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Part 5. Financial Services
Section I. Business Office
D. University Cashier
The University Cashier collects all money received from students, staff and outside agencies and receives for deposit funds collected by other University departments for sales, services and special fees.
Faculty, Staff and student payroll checks are also distributed at the Cashier’s Office. Generally, faculty paychecks are placed in faculty post office boxes in the mail center.
The Cashier’s Office closes thirty (30) minutes prior to the end of the official working day.
2. Departmental Authority to Collect Money
Only University departments designated by the Office of Financial Services are authorized to collect money from students, staff or other sources. Designated departments are provided with the equipment and instructions necessary to meet established University and State procedures.
Staff from the Department of Auditing Services or the Office of Financial Services may at any time, without advance notice, conduct an audit of funds in any department acting in the capacity of a collecting agency.
Cash collections require proper collection, recording, safekeeping, and deposit procedures.
These procedures have been developed and must be followed to ensure compliance with University policy and to protect the employee and the University from alleged negligence. Failure to adhere to the procedures may result in employee reprimand or dismissal or departmental revocation of the privilege to collect revenues. It is recommended that these written procedures be expanded as needed to accommodate specific departmental needs.
Money should be collected in as few places as possible and stored in the most secure safekeeping facilities available, such as a safe or vault. (For more information, see Security and Storage of Receipts.)
A two-part departmental receipt should be issued for all cash received, one copy for the customer and the other to be retained in numerical order by the department. Use of pre-numbered receipts offers better control over revenues and assists in record-keeping. Receipts should be issued in numerical order and each deposit should specify the receipts covered. If a receipt is incorrect, write VOID across the face and retain both copies for the records. Each receipt should include an explanation of the goods provided or services performed, date, name and method of payment.
Departments involved in the collection of money must maintain proper records, including receipt and deposit records, inventories of saleable items, and cash reconciliations. These records must be retained by the department for five (5) years before they can be destroyed. The Department of Auditing Services may be of assistance in designing a record-keeping system that will be acceptable for accounting purposes.
Dishonored checks can be kept at a minimum by requiring proper identification such as a student or staff ID card or non-student driver’s license. Lack of proper identification is justification for refusing to accept a check. Personal checks should be accepted for the amount of purchase only, endorsed with the departmental “For Deposit Only” stamp when received, and initialed by the person accepting them. Upon request, the Office of Financial Services will provide departments with bank deposit stamps.
Personal checks cannot be exchanged for cash except at the Student Union Check Cashing Service or the Cashier’s Office.
All other checks made payable to the University are assumed to be payments for goods and services provided by the University and must be receipted to a University account. If there are unusual circumstances where funds should not be the property of the University, contact the University Controller or Business Manager for assistance.
Some revenue collections require the use of additional cash for making change. Only when absolutely necessary, change funds are established for this purpose. Authorized change funds must be requested and approved by the University Business Manager and the Internal Auditor.
Unauthorized uses of change funds include personal check cashing, petty cash activity, or any other non-business purpose. Cash receipts must not be withheld from deposits to establish change funds.
An employee should be assigned as custodian of the fund with responsibility for its use and safekeeping. The department should then provide the University Business Manager and Internal Auditor with this person’s name, as well as the names of all employees having access to the fund.
c. Cash Count and Reconciliation
Internal cash counts are performed to ensure the accountability of money held, verify the correctness of daily transactions, and identify cash-handling problems.
For proper control, cash should be counted at the beginning of each day’s activity or when cash is assigned to an individual, verifying that the amount received is correct. Cash should be counted at the end of each day’s activity by another individual not performing cashiering functions, and reconciled with daily receipts by someone independent of cashiering and cash count functions, whenever possible. Cash count forms should be completed. The form used and procedures followed should be as basic or as sophisticated as necessary, based on the nature and amount of revenues.
The only people authorized to count University cash held by a department are personnel from the Office of Financial Services or Department of Auditing Services or authorized external audit personnel. Cash counts should always be performed in the presence of the individual responsible for the cash.
d. Security and Storage of Receipts
Ideally, receipts should be deposited daily, as required by University policy (see Deposit Procedures), or stored in a safe vault during non-working hours. If adequate storage facilities are not available, alternative procedures should be used, such as:
(1) making use of the nearest departmental safe or vault to store locked money bag or cash box,
(2) limiting cash collection points to those areas with adequate storage facilities,
(3) establishing specific cash collection days or depositing at the end of the day.
