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Cashier Policy #303

Policy #303 Approved: July 23, 2012
UNIVERSITY OF NORTH CAROLINA SCHOOL OF THE ARTS
Cashier Policy
Policy #303
Source of Authority: N.C.G.S. § 147-77;
N.C.G.S. § 116-34(a);
UNC Code § 502(A)
Revision Authority: Chancellor
History: First Issued: February 17, 2011
Revised: July 17, 2012
Related Policies: Accounts Payable Policy #301;
Cash Management Plan Policy #302;
Improper Activities Reporting Policy #114;
Purchasing Policy #308
Responsible Offices: Financial Services Department
Effective Date: July 23, 2012
PDF: POLICY #303

I. Purpose

This policy governs the functions performed by the Cashiering Office, specifically the receipting and depositing of school funds. The Cashier’s Office is responsible for receipting and depositing all school related funds and ensuring that a complete and adequate record exists of each transaction.

II. Scope

This policy applies to all University departments and employees.

III. Definitions

A. “Cash” means currency, coin, credit cards, and checks received for any program or purpose at UNCSA regardless of the source of funding for the program or the collected monies intended use.

IV. Policy

A. Receipts

1. Receipts processed through the Cashier’s Office include, but are not limited to: student registration tuition and fees, collections on student accounts receivable, departmental and scholarship receipts, special fees, fines and penalties, special billings, and receipts from interdepartmental billings.

2. Cash reports must be prepared daily.

3. No department may collect cash without the Controller’s authorization and without complying with the designated cash collection method.

4. Any department or employee receiving cash belonging to the state must issue a receipt in accordance with this policy’s procedures. Receipts are not required for funds received from the sale of admission tickets that are pre-numbered or show the section, row and seat for which they are sold.

B. Deposits

1. All cash collected in a department must be deposited with the UNCSA Cashier within twenty-four (24) hours of its receipt or not later than the following working day. Cash should not be accumulated from any source.

2. Transporting Funds. All deposits must be hand-carried to the Cashier’s Office by Campus Police or University staff. No currency, coins, or checks are to be sent via campus mail or regular U.S. mail once the department has received the funds.

3. Departments Using Receipt Books. Any department using official three-part, pre-numbered receipt books must make a deposit with the Cashier each day. Sanctions for failure to comply with this requirement appear in this policy’s procedures.

C. Storage and Safeguarding of Funds

Departments are responsible for making sure that funds are kept safe in accordance with the attached procedures. All losses or thefts must be reported immediately to both the UNCSA Department and the Controller.

D. Check cashing services are provided in accordance with this policy’s procedures.

E. Checks Returned for Insufficient Funds

It is a misdemeanor to present a check for which the drafter has insufficient funds. Information on collection efforts and charges in such situations are outlined in this policy’s procedures.

F. Petty Cash is available for reimbursement of small purchases ($30 or less), as outlined in this policy’s procedures.  Departmental petty cash fund amounts and reimbursement lines above thirty dollars ($30) must be submitted to the controller’s office for approval.

G. Bank Accounts

No UNCSA school, department, or activity may open a bank account without prior written approval from the Director of Financial Services.

H. All funds and receipting procedures are subject to audit by the State Auditor’s Office and authorized University personnel.

V. History

A. February 17, 2011 – Adopted by Board of Trustees as part of UNCSA Policy Manual

B.  July 17, 2012 – Minor revision to insure policy section IV.F. related to petty cash adheres to the restrictions set forth in Procedure #303.


UNIVERSITY OF NORTH CAROLINA SCHOOL OF THE ARTS

Cashier Procedures

Procedure #303

I. Receipting Requirements

A. Use of UNCSA Receipt Books

Departments must issue receipts to persons from which money is collected at the time the funds are received. Official three-part, pre-numbered, UNCSA receipts are obtained from the Cashier’s Office in books of 200 receipts per book. The department is responsible for all receipts issued to it.

