University of Wisconsin-Parkside
Cash Handling Policy
The University of Wisconsin-Parkside has many areas on campus that collect cash for a variety of reasons. Cash collections, change funds, and petty cash funds are handled in many departments at UW-Parkside. In all departments and areas of the University, approved procedures are used in the collection, recording, safekeeping and deposit of funds, whether they are University funds or Agency funds.
The following procedures have been developed to:
In addition to general University procedures, each department has approved cash handling procedures that apply uniquely to the cash requirements of that department. Department procedures are approved by Internal Audit. Activities on campus that are under contractual agreements with, and under the control of, outside vendors are the only areas exempt from this Cash Handling Policy.
Cash handling in the Office of University Advancement is done by employees of the University of Wisconsin-Parkside with partial funding provided by the University of Wisconsin-Parkside Foundation . The University of Wisconsin-Parkside Foundation is a separate independent organization classified as a functionally integrated Type III supporting organization under the Internal Revenue Code Section 4943(f)(5) and Treasury Regulations Section 1.509(a)-4(i)(3)(ii). The Foundation operates under standards set by the Council for the Advancement and Support of Education, the National Association of College and University Business Officers, and the American Institute of Certified Public Accountants.
Cash - Payments to the State may be made in legal tender, postal money order, express money order, bank draft, certified check, or personal/individual check. ( Wis. 20.905 (1))
Cash Collection Center - An activity at the University that accepts cash for the payment of services or merchandise and meets the following requirements:
Has a cash register or terminal that dispenses a paper receipt to the customer, or a bound, sequential, pre-numbered 2-part receipt book from which to dispense a receipt to the customer
Has the presence of a limited-access vault/safe or daily deposits to the Cashier's Office
Has written cash collection policies that include the following:
regular deposits to the Cashier's Office,
definition of management's responsibilities,
provision for separation of duties,
cash over/short policy defining failure follow-up procedures
loss prevention program
(Areas that do not meet the requirements to qualify as a Cash Collection Center may not collect cash. Proceeds due to these departments must be remitted directly to a Cash Collection Center . Internal Audit will maintain a list of approved Cash Collection Centers.)
Proceeds: Any money received through sale or loan (could be cash, check, credit card, etc)
Receipt: A paper acknowledgement that a specified article or sum of money has been received as an exchange
Money must be collected in as few places as possible and stored in the most secure safekeeping facilities available, such as a safe or vault. Cash must not be kept in desks or filing cabinets. If money cannot be kept in a safe or vault, it must be deposited daily at the Cashier's Office during normal office hours.
SECURITY AND STORAGE OF PROCEEDS
Proceeds must be deposited daily or stored in a safe or vault during non-working hours. If adequate facilities are not available, alternative procedures must be used:
Proceeds must never be left unattended. Adequate security measures must always be implemented. If small amounts of cash are handled and secure storage facilities are inaccessible or the distance to an area is unreasonable, an alternate storage facility may be appropriate. Business Services personnel are available to make security analysis of storage facilities and give suggestions on how to improve security over proceeds.
Access to cash storage areas by numerous individuals reduces security over such proceeds. Controlled access to cash storage areas must be maintained. Distribution of keys must be kept to a minimum and issued only when necessary.
Keys left in unlocked desk drawers or identified by use are open invitations to an easy theft. Locks and combinations must be changed when employees terminate. This is done to protect the department as well as the terminating employees.
In the event of suspected burglary, theft, embezzlement or falsification of documents, notification must be made immediately to the University Police Department, the Controller, and the Internal Auditor.
All funds received by the University, including funds given for any department, program, activity, or any other agency acting on behalf of the University, must be properly classified and recorded in the University Accounting System. Departments that collect money must maintain proper records. These normally include receipt and deposit records, inventories of salable items, reconciliation of deposits to Accounting Control records, etc. Records must be kept for a minimum of 6 years plus the current fiscal year.
If someone requests access to records, or wants to count money held in the department, proper identification and proof of authorization is required. Cash counts must always be performed in the presence of the individual responsible for the cash.
