10 - 006 Cash Receipts Security and Controls Procedure
A. INTRODUCTION 1
There are a limited number of departments (or locations) at USNH that are authorized to accept cash and/or other items. Any cash and/or other item collection department (or location) must be approved in writing (i.e. an e-mail) by one of the following: Campus CFO or designee(s). Treasury will keep a record of these locations (Exhibit A Departments Authorized to Accept Cash/Coin/Check) and indicate if they are a Central Designated Location.
These departments (or locations) are required to safely store, properly record, and promptly deposit all cash items into an approved USNH (UNH, USNH, KSC, PSU or GSC) bank account(s) in accordance with applicable USNH or campus policies and procedures.
Campus locations may, and are encouraged to, create more detailed procedures that meet their unique circumstance. However, these local procedures may not be any less restrictive than what is in this University System Cash Receipts Procedure.
Control Point: Campuses must provide list of areas accepting cash/coin/checks to Treasury to include in a database once a year and as changes are made. Campus CFOs should evaluate the maximum amount of cash at hand at any given point during events and activities.
B. ACCEPTING CASH
Locations that accept cash should have a secure area to receive and process funds. For high volume locations, cash registers with locking drawers and POS Systems should be used in lieu of cash boxes/change drawers when possible and should be in view of a camera. Locations accepting cash without these controls in place must obtain prior written approval from the campus CFO or their qualified financial designee. When these controls are not able to be in place two people should be present when possible, during use of cash drawer.
At all times when cash is counted, two people must confirm that the amount of cash as described below. Opening the Registers: Verify the starting balance of cash is that of standard practice of the location. This must be confirmed in the presence of a 2nd person and documented both with the names written and signatures/initials of each person.
1. Cash pickups during the day: Dependent on the volume of cash in the register, cash collections may be done during business hours to reduce register balances. Excess funds, as determined by the campus CFO, must be brought to a secure area within the facility. Cash counts must be done by both the teller and the person picking up the cash. A receipt (Exhibit B Chain of Custody Form) must be given to the teller at the time of transfer for use in day end reconciliation. A POS System may be able to record these pickups.
2. A three-part pre-numbered receipt or an approved point-of-sale/cashiering system must be generated and given to customers for all cash sales.
3. Change exchanged between cashier and safe must have dual control and both parties must complete change request form. (Exhibit C Cash Change Form)
4. Closing the Register or Cash Drawer: Indicate the amount of cash in the drawer at the time of closing. This amount must match the total of 1.) The opening balance plus; 2.) Sales during day from POS or other system record minus; 3.) Noncash sales: minus 4) Amount of any cash pickups completed during the day. Drawer amounts should then be brought back to the starting balance and the drawer secured in a safe or other secure location for use with the next cashier / next day. The starting cash should be counted the next morning and confirmed it is correct.
5. Funds to Deposit: Funds in excess of the starting balance must be brought to a secure central location (for example, the designated ‘Cash Room’). The funds must be counted and tied out to a printout/receipt from a System of Record (POS system, inventory record) when available in the presence of whoever was responsible for those funds. If funds placed in a drop box total $1000 or more, additional controls (camera and/or alarm) must be in place. Bringing Funds to a Central location for bank deposit: Once a final count of the cash has been completed, cash/coin must be placed in a clear disposable deposit bag and a deposit slip indicating the amount of the deposit included. The bag should then be sealed and secured for transport to the bank. The Chain of Custody document, with dual deposit signatures and includes FOAPALs to record the funds to the GL, must be attached to the Deposit Bag. Ordering the disposable deposit bags must be coordinated through the USNH Treasurer’s Office.
6. Each deposit requires (1) a Chain of Custody Form, (2) a Deposit Form (Exhibit D-UNH, Exhibit D-PSU, Exhibit D-KSC), and (3) Tamper Evident Disposable Deposit Bag (Exhibit E) with a Unique Serial Number. Disposable bag adhesive strip to be attached to chain of custody.
Control Point: Chain of Custody Document - Except for funds deposited to a drop box and totaling less than $1000, funds must not be given to another employee without a signed Chain of Custody included with the funds and a copy of such document or receipt provided to the employee who surrendered control of the funds. The department surrendering control of the deposit to either the bank or Armored Carrier is responsible for keeping this documentation.
* If there are any discrepancies at time of a custody change or when comparing cash receipts to the System of Record, they must be immediately reported and investigated.
C. TRAINING
All employees accepting Cash/Coin/Checks must complete training including reading and acknowledgment of this procedure and any other required training including an annual refresher training thereafter. The manager and backup person must be provided to Treasury as part of Exhibit A and whenever there is a change in authorized personnel.
Control Point: The Manager of each business unit is responsible for ensuring these trainings take place and retaining appropriate documentation. The initial training and subsequent annual training should be documented and submitted to the head of the department or CFO (or CFO designee), whoever is responsible for making sure cash controls are followed.
D. STORAGE OF CASH/COIN
Cash, checks, and receipts are kept in a lockable container, such as a cash box/safe, and ideally stored in an area that is not visible to unauthorized personnel. Adequate security controls over the lock box/safe must be maintained at all times, including changing security controls at least annually, terminating access when an employee leaves or change positions, etc. However, in unique situations where cash, checks and receipts are stored in an open area that is visible, the cash box/safe is under continuous video surveillance. In either case, unsecured cash boxes and safes are not left unattended during the working day. At night, all funds and cash boxes are kept in a secured (locked) storage area, such as a lockable file cabinet, closet or safe.
E. CENTRAL DESIGNATED CASH COLLECTION LOCATIONS (CASH ROOMS)
Cash Rooms are secure areas not accessible to the general public and include 1 location at KSC; 1 location at PSU; 1 location at GSC; 4 locations at UNH. These locations must be under continuous video surveillance and have panic alarms. The creation of any additional cash rooms must be approved by campus CFO and USNH Treasurer’s Office.
F. TRANSPORTATION/BANK DEPOSITS
Deposit balances in excess of $1000 must be brought to an approved Central Designated Location every day. Deposit balances below this amount may be brought to a Central Designated Location once per week. Cash Rooms must make deposits in accordance with the policy or on preapproved police escorted schedule. In no case may these scheduled pickups be less than once per week.
All cash transfers in excess of $1000 that take place in a non-secure public area must have a public safety employee present for the transfer. This includes both transfers to other buildings on campus or to the bank.
If a deposit bag is destroyed for any reason, the reason for destruction must be noted in the same documentation of deposits.
Exhibit A List of authorized departments to accept cash (under development)
Exhibit B Chain of Custody Form
Exhibit D Deposit Form-UNH | Deposit Form-PSU | Deposit Form-KSC
Exhibit E Tamper Evident Disposable Deposit Bag
Related Procedures, Forms and Resources
10-004 Accepting and Depositing of Cash and Checks
10-005 Check Deposit Procedures
Contacts
Accounts Receivable: foc.ns.billing@usnh.edu
USNH Treasury: usnh.treasury@usnh.edu
General Accounting: foc.accounting@usnh.edu
Policy Owner: USNH Director of Treasury
1 This procedure excludes Petty Cash Funds. Please refer to 04-001 Petty Cash Funds Policy
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