Definition The term cash includes currency, checks, money orders, negotiable instruments and charge card transactions.
Responsibilities of Individual Departments The Department is responsible for developing detailed written departmental operating procedures that comply with University policies. The Finance Office is available for consultation and review of departmental procedures. The Department is responsible for training designated employees in fund handling policies and procedures.
Segregation of Duties in Campus Departments There should be a separation of duties between the person receiving/processing/depositing cash (asset custody) and the person responsible for reconciling & maintaining the accounting records (recording). Cash receipt activity should be reconciled to SAP and any subsidiary ledgers at least monthly. The reconciliation should be reviewed and approved by someone independent of the cash handling or account record maintenance. The Department should have a plan for delegation of duties when employees are absent to ensure that cash collection policies & procedures continue intact and remain appropriately segregated.
Safekeeping of Funds All forms of cash (currency, checks, money orders, negotiable instruments and charge card transactions) should be physically protected through the use of vaults, locked cash drawers, cash registers, locked metal boxes, etc. Access should be restricted to authorized personnel. Safe combinations & locks should be changed periodically and after turnover. Checks, money orders, travelers checks, etc. should be made out to “University of Nebraska-Kearney” (not “UNK” or not left blank for later ink stamping). Checks should be endorsed immediately upon receipt. Endorsements are limited to the top 1.5 inches on the backside of the check at the trailing edge. If you look at the face of the check, the endorsement area is directly behind where "Pay to the Order of" is printed.
Department Petty Cash Fund Departments are not authorized to maintain petty cash funds.
Money should be deposited promptly and intact to the Finance Office. Receipts may not be used for loans, advances, refunds, check cashing, or petty cash purchases. Purchases and refunds must be requisitioned through the Finance Office. Cash should not be withheld from a deposit for the purpose of adding to or creating a petty cash or change fund.
Department Change Fund Departments can request a change fund through the Finance Office. Upon authorization, a change fund will be issued by the Finance Office. Departments should assign a custodian responsible for the accountability of these funds. The custodian of the fund is fully responsible for the safekeeping of the fund and for its proper usage. Any discrepancies in the fund are the responsibility of the custodian. The change fund is to be used only for making change in cashiering operations and cannot be used for expenditures. Change funds must not be commingled with other funds or used for any other purpose. At the conclusion of its use, a change fund must be returned to the Finance Office.
Departmental/Affiliated Organizations/Student Group Bank Accounts University departments must use the Nebraska State Treasurer as the fiduciary for their funds. The use of outside bank accounts for the depositing and/or safekeeping of funds is strictly prohibited, regardless of the funding source. Any requests to deviate from this policy must be presented to the Finance Office for proper authorization. Student groups must use their own tax identification number when opening an outside bank account.
Frequency of Deposits State statute requires that all cash be deposited with the State Treasury within 3 business days of receipt if > $500 and within 7 days of receipt if < $500. Note that the time begins when anyone at UNK receives the funds, not just when the department secretary or the Finance Office receives the funds. The Finance Office requests that all departments routinely deposit receipts twice weekly at a minimum to comply with the state statute; however daily depositing is recommended. Do not hold funds until conclusion of an event in order to facilitate refunds. Instead, deposit funds promptly and request refunds through the Finance Office.
Customer Receipts When payments are received in person, the transaction should be recorded on a pre-numbered two-part receipt form or cash register immediately. (The only exception to this would be in the case where pre-numbered tickets are sold.) One copy of the receipt should be given to the customer and one copy maintained by the department. Receipts should be issued in sequential order. Both copies of void receipts should be maintained by the department for sequence accountability and audit. Unused receipts must be controlled and accounted for.
Mail should be opened, by two persons preferably, and payments logged and checks endorsed immediately.
Once payments are receipted or logged, the funds should immediately be safeguarded until deposited with the Finance Office. The receipt books and payment logs (rather than the checks) can then be used by other personnel to update and reconcile customer subsidiary ledgers, conference rosters, customer files, etc.
Check Re-presentment Policy The following notice must be permanently posted anywhere that UNK accepts paper checks. Forms that are mailed or posted on a web page that give the customer the option to pay by paper check should also include this policy.
Electronic Check Re-presentment Policy – In the event that your check is returned unpaid for insufficient or uncollected funds, we may re-present your check electronically. In the ordinary course of business, your check will not be provided to you with your bank statement, but a copy can be retrieved by contacting your financial institution.
Deposit Forms & Supporting Paper Trail Deposits should be made on a UNK Inter-Office Cash Transmittal Form http://sapphire.nebraska.edu/gm/folder-1.11.19845?mode=EU. This form is used to record, communicate and document deposits made by departments to SAP. An itemized list of payments should be included on the form or attached to the form. The list should include payer, student or customer name if different than payer, check number, amount, etc. All deposits should be counted twice prior to being delivered to the Finance Office. An adding machine tape reflecting the deposit amount can be stapled to the deposit form to serve as a point of reference in case something does not match up.
How to Transport Deposits Deposits should be hand-carried by a department representative to the Finance Office. Customers should be discouraged from sending currency through the mail.