SEPARATION OF DUTIES
Different individuals must be assigned responsibility for the collection, deposit, and reconciliation of deposits to the departmental budget control ledgers. Separation must also be maintained between access, reporting, authorization, and reconciliation of the cash. Departments needing help with the separation of duties among a limited number of staff may contact the Controller's Office or the Internal Auditor for further assistance.
Receipts must be issued for all proceeds received. Use of pre-numbered receipts offers control over revenues and assists in record keeping. All sales/payments must be rung up on a cash register or terminal that is capable of dispensing a receipt. If a cash register or terminal is not available, a receipt book must be used. The receipt book must have these features:
CLOSING CASH REGISTERS
When a cash register is closed for the day:
1. Cashier removes cash from till and places all cash receipts, coupons, over rings, etc. into a lockable/sealable cash bag. The cashier includes his/her name in the bag with location of the activity.
2. The supervisor or responsible employee must "zero-out" (or other method of generating daily report) the register. He/she then prepares a daily sales report based on this information. The daily sales report must include, but is not limited to, date, cashier name, total sales, tax or taxable sales, over rings, other adjustments, etc., as well as computed cash balance received.
3. Someone other than the people involved in steps 1 and 2 must count the cash bag(s) and prepare the deposit. Any discrepancies are forwarded to the supervisor.
4. The supervisor reviews any discrepancies and takes action as appropriate.
ACCEPTANCE OF CHECKS
Checks must be:
In order to clarify and coordinate departmental activities related to the handling of a returned check, the following procedures have been developed and are to be implemented by all departments upon the receipt of a returned check by the Cashier:
1. A returned check requires immediate action. The first step is to send a written notice to the remitter, with a copy of the "Demand for Payment" attached. A five business-day response period is allowed. If the returned check was presented by a student, a "hold" is placed on the student's record.
2. If no response is received after five business-days, the University Police Department is contacted. The University Police Department obtains copies of the check, letter, and "Demand for Payment" form. The University Police Department then contacts the issuer.
3. Payments for returned check items must be made by cash or money order for the amount of the check, plus any applicable charges.
4. After payment for the returned check is received, the University Police Department will notify the corresponding department.
The following deposit procedure has been adopted by the University of Wisconsin-Parkside in compliance with Wisconsin Statute 20.906. This policy includes all revenues, gifts and donations made to the University and requires all deposits to be made within seven days.
Revenues generated as a result of the sale of University goods or services belong to the University and must be deposited with the Cashier's Office at least once a week. Cash collection center policy may dictate more frequent deposits. Departments should seriously consider utilizing the University Police Department to transport larger deposit amounts to the Cashier's Office.
If any official or officer neglects or refuses to make deposits in a timely manner, the following penalty may be deducted from his or her compensation: an amount equal to the interest upon the moneys so withheld from deposit at the same rate as that received by the state upon state deposits, for the period for which such deposit is withheld.
Deposit bag will include the original deposit slip, checks and cash.
Deposits must be received by the Cashier's Office before 4:30 p.m.
A locked bag must be used when transporting deposits.
2. A cash collection center representative enters the date, department and number of deposits on the deposit delivery log, signs the log and has the person receiving the deposit initial the entry in the log.
3. The Cashier's Office counts the deposit and returns a receipt attached to the deposit slip to the cash collection center via inter-office mail. Any discrepancy is reported to the cash collection center immediately.
The cash collection center compares its copy of the deposit slip with the receipt. Any discrepancy is reported to the Cashier's Office immediately.
The University Police Department, Office of Internal Audit and/or the Risk Management Office may be called in to assist in the investigation of a discrepancy as appropriate.
If departments send out invoices to third parties, they must send a copy of the invoice to the Cashier's Office. All payments must be mailed or paid to the Cashier's Office for such invoices. The Cashier's Office will match the payment received to the invoice copy and deposit the check into the proper account. A copy of the payment received and the record of deposit will then be sent to the department. Each department is responsible for any outstanding invoices past due.
There are some instances in which expenses can be reduced by offsetting them with revenue commonly referred to as a "refund of disbursement". The most common refund of disbursements is overpayment of a purchase order, personal use of copying, telephone usage, and unused portions of travel advances. Refunds of disbursement are sent to Business Services, 218 Tallent Hall, ATTN: Controller.
The collection of some revenues requires the use of additional cash for making change. Change funds are to be used only if necessary and are not to be used for cashing personal checks, as a petty cash fund, or for any other non-business purpose.
Cash collection centers may request temporary change funds. Authorized change fund loan forms (non-travel cash advance) must be completed indicating denominations, date of pick-up and date of return. The form must be signed by the department head and forwarded to the Controller. Forms are available from the Controller's Office.
A change fund must be counted at the beginning of each day's activity or when one is assigned to an individual, verifying that the amount received is correct. The cash must also be counted at the end of each day's activity by another individual not performing cashiering function, and reconciled with daily receipts by someone independent of cashiering and cash count functions. Cash count forms are used that best fit the department's needs.
Cash receipts are not to be withheld from deposits to establish a change fund.
In areas where petty cash is a necessity, the petty cash fund and its maximum dollar amount must be established and approved by the Controller. An individual must be designated as the departmental representative who is responsible for these funds. Daily reconciliation is a must. All receipts for expenditures must have the departmental coding on them before the cash is given to the purchaser. To replenish the petty cash fund, a Travel Expense Report (TER) must be prepared and all original receipts attached. After the proper signatures are affixed, the completed TER is forwarded to Pre-Audit.
Department petty cash counts are performed to:
TICKETED EVENTS AND RAFFLES
All departments have the option to use the current ticketed software available on campus. To use the software, they will need to contact the individual assigned by the University as the administrator for the software, or the Ranger Card Office (which currently houses this software). The software allows the departments hosting the event to print out a preset number of tickets, sell the tickets in person through the department housing the software, or sell the tickets online or on an as-needed basis.
If receiving a preset number of tickets pre-printed, the department hosting the event is responsible for collecting the cash and depositing the funds. The pre-printed tickets will include the price, type of ticket, seat location if applicable, and an assigned ticket number. The department must sign for the block(s) of tickets for the event. When ticket sales are completed, the department must compile a reconciliation report. The reconciliation includes the ending ticket number, beginning ticket number, and sales price of each ticket. The sales are computed and compared to actual cash receipts. Discrepancies are noted and corrective action taken per management policy. The completed report and any unsold tickets are turned into the supervisor at the end of the event. The procedures for the handling and depositing of cash for this type of sale must follow those established above.
If the department hosting a ticketed event chooses to use the software available on campus and sells the tickets online or on an as-needed basis, the cash handling process will become the responsibility of those on campus that manage the software. Sales may be performed online with credit card payments or in person with cash, check, or credit card. The software keeps a running total of all the tickets sold and the payment method used. The ticket will be printed at the time the ticket is purchased. The managing department must then print a sales report from the system that is used to reconcile cash, check, and credit card payments received to the total number of tickets sold. This reconciliation may be done on a daily or weekly basis and by event. The department will then deposit the proceeds received to the Cashier's Office by filling out a departmental deposit slip, as noted above. The departmental deposit slip will include a ‘ticketing' clearing account as the accounting string for deposit. Once the deposits are received and made, the manager of the software will prepare entries for Business Services to clear out the ticketing account and redirect the deposits to the appropriate department selling tickets for the event.
In the event of a raffle, all ticket stubs MUST be accounted for before the drawing takes place. If not, the raffle becomes null and void and all money is to be returned to the raffle ticket purchasers. It is critically important that raffle ticket organizers and sellers know and understand this.
For raffle tickets, the purchaser must complete the name, address and phone number on the stub portion of the ticket.
STUDENT ORGANIZATIONS AND CLUBS
Student organizations and clubs must follow the cash collection policy of the University of Wisconsin-Parkside.
EXCEPTION TO POLICY
Any exception to the aforementioned policies must be approved by the Chancellor or the Chancellor's designee by submitting a request for exception through the Controller's Office.