Cash Handling

Owner
UI Accounting and Financial Reporting; Director, Business & Financial Administration

Key Contact 

If you have questions, please contact your departmental accountant. 

Applicability  

Any official or administrator with responsibilities for managing University cash receipts and those employees who are entrusted with the billing/invoicing, receipt, deposit and reconciliation of cash for University related activities should follow this policy. 

Policy Purpose and Description  

The establishment of strong internal controls for cash collections is necessary to prevent mishandling of funds and to safeguard against loss. Strong internal controls are also designed to protect employees from inappropriate charges of mishandling funds by defining their responsibilities in the cash handling process. Cash handling includes but is not limited to staff with the following roles and responsibilities: unit management, eDeposit users, billers/invoicers, cash collection point cashiers and supervisors, deposit preparers and reconcilers. 

All University of Iowa units and staff handling cash are required to undergo the departmental and staff certification process. 

Units should be aware that at any time, internal or external auditors may visit cash handling units to perform unannounced cash observations or cash counts. 

Definitions  

Included in the definition of cash are the following: coin, currency, checks, money orders, credit cards, accounts receivable charges, electronic funds transfers, and all cash equivalents (tokens, gift cards, parking tickets and stamps). 

Procedure 

Departmental Certification Responsibility for Units Handling Cash: 

  • Each unit is required to annually complete the University of Iowa Cash Handling ICON course. Units new to handling cash are required to review the presentation as soon as they are responsible for that function. The presentation may be reviewed as a unit or individually. See the memo-to-campus for information on monitoring cash handling training compliance through the Compliance & Qualifications system.  

  • Each unit must develop their unit’s own local desktop procedures to be submitted for approval to Accounting and Financial Reporting through the workflow process. Units new to handling cash must submit their procedures for approval within one month of assuming that function. Accounting and Financial Reporting will monitor units for compliance. 

  • At a minimum, local desktop procedures should be reviewed annually by departmental management to determine if any procedural changes have occurred. If changes have occurred, each unit must update their procedures and submit them for re-approval to Accounting and Financial Reporting through the workflow process. Changes to staff specifically assigned to a cash handling function do not require re-submission for approval. Please update Institutional Roles-Cash Handling to document staff changes. 

  • Each unit must ensure that current and new staff handling cash meet the requirements of the staff certification process.

Staff Certification Responsibility for Individuals Handling Cash: 

  • Staff are required to complete the University of Iowa Cash Handling ICON course annually. Staff new to handling cash are required to complete the course as soon as they are responsible for that function. The course may be reviewed as a unit or individually. See the memo-to-campus for information on monitoring cash handling training compliance through the Compliance & Qualifications system.  

  • Staff must review these Cash Handling Policies and Procedures. 

  • New staff are required to review their unit’s approved local desktop procedures within one month of assuming a cash handling position and at least annually thereafter. 

  • Each individual must understand their role in their unit’s cash handling process. 

  • Staff must review local desktop procedures annually as a refresher. In addition, they must review updated departmental procedures as provided by unit management in a timely manner. We recommend reviewing policies and procedures every January.

Departmental procedures should incorporate the principles of good cash handling which include the following: 

  • Proper Segregation of Duties 

  • Adequate safeguards for handling, transporting and storing cash 

  • Promptly depositing cash at the bank or designated deposit drop location on campus 

  • Independent reconciliation of deposit documents to the statement of accounts 

  • Management oversight and review 

  • Copying and storing of checks received is strongly discouraged in order to protect sensitive information 

  • If no other alternative exists other than to copy and store checks that have been received in order to comply with a requirement, the following safeguards must be implemented. Copied checks must have the signature, bank routing numbers, account numbers, and social security numbers blackened out and the copies must be kept in a secure location where access is limited. Check copies should not be kept any longer than the minimum amount of time required and thereafter destroyed by shredding.

The use of checking or other bank accounts by University personnel for depositing University cash is prohibited. Periodic reviews of cash handling procedures will be conducted by Accounting and Financial Reporting and are always subject to audit by Internal Audit and external audit or review firms. Departments not complying with approved procedures may lose the privilege to handling cash. 

Departments requesting wire transfers to a University bank account must notify the University of Iowa Treasurer's Office in advance of each expected transfer and provide the amount and the MFK to be credited.

CLAS PROCEDURE 

Termination of Cash Handling Role(s): 

An email notification is automatically sent to CLAS Finance when a person is terminated and their institutional role for Cash Handling has been deleted. The Director, Business & Financial Administration's assistant will forward the email to the impacted departmental administrator and accountant informing them of the removal and request that they update their Cash Handling Procedure with the replacement. 

The updated Cash Handling procedure does not need to be re-routed in workflow to Accounting and Financial Reporting (AFR) for approval for name changes. The procedure does need to be sent to  CLAS Finance to update the Institutional Roles in the HR system and verify that the replacement employee has taken Cash Handling training.

Changes of responsibilities within departments: 

If job responsibilities change within departments that impact Cash Handling roles and responsibilities, the Cash Handling procedure must be updated to reflect those changes. The updated procedure does not need to be re-routed in workflow to AFR for approval for name changes. It does need to be sent to the Director, Business & Financial Administration's assistant to update the Institutional Roles in the HR system and verify that the replacement employee has taken Cash Handling training.

Required re-submissions of procedures: 

Departments are required to re-submit their Cash Handling procedures if: 

  • They have a procedural change (i.e. they are now using a safe instead of a file cabinet for safekeeping). 

  • Every 3 years from the most current approval date.

3-year re-submissions: 

AFR will send a notification email to CLAS Finance when it is time for procedures to be updated. The Director, Business & Financial Administration's assistant will forward the email to the impacted department(s) departmental administrator and accountant attaching a copy of the old cash handling procedure and the most recent cash handling template to use.

Once the department has updated their Cash Handling Procedure in the new template, they are to submit it into workflow for approval and ad hoc it to the Director, Business & Financial Administration's assistant. AFR will not approve the new procedure until they have seen that someone from CLAS Finance has reviewed, verified the institutional roles, and approved the new procedure in workflow. 

Forms  

Frequently Asked Questions  

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