Deposit procedures/Petty cash
These instructions define the basic internal control procedures that all University departments are to follow relating to the collection and deposit of cash receipts. The procedures apply to the handling of cash as well as checks.
To enhance the internal control over money, a segregation of duties within the department should be in place so that errors or irregularities are prevented or promptly detected. The duties of one employee should provide a cross-check of the work of one or more other employees. For example, one employee opens the mail and makes a list of the checks and amounts while another employee actually prepares the Deposit Transmittal Form for the deposit.
In addition to the basic guidelines described below, departments are to develop written procedures that apply to their specific operations.
- Deposit Procedures
All cash, checks, sales slips, receipts, and other applicable documents must be secured and safeguarded in a metal locking box and placed in a locked desk, locked cabinet, or safe.
Deposits are to be made in a timely manner with the Cashiers' office in Carter Hall. The University requires receipts be deposited on a daily basis if the dollar amount is $100 or more, and at least weekly if the amounts are less than $100. Monies that are held in the department are at higher risk of being stolen or lost.
All checks must be endorsed immediately upon receipt by the department. The endorsement is as follows:
Pay to the Order of
Treasurer, State of Colorado
University of Northern Colorado
Receipts Clearing Account
[ Department name here ]
Any time actual cash is received, a pre-numbered receipt must be issued and there must be a unique number associated with each transaction. If handwritten receipts are used, the department must retain a duplicate copy that contains the same pre-printed numbers and information as the original. All receipt numbers must be accounted for in order to provide a reconciliation of cash received, receipts written, and the actual deposit made. This information also provides an audit trail for review by either the internal or external auditors of the University.
All money received is to be deposited with the Cashiers' office. No money is to be withheld from a deposit in order to cash personal checks or to purchase miscellaneous items for the department. Purchases made in this manner reduce the amount of revenue and expenditures reported and weaken the internal control procedures. If a department needs a fund to make change or small purchases, a change fund or petty cash fund may be requested through the University's Controller.
Any publication or course materials utilized in class are to be purchased by the students through the UNC Bookstore or other vendor. Faculty and staff are not to collect money (cash or checks) in the classroom for such materials.
Departments are discouraged from using campus mail to make deposits. However, when the deposit consists only of checks and the dollar amount is minimal, campus mail may be used if it would present a hardship to hand deliver the deposit. When cash or a large dollar amount is involved, the deposit must be hand delivered to the Cashiers' office. If needed, contact the UNC Police Department to make arrangements for an officer to accompany the staff member to Carter Hall if deemed necessary.
All cash or deposit discrepancies must be reported. If a loss of $10 or less occurs, the employee responsible for the cash must report the loss to his/her supervisor. If the loss is greater than $10, the employee must notify the supervisor and the University's Internal Auditor. For losses greater than $50, the UNC Police Department must be contacted in addition to the supervisor and the Internal Auditor.
- Deposit Transmittal Form
A Deposit Transmittal Form must accompany all monies deposited with the Cashier's office. After the Cashier's office has deposited the funds, the original form and supporting documentation will be remitted to the Controller's office and scanned into Xtender. The form will then be returned to the department and should be retained by the department for a period of three years.
Complete the form with the following information:
- Depositing department information: Name of department making the deposit, date of deposit and a contact phone number.
- Originating department information: Name and location of department on whose behalf the deposit is being made (if different than the depositing department); location and name of the individual making the deposit. NOTE: The original Deposit Transmittal Form will be returned to this location/individual.
- Description: A brief description of the deposit.
- The FOAP(AL) numbers and dollar amounts to be credited.
- The total amount of the deposit.
- The deposit composition by payment type: Total of all checks; total of all cash; and total of all bankcards. The total MUST agree with the total amount of the deposit.
- Sort all currency by denomination. Include adding machine tapes for all checks as well as for the deposit total.
- All checks must be stamped with a University endorsement.
- If the check is a miscellaneous deposit, please include with your deposit transmittal form any appropriate source documents that come with the check, such as a letter or document explaining the nature of the payment.
- Petty cash
Under certain circumstances, a petty cash fund may be authorized as a means of making limited recurring or small emergency purchases for the University. Due to the decentralized control and handling of purchases and cash, certain procedures and safeguards are essential and are outlined here.
- A fund may be used for small repetitive or emergency purchases under $20 as required by a department and approved by the appropriate authority.
- The Controller will receive and review requests for establishment of funds.
- The size of the fund should be the minimum practical to meet department needs.
- Small repeat purchases from petty cash should not be used to avoid purchasing procedures where volume and bidding might secure lower prices.
- A fund will be established only as outlined in these procedures. A fund will not be used for payroll or purchase from other University departments, to cash checks, make change, make cash advances (IOUs), etc. A fund that is unused or improperly used may be withdrawn.
- Requesting a fund
To establish a Petty cash fund, complete the Request to establish petty cash fund form and submit the form to the Controller. The Cashier's office will provide the money upon approval. The designated petty cash fund custodian will be required to sign for the money and assume responsibility for its safeguarding and proper utilization.
Responsibility for the management and operation of a petty cash fund, in accordance with these procedures, is delegated by the Controller to the designated and approved custodian.
To change the primary or alternate custodian on a petty cash fund, complete the Request to change petty cash custodian form. The fund status is verified by both the outgoing and incoming custodians, who must sign the form. Submit the form to the Controller for approval.
When an increase in the amount of a petty cash fund is needed, complete the Request to increase petty cash fund form and submit the form to the Controller.
