________________________________________

      2) Describe procedure for use of cash register or cash receipt journal/log. ______________________
         _______________________________________________________________________________
         _______________________________________________________________________________

      Procedures for Cash/Checks received in person:

             All Checks must be endorsed immediately with a restrictive endorsement (“For deposit only,
              University of Iowa, Department of ______________”). You can use a stamp with this message
              or it can be handwritten. {Checks will not be cashed by cash collection points (i.e. customer’s
              personal checks, paychecks, or customer’s third-party reimbursement check).}
             Enter all cash and checks received into an approved accounts receivable system, cash register
              or cash receipt journal/log (a cash receipt journal template is provided).
             The customer should be presented with a pre-numbered receipt form with a duplicate record to
              be retained by the unit. Staff must account for all pre-numbered receipts.

      1) Are checks immediately endorsed with a restrictive endorsement? Yes     No
         Restrictive endorsement used _________________________________________________

      2) Describe procedure for use of cash register or cash receipt journal/log. ______________________
         _______________________________________________________________________________
         _______________________________________________________________________________

      3) Is a prenumbered receipt presented to the customer?          Yes         No
          If no, explain.___________________________________________________________________

      Other Procedures:

      If applicable, describe the procedures for receiving the following types of transactions:

          MasterCard/Visa: _________________________________________________________________
          _______________________________________________________________________________

          Third Party (3P) (i.e. Iowa Medicaid) Electronic Funds Transfer (EFT) (i.e. Credit Card Processor
          (Paymentech)) Remittance Processing and Reconciliation: _______________________________
          _______________________________________________________________________________

          Student and Staff charges:__________________________________________________________
          _______________________________________________________________________________

      Procedures for voids and refunds:


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Org #: __ Desc:_____________________________ Dept/Sub #: _________ Desc: ______________________________
                                   Local Desktop Procedures for Cash Handling
             All voided transactions are to be approved and initialed by the Cash Collection Point
              Supervisor.
             Refunds must be paid by University check unless UI Accounting Services has granted prior
              approval.

      1) Does the department process voids and refunds?                   Yes         No
         If yes, describe procedure including who approves.______________________________________
         _______________________________________________________________________________

      Procedure for Cashier’s end-of-shift (if applicable):

             The Cash Collection Point Supervisor will run the cash register “totals report” (usually called
              a “Z” or “ZZ” report). This will close the day’s activity and reset the register. If another shift will
              be used on the cash register, then a subtotal report would be more appropriate (usually called
              an “X” report).
             The Cashier will count down the drawer back to the original till/change fund amount and
              prepare a “Cash Drawer Reconciliation.” (The template can be used or a similar document).
              The Cashier must report all unresolved cash receipt variances to the Cash Collection Point
              Supervisor. Discrepancies (overages and shortages) will be tracked and reported to the
              Director/Dean for your unit on a monthly basis.
             The Cash Collection Point Supervisor will review and verify the “Cash Drawer Reconciliation,”
              including the till money count, retained for the next day change fund. The “Cash Drawer
              Reconciliation,” “ZZ” report, and other supporting documentation are to be retained by the Cash
              Collection Point Supervisor.
             The cash receipts will either be given to the Deposit Preparer for immediate deposit
              preparation or if applicable to the UI policy, will be secured in a designated location by the Cash
              Collection Point Supervisor, until it can be prepared for deposit.
             A copy of the “Cash Drawer Reconciliation” will be provided to the Reconciler. Only the cash,
              checks and credit card receipts, if applicable, should be provided to the Deposit Preparer.

      1) Describe procedures used for cashier’s end of shift: _____________________________________
          ________________________________________________________________________

      2) Collection procedures and supply list for periods of electronic “down time”:____________________
         _______________________________________________________________________________


   SECURING CASH/CASH EQUIVALENTS AND RECEIPTS:

      Ideally, a safe should be used for storage of the change fund and daily receipts until deposited.
      Alternatively, where the purchase of a safe does not appear feasible, a locking cash box should be
      used and placed in a locking drawer. Access to the drawer and cash box must be limited to Cash
      Collection Point Cashier, Cash Collection Point Supervisor (if applicable) and Deposit Preparer and
      should remain locked when not in use. The cash box procedures, including key management and
      access, should be documented and parallel Management’s policies and expectations. Safe
      combinations should be changed on a regular basis, at least annually and when someone leaves the
      unit who knows the combination. Keys to safes and/or cash boxes and safe combinations need to be
      kept in a secure, secret place.

