Financial Services Manual (FIN)

Revised: 11/1/2009

FIN 307: Departmental Cash and Check Receipting

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1. As required by university policy (ACD 126), perform a background investigation (criminal check) for all non-student hires.

   All non-student staff hires who handle cash and checks on an ongoing basis are designated as “security- or safety-sensitive” positions and also require a fingerprint check.

   A background investigation (criminal check) is required for all student staff hires who handle cash and checks on an ongoing basis. Exempted from the background investigation (criminal check) are student staff hired for only a specific event held only once or twice a year and not for cash and check handling on a continuing basis. The hiring department may also designate the student position as a “security- or safety-sensitive” position where a fingerprint check is also required.

2. Provide new employees with mandated training that covers all university and departmental cash-handling procedures and the importance of following proper payment-handling procedures within three (3) months of hire date. At the end of training the employee acknowledges in writing that he or she has received complete training in all phases of the payment handling process. Training is available online via the Financial Controls home page.

   (See the Employee Training Verification Cash and Check Handling Procedures form.)

2. Same as minimum.

3. Enroll all employees having supervisory responsibility for payment handling in the Human Resources Department’s training program. Every department that meets the criteria for adherence to this procedure must have supervisors attend the training program within three months from the date of hire and every five years thereafter. This includes current employees who have not previously attended, as well as new employees.

3. Same as minimum.

4. It is the responsibility of each department’s management to annually review payment-handling procedures with each employee who has cash- and check-handling responsibility. This annual review must be acknowledged in writing. (See the Employee Annual Review Cash and Check Handling Procedures form.)

4. Same as minimum.

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5. The training provided to all ASU employees handling department cash and check receipting must include review of FIN 301–01, “Deposits—General Policy,” and FIN 301–02, “Deposits—ASU-Approved Financially Related Organizations.” All monies handled by ASU personnel for the benefit of ASU are to be deposited only with ASU Cashiering Services unless the funds meet the specific criteria for depositing to an ASU-approved financially related organization (FIN 301–02). Adherence to the FIN 301–01 and 301–02 policies is imperative, since Arizona Revised Statutes § 35–301 provides criminal penalties for knowingly depositing public funds to a non-public funds bank account. As previously noted, all gifts are to be forwarded to the ASU Foundation for gift processing purposes and not directly to ASU Cashiering Services.

5. Same as minimum.

6. Receipting departments that receive average cash payments of at least $2,000 per month need to post a sign in the area that says “For Any Cash Payments, Do Not Leave Without a Receipt.” Stickers are available in Cashiering Services for posting on registers or walls and can be used in place of signs.

6. Same as minimum.

7. Issue a prenumbered receipt for all cash payments that identifies the department and the amount of payment. (In some cases the appropriate receipting document may be prenumbered tickets.) Keep the original for the department records and give a copy to the payer.

7. Either:
   1. Ring up all receipts on a register with a continuous tape maintained inside. Provide the payer with a receipt from a second tape run by the register;

      or

   2. Record any sales or services types of receipts in a computerized system maintained by the department that details the payment receipts, e.g., ticketing or conference registration system (for smaller operations the system could possibly be as simple as a spreadsheet or database application).

8. Keep all copies of voided or cancelled cash receipts. These will be used when accounting for receipts in step 14.

8. Either:
   1. Run register voids through the register and then list them manually on a log sheet kept at the register;

      or

   2. Record any sales or services types of voids or cancellations in a computerized system maintained by the department that details the voids or cancellations, e.g., ticketing or conference registration system.

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9. Keep a minimal amount of cash on hand to be used only for making change. No more than $500 in cash or $2,500 in checks may be kept overnight without approval of Financial Services and the ASU Police Department (see FIN 301–01, “Deposits—General Policy”). Periodically, the request for approval needs to be addressed to the manager of Financial Services, in Student Business Services, who will coordinate with a Police Department crime prevention officer to make a security assessment and provide Police Department approval, which will then be used by Financial Services to decide upon final approval.

9. Same as minimum.

10. Place cash and checks in a safe, or secure it in a strong lockable cash box placed in a locking desk or cabinet, with access restricted to a business need-to-know basis. Keep a log of anyone issued a key or given knowledge of the combination. Keep the number of people with this access to the minimum possible, in almost all cases to a maximum of five. For departments handling credit card information, regulations require that cardholder data is always maintained in a secure, restricted area and when disposing of these documents they must be cross-cut shredded or incinerated.

10. Same as minimum. Also, allow as few people as possible into the area where payments are received.

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11. Deposit all receipts at Cashiering Services at the Tempe, West, or Polytechnic campus (or to the university’s bank account via armored transport service if such arrangements have been established by Financial Services), unless the deposit represents:
    1. an externally sponsored grant or contract (including all federal grants and contract funds), where the funds need to be sent directly to the Office for Research and Sponsored Projects Administration and not to Cashiering Services (see FIN 211, “Sponsored Project Agency/Orgs”)
    2. any federal scholarship funds, which are only to be deposited with the ASU Office of Student Financial Assistance

       or

    3. a gift, where the funds are to be sent directly to the ASU Foundation (FIN 303, “Gift Deposits (Including Gift-in-Kind Donations) and Special Event Receipts with a Gift Component”).

