Purpose

Cash handling requires standardized training and knowledge of cash handling practices that foster accountability, control, protection of employee integrity, and safeguarding of University funds. For purposes of Cash Handling Policy 530, cash includes all coins, cash, checks, coupons, gift cards, and credit card transactions.

Cash handling needs vary according to departmental responsibilities. Policy 530 and these procedures create a framework for Departments, Financial Officers, and the Controller’s Office to work together to create adequate and reasonable cash controls that protect individual employees and institutional funds.

As an institution of the State and the Utah System of Higher Education, in regards to cash handling the University is subject to various State, Federal, Regulatory Agency, and industry provisions, including:

• Utah System of Higher Education, R561, Accounting and Financial Controls
• State of Utah Code 51, Public Fund and Accounts
• General Accepted Accounting Principles (GAAP)
• Code of Federal Regulations Title II, Grants and Agreements, Part 200 – Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR 200 or Uniform Guidance)
• Federal Gramm-Leach-Bliley Act (GLBA)
• Payment Card Industry Data Security Standards (PCI DSS)
• Red Flag Rules (Red Flag)

General

The rules, procedures and processes described herein are supportive of Policy 530: Cash Handling and are intended to provide detail information regarding best practices.

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Any organization or group using or processing credit cards through a USU bank account must follow Credit Card Procedures and PCI Processes.

Best Practice Recommendations

The following are best practice recommendations for Departments and Business Services to use when establishing Departmental Cash Handling Procedures.

Definitions

WordDefinitionAdvanceAdvance means cash issued to a Department specifically designated for the following purposes:
a) Human Research Participation
b) Temporary petty cashBusiness-RelatedBusiness-related means an expenditure that reflects an ordinary and necessary transaction incurred to conduct business, where the underlying activity is able to bear scrutiny that it is being made to further the mission of USU, i.e. instruction, research, or public service - or the supporting administrative functions surrounding these objectives.Business Services Financial OfficerBusiness Services Financial Officer means the employee hired by Business and Finance for a unit at Utah State University responsible for business services throughout the college or unit.Cash RegisterCash Register means any register, box, or drawer used to secure cash.CashCash means coin, currency, checks, gift cards, coupons, and credit cards used in transactions.CashierCashier means any individual assigned to tender, receive, or exchange cash for goods and services.Change FundChange Fund means a fund issued to a department by Treasury Services specifically designated for use in making change for customers.ControllerController means the Controller of Utah State University.Controller’s OfficeController’s Office means the departments and groups under the Controller of Utah State University.CustodianCustodian means a department designee assigned custody of funds and is accountable to secure, reconcile, and account for transactions related to those funds.DepartmentDepartment means a budgetary unit with financial responsibility and accountability.Department HeadDepartment Head means a budgetary unit head with financial responsibility and accountability.Department SupervisorDepartment Supervisor means a budgetary unit person accountable and responsible for cash handlers and cash handling practices.Fund or FundsFund or Funds means a specific amount of cash issued to a department by Treasury Services and designated for University business-related activities. They include, but are not limited to change funds, petty cash, temporary petty cash and advances.Manager of Treasury ServicesManager of Treasury Services means the Controller-appointed employee.Petty Cash Fund and Temporary Petty Cash FundPetty Cash Fund and Temporary Petty Cash Fund mean funds specifically designated for the sole purpose of reimbursing miscellaneous expenditures.Reasonable ExpenditureReasonable Expenditure means:
a) The nature of the goods or services acquired and the amount paid for such reflect the actions of a prudent person under the circumstances of the purchase,
b) The expenditure is appropriate given the mission of USU, and
c) Is not otherwise prohibited by any University policy.Safe or SafesSafe or Safes mean locked boxes, safes, drop boxes etc. used to store cash, change funds, and advances.

