Cash Handling Guidelines

Every department receiving cash should have an up-to-date Cash Handling Plan approved and on file with the University Collections Office. These plans are the Business Office’s guide for managing cash in their office. Individuals in these offices should be familiar with the plan and knowledgeable of their roles in the process. The plan should be updated as staff turnover and duties are reassigned.

In the University Cash Handling Manual (http://www.purdue.edu/uco/Cash_Hand/Welcome.html), cash is defined as paper currency, coin, checks, credit card charges, letters of credit and electronic funds transfer. The guidelines below apply to the receipt, deposit and security of these items. Questions about how to implement these guidelines, in particular offices, should be directed to the School Business Manager and/or the Manager of University Collections.

INTERNAL CONTROLS AND SEPARATION OF DUTIES
1. The receipt, deposit and reconciliation process should be segregated among staff members.
2. Cash should be kept in a secure (locking desk or file cabinet), central location.
3. Receipt forms and transaction records should be kept separate from the currency.
4. Revolving fund (checking account or cash) documents should be kept in a secure location. Cash for revolving funds should be maintained separately from change funds.
5. Transactions and receipts should be identifiable to specific individuals.
6. Periodically, the Business Manager should observe and verify contents of safe, the status of all cash funds and revolving fund checking account balances.
7. Annually or upon staff turnover, review Cash Handling Plan to ensure actual procedures comply with the Plan.
COLLECTION OF CASH
1. Ensure appropriate approvals have been obtained for collecting cash.
2. Ensure receipting process is appropriate for the activity, i.e., cash logs, pre-numbered receipts or cash register tapes.
3. Deliver deposits to University Bursar in a safe manner. Paper currency and coins should be delivered manually and never sent via campus mail.
4. Checks should be properly endorsed as outlined on Page 19 in the Cash Handling Procedures Manual.
5. Currency payments over $10,000 need to be reported appropriately (see Cash Handling Procedures) to the Manager of Cashiering & Collections in the Bursar Office.
6. Deposits are to be made “intact” as received, i.e., cash for needed expenditures should not be deducted from a deposit and personal checks should not be substituted for cash.
RECONCILIATION PROCESSES (i.e., CRV, Revolving Fund, Petty Cash and Change Funds)
1. Verify monthly deposit transactions against cash logs and/or CRV’s. More or less frequent reconciliations may be appropriate for some operations.
2. Review completed reconciliations in accordance with cash handling procedures.
3. Complete revolving fund, petty cash and change fund reconciliation’s as per the guidelines (Revolving Fund Procedures)
PROPER RECORDING OF CASH
1. Gift
  1. Academic authority provides input for appropriate use and deposit.
  2. Business Office follows the Form 44 questionnaire to classify the funds correctly.
2. Reimbursement of Expense
  1. Guidelines exist for reimbursement of expenses as a part of a “Flow Through Rate.” Refer to the Costing homepage (http://www.purdue.edu/costing/) for guidance in determining if the reimbursement falls within these guidelines. Further guidance can be obtained from the School Business Manager or the Costing Office.
  2. Use of University resources for personal benefit is prohibited. In situations where this policy is not followed, ensure the reimbursement is deposited against the appropriate object codes and accounts. Staff involved should be counseled to avoid these situations in the future.
3. When receipting fee income, ensure approved rate requests are on file for all products and services sold and the appropriate rates are charged. Contact the Costing Office for guidance as to when a rate request is needed.
4. Ensure proper object codes are used when depositing all funds.

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