OBJECTIVE
The
purpose of this policy is to establish proper cash handling procedures for the
protection and security of College assets.
The policy also serves to protect employees responsible for receiving,
handling, and safeguarding cash.
What
is Cash? Cash includes but is not
limited to:
- Currency
- Checks
- Credit/Debit Cards
- Electronic Funds
- Money Orders
- Meal Cards
INTERNAL
CONTROLS
Cash
requires clear accountability. A
department must be authorized by the Business Office before engaging in any
business activities, including cash handling.
These internal controls must be followed when handling cash:
Timeliness
- All cash items collected for the College from any source must be deposited daily
with the Cashiers for amounts greater than $200 and weekly at a minimum
for amounts $200 or less.
Receiving
Checks - All checks must be payable to Kaskaskia College and may be accepted
only in the amount of purchase. Employees
may cash personal checks for up to $25 with the cashiers, providing that funds
are available. Otherwise, personal or
outside checks may not be cashed for
any reason.
Responsibility
to Safeguard Personal Financial Information – The department must ensure the
security and confidentiality of customer personal financial information.
Documentation
– There are many different departments and groups who handle cash, therefore
each department must establish written procedures describing its cash handling
practices, such as identification of the custodian, format of tracking cash receipts,
deposit frequency, etc.
Cash
Handling Responsibility – The cash handling responsibility is to be assigned to
a single individual who serves as the custodian (as defined below). Records must be maintained to indicate who
the custodian is. The use of checking
accounts outside of the College is prohibited.
Separation
of Duties - It is critical that the responsibility for the physical security of
assets is separate from the responsibility for related record keeping. There must be a separation of duties between
staff responsible for receiving and depositing cash versus the staff
responsible for the accounting records.
Recording
Cash Received – A system must be in place to record the receipt of cash at the
time it is received. An official receipt
shall be issued to payers for all payments received to aid in proper cash handling.
Balancing
– Cash receipts are to be balanced daily to the sales records.
Cash
Security – Cash shall be physically protected from loss at all times and shall
not be commingled with any other funds.
Under no circumstances may an individual keep College cash with their
own personal funds, deposit College funds in a personal bank account or take
College funds to one’s home for safekeeping. Any thefts must be immediately
reported to Security and the Business Office.
Routine
Reconciliation – Routine reconciliation is required monthly at a minimum to
ensure that all cash sales are recorded properly.
Expenses
shall not be paid out of cash funds under any circumstances. The Business Office is available for
consultation and review of departmental procedures and cash handling
practices. The Business Office also
reserves the right to conduct an audit of cash funds at any time.
CHANGE
FUND ESTABLISHMENT & MANAGEMENT
This section addresses how to establish a
change fund. Once the fund is
established, the internal controls listed above will apply to the fund.
Definitions
Change Fund- a petty cash fund used for
change-making operations. This fund is
for making change only. Expenses shall NOT be paid out of this fund.
Custodian- a person who has ultimate responsibility
for the change fund per the Business Office’s written records
Establishment - Establishment
of a change fund or increases to an existing fund may be requested from the
Business Office using the “Change Fund Request Form” found on CampusNet. The request shall include the following:
- Name
of custodian who will be responsible for safeguarding and managing cash
- Name
and department account number of the group that will be using the fund
- Amount
of request
- Purpose
of fund
- Security
procedures to safeguarding cash
- Specific
location of fund- building and room number
A check request is also required and shall be
filled out in the usual manner. If
approved, the Business Office will process the request, which will normally
require 7-10 business days. The custodian
will pick up the cash in the Business Office; sign a receipt for the funds, and
a copy of the cash policy. A change fund
must be used only for the purpose for which it was established.
Change of Custodian
The Business Office must be notified when a new
individual becomes custodian of an existing change fund on a temporary or
permanent basis. Unauthorized transfer of custody between employees is not
permitted.
Closeout
When the fund is no longer needed, the Business
Office must be notified and the fund must be turned in to the Business Office
for further proceedings.
STUDENT CLUBS
See the Student
Organization Handbook for student club cash handling procedures.
Approval history: Replaces Cash Handling Procedure 4.155 approved May 19, 2014