General Cash Process

1. Departments must provide adequate working space for each cashier in order to maintain control of the cash handling process.
2. Departments should designate adequate and secure areas for balancing operations and allow space for the processing of deposits.
3. All cashiering areas should provide for security and separation between cash handlers and customers.
4. Cash drawer or “till” amounts depend on operational need. Departments shall periodically review each cash drawer’s assigned cash balance and adjust to meet operational needs.
5. Cash handlers shall report daily overages/shortages of cash to the Department supervisor/custodian of the fund.
6. Cashiers provide receipts to all customers. If a customer receipt is left, tear it up and dispose of it.
7. Where possible, sequentially number all transactions.
8. Close out all computer and credit card terminals at the end of a cashier’s shift and/or at the end of the day.
9. Do not count cash in the presence of customers or other employees not involved in the handling of cash.
10. Two University employees shall verify cash counts and deposits.
11. Do not use change funds, advances, petty cash etc. for the cashing of personal, payroll, or expense checks.

Research Funds

Advance - Human Research Studies

Central to the role of Utah State University is research. The study of human subjects presents particularly sensitive challenges in light of Federal laws pertaining to privacy, HIPAA and IRS regulations.

Participant privacy and IRS compliance is critical to research success. As noted in respective IRB procedures, each Human Research project involving compensation requires notice to and recording of participants and compensation.

All research participant payments paid in the form of money or gift cards are taxable to the recipient. If a participant receives $600 or more per calendar year, a 1099-MISC will be issued by the University in accordance with IRS regulations.

Description of Research Cash Advance Fund

A Research Cash Advance Fund is a temporary advance of cash used to pay human research subjects. For example, a researcher may offer $20 in cash to each person who completes a survey.

Researchers are required to comply with the following procedures to safeguard the cash advance and to eliminate the possibility of any misappropriation.

Obtaining a Research Cash Advance Fund

Only the Controller’s Office has the authority to create a Research Cash Advance Fund. Complete the “Request for Research Cash Advance Fund” form and send the completed and signed form to Shanell Johnson, Manager of Treasury Services, at shanell.johnson@usu.edu.

The Manager of Treasury Services will submit the request through EZ-Buy. Approvals are tied to the index of the research project and will be required through EZ-Buy.

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Processing time for a “Request for Research Cash Advance Fund” usually takes 3-5 business days from when the form is submitted and department approvals are completed. Please plan accordingly.

The cash custodian will be contacted by the Cashier’s Office when the cash is available for pickup. Please bring a bag or envelope to secure and carry the cash.

Operation of a Research Cash Advance Fund

Cash Custodian

The department head, Principal Investigator (P.I.), or business manager is responsible to appoint an employee to act as cash custodian over the Research Cash Advance Fund.

The cash custodian is responsible for the following:

1. Create and maintain a cash log:
   1. A cash log states the title of the research project, the name of the P.I., and the index associated with the project. The first entry is the date the cash advance is received and the total amount approved.
   2. The cash custodian must maintain a log with the signature of each participant receiving the cash.
   3. At the conclusion of the research, both the research assistant and custodian are responsible to do a “count” together.
      • This is done by adding the total amount paid out to the participants (supported by original signed informed consent forms) to any left-over cash and comparing the total to the amount originally given to the research assistant.
   4. If the amounts do not agree, the custodian’s supervisor must be contacted immediately. If the discrepancy is more than $100 and a resolution cannot be reached, the supervisor must contact Internal Audit Services and the Manager of Treasury Services to report the loss.
2. The cash fund must be secured at all times by using a cash box that is stored in a safe, locking file cabinet or some other secure device.
3. Only the custodian or custodian’s supervisor should have access to the cash fund.
4. The custodian is responsible to ensure that the money is ONLY used to pay research participants.

Supervisor

The cash custodian's immediate supervisor is responsible for the following:

1. Conduct periodic cash counts with the custodian present to verify the proper use and accounting of funds.
   1. This is done by adding the total amount paid out to the participants (supported by original signed informed consent forms) to any left-over cash and comparing the total to the amount originally given to the research assistant. Both the supervisor and custodian date and sign the log to indicate that a count has been performed.
2. Investigate and resolve cash discrepancies between the log and the original cash given. If the discrepancy is more than $100 and a resolution cannot be reached, the supervisor must contact Internal Audit Services and the Manager of Treasury Services to report the loss.
3. Contact the Controller’s Office Accountant immediately if a new cash custodian is assigned to the fund. The supervisor, the original cash custodian, and the new cash custodian must perform a cash count, sign and date the log indicating a count has been performed.

Closing a Research Cash Advance Fund

On a quarterly basis, the Controller’s Office Accountant assigned to the award will contact the department about the status of the research project and request the logs for the quarter.