What the Finance Office Does With the Departmental Deposits If the department representative waits for the deposit to be processed, the Cashier will count/validate the funds in the presence of the departmental representative. The Cashier will immediately compare the validated total to the amount on the Inter-Office Cash Transmittal Form. Any discrepancies must be reconciled at once before the deposit can be processed and applied to the departmental account. A receipt is given to the departmental representative.
If the deposit is left in the Cashier in-box for later processing, the Cashier will open the transport bag or envelope and validate/process the deposit in a timely manner. Any discrepancies will be verified by both the Cashier and supervisor. Any overages or shortages will result in a confirmation call to the originating department. Upon reconciliation, the deposit will be processed and applied to the departmental account. The Cashier will send a transaction receipt back to the originating department.
Departments can generally expect to see a deposit post to SAP two business days after receipted by the Finance Office.
While the Finance Office is processing the deposit they look at the following:
- They are restrictively endorsed
- Checks are not stale-dated or post-dated. No two party checks.
- Checks are made payable to “University of Nebraska at Kearney”. UNK cannot receipt checks made payable to the “University of Nebraska Foundation”.
- Written amount and numerical amount agree
- Payer’s signature is not missing
- Checks are drawn on a U.S. bank and in U.S. funds
- Existence of bank account and routing number
- Make sure the count is accurate
- Look for counterfeit currency
- Look for altered currency
- We do not accept foreign currency
Inter-Office Deposit Form
- Check for mathematical accuracy
- Verify check & cash totals are listed properly
- Verify account number field is filled in
- Verify that the funds received equal the deposit form
Department Reconciling At least monthly, a person other than the person handling cash receipts should:
Reconcile deposits per SAP to the Inter-Office Cash Transmittal Forms
Reconcile the Inter-Office Cash Transmittal Forms to the customer receipt trail (i.e. receipt book, payment log, cash register close-out report, etc.)
Reconcile deposits to payments recorded in customer subsidiary ledger, databases, worksheets, etc.
Department Approval Supervisors should review and approve reconciliations, review SAP and subsidiary ledger detail activity and perform regular analytical review of balances for reasonableness based on expectations. Such reviews should be documented for proof that they are being done.
Returned Check Procedures The Finance Office will notify the department when a check they have deposited is returned unpaid by the State Treasurer due to insufficient funds, closed account or stop payment. The amount of the returned check will be charged back to the same department account to which the original check was deposited. The State Treasurer assesses a $20.00 fee for each returned check. That fee will be passed on to the department and deducted from the department account as well.
Upon notification of the returned check, the department should attempt collection of the debt plus a $30.00 service charge for each returned check. This service charge covers the State Treasurer's fee and the University's cost to collect the debt. When collection is made, a new receipt, including the $30.00 service charge, should be issued to the customer and a new cash transmittal should be submitted to the Finance Office for deposit to the department's account. Only cash or money order should be accepted for payment on a returned check.
Recording Accounts Receivable Certain departments routinely provide goods and services to customers resulting in accounts receivable. The subsidiary receivable records and billings are maintained by the department.
- Accounts receivable records should be maintained by an individual who does not handle cash collections.
- Additions to accounts receivable records should be reconciled to sales & service records to ensure all sales & services are billed.
- Payments posted to accounts receivable records should be reconciled to cash collection records.
- Any credit memos or adjustments to accounts receivable should be approved by supervisor.
- A billing cycle should be followed and an aging of accounts receivable monitored. The Department should have a policy for handling delinquent accounts.
- Departments will provide an aged schedule of accounts receivable to the Finance Office at June 30. This schedule will be signed by the dean, department chair, or their designated business representative. A journal entry will be entered into SAP to debit accounts receivable and credit revenue in the appropriate cost center for the department that supplied the good or service. Information provided by Department with regards to aging and collection efforts will be considered by the Finance Office when evaluating whether to establish an allowance for doubtful accounts.
- A departmental receivable determined to be uncollectible can be written off at the time it is determined to be uncollectible or at June 30. The dean, director, or department chair will prepare and sign a schedule of accounts receivable recommended for write off and submit it to the Assistant Vice Chancellor for Business & Finance for written approval of the write off.
Sales/Use Tax Sales tax must be collected on those sales made to the final customer. Sales for resale are not subject to sales tax, but sales are considered for resale only if a Resale Certificate is procured from the buyer. All other sales are presumed to be taxable. Contact the Finance Office if you have questions.
Credit Cards Departments must receive Finance Office approval prior to acceptance of payment cards regardless of the method or technology used (e-commerce, POS device, in person, telephone, fax or mail). Upon approval, departments agree to comply with Payment Card Industry Data Security Standards (PCIDSS) including an annual security control review & attestation. PCI compliance mitigates risk, protects the University from the costs of a breach, and strengthens overall security. When the University complies with the PCIDSS, it not only protects itself, but also its students, employees, alumni and customers.
See UNK Payment Card Information Security Guidelines for full description of requirements for handling credit card transactions.