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CASH HANDLING. Washington State University College of Agricultural, Human, and Natural Resource Sciences Business and Finance Office. OBJECTIVES OF COURSE. SAFEGUARDING MONIES RECEIPT AND DEPOSIT MONEY WSU RECEIPT AUTHORIZATION HANDLING RETURNED CHECKS PROCESS REFUND OF REVENUE
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CASH HANDLING Washington State University College of Agricultural, Human, and Natural Resource Sciences Business and Finance Office
OBJECTIVES OF COURSE • SAFEGUARDING MONIES • RECEIPT AND DEPOSIT MONEY • WSU RECEIPT AUTHORIZATION • HANDLING RETURNED CHECKS • PROCESS REFUND OF REVENUE • REVIEW INTERNAL CONTROL POLICIES
SAFEGUARDING MONIES • Prior to deposit, provide adequate safeguard for cash and checks. • All cash and checks must be secure at all times. Store cash and checks in a secure and locked location. • Limit access to cash and vaults. • Cash NEVER left unattended. • Depositing all payments at least weekly or when deposit amount totaling $100.00 or more the day of receipt.
DEPOSITS • WHETHER A DEPOSIT CONSISTS OF REVENUE OR RECOVERIES OF EXPENDITURES, THE BASIC RECEIPTING AND DEPOSITING IS THE SAME. THE FOLLOWING STEPS ARE TAKEN WHEN DEPOSITING FUNDS TO THE CAHNRS CASHIER.
BASIC DEPOSITS (INCLUDE) • WSU D-Receipts or Log Sheets. • D-Receipts required for all cash transactions. • Cash Deposit Report. • If printing off computer please print two copies. • Two adding machine tapes on checks. • WRAP coins in wrappers and provide department name.
RECEIPT CASH • WSU departments record all cash sales and collection of cash or checks on official or approved WSU forms or cash registers. • This policy applies to all collections regardless of location.
D - RECEIPT • It is State and University policy to issue a receipt for each instance that money is received. WSU has adopted the use of the WSU D-Receipt and WSU Log Sheet to account for issuing receipts, or, accounting for money received on behalf of WSU.
RECEIPT FORM SUPPLIES Supplies of the WSU Receipt Form and Receipt Log Sheet are available at no charge at the Cashier’s Window French 240. Authorization Each department that collects cash must designate an individual who is authorized to obtain WSU Receipts and Receipt Log Sheets from the Cashier’s Window. That individual monitors and inventories the departmental supply of Receipts and Log Sheets.
RECEIPT FORM SUPPLIES The responsible area Dean or Vice President signature is required on the WSU Receipt Authorization Form (see the PDF master on 30.52.9) to authorize a primary individual and one or two alternates. Alternates may obtain Receipt and Log Sheet supplies when the primary individual is not available. Note: Although alternates may pick up Receipt Forms, the Controller’s Office assigns the Forms to the primary authorized individual.
RECEIPT FORM SUPPLIES RECEIPT REQUEST The department completes a WSU Receipt Form (see PDF master on 30.52.10) to obtain Receipting Forms from the Controller’s Office. A primary individual or alternate approves the WSU Receipt Request.
RECEIPT FORM SUPPLIES Units Outside of Pullman The primary individual for a unit not located in Pullman submits a WSU Receipt Request Form to the obtain supply of WSU Receipt Forms. The Request indicates the number of Receipts required and includes an Authorized Signature.
RECEIPT FORM SUPPLIES INVENTORY The primary individual inventories the supply of WSU Receipt Forms and Receipt Log Sheets at least annually.
WSU RECEIPT SUMMARY Receipt Authorization Form • Authorized by Dean or V.P. • Primary and Secondary Primary Responsibilities • Inventory of WSU Receipts • Review Cash Deposit Reports • Two Signatures on Cash Deposit Report Secondary Responsibilities • Pick-Up Receipts Supplies • Sign Cash Deposit Report
USING THE D-RECEIPT • Use the forms in sequential order by receipt number. • A D-Receipt is required for all cash transactions. Only exception – if using a cash register. • Checks can be listed on D-Receipts or the WSU Log Sheets.
WSU LOG SHEETS • Use the forms in sequential order by receipt number. • The WSU Log Sheet is used to record the receipt of checks and bankcards in lieu of issuing a D-Receipt.
D-RECEIPTS / LOG SHEETS The total of all D-Receipts and Log Sheets should agree with the money depositing. Unless, there is an overage or shortage, to be discussed later.
CASH REGISTER SALES • If your department uses a cash register that sequentially numbers receipts, then you need not use the D-Receipts and Log Sheets. A copy of the ring out at the end of the day is attached to the Cash Deposit Report.
