I. PURPOSE
The purpose of these policies and procedures is to define cash handling methods, policies, and procedures to be followed by all departments and student organizations that receive payments from customers, donors, and students.
Procedures governing Change Funds, Cash Boxes, and Petty Cash Funds are also given.
II. OVERVIEW
- Cash is defined as consisting of:
- Paper currency
- Checks
- Touchnet credit card batches
- Coins
- Money orders
- Travelers Checks
Departments receive cash as the result of various events. Typically, departments accept cash in the course of their sales activities. Cash may be received as a direct payment or through the mail.
- Accept payments for CSM business purposes ONLY.
If your department is involved in a non-university activity that generates funds, such as soliciting contributions for a retirement function, instruct people NOT to make the checks payable to the Colorado School of Mines. Colorado School of Mines cannot endorse these over to an individual or an organization, or deposit them into a CSM bank account and withdraw the funds. When this situation occurs, you must return the check to the preparer with an explanation and a request to re-issue the check with a corrected payee.
The CSM approved method for receiving credit card payments for student tuition and fees is online via TouchNet. The Blastercard office can accept credit card transactions for meal plans and Blastercard transactions only. All other campus credit card transactions must be processed online via TouchNet as the Touchnet system is implemented campus wide. The manual processing of credit card transactions will be eliminated as TouchNet is implemented.
III. Receipt of Payment by Department
At the time payment is received a document recording the receipt will be prepared. The following link will provide the suggested document to be utilized for recording receipt of payment: http://www.is.mines.edu/CO/CSM_Docs/Cash%20Receipts%20Log.xls. This document provides accountability for the funds received.
In-person receipts: A duplicate, prenumbered receipt must be prepared by the department to document transaction. One copy should be given to the customer/payer. The department should retain a second copy. The receipt must provide a description of items sold, quantity sold, unit price, extended price, and the form of the payment (cash, check, TouchNet credit card, etc.). If the department uses a cash register, the sale should be recorded using the register. A cash register receipt must be given to the customer.
Mail receipts: (usually just checks but can include currency). Mail should be opened immediately by an authorized individual, checks identified, logged, stamped for deposit only, and deposited at the Cashier Office. The log includes the date received, check number (or cash), payer, amount, date deposited at Cashier, and receipt number given from Cashier. The person opening the mail should initial the log.
- Checks must be endorsed immediately upon receipt.
- The endorsement should consist of a stamp on the back of the check that records the following information:
FOR DEPOSIT ONLY
Colorado School of Mines
Wells Fargo Bank, N.A.
Dept Name:______
- The Dept Name should be the name of the department submitting the cash receipt to the Cashier.
- Each individual department is required to purchase a “For Deposit Only” stamp.
Lockbox: Utilization of a bank Lockbox is the preferred method to process check transactions. The manual processing of check transactions will be eliminated as Lockboxes are implemented. The specific needs of the department will be analyzed to assess applicability of Lockbox usage.
Credit card sales: Colorado School of Mines is working to have all the departments use TouchNet for their credit card sales. As TouchNet is implemented, the manual process will be eliminated. A totaled Batch Detail Report should be printed to post the daily activity and taken to the Cashier Office for Banner posting.
IV. Cash Security
Cash should be secured at all times. This would include the use of cash registers, safes, locked file cabinets/drawers with key control, and locked boxes. Access to these devices must be restricted. Employ proper internal controls here. For example, restrict authority to get into cash registers, limit the number of people who know the combination to the safe, and limit the number of keys and their availability to locked cabinets, drawers, or boxes.
V. Deposit Cash at Cashier Office in Student Center
1. Funds received must be deposited with the Cashier in the Student Center within two business days of receipt. Daily receipts must be deposited intact and must not be used to pay expenses, create unauthorized petty cash or change funds. Do not substitute checks for cash. Designate an individual to be responsible for preparing the daily deposit.
- All deposits of Colorado School of Mines cash must be made at the Cashier Office. Maintenance of outside bank accounts is strictly prohibited.