Before making a purchase, approval must be obtained from the fund custodian. Prior approval is necessary to insure that:
- The proposed purchase can properly be made from petty cash;
- The department authorized the purchase and will reimburse the purchaser;
- The purchaser understands the procedures for purchase, requirements for receipt, and procedures for reimbursement.
Upon approval by the custodian for the specific purchase and the amount to be spent, the individual will:
- Make the authorized purchase;
- Pay for the purchase with their own funds;
- Obtain a receipt or itemized ticket signed and marked "Paid" by the vendor.
After making an authorized purchase as outlined above, the individual purchaser is reimbursed from the petty cash fund. The fund custodian will:
- Verify the purchase was pre-approved and the goods/items were purchased as evidenced by a receipt or itemized sales ticket marked "Paid" by the vendor;
- Reimburse the purchaser from the petty cash fund;
- In the event a receipt was not obtained, the custodian will document that the purchase was made using the Payment from petty cash fund form. The form should include the date of the purchase, amount of the purchase, a description of the purchase, the name of the purchaser and the signatures of the custodian and purchaser.
- Cash Advance
It is intended that the purchaser pay the vendor and secure reimbursement from the fund upon presentation of a receipt. However, under unusual circumstances and when deemed necessary by the custodian, a cash advance may be made.
All cash advance requests will route through Accounts Payable (AP). Cash advance checks will be processed every Tuesday and Friday. Please plan accordingly.
To request a cash advance:
- Fill out the Cash Advance Request form and prepare a Check Request form made out to the individual requesting the advance.
- Use the following FOAP (clearing account): FUND-ORG-72231-PROG.
- Send the completed request to the following Xtender Queue for processing: AP - Requests for Payments.
- If the cash advance equals $500 or less, the Cashier's office can cash the check.
- If the advance is over $500, the individual must cash/deposit the check at a US Bank branch or their personal bank.
- Within 14 days of the event end date, return all excess cash to the Cashier's office with a deposit transmittal made out to the FOAP used on the original check request: FUND-ORG-72231-PROG. Failure to resolve outstanding amounts or communicate delays may result in denial of future cash advance requests.
- Simultaneously, send a copy of the deposit transmittal, all receipts, desired expense FOAPs and any other necessary support to General Accounting's Financial Aid Accountant, Cheri Shomers at email@example.com.
- Cheri will reconcile the receipts and deposit transmittal to the total amount issued and prepare a journal entry to reallocate the expenses from the clearing account to the appropriate expense codes.
- Replenishing fund
When cash on hand in the fund reaches a level where replenishment is needed, the custodian will reconcile the petty cash fund and request replenishment as follows:
- Count the cash and verify the total cash plus the total purchase receipts equals the authorized fund amount.
- Sort or organize receipts according to the FOAP to be charged.
- Complete the Petty cash reconciliation statement and disbursement form. Document any fund shortage on this form, including an appropriate explanation for any shortage.
- If there is an overage, document it on the Reconciliation Report and deposit the monies with the Cashier's office.
- Prepare an Check/ACH Request form for the amount due the fund. Indicate on the form the distribution of charges by FOAP.
- Attach the Reconciliation report and supporting receipts to the Check/ACH Request form and submit to Accounts Payable for processing.
- The custodian should retain a copy of all documentation.
- Safeguarding and Audit
All cash receipts and other applicable documents of the fund should be secured and safeguarded in a metal locking box and placed in a locked desk, locked cabinet, or locked safe.
The University's Internal Auditor will periodically (announced or unannounced) make an audit of petty cash funds. The State Auditor, or designee, may also perform audits of selected funds. The custodian and the custodian's immediate supervisor are to ensure that the fund is balanced and available for audit at all times.
- Closing fund
If you no longer need the petty cash fund, please complete the Request to close a petty cash fund form and hand-deliver it, along with any remaining cash and a Deposit transmittal form, to the Cashier's office in Carter Hall.
- Change funds
Temporary change funds may be requested to meet short-term cash needs, where change is needed for an event lasting less than one month. Temporary change funds are not to be used to purchase goods or services. No expenditures of any kind may be made from temporary change funds.
- Requesting a Fund
To request a fund, submit a memo to the Cashier’s office stating the purpose of the fund, the time frame the money is needed and the dollar amount needed in specific currency or coin denominations. The memo must be signed by an individual who has signature authority for the organization requesting the fund.
The Cashier’s office will issue a cash advance for the amount of the fund. The individual picking up the cash advance must be an authorized signer for the organization and will be required to sign the cash advance form.
A temporary change fund must be returned to the Cashier’s office by the time frame specified in the memo and no later than one month after the issue date.
- Long Term Change Fund
Long-term change funds may be requested when an organization needs cash to make change as part of its daily operations. These funds may only be used for making change and are not to be used for expenditures of any kind.
To request a long-term fund, submit a Check/EFT Request with a memo attached stating the purpose of the fund and the dollar amount needed. The Check/EFT Request and memo must be signed by an individual who is an authorized signer on the FOAP to be charged.
Accounts Payable will prepare a check payable to the organization and the check is to be cashed at the Cashier’s office.
Long-term change funds are audited annually by the University’s Internal Auditor.
- Closing Fund
When you no longer need the change fund, please complete the Request to close a petty cash fund form and hand-deliver it, along with any remaining cash and a Deposit transmittal form, to the Cashier's office in Carter Hall.