When the research project has been completed, the Controller’s Office Accountant will work with the cash custodian to ensure the cash log along with the left-over cash equal the original amount received.

If there is remaining cash from the research project, the cash needs to be deposited at the Cashier’s Office, TSC 248. To deposit left-over cash at the Cashier’s Office:

1. Fill out a Departmental Deposit Slip.
   1. In the description write the title of the research project and the Banner Index
   2. Use the Banner Index that was assigned to the project when the “Request for Research Cash Advance Fund” form was filled out
   3. Use Account Code 101800
   4. Bring the deposit slip and cash to be deposited to the Cashier’s Office, TSC 248.

Obtaining Additional Funds

If additional cash is needed for the research project, a “Request for Research Cash Advance Fund” form needs to be filled out with the “additional funding” box checked. Return the completed form to the Manager of Treasury Services.

Within two (2) business days, a Controller’s Office Accountant will contact the Department and arrange for a cash count with the cash custodian to verify and account for the original amount issued.

The Manager of Treasury Service will then issue the additional cash.

Prohibitions

A Research Cash Advance Fund cannot be used to pay for any of the following, even if they are expenditures associated with the research project:

1. Travel expense reimbursement. These should be processed via a Travel Authorization (TA).
2. Travel advances. All travel activities need to be reported via the Travel Authorization process.
3. Payments to vendors for invoices submitted directly to the department. These should be processed through USU EZ-Buy.
4. Payments to independent contractors or consultants. These should be processed through USU EZ- Buy.
5. Payments to employees for services, awards, bonuses, etc... should be processed through Payroll. (If an employee happens to be involved as a human research subject, payroll taxes will be withheld after the payment is made.)
6. Payments to University auxiliaries (i.e. Campus Store, etc.). A purchasing card should be used.
7. Personal borrowing (IOUs).
8. Cashing Checks.

Petty Cash

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As a rule, petty cash funds are not used. Petty cash funds represent idle cash and create an ongoing need for security, record keeping, and auditing. Purchasing Cards have replaced petty cash funds.

1. Only use petty cash funds for nonrecurring, unexpected expenditures.
2. Ultimate fiduciary responsibility for petty cash resides with the Department Head under which the fund is established.
   1. Any request for a petty cash fund must be in written form from the responsible Department Head and include specific justification for the cash. Review and approval of petty cash resides with the Controller. The request to establish the petty cash fund must include the following:
      • justification of the fund;
      • dollar amount to be maintained in the fund;
      • name of the fund’s designated custodian(s);
      • location and planned security of the fund; and
      • signatory approval of Department Head and Financial Officer
3. The petty cash fund will have an assigned primary custodian and, if necessary, a secondary custodian. The custodians and the Department Head are responsible for the disbursement from and balancing of the fund. Changes in custodians will require a written notification to the Manager of Treasury Services.
4. The petty cash fund shall maintain the established dollar value in cash, vouchers, and receipts.
5. A signed petty cash voucher must support individual petty cash advances. A petty cash voucher must indicate signature, date, amount and printed name.
6. An original receipt upon reimbursement or return of unused cash must accompany each petty cash advance or voucher. The original voucher is to remain as a permanent document of the fund’s transaction.
7. Use USU EZ-BUY to process and request petty cash fund reimbursements.
8. Departments perform petty cash fund reconciliations on a monthly basis.
9. All check payments for reimbursement shall be made payable to the custodian and directly reference the fund.
10. Periodically, the Controller, Internal Audit Services, or the Department will audit petty cash.
11. It is the responsibility of the custodian(s) and the Department Head to resolve any discrepancy in petty cash funds.
12. Misappropriation of petty cash funds may result in the fund being immediately closed and appropriate action taken by Internal Audit Services or Campus Police.
13. Report irregularities in record keeping to the Manager of Treasury Services or Internal Audit Services.
14. Departments shall maintain petty cash funds in a locked, secure location at all times.
15. Departments shall use petty cash funds for business purposes only.
16. If the petty cash fund is unused in any fiscal year, close the fund.
    1. Reconcile and forward all cash and original receipts/vouchers to the Manager of Treasury Services.

Temporary Petty Cash

Only Treasury Services in the Controller’s Office has the authority to create temporary petty cash funds. These funds are used for one-time events or temporary situations.