- Use the authorized Departmental Deposit Slip for all non credit card deposits. A Departmental Deposit Slip is available in an interactive Microsoft Excel document available on the Cashier Office web page: http://www.is.mines.edu/CO/accounts_receivable.shtm . This Slip should be used to balance cash received with receipt documents, and to indicate the Banner Fund-Organization-Account-Program accounts to receive the deposit. It is the responsibility of the department to document the details of the deposit’s content.
- Retain all supporting documents in the department. These documents will include pre-numbered receipts, check logs, cash register tapes, etc. Attach these with one copy of the Departmental Deposit Slip, and file the records by deposit date. Attach receipt from Cashier to supporting documents. The Accounts Receivable department will maintain the numerical filing of the posting copies of these documents.
- Deposit cash and one copy of the Departmental Deposit Slip at the Cashier Office. Deposit TouchNet credit card transactions with the Cashier Office. Deposits can be dropped off at the Cashier Office with cash receipts available for pickup a day later, or can be deposited with immediate processing by the Cashier staff.
The Cashier will examine the Deposit Slip to see that it is complete, will verify the deposited funds, and prepare a written receipt. Controller’s Office staff verifies that deposit transactions are correctly entered into the Banner system.
VI. Reconciliation Process
The Controller’s Office staff will review departmental documents supporting deposits daily. All deposits are subject to review. Any unusual or mis-typed item will be followed up and resolved. The review will verify compliance with these Cash Handling Procedures, and the proper use of Banner Fund-Organizations-Account-Program posting.
Departmental deposit records are subject to audit by CSM internal auditors, external auditors, and review by the Controller’s Office.
VII. CHANGE FUND
A Change Fund is an amount of money advanced to the departments that accept cash from customers and, therefore, must have cash available to make change. Change funds may be on a permanent basis. The responsibility for security of the Change Fund rests with the custodian of the Change Fund.
Proper Use of Change Funds
The Change Fund should only be used to make change. A change fund may NOT be used for the following:
-To cash personal checks
-To make loans to faculty, staff, students, or others -I.O.U’s are not permitted.
-To make purchases
At all times, the Change Fund must consist of cash which equals the amount of the original advance issued to the Change Fund custodian.
Requesting a Change Fund
Change Funds are established filling out a Request for Change Fund Form avalible online: (http://www.is.mines.edu/CO/forms.shtm) – second tab- and submit it to the Bursar for approval.
The individual, known as a custodian, who will be directly responsible to the university for the fund, must request the Change Fund. Only employees of the university who hold a 100% appointment are authorized to be Change Fund custodians. The request must be approved by the head of the fund custodian’s department.
If approved by the Bursar, the approval form will be held at the Cashier Office in the Student Center. The custodian will receive the cash from the Cashier Office to start the fund.
Procedures for Obtaining a Change Fund
The custodian will be required to sign a Change Fund receipt when picking up the Change Fund. When maintaining the Change Fund, it is imperative that the custodian take appropriate measures to ensure the security of the Change Fund at all times. Examples include, but are not limited to:
-Keeping the Change Fund in a locked cash drawer or cash register,
-Restricting access to the Change Fund to only the assigned custodian.
Control of the Change Fund
The custodian has the responsibility to take appropriate steps to make sure that the Change Fund is safe and secure at all times. These would include:
-Keeping the Change Fund locked up at all times
-Restricting access to the Change Fund to only the custodian
-Reconfiguring the Change Fund as change is needed
The Change Fund must be counted daily, to verify that it is fully reconciled.
The Change Fund is subject to audit or review at any time.
Procedures for Using and Maintaining a Change Fund
Custodian stores the Change Fund in a secure location.
At the end of each day, or at the end of the cashier’s shift, the total cash must be balanced with the original Change Fund’s amount.
Note: Any overage or shortage due to errors must be recorded with that day’s balancing and reported to the Controller’s Office to be charged to the department’s FOAP. If the Change Fund is found to be in excess due to an error, then the excess should be deposited to the departmental account. Please use account 5549.