11. Same as minimum.

12. Deposit monies received daily, or by the next business day for weekend activity, at Cashiering Services (or to the university’s bank account via armored transport service if such arrangements have been established by Financial Services) unless receipts are under $500 in cash or $2,500 in checks; then deposit weekly or when the above referenced amounts have been accumulated (see FIN 301–01, “Deposits— General Policy,” and FIN 305, “Deposits at University Cashiering Services,” for more information). For the deposit of gifts, deliver to the ASU Foundation according to the above noted frequency.

12. Deposit monies daily, or by the next business day for weekend activity, at Cashiering Services (or the university’s bank account via armored transport service if such arrangements have been established by Financial Services). For departments with the larger deposit amounts, use a locked deposit bag or transport bag approved by the armored transport service. All gifts are to be delivered in the same manner to the ASU Foundation.

13. Verify the validated information on a copy of the ASU Cashier Receipt, especially if the deposit was made by delivery of a locked deposit bag or by courier (see FIN 305, “Deposits at University Cashiering Services,” for more information).

13. Same as minimum.

14. The chief business or financial manager for each college or division is responsible to ensure that monthly reconciliations of deposits and refunds (including credit card refunds) are performed and reviewed by the appropriate employees. Review monthly computer reports to verify proper posting of deposit amounts and refunds (including credit card refunds). To the extent practical, persons verifying the proper postings should not also be involved with the actual handling of the receipts.

14. Same as minimum.

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15. If a cash register is used, it needs to be balanced daily unless cash receipts are less than $100 and total receipts are less than $2,500 per week; then balance weekly. The cash drawer should be reconciled to the prenumbered receipts or cash register tape, whichever is appropriate. Someone not responsible for receiving payments or processing refunds (including credit card refunds) should review the balancing records in detail (departments may use the Daily Cash Balancing form developed by Financial Services or any equivalent departmentally developed form). Keep a schedule of employees who worked during the period that the cash being balanced was received.

15. Balance register after each employee’s shift. Each employee should have his or her own cash tray.

16. If prenumbered receipts are used, the supervisor or designated employee needs to account for all receipts and file numerically with balancing reports.

16. Not applicable if using a register.

17. Keep a log of any unexplained overages/shortages found when balancing. A small overage/shortage is defined as the greater of $20 or 1/2 of one percent of total receipts up to $10,000, and 1/4 of one percent of total receipts over $10,000. (See the Daily Cash Reconciliation form.)

17. For each employee, keep a log of shortages found when balancing. Periodically review the log for any patterns of regular losses.

18. Notify Financial Services (a supervisory or higher-level position in Cashiering Services) immediately of any shortages greater than the limits set above. Financial Services will decide whether the ASU Police Department should investigate.

18. Same as minimum.

19. Keep records of balancing and supporting receipts for a period of three years from date prepared (see FIN 103, “Departmental Record Keeping”) in a secure and restricted area as described in Step 10. Periodic audits/reviews may be conducted by ASU Internal Audit and/or Cashiering Services.

19. Same as minimum.

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20. As is practical for the department, keep employees receiving payments from making adjustments to the accounting records (e.g., reversals and credits).

20. Refunds (including credit card refunds) should be independently reviewed for appropriateness and accuracy.

21. Watch for unusual work-related employee behavior, such as gambling, excessive drinking, signs of family problems, and other behavior that may signal employee personal problems. Supervisors should encourage the employee to take positive corrective action, including, for classified and administrative staff employed 50 percent FTE or more, contacting the Employee Assistance Program coordinator for advice and counsel.

21. Same as minimum.

22. Keep petty cash fund operations separate from cash receipting operations (see FIN 403, “Petty Cash Funds,” for petty cash fund procedures).

22. Same as minimum.

23. Allow cash payments only when payment is being made in person. Departments are to review, at least annually, their operations to see if there are ways to eliminate or substantially reduce the need for cash and currency transactions through the sole or greater use of credit cards, the ASU Sun Card, and/or checks. All forms mailed to students and others for services rendered need to indicate that only checks, and if appropriate, a credit card number—are the acceptable methods of payment unless the transaction is conducted in person. Forms that contain credit card information must be kept in a secure and restricted area as described in Step 10.

23. Same as minimum.

24. All cash receipts need to be deposited in total and not used for small miscellaneous purchases.

24. Same as minimum.

25. Departments are not allowed to cash personal checks from cash receipts.

25. Same as minimum.

26. For all cash receipts where there is no cash register, prenumbered receipts, or other independent party to verify and reconcile the cash receipts, two individuals are to receive and count the cash. For coin-operated machines, e.g., copying machines, consideration should be given to using an outside contractor rather than self-operation by an ASU department.

    Another possibility is that two locks be used: one lock that opens the machine and to which only maintenance people have the key and a lock inside the machine to the cashbox, to which only the cash collector has the key. The maintenance person could open the machine and not the cashbox, and the cash collection person could open the cashbox but not the machine. Accordingly, both a maintenance person and a cash collector would have to be present to collect and verify the cash.

26. Same as minimum.