1. The receipts are to be used in strict numerical order, copies distributed in the following order:

a. The original or first copy of the receipt is given to the payer.

b. The second copy of the receipt should be maintained in numerical order and turned in to the Cashier’s Office with the funds collected.

c. The third copy of the receipt is maintained in numerical order in the receipt book in the department until all receipts in the book are used.

2. When money is received, complete a receipt indicating the following information in the applicable labeled blanks:

a. Date. The date money is received.

b. Received From. Name of the person making payment.

c. Dollars $. The amount of money received

d. For. The purpose for the payment.

e. Account, Amount of Account, Amount Paid, Balance Due. These blocks are used only if payment is being received on an outstanding account. List the appropriate amounts in the respective blocks.

f. How paid, Cash, Check, Money Order. List the amount paid by each medium of exchange.

g. By. The signature or initials of the person receiving the payment.

3. Remove the original or top copy of the receipt and give it to the payer.

4. If payment has been made by check, place your initials on the check as soon as it is received.

5. When all receipts in a book have been used, the book should then be returned in person to the Cashier’s Office and exchanged for a new book.

6. In the event a receipt must be voided, write “void” across the receipt and send the second copy of the receipt (pink) to the Cashier’s Office with the deposit of funds for that day. The original and third copies are to be retained in the receipt book. DO NOT DESTROY ANY PORTION OF A VOIDED RECEIPT.

B. For the collection of receipts by a department, the Departmental Deposit Receipt Form should be used. This receipt form is only available through the Cashier Office. Refer to Procedures for Receipting and Depositing Funds for instructions.

C. Receipt Exceptions

1. Admission Tickets

Receipts are not required for funds received from the sale of admission tickets (e.g. Stevens Center and Alex Ewing Performance Place) that are either pre-numbered or show the section, row, and seat for which they were sold. However, cash reports must be prepared and deposits made daily.

2. Library

The library uses an automated receipting system. Adequate internal controls and reporting capabilities must be in place to insure that all funds received are accounted for. Cash reports must be prepared and deposits made daily.

3. Any other exceptions to this policy must be approved by the Controller’s Office.

D. Violations of Policy &/or Procedures

1. If a department fails to comply with this policy and/or procedures, the Cashier’s Office must correspond in writing with the person signing for the receipt book stating the violation and warning that their receipt book and receipting privileges may be taken away.

2. After the second violation of the conditions specified above, the Cashier’s Office must write the person stating this is the second violation this fiscal year and that the receipt book and ability to receipt funds will be taken away if there is another violation. A copy of this correspondence must be sent to the Department Head or dean, the CAO or CFO, and Controller.

3. At the third violation of the conditions specified above, the receipt book must be returned to the Cashier’s Office. A letter will be sent to the person informing them the receipt book must be returned due to non-compliance with cash collection and receipting policy and procedures. Copies of this letter should be distributed to the Department Head or Dean, CFO or CAO, and the Controller.

4. The head of the non-compliant department must request another receipt book from the Cashier’s Office.

5. Receipt books should not be given to the person or any other person with the program or department until a memorandum from the CAO or CFO over-seeing the non-compliant department has been received in justification of the person and the department being allowed to continue to collect funds.

II. Deposit Requirements

A. Departments Using Receipt Books

Any department using official three-part, pre-numbered receipt books must make a deposit with the Cashier each day.

B. Deposit

All checks must be stamped with the “received from” stamp and initialed by the person receipting them as soon as they are received.

1. A Departmental Deposit Receipt Form must be completed and accompany the deposit. The second copy of receipts from the receipt books must also be attached. Prepare the deposit daily as follows:

a. Wrap large amounts of coins in bank coin wrappers, and write the department’s name on the wrappers.

b. Run an adding machine tape on any checks or list the amounts of the checks if an adding machine is not available. Make sure all checks are initialed by the person receiving them.

c. Determine the total amount of money represented by the receipts and the total amount of money collected. Reconcile any difference.

d. List the following information on a Departmental Deposit Receipt Form which must accompany the deposit:

i. names of the department making the deposit and the person who prepared the deposit;

ii. date and description of the deposit;

iii. beginning and ending numbers of the receipts applicable to the deposit;

iv. number of any voided receipt;

v. name of the person who should receive the copy of the Cashier’s receipt amount of currency, coin, checks and credit card slips (Stevens Center only);

vi. total amount of the deposit; AND

vii. account number(s) and amount(s) to be credited with the deposit.

2. Take the money, receipt copies, and Departmental Deposit Receipt Form to the Cashier’s window on the second floor of the Welcome Center in the Student Accounts office.

3. The Cashier will verify the Departmental Deposit Receipt Form and validate a two-part UNCSA receipt and give the person making the deposit (or mail to the person specified) the second copy.

4. It is the department’s responsibility to insure that the total of the receipts equal the actual dollar amount collected and deposited with the Cashier, or to document any overage or shortage.

5. Cash overages must be deposited in the Cashier’s Office; notations pertaining to cash over or short must be included with the deposit when it is delivered to the Cashier.

6. The Cashier is required to complete and validate a two-part UNCSA receipt.

7. The original copy of the validated receipt form is kept by the Cashier’s Office and attached to the Departmental Deposit Receipt Form.

8. The Cashier will give the person making the deposit the second copy of the validated receipt. The second copy of the validated receipt is the Department’s only documentation for deposits made.

III. Storage and Safeguarding of Funds

Departments are responsible for making sure that funds are kept safe. The following guidelines should be followed when storing funds:

A. Currency, coin, and checks must be stored overnight in a secure place, preferably in a safe or vault.

B. Safes and vaults should not be left unlocked or in a “set” position when unattended.

C. Never leave money in files, desks, or cabinets; these can be opened even though they are locked.

D. Never leave money in any type of cash drawer overnight.

E. Failure to adhere to procedures in the event of a loss or theft of funds and other valuables could result in the department having to cover the loss from department foundation funds. Such losses may not be charged to State funds.

IV. Check Cashing (In-House Banking Service)

A. The Cashier’s window will be open from 9:00 am to 11:30 am and 12:30 pm to 4:00 pm Monday through Friday, for the purpose of cashing personal checks for faculty, staff, and registered students. Summer hours may differ.

B. No checks will be cashed after 4:00 p.m.

C. The limit for cashing checks at the Cashier’s Office is $50.00 per student per day. Exceptions to this limit will be at the discretion of the Cashier’s Office subject to the availability of funds. Checks over $50.00 but less than $300.00 can be brought to the Cashier’s Office to be endorsed. The check may then be taken to the Parkway Branch of Wachovia Bank at 3171 Peters Creek Parkway to be cashed.

D. The UNCSA Bookstore will also cash personal checks for faculty and staff and registered students during its hours of operation. The limit for cashing checks at the Bookstore is $50.00 per individual per day, with no exceptions.

E. Individuals wishing to cash checks must appear in person. Students wishing to cash checks must show a valid school I.D. before their check will be cashed.

V. Student Refund Checks

Student Refund Checks may be picked up at the Cashier’s Office at the date and times specified by the Student Accounts Office. At the end of a 1-week period, the Cashier will send a notice to students via school email address who have failed to pick up their checks. At the end of a 2-week period, if the student has not picked up his/her check, it will be mailed to their permanent address at the discretion of the Student Accounts Office.

VI. Collection of Checks Returned by Bank for Insufficient Funds

A. Issuing a “worthless check” is a misdemeanor and is punishable under North Carolina General Statute § 14-107.

B. Any personal check that is returned by the bank for insufficient funds is received by the Cashier’s Office. Items will be charged back and returned to the department they were originally issued to for collection efforts to be made by that department.

C. Returned Checks Received through Registration

When a check received by the School in payment of tuition and fees during a regular registration period is returned due to insufficient funds (“NSF”), the NSF check will be placed on the student’s account along with a $25.00 fee.

D. Returned Checks Received through In-House Banking Service

When a check of this type is returned to the School due to insufficient funds, a $25.00 fee will be assessed to the person who cashed the check that was returned. See Insufficient Funds Check Procedure for specific steps.

