INTERNAL CONTROL AND SAFETY
Segregation of Duties
A key element in a system of internal control is separation of duties.
Duties are to be separated to the extent possible in every area that handles cash. Appropriate controls must be in place at all times. There is to be a system of checks and balances in which different individuals perform tasks for adequate control. Cash item handling, record keeping and reconciliations will be assigned to different people, even for agencies with automated accounting processes. A second person will verify reconciliations and deposits of cash items.
When complete segregation of duties is not possible, it is the appropriate departmental director or designee's responsibility to scrutinize all documents to ensure that the amount deposited includes everything that was collected.
The following duties, when possible, should be assigned to different individuals to insure safeguarding of assets and the reliability of financial records.
- Technician is responsible for:
- making appropriate notations on checks to insure credit to proper account;
- separating mail into like transactions;
- creating transmittals of like transactions that will be totaled;
- balancing total of checks to the transmittal;
- forwarding checks and transmittals to Central Cashiering for deposit;
- maintaining "Mentor Application" program;
- maintaining dishonored check transactions;
- processing electronic funds;
- set fee waiver codes to appropriate accounts;
- and setting up installment agreements and third party billings.
- Cashier is responsible for:
- using a unique log-in to the cashiering system;
- verifying the starting "bank" or "till";
- processing transactions over-the-counter;
- receiving transmittals and verifying check amounts to transmittal amounts before depositing;
- processing all cash, check and credit card transactions through Point of Sale cashiering system;
- processing "unidentified checks" to an Uncleared Collections Account and forwarding a copy of the check and accompanying documentation to General Accounting to research;
- creating a receipt for every transaction (i.e., system generated receipts via the cashiering system or pre-numbered receipt books which will be assigned and logged to each individual cashier);
- logging-out of the cashiering system and securing the cash register drawer when leaving the work station;
- returning the starting bank to the Head Cashier/designee or securing it in the cash register drawer;
- and balancing the cash register drawer at the end of the shift.
- Head Cashier or designee is responsible for:
- maintaining an inventory/log of pre-numbered receipt books assigned to cashiering staff;
- verifying issuance and return of all starting banks or tills;
- verifying cashiers' daily collections;
- preparing bank deposits;
- approving voided transactions;
- creating billing notices on a regular billing cycle;
- and reporting delinquent accounts to the Technician to place "holds" within the system.
- Check Disbursement Clerk is responsible for:
- disbursing financial aid checks;
- disbursing refund checks;
- disbursing salary and travel advances;
- and disbursing petty cash and change fund checks.
- Back-Office Processor (or Accounting Technician) is responsible for:
- processing refunds;
- reconciling system generated refund reports to refund request forms;
- processing credits (refunds) to credit cards;
- reconciling credit cards to bank and cashiering reports;
- preparing various reconciliation reports (daily, weekly, monthly and by term as reporting dictate);
- balancing petty cash change funds and requests reimbursements;
- and balancing the total "bank" that makes up the daily starting tills and change funds for the cashiering staff.
Go to Cash Receipt Policy Context
Transfer of Accountability
For campuses with Satellite Cashiering Stations, it is imperative that receipts are safeguarded at all times.
For campuses using a centralized Point of Sale (POS) system, such as CashNet, it is preferable to have Satellite Cashiers deposit their receipts directly to the bank or cash vault. Each cashier station is responsible for balancing their days receipts and preparing the State of California Report of Deposit form. The days deposit is placed in a sealed bag and picked up by an armored carrier service that will sign for the funds and deliver them to the bank. The Central Cashiering Office is able to reconcile the days receipts to the deposit.
For Satellite Cashiers that collect funds but do not input them in the University cashiering system, funds must be transported to Central Cashiering in a locked or tamper-free deposit bag. Funds are to be transported by either an armored carrier service or University Police. The locked deposit bag is to be kept in the Central Cashiering Office safe or vault until a representative from the depositing office can be present to unlock the bag. Depending upon the size of the deposit, it is recommended that deposits are prepared on a daily basis but not longer than 48 hours after delivery to Central Cashiering. Funds are to be verified in the presence of the depositing office to ensure that there are no discrepancies before receipting them to the University cashiering system. Always provide the customer with a receipt.
