Section: GENERAL ACCOUNTING
|Section 3000 Policies|
Policy Number: 3101.02
Policy Title: Campus Administration of Systemwide Cash Management Policy
Policy Effective Date: May 23, 2013
Last Revision Date: May 23, 2013
(see revision history)
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.
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.
- Notify the Chancellor’s Office Cash Management Office (“CMO”) of monies deposited electronically or disbursed electronically, to or from, one of the California State University’s commercial bank accounts.
- Notifications to CMO are mandatory when the daily sum total of electronic deposits or electronic disbursements exceeds $200,000.
- Electronic deposits and disbursements include, but are not limited to, Automated Clearing House (“ACH”) transactions, wire transactions, and direct bank-to-bank electronic settlements.
- Notifications to CMO shall be made as soon as practical, of final or estimated amounts. Advance notice at least one business day before the transaction’s settlement date is strongly preferred.
- Notifications to CMO can be made by email, telephone, automated systems, or other CMO approved method.
- In such cases where a campus contracts with third party vendors for the collection or disbursement of funds electronically, campuses are still responsible for delivering prompt and accurate notifications to CMO.
- Failure to comply with notification requirements may negatively impact systemwide cash positioning. Consequently, CMO may request delay of disbursements or pass through any resulting overdraft penalties to a campus, assessing such penalties against the campus’ share of SWIFT investment earnings.
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.
- The requirement that monthly reconciliations must be completed within 30 days of the preceding month and must show the preparer's name/signature, reviewer's name/signature, date prepared, and date reviewed.
- 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.
Benjamin F. Quillian
Executive Vice-Chancellor/Chief Financial Officer
Approved: May 23, 2013
APPLICABILITY AND AREAS OF RESPONSIBILITY
- April 1, 2011 (Initial Issuance Date)
RESOURCES AND REFERENCE MATERIALS
Sound Business Practices:
Laws, State Codes, Regulations and Mandates:
COGNIZANT OFFICE(S)CO Manager:
Ms. Colleen Zenger
Senior Financial Manager, Treasury Operations
CSU Office of the Chancellor
Mr. Oliver Ravela
Banking Services Analyst
CSU Office of the Chancellor
Ms. Gay Kvilhaug
Ms. Maribeth Bradberry
Ms. Nancy Suarez
Director, Student Financial Services
Ms. Jan Burnham
Student Financial Services
Ms. Gina Curry
Director & University Bursar
Ms. Cora Wong
Director, Student Financial Operations
Ms. Caryl Vickers-Harper
Assistant Director & University Cashier
Students Accounts Receivable (SAR)