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Purpose

The Cash Receipts Policy provides procedures and guidelines to all University departments handling cash collections.  Procedures have been established to encourage an effective administration and internal control of cash handling operations throughout the University.  Note:  The term, “cash,” includes currency, coins, personal checks, bank drafts, money orders, traveler’s checks, cashier’s checks and credit card transactions.

Authority and Responsibility

Texas Woman’s University has delegated the authority and responsibility for establishing policies and procedures for all cash handling activities to the Controller’s Office.  In carrying out this duty, the Controller’s Office is responsible for: 

  1. Establishing and enforcing policies and procedures governing the receipt, handling, custody, and disbursement of funds.
  2. Requiring the establishment and maintenance of records accounting for funds received and paid by the University.
  3. Performing periodic audits of departments with any cash handling operations.
  4. Establishing and authorizing banking depositories to be used for University funds. 
  5. Establishing and authorizing procedures for granting, maintaining, and terminating the departmental collection of University funds.

Applicability

This policy is applicable to every University department, administrative office, and affiliated organization that handles the receipt of cash for any University related function.  Employees and their supervisors that collect cash on behalf of the University are required to be familiar with the requirements of this policy and to complete Cash Handling Training annually.

Summary

Any individual handling university cash is responsible to Texas Woman’s University for proper security and accountability.  Due to the personal liability involved in performing cash handling functions, it is important that only authorized employees accept funds for university business.  Employees are required to appropriately safeguard, account for and document all cash received on behalf of the University.  All University monies should be maintained in a secure, locked device or some other location appropriately approved by the Controller’s Office.

Guidelines

Segregation of Duties

Cash handling operations must be subject to daily supervisory review and management.  To minimize the potential for mistakes or misappropriation of cash, the segregation of cash handling duties is recommended.  The components of cash handling, collection, deposit preparation and reconciliation should be separated among different individuals.  In departments where the separation of duties is not feasible, strict individual accountability and thorough management supervision and review is required.

Written Departmental Procedures

In addition to the cash handling procedures established in this document, it is highly recommended that each department who handles cash, have its own specific procedures. The development of departmental procedures and compliance with the University Cash Receipts Policy establishes accountability and protects employees from inappropriate charges of mishandling funds by outlining responsibilities. 

Written procedures should minimally include authorization of person(s) to collect cash; maintenance of cash receipt books/records; security and reconciliation of cash; preparation, approval, and depositing cash within the Bursar's Office; over/short procedures; and a procedure to notify the appropriate campus authority in the event of a loss. 

Safekeeping

Departments handling cash are responsible for the safekeeping of these University assets.  Physical security should be emphasized to every employee involved in cash handling.  The following general guidelines should be followed to help maintain the integrity of those areas handling cash:

  • Unauthorized persons are not allowed in areas where cash is handled.
  • During hours of operation, acess to areas where cash is handled must be restricted.
  • During all other times, cash should be kept in a secured device or location until deposited.
  • Large sums of cash should be counted and handled out of sight of the general public.
  • Individuals should keep working funds to a minimum at all times.  Excess funds should be in a locked device or deposited in the Cashier’s Office.  
  • Cash should NEVER be left unsecured.  This applies to cash registers, desktops, and cash drawers.  If an employee leaves his or her workstation for any reason, regardless of how briefly, cash must be appropriately secured in a locked place.
  • If a safe location is not available within the department, the cash and receipts should be brought to the Bursar/Cashier Office on campus for safekeeping.
    • The revenue and receipts should be sealed in an envelope
    • The preparing staff member should sign their name across the seal of the envelope
    • The department name and responsible party should be noted on the outside of the envelope
    • If the Bursar/Cashier is closed, the funds should be dropped in the night repository
    • The funds should be picked up on the next business day by the responsible party
    • The Bursar/Cashier will verify the identity of the person receiving the funds and will require a signature on a log
  • Under no circumstances should an individual keep University cash with their own personal funds, deposit University funds in a personal bank account or take University funds to one’s home for safekeeping.
  • Checks should always be properly endorsed upon receipt.

Custodian Responsibilities

The custodian or designated individual responsible for a department’s cash handling operations is responsible for:

1.  The adequate and appropriate safekeeping of the University revenue – While using cash funds for daily operational activities, procedures should be established to maintain a safe and secure working environment to ensure the safeguarding of funds and safety of personnel.  Employees should be well informed of their responsibilities for handling cash transactions and being accountable for those funds.  The custodian must see that appropriate internal control measures are enforced.

When not being used for operational activities, all cash should be kept in a safekeeping device, either a safe or locked container.  Lock combinations and the custody of keys should be maintained by one person, however, these items should not be stored in an unlocked desk drawer or unsupervised area.  For strictly emergency situations, the department head or other designated employee should have the safe combination or an extra set of keys.

2.   Maintaining current and accurate records of the funds - The records should provide clear documentation of cash receipts from the time of collection to the time of deposit.  Specific information on appropriate documentation can be found under the heading, “Cash Receipts Procedures.”  This information should always be readily available for audits by the Controller’s Office, Internal Audit, or Department Head. 

3.  Performing, at a minimum, a monthly reconciliation- Depending upon the volume of transactions, weekly or daily reconcilements may be more appropriate. 

Overages and Shortages

Both overages and shortages should be noted and tracked by the custodian and then reviewed and certified by a department supervisor.  Significant amounts should be immediately reported to the Department Head and Bursar's office.  The Bursar will advise the Controller of significant issues.  If there appears to be a growing pattern or anything unusual about the overages and shortages, the information must be disclosed immediately.  All overages or shortages must be reflected on the cash receipt transmittal form and sent with the deposit to the Bursar's office

Refunds

Refunds cannot be made directly through the use of petty cash funds, change funds, nor funds received from cash receipts, unless specifically authorized

A refund is the return of funds for a transaction that occurred on a prior business day.  All refunds should be processed by the completion of a Request for Check [pdf] by the department head, and approved by the respective VP, before being submitted to the Procurement Office for processing. 

Petty cash funds, change funds and cash receipt funds cannot be used to reimbursement employees for out-of-pocket expenditures.

Cash Receipts Procedures

Training Requirements

Cash Handling Training is mandatory of all employees whose job duties include the supervision and/or the acceptance, record keeping and deposit of university revenue.  Training is available online at the Bursar's website.  Employees are required to do follow-up training annually.

New hires responsible for cash handling must complete the training following the new employee orientation. 

Receipting Revenues

University departments that collect cash must have an established departmental procedure for documenting all receipts.  Computer generated receipts, cash register receipts, or pre-numbered receipt books or tickets are acceptable forms of documentation.

Receipt documentation should include:

  • Payer’s name
  • Amount of payment
  • Method of payment (cash, check, credit card, money order, etc.)
  • Purpose of payment
  • