Cash Handling Policies & Procedures

Cash Handling Policies & Procedures

Types of Cash Funds Change Fund Temporary Change Fund Petty Cash Fund Temporary Cash Fund Note: Visit the University Administrative Manual for detailed policies and procedures. http://www.unr.edu/vpaf/business_finance/forms/uam.pdf

Definitions Change Funds: An amount of cash held by a department or office and used to give change to customers when they are paying for goods or services Temporary Change Funds: A Cash fund maintained for a specific short term event used to make change to a customer upon receipt of cash that exceeds the cost of the product or service

Definitions Petty cash fund: An amount of cash held by a department or office to pay for small incidental expenses on behalf of the university. This fund is to be used when the university purchasing card is not accepted or not available. Temporary Cash Fund: A small cash fund established to make small dollar cash payments to participants in studies approved by the university.

Definitions Imprest Basis: Each fund will be maintained on an imprest basis, which means the cash in the fund and the receipts/documentation of expenditures made from the fund must always add to the total fund amount. Custodian: The custodian must be a faculty or staff member and is ultimately responsible for the fund. Reimbursements: Reimbursements to the fund are made when the custodian completes and submits the Petty Cash Reimbursement Voucher with supporting documentation to Accounts Payable (AP). Reimbursements are scheduled as needed, but made at least quarterly and within the same fiscal year as the expenses occurred.

Security and Accountability The custodian must secure the funds in a locked cash box placed in a secured file cabinet or desk. The custodian will maintain only 1 set of keys and reconcile the cash fund on a weekly basis. Locks or combinations to safes or alarmed areas must be changed whenever an employee having access to the safe or alarmed area leaves the office’s employment. If the fund is lost or stolen, notify the Controller’s Office immediately and file a police report. Send a copy of the police report to the Controller’s Office.

Security and Accountability The Controller’s Office will contact the custodian in May or June of each year to verify the fund balance and determine the on-going necessity of the fund. Ask yourself, do you really need a petty cash or temporary cash fund???? When the fund is no longer needed the funds should be returned to the Cashier’s Office for deposit into 1299-0005, the central university petty cash/change fund account. The Controller, NSHE Internal Audit or UNR campus auditors may make a surprise cash count of the fund to assure the fund is intact and balanced. If there is a change to the custodian of the fund, the Controller’s Office must be notified by the custodian’s supervisor.

Establishing a Cash Fund A Dean/VP may request the establishment of any of the cash fund types Funds may be requested by sending a memo and completed Request for Payment form (leave the account number blank) to the Controller. The memo must designate the custodian, purpose and location of the fund including a description of how the funds will be secured.

Establishing a Cash Fund If approved, a check will be issued in the name of the custodian from the central university petty cash/change fund account. The custodian will be the authorized signer on the fund. Cash funds must be formally requested and may not be independently created by withholding cash from a deposit.

UNR Petty Cash Fund Limits: • Reno Campus - $100.00 • All Other Areas - $250.00 (Exceptions to the above limits may be approved on an individual basis. Written justification for the increase should be submitted to the VP or Dean for their approval then forwarded to the Controller for final approval.)

Maintaining the Petty Cash The petty cash fund should be reimbursed at least quarterly and must be reimbursed at the end of each fiscal year. The custodian is responsible for coding the petty cash disbursements on the “Petty Cash Reimbursement Voucher”. This form is available in the forms directory at http://www.unr.edu/vpaf/controller/accounts-payable/petty-cash.html

Maintaining the Petty Cash It is the responsibility of the custodian to coordinate with the account manager any charges to the manager’s account and to obtain proper signature for accounts being charged. Because the reimbursement check is made payable to the custodian, the custodian’s direct supervisor (or higher) is required to approve the petty cash reimbursement voucher.

UNR Petty Cash - Authorized Transactions or Purchases The following lists authorized purchases from a petty cash fund only if the vendor does not accept the university purchasing card: • Miscellaneous postage, postage due, package mailing, and PO box rental • Freight bills, either in or out • City/County dumping fees • Misc. supplies, services, or repairs. Services or repairs are NOT allowed if the vendor is doing business under a social security number. The vendor would be an independent contractor. • Emergency purchases

UNR Petty Cash - UnauthorizedTransactions or Purchases The following transactions are prohibited: Cashing personal checks for the convenience of the employees or students. Short-term loans. Purchase of new equipment. Purchase of radioactive or other hazardous materials. Travel claims or advances. Any purchases where normal university procurement procedures are available (PO Request, Request for Payment or Purchasing Card)

Temporary Cash Fund For projects where the funds are disbursed all at once or over a short period, the custodian must submit to AP the Petty Cash Reimbursement Voucher which lists the names of the participants paid, the amount of cash distributed and the account number to be charged at the end of the project.

Temporary Cash Fund For projects with participant payment that cover multiple cycles or occur over an extended period of time, cash should be requested only in the amount needed for each cycle. The reimbursements are to be scheduled as needed, but must be made at least quarterly and within the same fiscal year as the expenses occurred.

Temporary Cash Fund Any remaining cash at the end of the project needs to be returned to the Cashier’s Office for deposit into account 1299-0005. The fund must only be used for the purpose the Dean or VP requested and approved by the Controller. These funds may not be used to make purchases for the department or project.

Change Fund Change funds must be formally requested and may not be independently created by withholding cash from deposits. Change funds must be maintained at a constant balance with revenues collected from sales deposited as required by the cash handling policy.

Change Fund In order to maintain the fund at a constant balance, all over and shorts must be recorded using the appropriate revenue and sub-revenue code and must reference the responsible person. This can be accomplished with the Petty Cash Reimbursement Voucher located at http://www.unr.edu/vpaf/controller/accounts-payable/petty_cash_2007.pdf All funds received must be deposited promptly with the Cashier’s Office.

Temporary Change Fund Temporary change funds may be requested for special, one time events for which change is needed. The request must have the date the fund is to be returned. These funds should be closed out as soon as they are no longer needed and should be delivered to the Cashier’s Office for deposit into 1299-0005.

Deposits of Cash Receipts All funds from whatever source for which the university or university-related entity is responsible are to be deposited on a timely basis with the Cashier’s Office or with the UNR Foundation Accounting Office. The following are requirements and restrictions: • All funds received must be deposited with the Cashier’s Office or with the UNR Foundation. • Receipts in excess of $250 must be deposited within 24 hours of receipt. • Lesser amounts must be deposited within 72 hours of receipt.

Deposits of Cash Receipts Pre-numbered receipts must be issued by the collecting department for all cash/checks received which are not subject to a cash register, ticket sale, or other appropriate control. Checks should NOT be accepted in amounts in excess of the purchase or original transaction. Under NO circumstance shall any member of the faculty, staff or student body realize personal gain through the handling of such funds. Deposits received in the Cashier’s Office or UNR Foundation, must be counted & receipted in the presence of the courier. Under NO circumstance are funds to be left uncounted. Funds left uncounted will NOT be receipted and credited to the department’s revenue account until a representative is present to witness the count.

Deposits of Cash Receipts Departments with substantial cash receipts will be required to write up their own bank deposits. The deposits will be delivered to the Cashier’s Office or picked up for delivery to the bank by armored car service at the departments expense. Instructions for preparing deposits and how to obtain cash bags or tamper proof plastic bags will be provided by the Cashier’s Office. Cash may be secured overnight or during the weekend by delivering funds in sealed bags to the Cashier’s Office during normal business hours. Deposits of cash from other than local Reno departments may be directly deposited into Bank of America. Arrangements for these actions must be made through the Cashier’s Office where written instructions and deposit slips for these procedures are available.

Deposits of Cash Receipts Cash collected during weekend or holiday events must be secured in a safe until the cash can be delivered to the Cashier’s Office or picked up by armored car service . Cash security questions should be addressed with the Controller. In NO event should cash or coin be sent through campus mail for deposit. Checks sent through campus mail must be endorsed on the back using a university endorsement stamp obtained from the Cashier’s office.

Deposits of Cash Receipts Neither the Cashier’s Office or UNR Foundation will assume responsibility for funds NOT handled in accordance with these procedures. NO bank accounts or investment accounts other than those specifically approved by the Board of Regents are allowable for the university or any university-related entity. Transport of cash in the amount of $1,000 or more must be performed by two employees.

Deposits of Cash Receipts Supporting documentation for cash receipts are subject to the records retention schedule, (6 prior fiscal years plus current fiscal year). Cash receipts documentation is comprised of relevant evidence supporting the amount and type of receipt. Supporting documentation consists of sales reports, receipt books, cash register tapes, close-out sheets and duplicate deposit slips. For departments with multiple cashiers the cash drawer must be reconciled at the end of each shift or whenever the cashier changes. The reconciled deposit for each cashier must be sealed in a tamper proof bag for deposit.

Payment Card Industry Data Security Standard (PCI DSS) Visa, MasterCard and Discover have created the PCI DSS Council to manage a common set of data security standards for merchants that accept payment via credit cards. All entities that store, transmit, or process credit card data are required to adhere to these standards. The university and all of its departments that process credit card transactions must comply with these standards prior to August 2009.

Accepting Credit Cards If a department decides they would like to accept credit cards, the department first contacts Cindy Erskine in the Controllers Office at 784-1453. Cindy will then ask the department to email the Controller asking permission to accept credit cards.

Accepting Credit Cards The email to the controller should include the following: • Department contact person responsible for the credit card account and phone number. • Address: 1661 N. Virginia Street Mail Stop ______ Reno, NV 89557. • Approximate annual Visa/Mastercard amount. • Average ticket amount – estimate of batch or daily deposit. • Customer Service Phone Number. This number will appear on the cardholder’s credit card statement. • The name for the credit card account. Keep in mind this is the description that will show on your customers credit card statement to identify the charge. It may be up to 25 characters (including spaces) and should begin with UNR. • UNR department account number to charge the bank discount fees and cost of the credit card machine.

Accepting Credit Cards The Controller will email Wells Fargo (with a copy to Cindy Erskine, and the department contact) to approve a new university account to be set up. Once the department receives the Controller’s email to the bank, the department may then contact Wells Fargo directly to get equipment and web processing information. The bank will also supply set up costs and answer any other technical question the department may have.

Accepting Credit Cards After the bank sets up the account, they will email Cindy and the department with the new account number. (Note: Cindy will automatically set up American Express and Discover accounts, as well as Wells Fargo Visa/Mastercard unless instructed differently.) Cindy will send the department a sample balance sheet form to modify for their department This form must be completed after closing the batch or machine daily. Send the completed form to the Cashier’s Office with the account number to be credited. This is how the credit card transactions are recorded into your account.

Sample – Credit Card Balance Sheet University of Nevada Reno – Credit Card Balance Sheet Department Name Name of preparer / preparers phone # / MS # Date: _______________ Batch Date: _______________ Batch #: _______________ Visa / MC Amount: _______________________ Discover Amount: _______________________ AMEX Amount: _______________________ Grand Total: ______________________

Accepting Credit Cards Monthly, the Controller’s Office will prepare a Journal Voucher (JV), to charge all departments for their discount fees. This JV will show each credit card type and discount fee separately. The JV will be processed as a JV upload with a number beginning with 1AT. Statements will be sent to the department contact monthly.

Questions?

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Cash Handling Policies & Procedures