Receipts should never be left unattended. The strictest security measures possible should be implemented. Departments handling small amounts of cash where secure storage facilities are inaccessible, should consider the purchase of an alternate storage facility.
Cash or checks to be turned over to an employee for handling should be delivered to that individual personally. If the person cannot be located, give the funds to the University Cashier for safekeeping or retain them in a secure place until he/she returns. Money should NEVER be left on a desk under the assumption that the person will find it. The department initially receiving the money is responsible for its proper and prompt depositing.
If a refund is necessary from funds received, the money must first be deposited with the University Cashier, a refund check is then requested through Accounts Payable. Both the receipt and the refund check must be recorded and documented to provide an audit trail and in case of dispute at a later time. Procedures for refunding large amounts of money (i.e., canceled activities for which tickets were purchased) should be cleared through the Controller or the University Business Manager.
e. Control of Receipt Storage Area
Access to buildings, rooms, and offices by numerous individuals reduces security over receipts. Controlled access to cash storage areas must be maintained and the distribution of keys kept at a minimum.
Keys left in unlocked desk drawers or identified by use are open invitations to an easy theft. Locks and combinations should be changed when employees terminate, or every two years, to protect the department as well as former employees.
Strangers found in restricted areas or in buildings after hours should always be questioned. Mode of entry and possession of unauthorized keys should be investigated.
f. Deposit Procedures
All revenues generated as a result of the sale of University goods or services belong to the University and must be deposited with the University Cashier daily (weekly if the total is less than $50.00).
Deposits (currency, coins, or checks) must never be sent through the mail, including campus mail. They must be hand carried to the University Cashier for deposit.
Deposits made to the University Cashier must be accompanied by a Standard Receipt Deposit Slip, or a pre-approved departmental form prepared in duplicate and including the following information.
(1) Name of department making deposit.
(2) Date of deposit.
(3) Account number to which deposit will be credited.
(4) Serial numbers of departmental receipts issued.
(5) Number of any voided receipt.
(6) Listing of type of receipt, i.e., sales, rental fees, fines, etc.
(7) Signature of person preparing receipts for deposit.
Any overage or shortage (from total cash on hand less change fund and receipts) should be reported on the deposit slip under a separate receipt code, 6699.
All deposits should be counted by the University Cashier in the presence of the depositor. A cashier’s receipt is prepared and validated. One validated copy is returned to the depositor to be maintained in a chronological file in the department.
g. Sales Tax
Care must be exercised to segregate non-taxable sales and services from taxable sales and services (see Schedule below). Records should be maintained to support the receipts claimed as tax exempt. The Office of Financial Services prepares the quarterly sales tax report. The appropriate departmental accounts are charged for sales tax collected or due the State Department of Revenue and Taxation thus relieving departments of the responsibility.
(1) Goods
(a) Taxable
i. All Food products sold, i.e., snacks, soft drinks, gum, candies, and confections.
ii. Board portion of housing contracts, i.e., meals.
iii. Clothing.
iv. Publications, pamphlets, books, newspapers, and magazines.
v. Pens, pencils, and miscellaneous supplies.
vi. Surplus property and scrap including old rental equipment.
vii. Books, lab manuals, or equipment sold to students for personal or classroom use.
viii. Document copying.
ix. Parts and materials for maintenance and repair of tangible personal property.
(b) Non-Taxable
i. Items sold to the United States, its unincorporated agencies and instrumentalities.
ii. Items sold to other State agencies, other University departments, and elementary and secondary schools.
iii. Items sold for use solely outside of Idaho and delivered to an agent or carrier for shipment out of the state.
iv. Items sold to a person who will “re-sell” the items and furnishes a certificate to that effect.
(2) Services
(a) Taxable
i. Admission to athletic, amusement, and entertainment events.
ii. Fees, dues, etc., paid for access to or use of recreational, athletic or amusement facilities or equipment such as billiards, bowling, etc.
iii. Rooms for daily rental, i.e., hotel/motel rooms.
iv. Rental of University facilities to taxable entities for events to which admission is not charged.
