Best Practices:
Use pre-numbered sequential receipts to track every transaction. Receipt books should be acquired from the Business Office. Receipts should be issued for all in person transactions.
Place a restrictive endorsement, "For Deposit Only", on all incoming checks and money orders. Stamps should be ordered through the Business Office.
Ensure separation of duties is embedded in the cash handling procedures. One person should be assigned to a cash drawer. Daily counting of cash is expected with a high volume of sales and safeguarding at all times.
Supervisors should routinely verify daily cash counts and reconciliations in areas with a high volume of cash receipts. Weekly or monthly reviews of check logs should be documented in low volume areas. Supervisors should review for missing receipts and approve voided transactions.
Business Office deposit receipts should be matched to departmental check log (if applicable) and PeopleSoft Reports.
Petty Cash
A petty cash account is established to provide departments with cash funds for the payment of various small expenditures. Learn more about GCSU petty cash guidelines.
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Fall 2009
Office of Internal Audit and Advisory Services Newsletter
Cash Handling Best Practices
Overview
Cash is the most liquid of assets, which is easily susceptible to loss if not properly controlled. To avoid loss and misappropriation of cash, it is the ultimate responsibility of the Department that receives cash to ensure that adequate controls are in place over the cash handling operation. This newsletter gives a quick and easy way to become familiar with GCSU cash handling guidelines and ensure proper safeguarding procedures are in place.
Please note: In this document cash and cash items are defined to mean paper currency, coin, checks, credit card transactions, letters of credit, and electronic funds transfer transactions.
What/Where are GCSU Cash Policies?
While the collection of money at GCSU is decentralized, the deposit function is centralized through GCSU Business Office. To ensure proper safeguarding of cash, the Business Office has developed detailed cash handling policies and guidelines including cash management policies, cash receipt policies, petty cash procedures, and more. Follow the link below.
http://www.gcsu.edu/businessoffice
Frequently Asked Questions (FAQ)
Why is separation of duties so important?
Effective separation of duties is a key element for a strong system of internal control. Having adequate separation of duties helps to ensure that transactions are valid and properly recorded which minimizes the risks associated with misappropriation and loss of cash.
What is a check log and where can it be located?
Check log is used to record checks received by the department. The log is another form of internal control practice, which ensures that cash and cash related transactions are properly accounted, tracked, and controlled. The GCSU check log form can be found at:
http://www.gcsu.edu/businessoffice/cashforms.htm
What to do if shortages or theft is discovered?
If shortages are discovered, the employee should inform the Business Office or Office of Internal Audit and Advisory Services for further information. Immediately report theft to Public Safety. Be alert and recognize control weaknesses that could result in a loss to the University. It is always better to prevent a loss than to recover one.
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