Cash Receipt Policies and Procedures
To outline the policy for the handling of funds in order to ensure accurate recording of University income and mitigate the risk of fraud
This policy defines funds separately as
- cash (currency and coins);
- checks and money orders;
- credit card payments; and
- EFT/ACH/wire transfers.
In the event a department receives funds of any type, it is imperative that controls are in place such that the funds are properly safeguarded, accounted for and documented.
- All cash, checks and money orders are to be deposited directly with the Cashier's Office in Student Accounts.
- Under no circumstances are disbursements to be made from cash receipts (i.e. for purchases, refunds or to cash personal checks).
- Funds are to be kept in a secure location with access by authorized personnel only. Authorized personnel are to be kept to an absolute minimum.
- All checks are to be made payable to Wesleyan University and restrictively endorsed upon receipt. Please contact the Cashier's Office at x2827 to order an endorsement stamp. Checks are not to be made payable to a department or a specific person. Departments should also ensure that the department name or FRS account number and object code are indicated somewhere on the check.
C. Segregation of Duties
Wherever possible, duties such as collecting funds, maintaining documentation, preparing deposits and reconciling records are to be separated among different individuals. When segregation of duties is not possible, individual accountability and thorough management supervision and review are required.
D. Supporting Records
The collection of funds must be supported by adequate records detailing their collection and deposit.
- Examples of supporting records are cash register tapes, pre-numbered receipts, cash receipt logs, unused tickets and reconciliations.
- Supporting documentation details the nature, source, date and amount of the receipt.
- Funds are to be deposited at least weekly, or when amounts exceed $200.
- Inter-office mail is acceptable for checks, but under no circumstance are currency and coins to be forwarded via inter-office mail. Currency must be hand-delivered during normal business hours and must be enclosed in a sealed envelope and deposited into the secure drop box located in the Student Accounts Office on the 1stFloor of North College.
- All deposits must be accompanied by the Deposit Transmittal form or by a form previously approved by the Cashier, that is specific to a department's need.
- Each fund type (currency, checks, charges, EFT/wires) must be submitted on a separate form.
- A deposit with a check drawn on a foreign bank (including Canadian) must be submitted on a separate form because the deposit will go to the bank's foreign collection department.
- Once the Deposit Transmittal is complete, copies are to be made and distributed as follows:
- One copy given to the person responsible for reviewing the account. This person is responsible for ensuring the deposit is accurately posted in the financial system. This should not be the same person who collected the funds or prepared the deposit.
- Two copies submitted to the Cashier's Office with the deposit for cash, checks and money orders. One copy is sufficient for credit card payments and wires.
- Verification of the deposit is to be received from the Cashier's Office for deposits of cash, checks and money orders in one of the following ways:
- Leave the deposit in the secure drop box during regular business hours and the verification copy of the Deposit Transmittal will be mailed back to the preparer via interoffice mail when the funds are deposited to the bank.
- If the department wishes a delivery receipt, the deliverer should bring a separate copy of the Deposit Transmittal which will be stamped "Received Not Verified". The verification copy will be mailed back to the preparer via interoffice mail when the funds are deposited to the bank.
It is the responsibility of the person who reviews the account to check the financial system and verify that the funds were posted to the correct account(s). This should not be the same person who collected the funds or prepared the deposit.
In order to ensure the completeness of deposits, it is very important for the department to perform a reconciliation of activity.
- Reconciliation is to be performed on a daily, weekly, or monthly basis, depending on the level of activity.
- An activity report is to be maintained to project revenue, as well as to verify that fraud has not occurred in the process. The report can be in the form of registrations received, tickets sold, inventory, etc.
- The dollar amount charged per product or activity, multiplied by the number of sales, supports the deposit and the financial system revenue account.
- The reconciliation is to be prepared by the person responsible for the account, which is not the person who collected the funds or prepared the deposit. The reconciliation is also required to be reviewed and signed by the Manager of the department.
A. Miscellaneous Deposit Information
- All checks must have some indication of the name of the depositing department listed on the check. This can be:
- Department name listed on the endorsement stamp
- Writing or stamping department name on the check
- Writing FRS account number and object code on the check
- Currency and coins are to be wrapped in bank-approved wrappers, which are available from the Cashier's Office. These wrappers are only to be used for the exact pre-written amounts on the wrappers (i.e. quarter wrappers contain exactly $10 of quarters and not used for lesser amounts). Different denominations should never be mixed together in one wrapper. For bills, the standard bank protocols are:
- $50 wrappers for singles
- $100 wrappers for singles or fives
- $200 wrappers for fives or tens
- $500 wrappers for tens or twenties
- $1000 wrappers for twenties, fifties, or hundreds
- If currency or coin amounts fall below the standard wrapper amounts they are to be separated by denomination and either clipped together or put in separate envelopes.
B. Overages and Shortages
If a deposit is incorrect, the Cashier's Office will contact you to discuss. If a discrepancy is a small amount, you can authorize a correction to the Deposit Transmittal Form and the Cashier's Office will send you a corrected copy. If the discrepancy is large, you will be asked to pick up the deposit to review and correct it.