Office of the Vice President for
Administration and Finance
SECTION: FISCAL INDEX: B-6
SUBJECT: CASH FUNDS AND CASH HANDLING
All cash transactions involving the university are subject to applicable state laws and regulations, and UH System policies and procedures. All university employees have a fiduciary responsibility to the university to handle cash transactions accordingly.
The purpose of this policy is to provide principles and guidelines for the handling of all cash activities at the University of Houston-Victoria and all sites under UHV’s administrative management. This policy, and its companion procedures, apply to all university funds, unless otherwise noted.
Cash is not to be accepted by any university employee for any purpose unless that employee has been authorized by the Vice President of Administration and Finance or designee to handle cash for the purpose specified. All employees authorized to handle cash shall sign an Acknowledgement of Receipt of Funds and Cash Policies and Procedures Form. When a university employee or unit receives cash, it is to be deposited promptly into the appropriate, authorized university cost center in accordance with this document. Retention of cash received from outside sources for use as petty cash or change-making purposes is prohibited. Use of university cash funds or cash receipts for cashing checks is prohibited.
All departments handling cash shall have in place internal procedures and guidelines for handling and securing cash, which should include authorization of persons to accept cash, issuance of numbered receipts to those making cash payments, preparation and transmittal of cash to the Cashier’s office.
Units responsible for cash handling areas shall have written procedures in place, subject to Finance Department review, to cover sales to students, special events, short courses, receipt of application fees, and the like. These should include offsite cash collection procedures, security and reconciliation of cash, and assurance that proper cash handling procedures are followed.
Change Funds: Under certain circumstances, a change fund for a short-term operation may be required. A short-term change fund may be approved by a departmental fund custodian and the Finance Comptroller to be furnished by a departmental change fund under the following terms:
1. The request involves an amount of $800 or less in denominations that can be accommodated by the departmental change fund for a period of less than three working days.
2. A justification memo will be transmitted to the Comptroller for approval of the request for each occurrence. The request will be approved or returned to the requesting department if disapproved.
3. A cash custodian with defined responsibilities will be assigned.
4. The funds are returned to the departmental change fund within the agreed time frame, no later than three working days.
Cash: For the purpose of this policy cash is defined as dollars and cents (currency), personal or institutional bank drafts (checks), money orders, cashier's checks, or foreign drafts (cash does not include foreign currency).
Cash Custodian: A person having a fiduciary responsibility to receive, monitor, and safeguard cash received or maintained within the area for any purpose. Cash custodians must adhere to the same standards of accountability as fund custodians.
Cash Handling Areas: Those areas or departments where cash is handled, through a change fund, and/or receipts.
Cash Receipts: Any cash received in checks and/or currency, for any purposes (i.e., revenues for goods, services, or events as fees, or as gifts).
Cashiers’ Office: The university unit responsible for receiving and depositing cash in the bank for the university whether on campus or located at a unit physically apart from the campus.
Change Fund: A fund established for the purpose of supporting a sales or service operation. The change fund is used to make change for direct purchases of goods or services or to support indirect services (such as copy machines and providing change for vending machines). See Policy B-7 Change Fund.
Departmental Cash Fund: The term used to refer to any type of cash fund maintained at a decentralized level.
Fund Custodian: The departmental employee specifically authorized to manage monies in a cash fund. The fund custodian is responsible for the fund's safekeeping and ensuring that monies are accounted for in accordance with this policy and procedure.
All employees are obligated to report any suspected irregularity in the handling of cash immediately (including the receipt or suspected receipt of counterfeit currency) in accordance with the SAM 01.C.04.
A gift (check or cash) received by a department or division should be forwarded to University Advancement within one working day of receipt in accordance with UHV Policy and Procedure, A-10, Donation Reports and General Office Procedures Guide, Endowment Processing.
Found Monies: Found monies should be surrendered immediately to the Office of the Vice President for Administration and Finance for deposit into suspense funds where it will remain for 30 days. If not claimed within 30 days, the found monies will be deposited into miscellaneous income.
Departmental Deposits to the Cashier
1. Division heads are responsible for ensuring that cash funds and cash receipts in their areas are managed in accordance with this document and that department procedures are in place to ensure adequate control of funds. In cash handling areas, copies of department procedures shall be provided to the Vice President for Administration and Finance or designee on an annual basis or any time the procedures are revised. The Division head or departmental designee is responsible for the safeguarding of all monies in a safe, locked drawer, or file cabinet with a unique lock and key until they are deposited in the Finance Department.
