Office of Origin: Financial Services
Date Adopted: 10-23-07
Date Reviewed: 01-15-12
Last Date Modified & Approved: 01-15-12
"Cash handling" includesall moniesreceived by any Lake Michigan College (the College) employee on behalf of the College, whether coin, currency, check, money order, traveler's check, or credit card payment.
All employees that have cash handling responsibilities are expected to annually review their actual cash handling procedures to assure compliance with College policy.
The cash handling procedures below are not subject to modification or waiver. All questions or interpretation issues must be discussed with Financial Services. Furthermore, Financial Services should be contacted whenever any special or unusual situations or questions arise in the collection, receipt, recording, or remittance of cash.
Accepting / Maintaining Cash
1. All monies collected must be recorded in Banner immediately or must be recorded on prenumbered receipt forms and entered into Banner as soon as possible. Contact Financial Services if new or additional cash receipt systems are needed or going to be used.
2. Checks, including traveler checks and money orders, must be restrictively endorsed on receipt.
3. Banner ID number, as applicable, must be written on checks in the memo area.
4. Checks must be made payable to Lake Michigan College.
5. Checks may be accepted only in the amount of the sale.
6. Post-dated and two-party checks are not accepted, with exception of scholarship checks payable to both the College and the student.
7. Checks must be drawn on a U.S. bank in U.S. dollars. Contact Financial Services if receiving international payments.
8. All funds must be kept in a lockable metal box, out of public view, and should be available for inspection at any time by an authorized representative of Financial Services.
9. When not in use, funds must be stored in a locked safe or other secured area. If stored in a desk, the desk must be locked, and the key must be secured in another location. A second person must know the location of the key in the event of unexpected absences.
10. Access to safes and other secured cash storage areas is to be restricted to a small number of essential employees.
11. Whenever there is turnover in personnel who had access to a safe, the combination to the safe must be changed within 2 days.
12. All monies collected are expected to be deposited with the College Cashier within 24 hours of receipt or more frequently as activity warrants unless other arrangements are documented and approved in writing by the Vice President of Financial Services.
13. Monies are to be delivered to the Cashier in locked banker bags. Deposits are not to be sent through inter-office or postal mail.
14. All deposits are to be counted jointly by the Cashier and person making the deposit. Both individuals must sign the deposit form.
15. If the deposit total differs from the supporting documentation, the Cashier supervisor should be notified immediately.
16. All deposit overages and shortages are to be posted to general ledger account code #7576.
17. A record of overages and shortages is to be maintained for each cashier. This record is expected to be reviewed monthly by the Cashier supervisor.
18. Cashiers are expected to perform, and supervisors review, a reconciliation of receipt forms each month to ensure that all are accounted for.
Segregation of Duties
19. The duties of
- opening the mail
- processing cash receipts received by mail
- collecting cash
- preparing receipts
- bank or cash account reconciliation
must be separated among individuals. One person may not responsible for two or more activities.
20. To the extent that proper segregation of duties is not practical due to staffing resources, Financial Services must be contacted. Financial Services will work with the department to develop appropriate compensating controls that will be documented in writing and approved by the Vice President of Financial Services.
21. Cash handlers must take at least 5 consecutive business days of vacation annually, during which time another individual will perform cash handling duties. Any significant change in dollar volume during these times must be reported to Financial Services immediately.
22. All financial activities with financial institutions must be approved by the Vice President of Financial Services. No bank accounts may be opened outside of Financial Services.
Petty Cash / Change Funds
23. Cash is not to be withheld from a deposit for the purpose of adding to or creating a change or petty cash fund. Change funds may only be obtained, increased, or decreased by approval of the Director of Financial Services.
24. Use of change funds or un-deposited receipts for petty cash purchases, or for loans, advances, or check cashing is strictly prohibited.
25. Change funds are not to be commingled with any other monies.
26. Financial Services must be notified immediately when a change in cash custodian occurs.
27. All petty cash funds are to be reconciled monthly. Such reconciliations are to be reviewed by the Director of Financial Services on a quarterly basis.
Responsibility:Vice President, Financial Services