Change/Addition in a ChangeFund Custodian
If a change/addition in custodian is required, the new custodian must complete a New/Addit’l Custodian Form with authorized departmental head signature and submit the original form to the Bursar’s Office. The Form may be found at http://www.is.mines.edu/CO/forms.shtm - third tab.Until this is done, the old custodian maintains responsibility for the Change Fund. The new custodian should reconcile and verify that the Fund is intact before accepting responsibility for it.
Return, Reduction, or Increase of a Change Fund
A Change Fund must be returned when it is no longer needed. It should be reduced if the full amount is no longer needed. If approved, a Change Fund may be increased.
The return of a Change Fund entails the following steps:
Deposit the return amount with the Cashier (should be the original amount of funds delegated to the Change Fund). Use the Banner FOAP account number from which the fund was issued. The Controller’s Office will assist in identifying this account number.
The reduction of a Change Fund entails the following steps:
Deposit the return amount with the Cashier (with explanation of the deposit’s nature). Use the Banner FOAP account number from which the fund was issued. The Controller’s Office will assist in identifying this account number.
An increase of a Change Fund entails the following steps:
An increase of a Change Fund must be established with a request to the Bursar by the custodian in writing or by e-mail stating the dollar amount needed and the reason to justify an increase in the Change Fund.
Cancellation of a Change Fund
Violation of these polices and procedures will be cause for discontinuance of the Change Fund for that department.
Theft of Change Fund
If a theft occurs, the custodian must notify the CSM Public Safety Office and the Controller’s Office.
VIII. CASH BOX
The Cashier Office is able to approve and issue a Cash Box for campus activities. A Cash Box is an amount of money, in addition to a physical “box” if needed, advanced to departments that accept cash from customers and, therefore, must have cash available to make change. Cash Boxes are issued on a temporary basis (for a specific activity or event).
Proper Use of Cash Boxes
The Cash Box should only be used to make change for specific campus activities. A Cash Box may NOT be used for the following:
-To cash personal checks
-To make loans to faculty, staff, students, or others- I.O.U’s are not permitted.
-To make purchases
At all times, the Cash Box must consist of cash and receipt log which equals the amount of the advance issued to the Cash Box custodian and funds collected from the event.
Procedures for Requesting a Cash Box
The individual who will serve as the custodian of the funds should request the Cash Box. Contact the Cashier Office with the following information: Pick Up Date, Department, Amount (breakdown needed), Purpose, number of Cash Boxes needed, Ext./phone # of Requestor, and FOAP that the Cash Box would be charged to if the box were not to be returned for some reason, three business days prior to the event in order to help ensure availability. The custodian is responsible to Colorado School of Mines for the funds, and s/he will be required to sign a Cash Box Receipt when picking up the Cash Box. Thus, when maintaining the Cash Box, it is imperative that the custodian take appropriate measures to ensure the security of the Cash Box at all times. Examples include, but are not limited to:
-Keeping the Cash Box in a locked cash drawer or cash register
-Restricting access to the Cash Box to only the assigned custodian
-If the Cash Box is lost/stolen, the custodian will be responsible for the cost of replacement.
Procedures for Using and Maintaining a Cash Box
Custodian stores the Cash Box in a secure location.
At the end of each day, or at the end of the cashier’s shift, the total cash must be balanced with the day’s sales and the original Cash Box amount.
Note: Any overage or shortage due to errors must be recorded with that day’s sales deposit.
Cancellation of a Cash Box
Violation of these polices and procedures will be cause for discontinuance of the Cash Box privileges for that department.
Theft of Cash Box
If a theft occurs, the custodian must notify the CSM Public Safety Office and the Controller’s Office.
IX. PETTY CASH
A Petty Cash Fund is an amount of money issued to a department to be used on a revolving basis for the payment of small and incidental expenses. The responsibility for security of the Petty Cash rests with the custodian of the Petty Cash Fund. The use of Petty Cash to make purchases is an exception to the formal procurement methods. The Procurement Card is the preferred method of making small dollar purchases.