300-14 Cashiering

Effective Date 8/1/95 (revised 5-1-05)

Office of Origin – Controller's

I.    Purpose

Cashiering is a necessary function to control the receipt of funds and record a reduction to the campus receivable accounts. The University accepts currency, checks, and credit cards in payment of services rendered, student tuition, fees, and products sold in its daily conduct of business with students, faculty, staff, and the general public.  The content of this document is based on the Policy for Handling Cash and Cash Equivalents (BUS 49 http://www.ucop.edu/ucophome/policies/bfb/bus49.pdf ) as published by the University of California, Office of the President.

II.    Definitions

1. Campus Cash Coordinator – The Senior Vice Chancellor – Finance & Administration or designee, who has responsibility for coordinating all cashiering operations on the campus.  The Campus Cash Coordinator as referred to in this document is housed in the Controller’s Office. 

2. Cash – Checks, currency, coin, credit card recordings, bank notes, traveler’s checks, official checks, and money orders.  

3. Checks – Any check payable to UC Regents including personal and business checks, cashier’s checks, official checks, money orders, and traveler’s checks.  

4. Cash Handlers – Any employee engaged in a cash handling function; all cashiers located throughout the University

5. Cash Handling Station – Area within a Department that handles cash and/or deposits.  

6. Credit Card Payment – Payment accepted by use of a credit card through a terminal or over the internet.

7. Dual Custody – A task or an asset performed or held in the control of two people.

III.  Policy

A new cash handling station must be established for any department that receives currency of $500 or more per day or currency and checks totaling more than $2,500 per day.  (BUS 49 references to a Central Cashiers Department are not applicable to UCSF.)  Transactions consisting of currency in excess of $5,000  must be processed in dual custody.

All cash handling stations must develop written internal control procedures that require approval by the Campus Cash Coordinator. In addition, the UCSF Police Department conducts annual visits to high volume cash handling stations, as well as other departments chosen at random or upon request, to review existing procedures. Findings of the reviews are reported to Audit Services, Risk Management Services, and the Campus Cash Coordinator.  All members of the cash handling station should have a thorough understanding of the procedures, and must adhere to them fully. As part of their orientation, cash handlers must read these procedures.  They also are required to take the online Cash Handling Course.  Review of the procedures, and completion of the online Cash Handling Course and subsequent test, acknowledge that the employee understands and accepts these policies and procedures.  In addition, an annual review of the online course is mandatory to ensure that all cash handlers are familiar with any changes and/or new policies and procedures.  Any violation or non-compliance with this policy can lead to disciplinary actions up to and including termination of employment.

Cash Handler guidelines:

A.    Training

1.    Upon hiring into a cash handling position, completion of an online Cash Handling Course is mandatory.  The course can be found at http://cit.ucsf.edu.  Deposit Training is available upon request by contacting the Campus Cash Coordinator.

2.    Annual review of the Online Cash Handling training is required by all cash handlers.  The Department Manager or designee is responsible to ensure that all employees fulfill this requirement and for maintaining a record that the training has occurred.

B.   Cash Receiving and Recording

1.    Individual accountability for cash shall be maintained throughout all cash handling operations. Transfers of accountability for cash handling shall be documented and notification sent to the Campus Cash Coordinator.

2.    Separation of duties is required by those employees who prepare billings and those who accept payments.

3.    An endorsement stamp ordered through the Campus Cash Coordinator shall be provided to each cash handler. Immediately upon receipt, checks shall be endorsed with a "UC Regents" stamp, and should be photocopied and maintained in the department file.

4.    Checks received via mail by departments shall be documented, restrictively endorsed, photocopied for the department file, and deposited in accordance with UC Policy.

5.    Private Gift Receipts intended for UCSF Foundation and UC Regents are processed by the Foundation's Gift Administration Office.  Departments should not deposit or prepare financial journals for gifts they receive directly, and checks should not be sent to the Development Office or the Gift Administration Office for processing.  Checks, accompanied by the signed Gift Transmittal Form and all back up material (notes, letters from donor, envelopes, etc.) should be forwarded by US mail to Union Bank of California as follows:

Union Bank Lockbox NO1622

Lockbox #45339

460 Hegenberger Road, Bldg. 930

Oakland, CA 94621

     Departments are to retain a copy of the checks and supporting documentation for validation and reconciliation.  

