Prepared by the Department of Cash Management and the Office of Audit ,Compliance and Privacy of the University of Pennsylvania

UNIVERSITY POLICY

RESPONSIBILITY

ACCOUNTABILITY

COMPLIANCE

CASH HANDLING

If you are responsible for handling cash, you are accountable for that cash. You must comply with University policy.

A SERIOUS ISSUE …

CASH HANDLING

Essential Reading :

CASH HANDLINGAll schools and centers within the University handle cash. Over $300,000,000 a yearin cash and checks are deposited through the Cashier’s Office.

FINANCIAL POLICY #1504DEPOSIT OF CASH RECEIPTS

Purpose:

Establish sound Cash Management practices and safeguard cash receiptsagainst theft or loss.http://www.finance.upenn.edu/vpfinance/fpm/1500/1504.asp

CASH HANDLING PROCESS

Your department should establish sound cash handling practices by segregating and defining duties for each employee involved in the process.

CASH HANDLING PROCESS

FINANCIAL POLICY #1504DEPOSIT OF CASH RECEIPTS

All cash and checks received must be deposited with the University’s Cashier Office the day of receipt.

(Cash and checks received over a weekend must be retained in a secure location and deposited the next business day.)

#1504 Tax Records

Internal Revenue Code requires:

The University to file Form 8300 for all cash payments in the amount of $10,000 or greater within 15 days of receipt of cash from an individual or corporation in one or more related transactions. (Cashier’s Office fills out form per your written confirmation.)

Depositors must retain images or facsimiles of checks for 7 years.

#1504 Depositing Coins and Currency

#1504 Depositing Checks

Depositors must ensure that checks are prepared accurately:

#1504 Depositing Checks

#1504 Cash Administration

FINANCIAL POLICY #2703SAFEGUARDING UNIVERSITY ASSETS University and Health System management at all levels are responsible for safeguarding financial and physical assets and being alert to possible exposures, errors and irregularities. Management must be aware of internal control weaknesses which can lead to or permit misuse, misappropriation, or destruction of assets.

http://www.finance.upenn.edu/vpfinance/fpm/2700/2700_pdf/2703.pdf

FRAUD TRIANGLE

CASH CONTROLS•Develop & implement written procedures for receiving, recording, reconciling, safeguarding and depositing cash•Ensure SEGREGATION OF DUTIES throughout the process•Employ a system to determine completeness of cash receipts:•e.g. a computerized point of sale system, a cash register, means of pre-numbered receipt forms, or on a handwritten log.

•Account for all cash immediately upon receipt

CASH CONTROLS (continued)•Require that receipts be provided for all transactions (& post signs).•Each person collecting cash should have their own cash drawer to establish accountability.•Close out cash registers/drawers at the end of day or end of shifts.•Secure cash in a safe or locked cash box stored in a locked, fire resistant location.•Ensure sufficient Supervisory oversight through daily reconciliation of cash to point of sale system/cash register/receipt log, surprise cash counts, periodic audits, etc.

CASH CONTROLS – SEGREGATION OF DUTIES

•No individual has control over the entire transaction cycle•Segregate responsibilities of receiving, depositing, recording, and reconciling.•Ensure proper Management oversight by performing monthly reconciliations of sales, cash receipts and deposits.

FRAUD RED FLAGS

•Untimely or lagged deposits•Employee standard of living changes•Customer complaints increase (bill already paid)•Employee regularly works late, on weekends, refuses to take vacations (for fear of detection)•Increase in or excessive number of refunds or voided transactions•Unusual decrease in revenue•Missing supporting documentation•Known employee issues (gambling, drinking, etc.)

CASH HANDLING CONTACTS

Cashier’s Office 3451 Walnut StreetFranklin Building Lobby215.898.7258

Department of Cash Management215.898.7256

Office of Audit, Compliance and Privacy215.P.COMPLYhttp://www.upenn.edu/215pcomply

WEB REFERENCES

http://www.finance.upenn.edu/vpfinance/fpm/1500/1504.asp

http://www.finance.upenn.edu/treasurer/cashier/

http://www.upenn.edu/audit/oacp_principles.htm

http://www.hr.upenn.edu/policy/Policies/007.aspx

http://www.upenn.edu/215pcomply