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CSU POLICY

Section 3000 Policies

Policy Number:  3101.02

Policy Title: Campus Administration of Systemwide Cash Management Policy

Policy Effective Date: April 1, 2011

Last Revision Date: July 1, 2011
(see revision history)

POLICY OBJECTIVE

It is the policy of the CSU that systemwide cash management policies be implemented in a manner that meets the internal control objectives and documentation retention requirements of the University. Each campus must prepare written procedures to implement this policy.

POLICY STATEMENT

The Campus CFO or his/her delegate is responsible for implementing this policy on a campus level. An individual must be designated as the campus’ key contact for coordination with the Chancellor’s Office Cash Management Office.

The campus CFO or his/her delegate must:

• Arrange for the preparation, documentation and implementation of operating procedures for cash management activities.
• Document variances from these policies and procedures when warranted by local circumstances.
• Ensure that an annual documented review of compliance with these policies and procedures is performed with risk results reported to the campus CFO.

At a minimum, the campus’ cash management procedures must include:

• Designation of cash handling units and individuals/positions performing functions related to cash handling and cash accounting.
• The process for creating or dismantling approved cashiering/ sub-cashiering locations, including physical locations, websites, 3rd party processors, or any channel accepting credit card payments.
• Arrangements to ensure that the person or persons properly authorized to sign checks, drafts, or other orders for payment of money or to approve/release electronic transfers of funds against CSU checking accounts is/are covered by a fidelity bond.
• Identification, timing and composition of the monthly reconciliations that will be performed to ensure that campus cash and cash equivalents are received in a consistent manner utilizing systems that ensure integrity of existing internal controls. For example, a campus procedure would indicate that monthly bank reconciliations would be performed and independently reviewed by management.
• The steps the campus will perform, annually or on a more frequent basis, to request local banks to search for unauthorized bank accounts that use the campus name, address, and federal identification number.
• Processes for training to be provided to all cash handling employees upon employment and periodically thereafter determined by the cash handling role.  Such training must include instruction on cash handling procedures during a campus emergency.  Employees in positions where cash handling is not their primary duty should be informed of designated cashiering sites and how to handle cash or cash equivalents that may be received at a non-cashiering location. 

APPLICABILITY AND AREAS OF RESPONSIBILITY

 

REVISION HISTORY

• April 1, 2011 (Initial Issuance Date)

RESOURCES AND REFERENCE MATERIALS

Useful Guidelines:

• E.O. 731 – Designation of Chief Financial Officer
• Campuses must adhere to the reconciliation standards set by SAM sections 7901, 7908 and 7920 until a superseding ICSUAM policy is published on this topic.

Related Principles:

 

Sound Business Practices:

 

Laws, State Codes, Regulations and Mandates: