1 / 22

Cash handling

Prepared by the Department of Cash Management and the Office of Audit ,Compliance and Privacy of the University of Pennsylvania. Cash handling. UNIVERSITY POLICY RESPONSIBILITY ACCOUNTABILITY COMPLIANCE. CASH HANDLING. CASH HANDLING. A SERIOUS ISSUE ….

tirza
Download Presentation

Cash handling

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Prepared by the Department of Cash Management and the Office of Audit ,Compliance and Privacy of the University of Pennsylvania Cash handling

  2. UNIVERSITY POLICY RESPONSIBILITY ACCOUNTABILITY COMPLIANCE CASH HANDLING

  3. CASH HANDLING A SERIOUS ISSUE … If you are responsiblefor handling cash, you are accountablefor that cash. You must comply with University policy.

  4. CASH HANDLING Essential Reading :

  5. CASH HANDLING All schools and centers within the University handle cash. Over $300,000,000 a year in cash and checks are deposited through the Cashier’s Office.

  6. FINANCIAL POLICY #1504DEPOSIT OF CASH RECEIPTS Purpose: Establish sound Cash Management practices and safeguard cash receipts against theft or loss. http://www.finance.upenn.edu/vpfinance/fpm/1500/1504.asp

  7. CASH HANDLING PROCESS Your department should establish sound cash handling practices by segregating and defining duties for each employee involved in the process.

  8. CASH HANDLING PROCESS

  9. FINANCIALPOLICY #1504DEPOSITOFCASHRECEIPTS All cash and checks received must be deposited with the University’s Cashier Office the day of receipt. (Cash and checks received over a weekend must be retained in a secure location and deposited the next business day.)

  10. #1504 Tax Records Internal Revenue Code requires: The University to file Form 8300 for all cash payments in the amount of $10,000 or greater within 15 days of receipt of cash from an individual or corporation in one or more related transactions. (Cashier’s Office fills out form per your written confirmation.) Depositors must retain images or facsimiles of checks for 7 years.

  11. #1504 DepositingCoinsandCurrency

  12. #1504 Depositing Checks Depositors must ensure that checks are prepared accurately:

  13. #1504 DepositingChecks

  14. #1504 Cash Administration

  15. FINANCIAL POLICY #2703SAFEGUARDING UNIVERSITY ASSETS University and Health System management at all levels are responsible for safeguarding financial and physical assets and being alert to possible exposures, errors and irregularities. Management must be aware of internal control weaknesses which can lead to or permit misuse, misappropriation, or destruction of assets. http://www.finance.upenn.edu/vpfinance/fpm/2700/2700_pdf/2703.pdf

  16. FRAUD TRIANGLE PRESSURE RATIONALIZATION OPPORTUNITY

  17. CASH CONTROLS • Develop & implement written procedures for receiving, recording, reconciling, safeguarding and depositing cash • Ensure SEGREGATION OF DUTIES throughout the process • Employ a system to determine completeness of cash receipts: • e.g. a computerized point of sale system, a cash register, means of pre-numbered receipt forms, or on a handwritten log. • Account for all cash immediately upon receipt

  18. CASH CONTROLS (continued) • Require that receipts be provided for all transactions (& post signs). • Each person collecting cash should have their own cash drawer to establish accountability. • Close out cash registers/drawers at the end of day or end of shifts. • Secure cash in a safe or locked cash box stored in a locked, fire resistant location. • Ensure sufficient Supervisory oversight through daily reconciliation of cash to point of sale system/cash register/receipt log, surprise cash counts, periodic audits, etc.

  19. CASH CONTROLS – SEGREGATION OF DUTIES • No individual has control over the entire transaction cycle • Segregate responsibilities of receiving, depositing, recording, and reconciling. • Ensure proper Management oversight by performing monthly reconciliations of sales, cash receipts and deposits.

  20. FRAUD RED FLAGS • Untimely or lagged deposits • Employee standard of living changes • Customer complaints increase (bill already paid) • Employee regularly works late, on weekends, refuses to take vacations (for fear of detection) • Increase in or excessive number of refunds or voided transactions • Unusual decrease in revenue • Missing supporting documentation • Known employee issues (gambling, drinking, etc.)

  21. CASH HANDLING CONTACTS Cashier’s Office 3451 Walnut Street Franklin Building Lobby 215.898.7258 Department of Cash Management 215.898.7256 Office of Audit, Compliance and Privacy 215.P.COMPLY http://www.upenn.edu/215pcomply

  22. WEB REFERENCES http://www.finance.upenn.edu/vpfinance/fpm/1500/1504.asp http://www.finance.upenn.edu/treasurer/cashier/ http://www.upenn.edu/audit/oacp_principles.htm http://www.hr.upenn.edu/policy/Policies/007.aspx http://www.upenn.edu/215pcomply

More Related