Departments receiving currency designated as a gift should call the Gift Administration Office  within one working day for further instruction.

6.    Mail remittances should be handled in an area separate and secure from other cash handling operations by persons having no other cash handling responsibilities.

7.    All remittances must be recorded upon receipt. However, remittances that cannot be identified upon receipt must be deposited and the funds credited to an undistributed funds account for timely research.  Items held in an undistributed account should be researched as soon as possible and posted to the appropriate account within 30 days of receipt.  

8.    Reductions of recorded cash (e.g., voids and refunds) shall be supported by copies of all of the documents involved, explained, and approved in writing by the department supervisor at the time of occurrence.

9.    A collection that is not recorded on cash register equipment shall be recorded on an official, pre-numbered University cash receipt, and a copy given to the payer. The supply of unused receipts and those that have been issued should be audited at least monthly by department management.  A log of the receipts issued to each cash handler shall be maintained by the manager or designated supervisor.

C.   Cash Register Electronic/Data Terminal Control

1.    A receipt shall be produced by the cash register for the customer.  The register shall machine-validate all cash-related documents (e.g. cash receipts).

2.    The cash register operation shall be controlled by consecutive numbers imprinted automatically opposite each transaction on the register journal tape, as well as the customer receipt.

3.    The consecutive numbering control mechanism shall be accessible only to the manufacturer's service representative or, if electronic data terminals are used, to a person independent of that cash handling station.

4.    A separate, lockable cash register drawer, cash drawer insert, and endorsement stamp shall be provided to each cash handler. Cash handlers shall lock all cash in the cash drawer whenever they leave the immediate area.

5.    Excess cash must be removed from cash register drawers during business hours and turned in to a secure cash handling area/vault. Such transfers shall be documented.

6.    The ring-up amounts for cash handler's window transactions must be visible to the customer as well as to the cashier.

7.    All cash must be removed from cash registers and secured in a safe place at the end of the business day in accordance with the physical security guidelines listed below. Cash registers shall not be left with the total amount of receipts showing in the cash register window (i.e., have the register read zeros or cover the machine).  

D.   Check Cashing

Cashing of personal checks is not allowed under any circumstances.  For information regarding the cashing of Petty Cash checks, see Petty Cash Policy 300-32.

E.   Depositing

1.    Collections at a department shall be deposited at the bank or at a designated depository at least weekly or whenever collections exceed $500. All collections must be deposited by fiscal year end, June 30th. Departments are required to deposit all individual checks of $100,000 or more, or accumulated receipts totaling $500,000 or more, in the bank on the same day as received.

2.    Deposits should be adequately safeguarded while in transit.  When necessary, armored car service or police protection should be used.  

3.     All deposits should be accompanied by a UC Bank Deposit slip.

4.    Deposits can be made at the UCSF ATM on G level at Millberry Union, via armored car, in person at a branch of the bank or in one of the drop safes located at various sites.  For location and instructions, contact the Campus Cash Coordinator.

5.    Separation of duties must be maintained.  The employee receiving the funds either in person or by mail should not prepare the bank deposit.  The person preparing the bank deposit should not be the same person who approves the related on-line journal entry.  Individual exceptions can be granted by the Campus Cash Coordinator for smaller units that do not have sufficient staff resources.

F.    Recording Cash Receipts by Departments

1.    PeopleSoft journals are to be prepared on the same day or within two working days following the date of the deposit in the bank.

2.    PeopleSoft journals should be approved by someone other than the depositor.

G.   Controller’s Office Control Responsibilities

1.    All cash receipt journals must be verified against the daily bank statement on a timely basis.

2.    Significant and recurring deposit discrepancies will be investigated promptly and reported to the Campus Cash Coordinator, Audit Services, and the UCSF Police Department.

H.   Control of Returned Checks

     Returned deposited checks are received from the bank at the Controller’s Office.  They are charged back to the original ledger account that was credited and the original check is returned to the related department for collection. 

