CASH HANDLING

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CASH HANDLING

• Washington State University
• College of Agricultural, Human, and Natural
  Resource Sciences
• Business and Finance Office

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OBJECTIVES OF COURSE

• SAFEGUARDING MONIES
• RECEIPT AND DEPOSIT MONEY
• WSU RECEIPT AUTHORIZATION
• HANDLING RETURNED CHECKS
• PROCESS REFUND OF REVENUE
• REVIEW INTERNAL CONTROL POLICIES

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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.

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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.

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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.

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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.

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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.

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RECEIPT FORM SUPPLIES

• Supplies of the WSU Receipt Form and Receipt Log
  Sheet are available at no charge at the Cashiers
  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 Cashiers Window. That individual monitors
  and inventories the departmental supply of
  Receipts and Log Sheets.

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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 Controllers Office assigns the Forms
  to the primary authorized individual.

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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 Controllers Office. A primary
  individual or alternate approves the WSU Receipt
  Request.

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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.

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RECEIPT FORM SUPPLIES

• INVENTORY
• The primary individual inventories the supply of
  WSU Receipt Forms and Receipt Log Sheets at least
  annually.

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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

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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.

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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.

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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.

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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.

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• 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.

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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.

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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.

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CASH DEPOSIT REPORT

• The Cash Deposit Report is a summary indicating
  where to post the revenue to the subsidiary
  budget accounts.

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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.

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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.

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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.

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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.

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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.

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RECOVERY OF EXPENDITURE

• Prepare Cash Deposit Report.
• Include Vendor Number.
• Include Document or Reference Number.
• Use TT 05.

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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.

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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
  Controllers 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.

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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.

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RETURNED ITEM

• Negative receipt by Controllers Office.
• Charge on Source Sub Source 420-91.
• Receipt copy to department.
• Check to
• Department or
• University Receivables.

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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.

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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.

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INTERNAL CONTROL

• CASH RECEIPTS
• PETTY CASH
• DISBURSEMENTS
• PURCHASES
• SUPPLIES, INVENTORIES, FIXED ASSETS
• PAYROLL

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SEGREGATION OF DUTIES

• Individuals who collect monies and/or write
  receipts may not prepare and/or make deposits.

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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)

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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 Controllers
  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.