Cash Handling Policies

1
Cash Handling Policies Procedures
2
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

3
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

4
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.

5
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.

6
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
  offices employment.
• If the fund is lost or stolen, notify the
  Controllers Office immediately and file a police
  report. Send a copy of the police report to the
  Controllers Office.

7
Security and Accountability

• The Controllers 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 Cashiers 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 Controllers Office must be notified by
  the custodians supervisor.

8
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.

9
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.

10
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.)

11
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

12
Maintaining the Petty Cash

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

13
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

14
UNR Petty Cash - Unauthorized Transactions 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)

15
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.

16
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.

17
Temporary Cash Fund

• Any remaining cash at the end of the project
  needs to be returned to the Cashiers 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.

18
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.

19
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-payabl
  e/petty_cash_2007.pdf
• All funds received must be deposited promptly
  with the Cashiers Office.

20
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 Cashiers Office for deposit into 1299-0005.

21
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 Cashiers Office or with the UNR
  Foundation Accounting Office. The following are
  requirements and restrictions
• All funds received must be deposited with the
  Cashiers 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.

22
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 Cashiers 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 departments revenue account until a
  representative is present to witness the count.

23
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 Cashiers
  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 Cashiers Office.
• Cash may be secured overnight or during the
  weekend by delivering funds in sealed bags to the
  Cashiers 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 Cashiers Office where
  written instructions and deposit slips for these
  procedures are available.

24
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 Cashiers 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
  Cashiers office.

25
Deposits of Cash Receipts

• Neither the Cashiers 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.

26
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.

27
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.

28
Payment Card Industry Data Security Standard (PCI
DSS)

• Some of the security requirements include
• Not storing entire credit card numbers on hard
  copy or electronic worksheets
•  Not accepting credit card numbers via email
• Storing credit card receipts that contain the
  entire credit card number in a secure location
  such as a locked file cabinet or locked storage
  room and for only the time period justified by
  business practices

29
Payment Card Industry Data Security Standard (PCI
DSS)

• Access to the stored receipts should be limited
  to only university employees with a business
  reason to access the data.
• If receipts are stored in a locked storage unit,
  a log must be kept of every one entering the
  storage unit, the date, and for what purpose
• Credit card receipts to be disposed of must be
  shredded by the department or an outside vendor
  and the department must keep a record of the
  destruction.  

30
Payment Card Industry Data Security Standard (PCI
DSS)

• The university is currently working with
  consultants to complete the reviews, scans and
  certifications required by the PCI DSS process.
  Standard processes and procedures will be
  developed and circulated to all university credit
  card merchants when this review is completed
  prior to August 2009.

31
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.

32
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 cardholders 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.

33
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 Controllers
  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.

34
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 Cashiers Office with the account number
  to be credited. This is how the credit card
  transactions are recorded into your account.

35
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           ______________________

36
Accepting Credit Cards

• Monthly, the Controllers 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.

37
Questions?
38
THE END