--INACTIVE HISTORICAL POLICY--
Section: GENERAL ACCOUNTING
|Section 3000 Policies|
Policy Number: 3102.02
Policy Title: Segregation of Cash Handling Duties
Last Revision Date:
Policy Effective Date: April 1, 2011
It is the policy of the CSU to establish and maintain an adequate system of internal controls. A key element in a system of internal control is separation of duties. Campuses shall establish written procedures for safe, effective, and efficient handling of cash and cash equivalents. The minimum requirements are covered by the following statements.
Separation of duties must be maintained when cash is received and no single person should have complete control. If campuses are unable to comply with any of the following requirements for lack of resources, campuses must establish comparable, mitigating controls, approved by the campus CFO, that prevent and detect loss from fraud or negligence and will afford the same level of risk control as would have been achieved had these functions been fully segregated. .
- Cashiers shall not perform tasks incompatible with the collection and recording of receipts.
- The person collecting cash, issuing cash receipts, and preparing the departmental deposit should be someone other than the person performing the monthly review of the General Ledger or the person maintaining accounts receivable records.
- Deposit counts should be verified by a second person.
- Collections for returned checks, credit card chargebacks and ACH returns should be processed by other than Cashiering staff.
- The person approving write-offs should be different from the person maintaining the returned item inventory.
- Accounts Receivable records shall be secured from alteration by other than designated personnel. Campuses shall maintain audit records of all changes to the Accounts Receivable records.
- Individual accountability must be maintained and documented for all cash handling procedures:
- Each cashier shall be assigned a unique user ID, login, password, and cash fund not accessible by or shared with other individuals. The unit must provide a cash register drawer, a cash drawer insert or another secure cash receptacle to which only the cashier has access. An endorsement stamp or its mechanical equivalent will be provided. Cashiers must lock all cash in a drawer or other secure receptacle whenever leaving the immediate area.
- Documentation of cash differences (overages and shortages) must be maintained for each cashier.
- Mailed remittances shall be verified, processed by a separate individual, and restrictively endorsed by the close of business on the date of receipt.
- All cash transfers must be documented and the documentation of accountability maintained by category (i.e., currency, checks and other forms of payment).
- Campuses shall make every effort to ensure that key tasks (e.g. receipt, reconciliation, entering journal entries) shall be performed by different personnel.
Benjamin F. Quillian
Executive Vice-Chancellor/Chief Financial Officer
Approved: February 4, 2011
APPLICABILITY AND AREAS OF RESPONSIBILITY
RESOURCES AND REFERENCE MATERIALS
Sound Business Practices:
Laws, State Codes, Regulations and Mandates:
COGNIZANT OFFICE(S)CO Manager:
Mr. Sean Boylan
Cash Management Operations Officer, Resource Management Office
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)