Cash Receipts Policy
|Section:||Financial & Business Policies|
|Policy Name:||Cash Receipts Policy|
|Policy Owner:||Executive Vice President|
|Responsible University Office:||Office of the Vice President For Finance and Deputy Treasurer|
|Origination Date:||July 1, 1987|
|Revisions:||June 5, 1989; August 25, 1994; March 1, 1996; July 1, 2005|
|Legacy Policy Number:||3-21|
- PURPOSETo outline policies for the handling of cash receipts.
- POLICYThis policy defines cash as checks, currency, coins, money orders, credit card payments, UD1Flex, and dining points.
Normally, all cash receipts are to be transmitted directly to the Cashiers Office in the Student Services Building. If a department needs to receive verification of cash that is received directly by the Cashiers Office, arrangements can be made with the Cashiers Office. The collection and handling of cash receipts by the department requires the approval of the Director of Billing and Collection.
- Cash Receipts Collected and Handled by a Department
- The access to cash receipts is to be restricted to a limited number of persons.
- Remittance or registration forms should include the following statement: Checks are to be made payable to the “University of Delaware.” Checks may not be made payable to a department or special program. Checks are to be restrictively endorsed for deposit only to the credit of the University immediately upon receipt. Contact the Cashiers Office for an appropriate endorsement stamp.
- Receipts are to be deposited intact with the Cashiers Office at least daily and more often when the amounts involved are large enough to justify the additional effort. “Intact” means that all cash collected since the last deposit must be deposited, and that no disbursements can be made from these undeposited receipts. All currency or checks kept overnight in the department are to be safeguarded from fire and theft.
- Cash receipts are to be supported by other records. For example, major retail sales are to be supported by cash register tapes; minor in-person payments are to be supported by properly controlled pre-numbered receipt forms; mail receipts are supported by lists prepared by the mail opener; and ticket sales are supported by unused tickets, and a reconciliation. The supporting records in a given department are to be appropriate for the type of cash collection activities it is engaged in. In all cases, the supporting records must show the nature, source, date and amount of each cash receipt.
- A separate cash fund is not to be maintained to pay for cashier overages and shortages.
All cash overages and shortages are to be recorded on a cash transmittal. They are to be computed and recorded as follows:
Control Total (For example, cash register tape)
Less: Documented adjustments
Equals: Actual sales
Plus: Authorized change funds
Less: Cash physically counted
Equals: Cash over or short
Use the appropriate income purpose code and account code (R16300) to record overages and shortages.
The entry on the cash transmittal form for a shortage is a debit and should be noted by putting a minus before the amount. In the case of an overage there would be no minus. The total on the cash transmittal should equal the total funds being deposited.
Overages and shortages are to be periodically reviewed by management to ascertain whether the discrepancies are significant and whether they are a recurring problem specific to a certain cashier.
- Segregation of Duties – Duties are to be separated to the extent possible in any department handling cash. There should be a system of checks and balances in which tasks are performed by different individuals for adequate control. For example, the same person is not to collect money from students or other payees, post receivables and other accounting records, and prepare and make the deposit.
When complete segregation of duties is not possible, it is the Manager’s responsibility to scrutinize all documents to ensure that the amount being deposited includes everything that was collected.
- It is the department’s responsibility to reconcile cash/credit card receipts to the appropriate general ledger purpose/account.
- Items B.1.a. through f. represent general University policy. Each department handling major cash receipts is to have its own written policies and procedures tailored to its specific organization. The departmental policies and procedures are to include, but not be limited to, the following topics: segregation of duties, deposits, forms control including pre-numbered tickets, reconciliations, cash register procedure and physical security. Departmental policies and procedures are to be approved by the Director of Billing and Collection.
- Mail Receipts
Mail containing payments is to be opened and recorded in one central location by someone who will have no further involvement with the deposit or accounting for cash receipts. The mail opener is to prepare a list of all payments received in a given day. An independent Manager is to verify that the deposit reconciles with the mail list.
- In-Person or Over-the-Counter Receipts
Necessary initial control for in-person or over the counter receipts requires the person who receives the money to immediately prepare a record of the amount to establish accountability and a basis for proving that subsequent deposits include everything that was received. Cash registers and pre- numbered forms are acceptable methods of initial control.
Cash registers are to contain sufficient features for effective control. The issuance of blocks of pre-numbered receipts from bulk supplies is to be controlled by a person who does not make deposits or originate entries.
Billings to companies or individuals outside the University are to be processed through the University Non-Student Billing System. Payments made on Non-Student Billing statements are sent directly to the Cashiers Office. Use of the central billing system ensures monthly follow-up of overdue accounts by Billing & Collection. Contact the Account Services Office to make arrangements for outside billings.
Departments should contact the Director of Billing and Collection regarding questions on the implementation of any aspect of this policy.