To obtain the temporary petty cash, the Department completes the “Temporary Petty Cash Fund” form found on the Controller’s web site. Send the completed and signed form to Shanell Johnson, Manager of Treasury Services, at shanell.johnson@usu.edu. Upon approval, Treasury Services will contact the custodian.

1. Only use temporary petty cash funds for the specific project identified.
2. Ultimate fiduciary responsibility for the fund shall reside with the Department Head under which the fund is established.
3. The fund will have an assigned custodian who is responsible for the disbursement from and balancing of the fund.
4. The temporary petty cash fund shall maintain the established dollar value in cash, vouchers, and receipts.
5. Record each disbursement in a log. The Log must include the recipient’s name, date, amount, index and account code, and the signature of the recipient and person dispensing the cash. In addition, each recipient must complete a Federal form W-9, Request for Taxpayer Identification Number and Certification.
6. The Controller, Internal Audit Services, or the Department may audit temporary petty cash.
7. It is the responsibility of the custodian(s) and the Department Head to resolve any discrepancy in a temporary petty cash fund.
8. Report irregularities in record keeping to the Manager of Treasury Services or Internal Audit Services.
9. Departments shall maintain temporary petty cash funds in a locked, secure location at all times.
10. Departments shall use temporary petty cash funds for business-related purposes only.
11. Never commingle temporary petty cash funds with other Utah State University cash.
12. Never deposit temporary petty cash funds into a personal bank account.
13. At the pre-established closure date of the temporary petty cash fund, balance the fund. Forward the log and all W-9’s to the Manager of Treasury Services.
14. Department may request an extension for temporary petty cash funds beyond the original anticipated closure date.

Cash Registers

General Cash Register Practices

1. Always keep the cash register locked when not in use.
2. Always keep cash register closed unless counting change or placing payment in the register.
3. Complete each transaction before starting another.
4. Receive payment and complete the sale prior to bagging merchandise.
5. Accuracy is most important when handling cash.
6. Money should not be changed between registers. When you need change, tell your supervisor.

Start of the Day

Each Cashier must count the money in his or her cash register at the beginning of his or her shift.

Cash Reconciliation

Each Cashier should count the register at the end of his or her shift. Count cash in a secure location. Balance cash drawers and close out at the end of each cash handler’s shift or work period.

No Cash Register

1. If not using a cash register, log the sales and keep copies of receipts. Balance cash against those receipts. A cash reconciliation report should be used to aid in the counting of monies and for verification of process.
2. If credit card machines are used, run a credit card settlement report at the end of each business day to ensure proper matching with the bank statement.

Depositing Funds

General Deposit

Departments and Business Services Financial Officer shall follow Utah Code Title 51, chapter 4. The Code requires that money should be deposited daily, if practicable, but no later than once every three banking days. Departments and Business Services Financial Officer shall document procedures for miscellaneous cash receipts and their operations. To avoid deposit delays, photo copy any checks requiring additional research or internal handling.

Cashier’s Office

Use the Cashier’s Office for departmental cash deposits.

PAY TO THE ORDER OF
WELLS FARGO BANK, N.A.
FOR DEPOSIT ONLY
Utah State University
“XXXX” Department

1. Complete a Departmental Deposit Slip indicating the total of all cash and checks to be deposited at the Cashier’s Office. Take documents and money to the Cashier’s office.
2. Endorse all checks with a current USU “For Deposit Only” stamp. See stamp example below. If you have any questions please contact the Cashier’s Office at (435) 797-8044
3. If depositing more than one check, enclose an adding machine tape or excel list reflecting each check amount and the total sum of all checks. (please keep checks in same sequence as the tape)

Armored Car Service (Loomis)

1. Complete a bank deposit slip.
2. Complete a Departmental Deposit Slip that reflects the total of the bank deposit slip.
3. Place the cash /checks and bank deposit slip in a tamper resistant sealed deposit bag.
4. Log all information in the logbook provided by Loomis.
5. Email the completed Departmental Deposit Slip with a copy of the bank deposit slip to usucashier@usu.edu. The Cashier’s Office requires these documents to be sent to Cashier’s Office the same day the deposit is picked up by Loomis.

