10 - 004 Accepting and Depositing of Cash and Checks

A. BACKGROUND

As a public institution, the University System of New Hampshire (USNH) is responsible for the stewardship of funds in its care and for maintaining strong internal controls. This policy provides guidelines and minimum standards for proper receipt and depositing of currency, checks, and other cash equivalents (collectively hereinafter referred to as "cash" or "cash items") to ensure that the assets of USNH are protected, accurately processed, and properly reported.

B. SCOPE

The policy applies to all individuals or departments who receive, and deposit cash and cash equivalents and applies to all component institutions of USNH. Unique campus needs may require minor deviations from this policy. Any substantive change must be documented and approved by the campus CFO and the USNH Treasurer’s Office

1. Bank Accounts. The USNH CFO/Treasurer or designee must pre-approve any banking or credit relationship established for the purpose of collecting or depositing USNH funds, uses the USNH name or the name of one of its component institutions, or uses the USNH tax identification number. The USNH Treasurer’s Office should be contacted to assist in developing a banking solution. The Vice Chancellor for Financial Affairs must be a signatory on the account.

2. Timeliness of cash deposits. In order to optimize investment earnings and reduce the possibility of theft and loss, all receipts of checks and currency are to be deposited in a timely manner and in a depository account under the Name and Tax ID of USNH consistent with the detailed procedures in the following documents: Coin and Currency Deposit Procedure; Check Deposit Procedure; Procedure for Depositing Cash or Cash Equivalents via Armored Car Service or police escort (to be developed). Checks and currency totaling $1000 or more must be deposited within 48 hours (two business days) of receipt or once a week whichever comes first. Checks and cash should never be held by a department awaiting accounting information.

Gifts from donors should be promptly delivered to the campus advancement office so the gift can be recorded and acknowledged in a timely manner.

3. Responsibility for safeguarding the receipt of cash items. The Campus CFO or designee(s) is responsible for authorizing and notifying the USNH Treasurer’s Office of any cash collection areas and implementing appropriate internal controls consistent with this policy and the accompanying detailed procedures. Such controls include:

a. Clearly define and document delegated responsibility for cash items from time of receipt to time of deposit. Responsibility for the billing, cash handling, record-keeping and reconciliation functions should be assigned to separate individuals, to the extent possible and will include the central Financial Operations Center (FOC) as appropriate.

b. Open and process mail on a timely basis and in the presence of coworkers, if possible. Maintain a log of all cash items received. A documented audit trail must exist at each point where the responsibility for the funds is transferred to another individual.

c. Endorse checks immediately upon receipt using an endorsement stamp approved by the USNH Treasurer’s Office (if available).

Accepting 2 party checks for payment are allowed when:

1. 2 party checks made payable to the University System, or a third party may be deposited (scholarship checks).

2. The University will only accept checks made payable to the University and a third party after the third party has endorsed the check. The University will not endorse a check prior to the other payee(s) without CFO approval.

Accepting third party checks for payments are allowed for when the original payee has re-endorsed the check payable to USNH as provided for under UCC Article 3: and the

1. Check is issued by (Student Refund 3rd party) made payable to a USNH student.

2. Check is a business check issued by an awarding scholarship organization made payable to a USNH student.

3. Check is made payable to a third party with whom the University has merged or acquired or is a USNH Campus or Department using a Doing Business As (DBA) name.

d. Provide security over cash items awaiting deposit through the use of locked safes, strong boxes, or file cabinets. Cash items should never be left in or on desks or unattended at any time. Dual controls over cash are strongly encouraged and preferred to protect both the USNH and the employees handling cash.

e. Do not commingle cash receipts with any other personal or business cash funds and do not reduce cash receipts by amounts needed for petty cash transactions. Use standard campus deposit forms.

f. In general large cash receipts should be discouraged, and an alternative non-cash method of payment should be requested. However, if received, cash transactions of more than $10,000 from one individual/entity (in one transaction or in two or more related transactions over a 12 month period) must be reported to the IRS by each campus and a statement furnished to the payer (IRS Form 8300 Reporting Cash Payments of Over $10,000). For purposes of this paragraph, cash is defined as coins and currency of the U.S. or any other country, cashier's checks, bank drafts, travelers checks or money orders. The individual campus SFS offices is responsible for developing procedures to identify, track and repot cash payments to comply with IRS requirements..

g. Checks deposited using remote deposit devices must be kept in a locked safe. After 45 days from the date of the deposit, checks must be destroyed using cross-cut shredding or an approved shredding/disposal service for paper documents. See 10-005 Check Deposit Procedures, C. Remote Scanning Procedures.

h. Cash receipts and deposits are subject to periodic surprise audits by USNH management and internal and external auditors.

This policy provides minimum requirements for processing cash and cash equivalent deposits. An individual campus may institute additional or more stringent requirements.

Related Procedures, Forms and Resources:

10-005 Check Deposit Procedures

10-006 Cash Receipts Security and Controls Procedure

IRS Guidance on reporting large cash transactions

Contacts:

Accounts Receivable: foc.ns.billing@usnh.edu

USNH Treasury: usnh.treasury@usnh.edu

General Accounting: foc.accounting@usnh.edu

 

Policy Owner: USNH Treasurer's Office