|CMP 307: Departmental Cash and Check Receipting|
To set minimum standards for cash and check receipting by departments and to define the procedure for NAU Departments receiving and depositing university funds (hereafter "funds").
University policy, Arizona Board of Regents policy, Chapter 3, Section 3-101
University funds are defined as cash, credit card payments, checks, money orders, travelers checks, or other form of money received by a University Administrative Unit or employee for the benefit or support of and NAU program and/or, any form of money received for the sale of NAU materials, property, and/or services, or for the use of NAU property. University funds are to be deposited daily with Student and Departmental Account Services (Student Accounts) whenever the sum of $200 or more in CASH and/or $2,000 or more IN CHECKS is accumulated. Funds less than $200 CASH and/or $2,000 IN CHECKS may be accumulated for up to five working days.
In other words, a deposit is required whenever $200 IN CASH and/or $2,000 IN CHECKS is accumulated, or five business days pass, whichever occurs first.
Under no circumstances should the department hold university funds for longer than five working days from the date of collection. Deans, Department Chairs, Directors, and Fund Custodians who receive funds must assure compliance to procedure. University funds must be deposited as detailed under Deposit of Receipts (III-E) and Transportation of Cash (III-F).
Funds received on behalf of, or for the benefit of, NAU must be deposited with Student Accounts. These deposits initiate recording the revenue in university (Peoplesoft Financials (PSFIN)) accounts. Arizona Board of Regents policy, Chapter 3, Section 3-101, requires that all university funds be deposited only to bank accounts authorized by the Arizona Board of Regents. Student Accounts will deposit funds with the bank(s). NAU Departments deal only with Student Accounts, not with the bank(s) unless otherwise authorized in writing by the Comptroller.
Cashiering Function (At Departmental Level):
Prior to an NAU department, individual, or other unit establishing a cashiering function or accepting funds other than through the main NAU Student Accounts, the authorization to do so must be obtained from the Comptroller in writing. If cashiering is authorized at the departmental level, a change fund, if needed, is to be obtained from the Comptroller's Office. Change funds must never be established by withholding cash from deposits to the university accounts.
Events with ticketed admission must be handled through the NAU Central Ticket Office, or a ticketing system outlet, which eliminates the need for cashiering at the departmental level.
The following separation of duties should exist:
An individual other than the teller should open mail containing revenue, restrictively endorse any checks or other negotiable instruments, make a list in ink of such revenue received, and then present the funds to the teller for deposit. A copy of the listing of revenue should be maintained and reviewed/reconciled daily to the deposit transmittal.
The department fund custodian and the supervisor of the fund custodian should reconcile/review the deposit transmittal and listing of revenues received. Both the fund custodian and the fund custodian supervisor will sign the deposit transmittal.
The person(s) performing the cashiering function must not be the same person who performs accounts receivable functions. (Extending credit by allowing accounts receivable must be pre-authorized by the Comptroller in writing).
The duties of employees connected with the cash receipts function should be rotated.
If the size of a unit prohibits the rotation of these functions, Student Accounts or the University Auditor should be notified, so as to ensure that proper internal control procedures are followed.
Securing university funds:
All university funds received should be secured in a locked cash register, drawer, or locking cash box and kept, when not physically guarded, in a secure safe, room, or cabinet not accessible to anyone other than the responsible employee. Common sense dictates that larger amounts of cash should not be kept any longer than is absolutely necessary to reduce exposure to loss.
All drawers and cash boxes must be locked during the cashier's absence.
Safe combinations and keys to drawers or cash boxes must be restricted to a minimum number of employees. Combinations and duplicate keys may need to be issued to individuals other than the employees holding the keys or combinations for backup purposes. If it is necessary to issue keys or combinations to a third party person for infrequent backup in the absence of the two primary people, then a sealed envelope should be used, the seal of which is to be broken only if the first two people are absent.
Safe combinations and locks are to be changed periodically and when indicated by employee turnover.
All checks received for deposit are to be made payable to Northern Arizona University and must be stamped with a restrictive endorsement. The stamp should include the following:
FOR DEPOSIT ONLY
JP MORGAN CHASE
Your Department Name
Northern Arizona University
All payee endorsements are restricted to the specified area in the back of the check.
If checks are not properly endorsed, they will not be accepted for deposit.
Any information regarding the identification of the signer of a check, such as a driver's license number, check guarantee number, or NAU ID number should be placed on the upper left hand portion of the front of the check. Such information must be recorded whenever merchandise or services are exchanged for the check in person. Such information is not normally available on mail-in payments.
All cash payments are to be deposited in total and may not be used for direct payment of miscellaneous small purchases. If such a need exists for frequent, small (less than $25.00) purchases, the department may request, from
Comptroller's Office, the establishment of a petty cash fund.