Wells Fargo (used by AIS, Statewide Campuses and Extension Sites)

1. Complete a bank deposit slip.
2. Complete a Departmental Deposit Slip that reflects the total of the bank deposit slip.
3. Email the completed Departmental Deposit Slip with a copy of the bank deposit slip to usucashier@usu.edu. The Cashier’s Office requires these documents to be sent to Cashier’s Office the same day the deposit is taken to Wells Fargo.

Endorsement

To protect any check from fraudulent endorsement and theft, it is the responsibility of the Department/unit collecting the check to endorse it immediately upon receipt. Checks include Business Checks, Personal Checks, Cashier Checks, Money Orders, etc.

All checks shall be written to Utah State University and may contain the respective Department. Third party checks shall not be accepted as payment by Departments.

Endorsement Requirements

PAY TO THE ORDER OF
WELLS FARGO BANK, N.A.
FOR DEPOSIT ONLY
Utah State University
“XXXX” Department
0340802412

1. All checks must be endorsed in the space designated for endorsement on the back of the check. Endorsement must be rubber stamped or hand printed in ink as follows:
    
2. Traveler’s checks must also be countersigned by the check holder and endorsed by the receiving Department on the face of the traveler’s check.

Reconciliation

Blind Balancing

Blind balancing means the Cashier balances their till without knowing the correct totals in advance.

1. Only managers close out the register by running the “X”, “Z” or journal totals of the Cashier and/or register session.
2. The Cashier counts the drawer to its beginning amount without access to the “X” or “Z” or journal tapes.
3. The Cashier informs the manager of the amount of cash.
4. If there is a variance, the Cashier recounts the drawer.
   1. If the variance is unexplainable and more than $25, the manager must fill out an incident report form to be kept in the Department. The manager reviews the incident report with the Cashier.
   2. If variance is more than $100, the manager immediately completes an incident report. The manager reviews the incident report with the Cashier and reports the variance to Internal Audit Services.
   3. To balance the variance, please use the Departmental index, account code for over/under (583700)

Sales Ledger Control

1. The balance of the cash register transactions and the sum of the detailed sales records in Banner or other electronic sales systems should always be the same.
2. Total Daily cash deposited should match total Daily Sales processed via the electronic system. In addition, the total cash deposited, should match the bank deposit posting for that day.

Cash Clearing Accounts (102900 Account Code)

1. After posting all transactions, Departments reconcile all cash clearing accounts on a daily basis. The Controller’s Office monitors all cash clearing accounts. Departments shall discuss unreconciled balances with the Controller’s Office.

Surprise Reviews

To monitor the performance of each Cashier and to protect USU assets, Cashiers may be subject to surprise reviews. The purpose of a surprise review is to detect cash overages or shortages and provide training.

1. When a surprise review is done, the cashier should close out the register as normal.
2. If a discrepancy is found and,
   1. If the variance is unexplainable and more than $25, the manager must fill out an incident report to be kept in the Department. The manager reviews the incident report with the Cashier.
   2. If the variance is more than $100, the manager immediately completes an incident report form. link The manager reviews the incident report with the Cashier and reports the variance to Internal Audit Services.
   3. To balance the variance, please use the Departmental index, account code for over/under (583700).
3. The manager documents the results of all surprise reviews and notifies the Department Head and Financial Officer about any variance.

Cash Pulls

1. When needed, the Cashier should discreetly let the manager know that they should do a “cash pull.”
2. The manager should then remove larger bills, checks, etc. and put them in the safe.
   1. Managers and Cashiers clearly label the drawer and shift of the “cash pull.”
   2. Both the manager and the Cashier responsible for this till should count the amount taken from the drawer.
   3. The “cash pull” needs to be included when the Cashier is reconciling their drawer at the conclusion of their shift.

Background Checks

Pursuant to USU Policy 386, Board of Regents Policy R847 and Utah Code 53B-1-110, Departments will request background checks from Human Resources (both standard and credit) on all new supervisory, managerial, or anyone who handles cash or has access to change funds, safes, etc.

In addition, Departments will work with Human Resources and request background checks on existing employees where reasonable cause exists. According to State code, “Reasonable cause means where the known facts and circumstances are sufficient to warrant a person of reasonable prudence in the belief that the employee poses an unreasonable risk to persons or property and/or a history or report of a crime will be found.”