E. The bank will inform the Cashier whether a check that has been returned to them for insufficient funds may be run through a second time. If it can, the bank will do so. If the check cannot be run through again, the Cashier must pick that check up by giving the bank an amount of cash equal to the amount of the check.

F. If the check was originally received by a department, the Cashier will notify the department of the NSF check and supply available information to the department representative.

G. A standard letter is sent by the Cashier (or a representative of department) to the person who cashed the check that was returned.

1. This letter informs the person that their check has been returned to the Cashier for insufficient funds. It also states that a $25.00 service charge has been assessed. The person must bring in cash, a money order, or a cashier’s check in the amount of the check plus the service charge. The letter states that the person must respond within five (5) business days.

2. If there is no response to the first letter by the established deadline, a copy of the first letter marked “SECOND NOTICE” is sent to the person. In addition, a copy of this notice will be sent to the parent or guardian when applicable. The second notice gives the person two (2) business days to respond by bringing in cash, a money order, or a cashier’s check in the amount of the check plus the service charge.

3. If there is no response to the second letter by the established deadline, all check cashing privileges for the individual will be suspended.

H. Individuals will not be allowed to register for classes, receive a diploma, or receive transcripts until the worthless check(s) and service charge(s) have been paid. The debts may also be turned over for debt collection pursuant to the Cash Management Plan Policy. Any questions related to this policy should be directed to the Controller at 770-3304.

VII. Petty Cash

A. Reimbursement

1. The Cashier’s Office petty cash fund is used to reimburse departments for small purchases which are not required to go through normal purchasing procedures. Reimbursement through petty cash funds is NOT allowable for the following:

a. Expenditures exceeding $30.00 per expenditure. Purchases greater than $30.00 but less than $300.00 must use the Small Purchase Order, if purchased locally. Purchases may not be split to circumvent the $30.00 limit.

b. Purchases of items available on state contract.

c. Payments to individuals for personal services.

2. The Cashier will make reimbursements for petty cash purchases on Mondays, Wednesdays and Fridays from 9:00 am to 11:30 am and 12:30 pm to 4:00 pm.

3. The maximum amount of purchases which can be reimbursed via the Petty Cash Fund is $30.00.

4. In order to receive reimbursement for petty cash purchases, the individual must complete a Petty Cash Reimbursement Request Form as follows and attach receipts for the purchases:

a. Department

Name of Department

b. Request by

Name of the person requesting reimbursement

c. Date

The date of the request

d. Department Head Approval

Signature of the department head authorizing approval of the reimbursement

e. Date

The date approval is given by the department head.

f. Petty Cash reimbursement For

A description of the purchase

g. Total amount Requested

Total amount of the reimbursement

h. Accounts to be charged/Amount

The departmental account(s) and amount to be charged

5. The Cashier will verify the information, sign and date the form.

6. The person receiving the reimbursement will indicate amount received, sign and date the form.

7. ALL APPLICABLE RECEIPTS MUST BE ATTACHED TO THE FORM. No reimbursement will be made if receipts are missing.

B. Petty Cash Advance

In emergency situations, the Cashier will make a petty cash advance for purchases of up to $30.00 to an individual on Mondays, Wednesdays and Fridays from 9:00 am to 11:30 am and 12:30 pm to 4:00 pm.

1. The individual must complete a Petty Cash Advance Request Form as follows:

a. Department

Name of Department

b. Request by

Name of the person requesting reimbursement

c. Date

The date of the request

d. Department Head Approval

Signature of the department head authorizing approval of the reimbursement

e. Date

The date approval is given by the department head.

f. Reason for Advance

A description of the purchase

g. Total Amount Advanced

Total amount requested

h. Accounts to be Charged/Amount

The departmental account(s) and amount to be charged

2. The Cashier will verify the information, sign, and date the form.

3. The person receiving the reimbursement will indicate amount received, sign and date the form.

4. When the purchase has been made, the individual will return the receipt for the purchase and any remaining advance to the Cashier’s Office within 24 hours of the purchase.