Procedures for handling suspected counterfeit currency are outlined here.
For any deposit, all coin must be rolled and currency strapped, if possible. Coin wrappers and currency straps are available from the Fee Payment Office.
Currency is to be strapped as follows:
a) 1's - in 50 or 100 dollar straps
b) 5's - in 100 or 250 dollar straps
c) 10's - in 250, 500, or 1,000 dollar straps
d) 20's - in 500, 1,000, or 2,000 dollar straps
e) 50's - in 500, 1,000, or 2,000 dollar straps
f) 100's - in 500, 1,000, or 2,000 dollar straps
Collection of Receipts
1) Upon receipt of funds, the fund custodian will verify the cash and/or checks.
2)Restrictive endorsements must be placed on checks as soon as they are received.
3)All cash items are to be placed immediately in a locked drawer or cash box.
4) All receipt forms must be pre-numbered, controlled, and accountability must be maintained.
5) Each department should maintain the following basic records:
A) Deposit transmittal forms
(1) A deposit transmittal (see Departmental Transmittal form example) form must be used for all departmental deposits. This form must be routed as follows:
(a) Original to
Student Accounts with the deposit
(b) Duplicate retained in the department
(2) Other forms (such as spreadsheets) are acceptable as long as all of the required information is retained.
(3) Pre-numbered receipt forms, preferably multi-copy and bound in a book. Alternative receipt methods require written approval of the Comptroller.
B) File of refunds (Multi-Claims)
C) Cash over and short record by cashier.
(1) Cash over and short is to be recorded in Peoplesoft Financials (PSFIN) rather than depositing overages as additional revenue or reducing recorded revenue by the shortages.
D) Daily balance sheet.
Deposit of Revenue
The fund custodian will summarize the revenue received for the day and then enter the amount on a Deposit Transmittal Form (see Departmental Transmittal form) This form must contain the following:
To be authorized to accept Credit Card payments, you must first obtain permission from the Comptroller. Subsequent to that authorization, you may then initiate arrangements through Student Accounts for issuance of a merchant number and credit card machine through JP Morgan Chase.
A locking bank bag (available from Student Accounts for a nominal fee) or sealing plastic bag must be used to transport the cash, checks, credit card settlement (for authorized departments only), and deposit transmittal form(s). This bag must have the department name and box number clearly visible on the outside of the bag.
If sealing plastic bags are used for fund transportation, you must include in the sealing plastic bag the cash, checks, credit card settlement (for authorized departments only), deposit transmittal form(s), and a return addressed inter-departmental envelope.
Transportation of Departmental Deposits to Student Accounts
Prepare deposit as instructed. ALL deposits must be in a locked bank bag or an approved sealed plastic bank bag.
Please note: Deposits not sealed using the above method will not be picked up by the armored car service due to the lack of protection against tampering.
Each depositing department will be required to deposit all locked/sealed bags at any one of the following locations:
DuBois, Building 64, front lobby area contact Louise Brown
University Union, Building 30, Activities office rm. 111 – contact Pete Yanka
Gammage, Building 1, South Main Lobby Drop Box contact Office of the Bursar
Each of the above locations has a secure lock box depository. A combination (provided by Student Accounts) will be issued to the depositing department in order to access the depository chute.
It is required that two people accompany the departmental deposit from their office to the nearest depository. This will ensure a witnessed chain of custody. A video surveillance camera is located at each drop box for your safety and to verify that a drop was made.
Armored car service will pick up the deposits daily from each depository and then forward the locked/sealed bags to Student Accounts for processing.
Deposits need to be dropped by 12 noon for same day pickup.
A designated individual(s) from a nearby office will provide a key to open the depository with the armored car service. This method requires two keys (one NAU, one armored service) to open the depository. The designated individual(s) will count and the armored car service will verify the number of bags collected and that all bags are locked/sealed. Note: Deposits that are not locked or sealed using the above method, will not be picked up by the armored car service and will be left in the depository, which could delay processing for several days.
Student Accounts will log and verify the departmental deposits delivered by the armored car service. Deposits will be posted to Peoplesoft Financials (PSFIN) and forwarded to the bank. The locked/sealed bags will be returned with receipts to the depositing department via campus mail. If any discrepancy is found, two tellers will individually recount the deposit. If each arrives at the same total, the deposit transmittal will be changed and both will sign it. The department will be called and notified of the change if the discrepancy amounts to $10.00 dollars or more.
For special events or after hour transports, please contact the NAU Police Department for arrangements.
Any questions regarding the above procedures should be addressed to Student Accounts, at 866-234-6153.
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