(b) Non-Taxable
i. Educational services for which fees are received.
ii. Providing parking space, etc., where the facility is owned by the University or other governmental unit.
iii. Services of a personal nature performed for individuals, i.e., counseling, etc.
iv. Transportation of people.
v. Acting as a commission broker or gallery for artists’ work.
vi. Services provided to the United States, etc.; other State agencies and other University departments, and elementary and secondary schools.
vii. Rental of University facilities to taxable entities for events to which admission is charged (sales tax is collected on the price of admission rather than the rental fee). Each month it is the department’s responsibility to verify the deposit of funds to proper accounts (by University Cashier receipts numbers) using the monthly statements of activity distributed by the Accounting Office. Any discrepancies should be reported to the Accounting Office.
h. Burglary and Theft of Money
All burglaries and thefts should be reported to the Campus Public Safety Office and the Insurance Coordinator in the Office of Financial Services.
Proper security procedures taken in advance can reduce the possibility of a theft. Consider the following:
(1) Is cash kept in a location obvious to people entering the office?
(2) Is access to cash restricted to a limited number of employees?
(3) Are keys and combinations to cash storage locations kept to a minimum?
(4) Are combinations changed when employees terminate?
(5) Is cash ever left unattended, even for just a few moments?
a. The petty cash reimbursement system allows reimbursement to University employees for departmental expenditures, up to $50.00, without going through the normal purchasing procedures.
b. Under this system, an employee may be reimbursed for departmental cash purchases, paid for from personal funds, by submitting to the University Cashier for reimbursement, a completed Cash Item Voucher form, with the cash receipt that identifies the date, place of business, items bought, and amount paid. The items purchased must be listed on the cash voucher, the appropriate department chairperson/director’s approval obtained, and the certification completed by the claimant.
Cash vouchers should be presented for reimbursement no more than fifteen (15) days after the date of purchase.
c. If the purchaser is required to pay sales tax, the University will provide reimbursement.
d. Promotional expenses may be reimbursed on a cash voucher form. A signed Promotion Reimbursement Request Form must be submitted with the cash voucher for reimbursement. (See Official Social Functions Guidelines).
e. Items not authorized for reimbursement through petty cash include salary and wage payments, gifts, flowers, Christmas decorations, other office decorations, and items of a personal nature, i.e., tissue, aspirin.
5. Dishonored Check Policy and Procedure
All checks returned to the University for insufficient funds, refer to maker, stop payment, account closed, etc., will be received by the University Cashier. The University Cashier will notify the drawer of the check and complete the control card to be filed in the Cashier’s Office. The University Cashier maintains physical control of the returned checks until funds are collected, legal action is taken, or the check is deemed uncollectible and written off.
The University Cashier will have primary responsibility for the collection and clearance of returned checks, and the levying of returned check fees as authorized by the State Board of Education.
The following steps may be used, as necessary, to protect the assets of the University and collect funds lost due to returned checks:
(1) Contact the maker to notify of the returned check charge and request funds to cover the returned check. A returned check charge will be assessed for each check returned by the bank. The current charge is $15.00.
(2) Contact the bank for verification that funds are available in the maker’s account. For accounts with adequate funds, cash the check at the bank immediately or redeposit the check in the University account, depending on the credit history of the maker.
(3) Place student records on hold to collect through registration and block release of information until payment is received.
(4) For employees with outstanding returned checks who do not respond to other notification efforts, place payroll checks on hold.
(5) Refer returned checks not collected in a reasonable time (within two weeks) to a collection agency, following notice to the maker of that action. Checks referred to collection agencies will be written off against the account to which the original deposit was credited. The cost of collection will be borne by the maker of the check.
(6) Flagrant or repeated returned check violations should be referred to the Office of General Counsel for legal action or prosecution.
b. Preventive Action
Dishonored check lists will be prepared by the University Cashier indicating those people who have abused check writing privileges in the past. Repeat offenders and people unresponsive to collection efforts will be listed. Departments should not accept checks from these individuals without prior clearance from the University Cashier.