5. The Cashier will verify the receipt and the return of the advance. The actual purchase amount will be entered on the form. If the purchase exceeded the amount of the advance, the Cashier will reimburse the individual (up to the $30.00 per purchase maximum). Any amount over the $30.00 maximum will become the responsibility of the individual.

6. After the purchase has been made, the individual will return the receipt for the purchase and any remaining advance to the Cashier’s Office within 24 hours of the purchase. The individual will sign the form indicating that the receipt and any excess funds have been returned to the Cashier.

7. The Cashier will sign and date the form.

C. Departmental Petty Cash

Various departments may have their own petty cash fund subject to the following provisions:

1. A department must prepare a written request to the Controller’s Office for the establishment of Departmental Petty Cash Fund which includes the following:

a. the name of the department requesting a petty cash fund;

b. the date of the request;

c. the name and campus address of the primary individual who will be responsible for the proposed petty cash fund;

d. the reason for requesting a petty cash fund ; AND

e. the source of funds for the petty cash fund, including an account number and name.

2. Upon approval, the department will receive a copy of their request reflecting the approval.

3. The department will then prepare a check request for the amount of petty cash funds approved and submit it to Accounts Payable. The check will be made payable to the primary individual responsible for the petty cash fund.

4. Departments having their own petty cash funds will be required to follow the policies established by the Financial Services (Policy Statement 9, Resource Manual) for petty cash reimbursement. These include but are not limited to the following:

a. use of the Petty Cash Reimbursement Request Form incorporating the same information as is on the Financial Services Form, and all receipts must be attached to the form;

b. use of the Petty Cash Advance Request Form when issuing an advance (emergencies only), including having individual sign for the advance and attaching receipts; AND

c. preparation of a reconciliation worksheet when submitting a Petty Cash Reimbursement Request Form for the Fund. Copies of the Petty Cash Advance Request Form must accompany the reconciliation worksheet and the Check Request Form.

5. Petty cash funds are non-transferable. If there is to be a change of custodians, the Controller must be notified in writing and the petty cash funds reconciled back to the authorized fund level prior to the change in custodians.

6. The check will be made payable to the primary individual responsible for the petty cash fund.

7. Custodian

a. The head of each department or activity must designate one specific individual to act as custodian of the petty cash fund.

b. The custodian shall be responsible for acquiring a thorough knowledge of this policy and for maintaining the petty cash fund in accordance with the applicable procedures.

c. Access to the petty cash fund should be restricted to the custodian only.

8. Restrictions

a. Petty cash funds shall be kept separate and apart from all other funds. They are not to be commingled with personal funds, miscellaneous cash receipts, or revenue of any type which may have been collected.

b. The funds may not be used for purchasing personal services, making advances to employees, cashing checks, making change, purchasing stamps, making other non-operating disbursements or circumventing the purchasing process.

9. Safeguarding a Fund

a. The head of the department or activity and the custodian of the petty cash fund are jointly responsible for ensuring that the funds are properly safeguarded.

b. When not in use, the funds shall always be stored in a locked container. Campus Police may be contacted for advice on the proper methods for safeguarding a fund.

c. If a loss of these funds occurs, such loss (depending upon the circumstances) may have to be paid from the department’s own funds.

d. All thefts shall be reported by the department to Campus Police and the Controller.

10. Expenditures

Each petty cash expenditure must be supported by both a vendor’s receipt and a Petty Cash Reimbursement Request Form. Vendor receipts and Petty Cash Reimbursement Request Forms are to be kept with the fund until it is reimbursed. Note that expenditures chargeable to several school account codes may be paid out of a single petty cash fund.

11. Reconciling the Petty Cash Fund

a. The custodian is responsible for reconciling the petty cash fund on a periodic basis.

b. Reconciliations are required prior to requesting reimbursement to the fund.

c. At all times, the total of cash on hand plus unreimbursed Petty Cash Reimbursement Request Forms, with vendor receipts attached, should equal the total amount of the authorized petty cash fund.

d. A Petty Cash Fund Reconcilement Form shall be used for fund reconcilement.

e. Any cash over shall be remitted to the Cashier when expenditure reimbursement is requested from the Controller. Any cash over found during an internal audit will be remitted to the Controller immediately by the custodian.

i. Cash Over

I) The amount of cash over shall be noted on the Petty Cash Fund Reconcilement Form submitted to the Controller.

