--INACTIVE HISTORICAL POLICY--
Section: GENERAL ACCOUNTING
|Section 3000 Policies|
Policy Number: 3102.02
Policy Title: Segregation of Cash Handling Duties
Policy Effective Date: April 1, 2011
Last Revision Date: July 9, 2012
(see revision history)
It is the policy of the CSU to establish and maintain an adequate separation of duties in the area of cash handling, so that no one individual has exclusive control over a given process. Campuses must establish written procedures to implement this policy.
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 can prevent and detect loss from fraud or negligence.
Separation of duties requirements:
- The storage and inventory of blank receipt stock must be handled by someone other than a cashier.
- The person collecting cash, issuing cash receipts, and preparing the departmental deposit must be someone other than the person performing the monthly review of the general ledger, the person maintaining accounts receivable records, or the person following up on collectibles.
- Deposit counts must be verified by a second person.
- Collections for returned checks, credit card charge-backs and ACH returns must be processed by other than cashiering staff.
- The person approving write-offs must be different from the person maintaining the returned item inventory.
- Accounts Receivable records must be secured from alteration by other than designated personnel. Campuses must 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 must 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 used to restrictively endorse all cash equivalent instruments as soon as possible but no later than the close of business on the date of receipt.
- Cashiers must lock all cash and cash equivalents 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 for subsequent review by a supervisor.
- Mailed remittances must 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 must make every effort to ensure that key tasks (e.g. receipt, reconciliation, entering journal entries) shall be performed by different personnel. Mitigating controls such as periodic reports that are reviewed and approved by a supervisor and maintained as an audit record, reconciliations with inventory counts, and bank record reconciliations to cash count records by a supervisor or unrelated party, can serve as adequate control techniques when staffing levels do not afford full segregation.
Benjamin F. Quillian
Executive Vice-Chancellor/Chief Financial Officer
Approved: July 9, 2012
APPLICABILITY AND AREAS OF RESPONSIBILITY
RESOURCES AND REFERENCE MATERIALS
Sound Business Practices:
Laws, State Codes, Regulations and Mandates:
COGNIZANT OFFICE(S)CO Manager:
Mr. Robert Eaton
Senior Director, Financing and Treasury
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)