Cash Handling

Are there procedures to establish accountability for revenues immediately upon receipt?

Ideal Answer: YES. A cash register, cash receipt journal/log, or other mechanism should be used to establish accountability immediately as monies are received. This will provide an audit trail of the funds received and support the recording of the transaction into the University records.

Ideal Answer: YES. Checks should be endorsed immediately upon receipt "for deposit only" to the University to prevent diversion and unauthorized cashing. You can use a stamp or hand-write the following text: "For deposit only, University of Iowa , Department of ________________." The Departmental MFK to charge must also be recorded on the back of the check in case it is returned for NSF.

Are cash and related items (checks, credit card receipts, parking stickers) physically safeguarded against theft and loss?

Ideal Answer: YES. Cash items are extremely vulnerable to theft and should be secured at all times with access limited to authorized personnel. Ideally, a safe should be used for storage of cash items until deposited. Alternatively, a locking box bolted/secured into a drawer that is also locked could be used. Access to a safe or lock box should be limited to very few and should remain locked while not in use. Safe combinations should be changed periodically and when employees with access terminate. Combinations and keys should be kept in a secure, secret place. Any substantial shortage or apparent theft must be reported immediately to Campus Police.

Is there proper separation of duties in the cash handling function (an individual should not have responsibility for more than one of the cash handling components: recording of charges/billing, collecting, depositing, and reconciling)?

Ideal Answer: YES. There should be proper separation of duties between the employees accepting money, making the deposit and the employees responsible for maintaining the accounting records applicable to the payments. Deposit records should be reconciled to the daily and monthly accounting reports to ensure deposits have been posted to the appropriate account for the appropriate amount. To ensure that differences are discovered, someone who does not handle cash should do this. Proper separation of duties promotes accountability and reduces the risk of possible wrongdoing.

Ideal Answer: YES. Operational cash overages and shortages should be recorded to provide an audit trail of these occurrences. The reconciliation process should identify the amounts of cash overages/shortages and management should investigate to determine the underlying cause. Appropriate corrective action should be taken to prevent further losses or errors. Any substantial shortage or apparent theft must be reported immediately to Campus Police.

Are funds collected and deposited at least weekly or when the amount on hand is greater than $500, whichever occurs first?
- Ideal Answer: YES. In order to reduce the amount and risk of loss to the University, funds must be deposited at least once a week or whenever collections exceed $500. However, daily deposits are encouraged.

Are all funds collected properly deposited intact?
- Ideal Answer: YES. To ensure that all receipts are posted properly to the Unit's fund account(s), the entire amount of receipts collected must be deposited. None of the cash collected in the Unit may be used prior to deposit. For example, the Unit can not use $10 of its cash receipts to purchase postage and then reduce the amount of its cash deposit by the $10 used.

Is someone independently reviewing and approving voids and refunds?
- Ideal Answer: YES. A good control activity is to require someone with proper authority to approve voids and refunds before they are processed. The person providing this approval should not be the same person who initiated the transaction. The approval should be documented and retained with the daily records.

Are steps taken to ensure safety of the person transporting the deposit to the bank or drop site location?
- Ideal Answer: YES. Secure the deposit in a locked money bag/pouch. Be as inconspicuous as possible by disguising the money bag in some fashion, such as placing it in a book bag. Alter the route and time of delivery to the designated deposit drop-off location.

Is your Change Fund and/or Cash Advance an authorized advance from Accounting Services?
- Ideal Answer: YES. All University funds must be recorded and properly accounted for. If you are going to make change, then you will need a Change Fund. A Request for Approval of Change Fund or Cash Advance form, found on the UI Cash Handling web site http://www.bo.uiowa.edu/cashhandling, must be completed and approved by Accounting Services. Keep the amount of the advance at a bare minimum; it can always be increased if necessary. Do not hold back receipts to increase your Change Fund. The entire amount of receipts collected must be deposited to the Unit's fund account(s).
  
  A Cash Advance is necessary for numerous reasons, most commonly for "petty cash." With the ability to put most purchases on a departmental procurement card, please conduct a thorough analysis prior to requesting an advance of this type and subjecting the department to additional responsibility of safeguarding the money

Are the Change Fund and/or Cash Advance funds balanced daily?
- To ensure that University funds are properly accounted for, Change Funds and Cash Advances must be balanced every time they are used or at least monthly. The cash amount (plus original detailed purchase receipts, for Cash Advances) should always equal the amount that Accounting Services has granted to the department. Employees are prohibited from using the funds to make loans (IOU's), or to cash personal or payroll checks. The funds must be kept locked in a secure location except when being used to accept funds or transact business.