II) The Controller will collect the cash over amount from the custodian, to return the petty cash fund amount to the authorized fund level.

III) These funds will be deposited at the Cashier’s Office by the Controller.

ii. Cash Short

I) The amount of cash short shall be noted on the Petty Cash Fund Reconcilement Form submitted to the Controller.

II) The Controller will record the cash short amount and adjust the reimbursement to the petty cash custodian, to bring the petty cash fund amount up to the authorized fund level.

III) All cash shortages of $10.00 or more must be approved by the Controller prior to reimbursement.

12. Reimbursement

Before all petty cash has been expended, the custodian should reconcile the petty cash fund and submit the Petty Cash Reimbursement Request Form, the Petty Cash Fund Reconcilement Form, and cash balance to the Controller for reimbursement.

13. Time Limits for Submitting Reimbursement Requests

a. Reimbursement must be requested within thirty days after the expense is incurred.

b. Reimbursement requests at fiscal year end should be submitted on or before a date determined by the fiscal year close schedule and the Controller.

c. If these time limits have expired, contact the Controller for further advice and/or consultation.

14. Changing the Amount of the Petty Cash Fund

a. The amount of a petty cash fund may be increased, provided the increase is justified, by submitting a written request to the Controller.

b. A petty cash fund must be reduced whenever the total amount of the fund exceeds the actual needs of the department or activity. That portion of the fund in excess of the department’s needs should be hand delivered to the Controller with a memo indicating the amount by which the fund was decreased.

c. All petty cash funds must be hand delivered to the Controller when the funds are no longer needed.

D. Audits

Petty cash funds are subject to periodic audit by the Internal Auditor and the State Auditor. Such audits will require reconcilement of the petty cash fund and will also include a review of internal controls.

VIII. Authorization to Establish Receipts Collection Point

A. Any department needing to collect cash for any reason must receive approval from the Controller’s Office before collecting any money.

B. A Request for Cash Receipting Privilege Form should be prepared and sent to the Controller’s Office for approval. The request should be filled out as follows:

1. Date of Request

Date submitted to the Controller’s Office.

2. Requesting Department/Unit

The name of the Department which will be responsible for the cash collection, receipting and depositing the funds.

3. Campus Location of Receipts Collection Point

The actual location where the funds will be collected.

4. Name and Campus Address of Primary Individual Responsible for Collection Point

The person and his or her campus address that will be at the collection point and responsible for the funds at the collection site.

5. Name and Campus Address of Individual(s) Responsible for Collection and Depositing Receipts

The names and campus addresses of persons that are accountable for the collection and depositing of the funds in accordance with the policies and procedures outlined in the Deposit Policy Section of the Resource Manual.

6. State the Need to Collect Receipts

Describe the activity that requires the collection of funds.

7. Give an Estimate of the Amount of Anticipated Collections on a Daily Basis

As accurately as possible, determine the amount of funds to be collected each day.

8. Accounts/Activities and General Sources of Receipts Collected

a. If an account number in which to deposit the money collected has been established, please list the account number and the account name.

b. If an account has not been established, contact the Controller’s Office for additional instructions.

c. If the existing account number is sufficient, another is not needed just because the collection point is new.

9. Signature

The signature, name and title, date and telephone number of the person originating the request.

C. When approved, the Controller will sign, date, and return a copy of the request to the responsible person. A copy of the signed form also will be sent to the Cashier’s Office for inclusion with other collection points on file.

D. The person responsible for the collection point will schedule a meeting with the Cashier’s Office. At that time the Cashier’s office will:

1. Explain the cash receipting process.

2. Issue a Cashier’s Receipt Book.

3. Explain that the collection point will be subject to cash counts and reviews by the State Auditors and authorized school personnel

E. The responsible person should submit a revised Request for Cash Receipting Privilege Form to the Controller when there are personnel changes or changes in receipting purposes.