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Scope

This policy provides requirements for cash administration, including Cash Receipt Locations (CRLs) and Cash Transmittal Locations (CTLs).

Reason for Policy

The purpose of this policy is to ensure that University assets are protected, accurately processed and properly reported.  Handling cash with a strong set of internal controls minimizes the potential for the mishandling of funds.

Policy Statement

The handling of cash represents an area of high risk to the University. As such it is important to outline who has authority for handling cash.  The line of functional authority and responsibility for cash handling activities is from the Board of Curators to the President to the Vice President for Finance and Administration. Authority is then delegated to the UM System Office of the Treasurer and Controller and in turn, to the Campus Division of Finance office, the campus Cashiers Offices and the cash handling departments and units.  All University units that handle cash must have both an awareness of and show a commitment to strong internal controls for cash handling. The Office of Internal Audit and Consulting Services assesses the adequacy of cash handling procedures and compliance with University policy as part of their ongoing reviews of internal controls.

Cash handling operations must be subject to daily supervisory review and management. To minimize the potential for mistakes or misappropriation of cash, the segregation of cash handling duties is required (see Segregation of Duties policy 21302). The duties of collecting cash, maintaining documentation, preparing deposits, and reconciling records should be separated among different individuals. In departments where the segregation of duties is not feasible, strict individual accountability and thorough management supervision and review is required.

A criminal background check and verification of an individual’s employment record is required for all employees in positions that handle cash regardless of whether the employee is employed on a full-time or part-time basis.  Employees in supervisory positions are expected to be above reproach in the conduct of their personal financial affairs and any knowledge of a history of problems must be carefully considered.

Cash Receipt Locations (CRLs) & Cash Transmittal Locations (CTLs)
Any request or requirement to be a Cash Receipt Location (CRL) must be authorized by the Campus Division of Finance office (Office of the Treasurer for UM System). The request should indicate whether the CRL also seeks authorization to be a Cash Transmittal Location (CTL) and, if so, whether it seeks authorization to deal directly with the bank. If this location is not a CTL, the request should indicate the CTL to which the monies are transmitted. Any request or requirement for the collection of monies for or payment of monies to the University at a location other than the Campus Cashiers Office must be authorized by the Campus Division of Finance office (Office of the Treasurer for UM System).

Requests for a CRL or CTL must be made in writing and must include the following:

• A description of the money receiving and money transmitting processes, including the types of receipts, the segregation of duties and the training provided to cash-handling employees.
• For departments requesting to be a CRL, identify the CTL that will be used
• Sufficient information regarding each of the factors used to assign a risk classification, as indicated in the Cash Security policy 25701.
• The requestor's assessment of the appropri