2. Division heads are delegated by the Vice President for Administration and Finance the authority and responsibility to assign and authorize the fund custodians and cash custodians. To ensure a system of checks and balances, the fund or cash custodian may not be the employee with approval or reconciliation responsibilities for the department’s cost centers. If the separation of duties cannot be performed within a department due to insufficient staffing, additional supervisory review should be performed to validate and approve the cash receipt and monthly reconciliation processes. PeopleSoft departmental reports shall be reconciled monthly against cash receipts by the department receiving cash.
3. Fund custodians and Cash custodians must complete the “Acknowledgment of Receipt of Funds Cash Policies and Procedures" form. The Change Fund must be re-authorized annually. When the change fund is re-authorized, a check mark must be entered in the “change fund” box and the dollar amount noted on the “Acknowledgment of Receipt of Funds & Policies and Procedures" form. A comment will be added by the Vice President for Administration and Finance or designee that states that the change fund has/has not been authorized.
4. Checks, money orders, or credit cards are the acceptable payment method and should be encouraged. In cases where currency is the only means of payment, the currency must be secured and appropriately deposited in accordance with this policy and procedure. Any monies received by a department must be sent to the Cashier’s office as soon as possible. All checks will be restrictively endorsed immediately upon receipt. e.g. "For Deposit Only - University of Houston-Victoria."
are encouraged to accept payments only in
6. When cash is received in the department, the receipt of cash must be documented in the receiving department using a consecutively numbered receipt. The original will go to the individual providing the cash. A copy of this receipt (including voids) must be retained by the department. The department cash deposit form must reference all receipt numbers when submitted to the Cashier’s office and be attached to the general cash receipt kept in the cashier’s office. See Cash Handling forms for cash, checks, and credit cards. Checks must be copied, the originals remitted, and copies retained by the department for a period of three years after the close of the current fiscal year in accordance with records retention. The only departments excepted from this requirement are the cashiers' offices.
7. Cash and/or Fund custodians should deliver deposits to the Cashier's office. If a department requests the University's courier to transmit the funds to the Cashier’s office then a single use tamper-proof bank bag must be used.
8. Unidentified payments to the University will be deposited into a suspense account until the proper recipient department can be identified.
9. Departments that receive fees, incidental payments including cash and checks at irregular intervals must follow these deposit requirements:
- Any cash/checks received totaling $100.00 or more must be remitted to the Cashier’s office within one working day of receipt.
- Any cash/checks received totaling less than $100.00 must be remitted within five working days after receipt.
Institutional Deposits to the Bank
The Office of the Vice President for Administration will deposit funds with the bank within five working days after the total of the various departments’ cash remittances exceeds $5,000.00. If the total amount of cash remitted to the Cashier’s office is less than or equal to $5,000.00 during any one calendar week, then the Office of the Vice President for Administration & Finance will deposit funds with the bank no later than the Friday of the same calendar week. All funds delivered to the bank must be secured in a special one time use tamper-proof bank bag prior to releasing for deposit.
Off-campus Site Deposits to the Bank
With prior approval, off-campus sites may arrange for transportation and deposit of cash receipts directly to the university’s depository institution. The one-time request should be submitted in advance via the responsible division head, and approved by the UHS Treasurer and the UHV Vice President for Administration and Finance or their designees.
a. Once approved, the cashier’s office at the off-campus site will ensure cash is deposited with the bank within two working days after the total of the department’s cash remittances exceeds $1,000.00.
b. If the total amount of cash remitted to the Cashier’s office is less than or equal to $1,000.00 during any one calendar week, then the Cashier’s office will deposit with the bank no later than the Friday of the same calendar week.. (This process does not apply to endowment contributions, which are processed on a Gift Transmittal Form through the UH System Treasurer's Office).
Returned checks will be charged to the departmental cost center to which the check was deposited. The Finance Department will be responsible for notifying the department of unpaid checks from their area. Any department that accepts checks will be responsible for collecting against a returned check. If a department’s collection efforts fail, the department should contact the Finance Department for assistance in pursuing other measures to collect the money
When a student’s check that has been accepted and deposited and is returned unpaid by the bank, the Bursar’s office will charge its cost center if the returned item is posted to the check writer’s student’s account. The Bursar’s office will attempt to collect on student account returned checks.
Cash shortages will be reported in the following manner:
- Individual shortages of less than $100 must be reported immediately to the department head.
- Individual shortages of $100 or more must be reported immediately in writing to the Comptroller. The UH System Department of Internal Auditing will be notified of any departmental cash shortage that exceeds $100 per occurrence by the Comptroller.
Signature Obtained 11/13/08
Tim Hudson, Ph.D. Date
Next Review Date: December 2011
Origination: Finance Department
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