I.      Physical Security Guidelines

1.    The amount of funds held overnight should be minimized. Cash kept overnight must be locked in a safe.   Refer to BUS 49 on the            Office of the President website http://www.ucop.edu/ucophome/policies/bfb/bus49.pdf

2.    Risk Management standards require the use of lockable or burglarproof safes to store cash in the following circumstances:

a.     up to $1,000 in a lockable receptacle or safe

b.    from $1,001 to $2,500 in a lockable receptacle or safe rated minimum of fireproof, class 350-1, U.L. "C" or equivalent, with a combination lock

c.     from $2,501 to $7,500 in a steel door safe, with a door not less then 1 inch and steel walls of not less than 1/2 inch

d.    from $7,501 to $75,000 in a class TL-15 safe – Cash over $25,000 should be housed in a safe that requires dual custody for entry

e.     over $75,000 in a class TL-30 or better safe

            Contact UCSF Police Department for more information on burglarproof safes.

        3.    Alarm systems are required when:

a.     more than $2,500 is stored; an alarm system must alert the campus Police Department if the storage area is entered after business hours;

b.    more than $25,000 is stored; an alarm system must be installed on all safes and vaults; and

c.     more than $5,000 is on hand during business hours; a manual duress alarm system must be installed to alert the UCSF Police Department in the event of an emergency.

4.    Security cameras should be installed for all depositories that accept deposits from multiple departments. Depositories include drop safes and ATMs.

5.    A safe combination shall be given only to supervisory and authorized personnel who shall commit the combination to memory.  A record of the combination must be maintained in a sealed envelope away from the safe area, along with a list of those employees with knowledge of the combination.

6.   Safes that require a combination and a key to gain access must have two different custodians.  At least two employees should be assigned the combination and two different employees should be assigned the key.  An extra key should be sealed in an envelope, recorded, and maintained in the same manner as the combination as described in number 5 above.

7.    Each cash handler must be provided with a separate, lockable compartment to which only that individual has access.

            a.    Funds or property not related to the operation of the University are not permitted to be stored in the safe/vault.

            b.    Whenever possible, only authorized individuals are allowed access to the cash handlers' work areas.

            c.    A safe shall be opened in such a manner that other persons cannot see the combination.   

8.  When appropriate during business hours, a safe shall be locked between deposits.

9.  A safe combination must be changed whenever a person having the combination leaves the employment of the University. 

10. A night depository that meets security standards shall be provided should cash deposits be necessary after business hours.  For information, contact the Campus Cash Coordinator.

11. Whenever possible, the counting of cash for the balancing of cash collections should not be visible to customers or others from outside the department. The Campus Cash Coordinator, along with Risk Management Services, and the UCSF Police Department, shall periodically review the physical layout of all cash handling stations to ensure that appropriate physical security is provided. As a general guideline, if a station collects more than $7,500 on a daily basis, the work area should be protected by doors and windows that meet the standards of the Campus Security Committee and are in accordance with California Administrative Code, Title 24, Section 2-3003, Uniform Building Code and the Americans with Disabilities Act.

  12. Whether newly hired, transferred from another position, a member of the temporary pool, or whose duties have been expanded to include the handling of cash, all employees must be fingerprinted and a background check for criminal convictions conducted by the UCSF Police Department to ensure bondability. Proof of the background check must be maintained on file in the department, with copies sent to the Campus Cash Coordinator. Bondability must be maintained while the employee is in a cash handling area. If an employee is later convicted of a crime, the conviction must be reported to Risk Management Services, and the UCSF Police Department to determine if bondability of the employee can be maintained. If bondability cannot be maintained, the employee must be transferred to a non-cash handling position.

J.    Reporting of Losses

Known or suspected misappropriations or mysterious disappearances of cash must be reported promptly to Audit Services, the UCSF Police Department, and the Campus Cash Coordinator.

K.   Checks Drawn on Foreign Banks

Foreign checks may require special handling.  The Campus Cash Coordinator should be contacted for assistance in determining the correct procedure to be followed.

L.  Alternative Procedures

The Campus Cash Coordinator has authority to approve the use of alternative procedures for the collection and depositing of cash by departments. However, the alternatives should be in basic compliance with the aforementioned guidelines.  

IV.  Responsibility

The Campus Cash Coordinator is responsible for coordinating all cashiering operations for the University. Contact Office of Origin (see above) with any questions.