      Additionally, each Unit should reevaluate regularly, at least quarterly, whether or not the purchase of a
      safe for overnight cash storage is justified. Management should provide clear guidelines for this
      periodic evaluation.

      Describe how the Cash is secured:

      1) During the day:
                                                         Page 4 of 6
Org #: __ Desc:_____________________________ Dept/Sub #: _________ Desc: ______________________________
                                  Local Desktop Procedures for Cash Handling
              Where is the Cash stored and in what? _____________________________________________
              Who has access to the Cash? ____________________________________________________

      2) After hours / office is closed:
             Where is the Cash stored and in what? _____________________________________________
             Who has access to the Cash? ____________________________________________________


   CASH DEPOSITING

      Procedure for deposit preparation:

             Count money and prepare preprinted bank deposit slip (to obtain deposit slips, contact the
              University Billing Office).
             Submit all deposit accounting information through the E-deposit online system. For access to
              this system, training, or for more information regarding this system, refer to:
              http://www.uiowa.edu/ubill/policies_procedures/Edeposit.html
             Deposits accounting for receipts originating from credit card sales should follow the procedures
              outlined at: http://www.uiowa.edu/ubill/policies_procedures/DeptCreditCard.html.

      Describe deposit preparation procedures, including use of E-deposit system:_____________________
      __________________________________________________________________________________


      Procedure for deposit delivery:

             Hand deliver the deposit with the white deposit slip (the yellow duplicate should be retained for
              documentation) to one of the following: U.S. Bank, University of Iowa Community Credit Union,
              UIHC Cashier’s Office, or College of Dentistry Business Office, at least weekly or when cash on
              hand is greater than $500, whichever occurs first. Daily deposits are encouraged.
             Deposit all funds intact. The entire amount of receipts collected must be deposited so that all
              receipts are posted as receipts to the Unit’s fund account(s). None of the cash collected in the
              Unit may be used prior to deposit. For example, the Unit can not use $10 of its cash receipts to
              purchase postage and then reduce the amount of its cash deposit by the $10 used.
             Secure the deposit in a locked money bag/pouch or tamper evident bag (available through
              General Stores). Be as inconspicuous as possible by disguising the money bag in some
              fashion, such as placing it in a book bag. Alter the route and time of delivery to the designated
              deposit drop-off.

      Describe deposit delivery procedures:

          1) How frequent are deposits made? ________________________________________________
          2) How are deposits secured during delivery? _________________________________________


   RECONCILIATION OF CASH RECEIPTS

             All cash collected must be balanced daily by comparing the total of the Cash to the accounts
              receivable system, cash register or cash receipt journal/log. This can be accomplished by
              preparing the “Daily Cash Reconciliation” template or a similar document.
             The “Daily Cash Reconciliation” must be compared to the bank deposit slip/E-deposit form.
             The bank deposit slip/E-deposit form must be traced to the departmental Statement of Account
              (SA3) on a monthly basis.
             Proof of all reconciliations must be maintained by the department for three years plus the
              current year. The Reconciler will initial and date the hardcopy of the form being reconciled. If

                                                      Page 5 of 6
Org #: __ Desc:_____________________________ Dept/Sub #: _________ Desc: ______________________________
                                   Local Desktop Procedures for Cash Handling
              the reconciliation is done on-line, the Reconciler will initial and date another piece of supporting
              documentation that is required to be kept in hard copy (i.e. the deposit slip) or a log can be
              maintained instead.
             Reports of all unresolved reconciliation attempts must be reported to the Director/Dean for the
              unit on a monthly basis.

      Describe the process used to reconcile cash receipts:

          1) What is reconciled and how often? ________________________________________________
             ____________________________________________________________________________
          2) What is retention policy? _______________________________________________________
          3) Unresolved reconciliation items are reported to whom? ________________________________


      ADDITIONAL COMMENTS:

      __________________________________________________________________________________
      __________________________________________________________________________________




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