Cash Receipts
About This Policy
- Responsible Office
- Finance and Treasury
Objectives
To establish proper controls and cash handling procedures throughout all University departments. Controls are required to safeguard against loss and to define responsibilities in the handling of cash. All departments receiving cash are designated as cash collection points. “Cash” may consist of currency, checks, money orders, credit card transactions, fed wires and electronic fund transfers.
Required Procedures For All Departments
- Adequate separation of duties for cash collection, deposit or reconciliation.
- Deposit of cash in accordance with the guidelines detailed below at the Cashier’s Office in the Office of Student Accounts into an appropriate University revenue account, accompanied by a Cash Receipt Transmittal Form.
- Reconciliation of the validated Cash Receipt Transmittal Form to the department’s revenue account to ensure proper recording of funds. The Controller’s Office will reconcile all bank account transactions monthly.
- Proper safeguarding of cash.
- Generally, the timely deposit of cash receipts requires a department to deposit receipts with the Office of Student Accounts daily. See Procedures below for specific guidance.
Responsibility Of Cash Handlers
All employees responsible for the receipt, deposit or reconciliation of cash for University related activities must comply with this policy.
Procedures
- All departments responsible for cash collection must maintain a clear separation of duties. An individual should not have responsibility for more than one of the cash handling components: receipt, deposit or reconciliation.
- All checks, cash and credit card receipts must be protected by using a safe or lockbox until they are deposited. A secure area for processing and safeguarding funds received must be maintained and access restricted to authorized personnel.
- All checks should be made payable to Montclair State University. All endorsements will be made by the Office of Student Accounts. Checks will be deposited using remote deposit. In instances where it is not possible to use remote deposit, checks will be restrictively endorsed immediately upon receipt. Post-dated checks should not be accepted and will be returned to the submitting department.
- The Office of Student Accounts is responsible for making the deposit to the appropriate Montclair State University bank account.
- The Office of Student Accounts closes its books each day at 3:00 p.m. Each department must establish a cut off to allow time to prepare and deliver the deposit to the Office of Student Accounts before 3:00 p.m.
- Generally, the timely deposit of cash receipts requires a department to deposit receipts with the Office of Student Accounts daily. However, it may not be practical or cost effective for those departments or student organizations that receive small amounts of cash on an irregular basis. In cases where the amounts of cash deposits are small and an adequate safekeeping facility is available, an aggregate un-deposited total may not exceed $100 and may be retained in the department’s safekeeping facility for a period not to exceed five business days. Although this option is available, departments must be aware that these monies must be deposited at the Office of Student Accounts within five business days of receipt, even if the amount does not exceed $100.
- Under no circumstances will employees or students make disbursements from the department or student organization un-deposited receipts. All cash or other receipts must be deposited at the Office of Student Accounts in total.
- Any person delivering a deposit to the Office of Student Accounts should take adequate precautions for their personal security and safety. A request for a police escort to the Student Accounts Office may be made by contacting the University Police Department at x5222.
- Never mail cash or checks through inter-office mail.
- All funds received must be balanced daily by comparing the total of the cash, checks and credit card collections to department records of what was received.
- Documentation such as cash register tapes, deposit slips, credit card receipts, copies of manual cash receipts, etc. are to be kept for a period of seven years by the department.
- The deposit prepared by the Office of Student Accounts will be picked up by authorized personnel and will be transported to the University’s local bank.
Responsible Office And Executive
The Vice President for Finance and Treasurer is responsible for the overall administration of the University’s Cash Receipts Policy. This entails the approval of exceptions to these procedures. Requests for exceptions to these procedures must be submitted in writing. The daily oversight of compliance with this policy is the responsibility of the Controller’s Office.