The overall purpose of the Receipt Forms is to account by transaction for all money received. A beginning and ending transaction number is needed to account for all transactions, including voids.
DEPOSITING • After summing the D-Receipts and Log Sheets and reconciling the amount of cash, checks, and bankcards, it is time to prepare the deposit. • Two adding machine tapes need to be made on each bundle of checks. Coins should be WRAPPED when appropriate with the department name on each WRAP.
DEPOSITING • All checks should have been endorsed at the time of their receipt with the department or club name. Include the phrase “For Deposit Only.” • Next, prepare the Cash Deposit Report.
CASH DEPOSIT REPORT • The Cash Deposit Report is a summary indicating where to post the revenue to the subsidiary budget accounts.
DEPOSIT TO CAHNRS CASHIER • After the Cash Deposit Report is prepared and signed, take the Cash Deposit Report with the yellow copies of any D-receipts and white original of Log Sheets and funds or bank slip to Hulbert 405. The cashier will verify the funds, process the Cash Deposit Report, assign a receipt number, and furnish the department a receipt.
TRANSACTION TYPE • The transaction type indicates in accounting how to post the revenue. For revenue using Sources and Sub Sources, 01 and 02 are used. • For recoveries of expenditures, which use Objects and Sub Objects, 05 is used.
CASH OVERAGE • If there is more cash then receipts issued, there is an overage. To post an overage, post gross receipts. • Post the overage by using Source Sub Source 490-10 TT 01.
CASH SHORT • If there is less cash then receipts issued, there is a shortage. To post a shortage, post gross receipts. • Post the shortage by using Source Sub Source 490-11 TT 02.
RECOVERY OF EXPENDITURE • Occasionally a department will receive a rebate check or a check that is handled as a recovery of expenditure. The receipting process is the same as for revenue. The difference is in completing the Cash Deposit Report. • All the blanks are filled in from: Vendor Number to Amount.
RECOVERY OF EXPENDITURE • Prepare Cash Deposit Report. • Include Vendor Number. • Include Document or Reference Number. • Use TT 05.
CASH ON ACCOUNT • Many departments bill through the Receivables Office. Those payments are made against an Invoice Number. • Occasionally, someone will pay in the department. Funds received need to be deposited against the Invoice Number to clear the Accounts Receivable. • The difference is that the money is not directly deposited into the budget and project. The funds go thru the Receivables posting and is eventually posted to the budget and project that the receivable was charged against. This clears the customers account.
RETURNED CHECK • Occasionally, a check is returned by the bank NSF, Closed Account, or some other reason. Some departments collect their own checks. Other departments have set up a Sub Code in the Receivables Office to collect their bad checks. • Returned checks are initially handled in the Controller’s Office. A Receipt Coding Form is sent to the department indicating the account charged for the return item. If the department collects their checks, the check will be attached to Receipt Coding Form.
RETURNED CHECK • If Receivables collects the check, the department will receive a Receipt Coding Form, and the check is sent to Receivables. Each month, the department will receive a report indicating any outstanding items, along with who paid and how much toward their returned item.
RETURNED ITEM • Negative receipt by Controller’s Office. • Charge on Source Sub Source 420-91. • Receipt copy to department. • Check to: Department or University Receivables.
REFUNDS OF REVENUE • Occasionally, a department will need to issue a refund of revenue received by a person or a company. To do this, call the Business and Finance Office. You will need to provide name, complete address (SSN if possible), description of refund and amount.
INTERNAL CONTROL • WSU has instituted an Internal Control Policy consistent with that of the State of Washington. Each year, Deans and Vice Presidents complete a questionnaire for their areas attesting that they are complying with State and University internal control procedures. • The following areas are included in the survey.
INTERNAL CONTROL • CASH RECEIPTS • PETTY CASH • DISBURSEMENTS • PURCHASES • SUPPLIES, INVENTORIES, FIXED ASSETS • PAYROLL
SEGREGATION OF DUTIES • Individuals who collect monies and/or write receipts may not prepare and/or make deposits.
SEGREGATION OF DUTIES Different individuals are to perform the following functions: • Collecting monies and preparing receipts. • Depositing receipts. • Accounting for receipts. (This would be the Primary person)
EXCEPTIONS • Some small departments may not have sufficient staff to meet segregation requirements. In such a case, the departmental administrator may request an exception from the Controller’s Office. Exception request should include a description of other controls used to compensate for not segregating duties. • Send a copy of the exception request to the Office of Internal Audit and a copy to CAHNRS Business and Finance Office.
