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California State University, Long BeachCalifornia State University, Long Beach

Cash Handling/Management

Objective

It is the policy of the California State University (CSU) to establish and maintain an adequate system of internal control for the handling of cash (and cash equivalents) receipts.

  1. Ensure appropriate approvals have been obtained prior to establishing an official cashiering station, or departments collecting cash and cash equivalents.
  2. Maintain a listing of all approved departments and individuals that perform cash handling duties, and satellite cashiering departments using CASHNet. A current Cash Handling Procedure Form should be on file at Main Cashiers.
  3. Ensure cashiering stations are operating in accordance with CSU and University policy and procedures.
    1. Ensure that the following requirements have been met for each Satellite cashiering station. Cashiers (handlers including student assistants) have had appropriate background checks (fingerprint clearance) and employee history verified (ICSUAM 3102.01).
    2. Cashiers (handlers) have been properly trained in cash handling, the preparation and processing of deposits and the use of CASHNet (ICSUAM 3101.02).
    3. Cash, checks, and debit/credit card information are physically protected (ICSUAM 3102.04). Appropriate segregation of duties are maintained (ICSUAM 3102.02).

Procedures

  1. Segregation of Duties
    1. The Director of Student Financial Services or designee shall maintain a listing of all departments and employees who handle University cash or cash equivalents at each cashiering station.
    2. Cash receipts/handling operations will require daily supervision and review.
    3. The individual who authorizes refunds cannot receive or handle cash or cash equivalents.
  2. Cashiering (Main and Satellite)
    1. All cash registers and point of sale equipment must produce a receipt controlled by consecutive numbers generated automatically and recorded with each transaction. This numbering mechanism must be accessible only to the manufacturer’s service representative or appropriate manager who is independent of that cashiering location.
    2. Subsequent to the collection of funds, each cashier shall offer a copy of the receipt to the customer.
    3. Each cashier should take reasonable precaution to detect counterfeit money prior to acceptance. Cashier shall use a counterfeit detector pen and/or the currency counter for bills at $50 and $100.
    4. Each cashier shall be assigned a unique user ID, login, password, and cash fund not accessible by or shared with other individuals. The department manager must provide a cash register drawer or other secure cash receptacle to which only the cashier has access.
    5. Prior to leaving the cashier register or work area for any reason, the cashier will lock the cash drawer and remove the key, keeping it in their possession.
    6. As part of normal operations throughout the day, the cashier will accumulate receipts from sales. Cash in excess of daily operation need should be transferred from the register drawer to a University approved safe or lockable receptacle.
    7. All cash registers and point of sale equipment must produce an end-of-day report total for verification to cash and cash equivalents collected. Reconciliation must be reviewed and verified by someone (supervisor or designee) other than the cashier responsible for the collections.
    8. At the close of business, all cash and cash equivalents must be secured and stored in accordance with CSU requirements as noted in section 7 below. Documentation of cash differences (overages and shortages) must be maintained for each cashier and reviewed by the appropriate supervisor.
    9. If checks received are not payable to California State University Long Beach or cannot be identified or properly applied after sufficient research, the item should be posted to the Uncleared Collections, which is reviewed monthly, or returned to the name and address of the maker.
    10. An official University cash receipt shall be recorded for each collection using a cash register, point of sale equipment, online secured payment sites or automated ticketing system, except in circumstances where it is not practical (i.e. event parking and payments received at department through the mail). Departments collecting check payments must follow the ‘Department Deposit’ section below.
    11. Voids and reversals of a prior cash or cash equivalent receipt, must be supported by all copies of the documents involved, and approved with a signature by the cashier’s supervisor at the time of the occurrence and submitted with the deposit supporting documentation.
    12. Deposits should be made to the bank on a daily basis, with the correct supporting deposit paperwork.
  3. Endorsement Stamps: All departments regularly accepting checks should have a CSULB approved endorsement stamp issued by the Main Cashiers.
  4. Requirements of Checks Received
    1. Checks should be immediately restrictively endorsed by a receipt printer or endorsement stamp upon receipt, but no later than by the end of business day(ICSUAM 3102.03).
    2. Checks should be made out to California State University Long Beach or some equivalent.
    3. Dating no earlier than 180 days prior to the day of acceptance and no later than the day of acceptance.
    4. Legible and consistent amounts, both the numeric and written.
    5. A signature on the signature line.
    6. No two-party checks, post-dated checks, checks drawn on a foreign bank, checks bearing “Payable/Paid in Full” are to be accepted. Student ID’s are to be recorded on checks or money orders for student payments.
    7. Checks received in person from the maker should be reviewed at the time of receipt for the required elements. If any of the required elements are not met, the check should be returned to the maker for correction.
    8. Checks received in the mail from the maker should be reviewed at the time of receipt for the required elements noted in procedure 8.b. If any of the required elements are not met, every effort should be made to contact the maker to request a new check be issued or mail the invalid check back to the maker.
  5. Department Deposits
    1. Deposits should be prepared by an individual who does not have access to recording transactions (i.e., should not have access to post journal entries), authorizing adjustments to the accounts receivable ledger or to the general ledger, or the person following up on collectibles (ICSUAM 3102.08).
    2. Deposit counts shall be verified by a second person.
    3. Deposits should be reviewed and verified/reconciled to the general ledger by an individual who is not part of the deposit process and does not have access to cash. This provides an independent verification that the amount recorded on the supporting deposit documents was the amount that was actually deposited.
    4. Deposits must be made to the Cashier Office, BH 148 based on the following criteria. Facilities with a safe or vault may accumulate collections until they amount to $5,000 in cash, checks, money orders and warrants. Facilities without a safe or vault may accumulate collections until they amount to $1,000 in cash, checks, money orders or warrants. Receipts of any amount should be deposited within 5 working days. Transport of cash deposits must be accomplished by at least 2 employees. When cash deposit exceeds $2,500, employees shall be escorted by campus police. (ICSUAM 3102.04).
    5. Deposits should include the following Deposit Transmittal Form. Departmental deposits should have currency sorted by denomination and endorsed checks.
  6. Cash Transactions > $10,000 Notification and Processing - Funds received, from a single individual, in the form of cash, money orders, cashier’s checks, traveler’s checks or other bank instruments in US dollars in a cumulative total that exceeds $10,000 in any 365 day period must be reported to the IRS.
  7. Security of Cash, Cash Equivalents and Endorsement Stamps - Cash, cash equivalents and endorsement stamps must be appropriately safeguarded at all times in a secure location, (ex. Locked cabinet, drawer, safe or vault). If more than $2,500 in cash and cash equivalents are regularly on hand, a manual robbery alarm system or other appropriate measure must be installed. If more than $25,000 in cash and cash equivalents is stored overnight, an automated alarm system is required to alert campus police or local law enforcement if the storage area is entered after business hours.
  8. Safes/Lockable Receptacles
    1. Lockable receptacles that store cash, checks or debit/credit card information should always remain locked when not in use and should be stored in a locked desk, cabinet, or office when not in use for operations.
    2. Department’s with a safe must record authorized personnel with the safe’s combination. It must be changed whenever a person who knows the combination leaves the employ of a cash handling unit The combination should be known to as few persons as possible consistent with operating requirements and the value of the cash or documents.
    3. The combination must be changed when any employee having knowledge of the combination leaves the employ of the University, or no longer requires the combination in the performance of his or her duties.
  9. Credit/ATM Card Processing: Credit/Debit transactions should only be processed using Campus approved point-of-sale equipment or website. Standards should be followed as outlined by PCI Data Security Standards .

Revised: 09/20/16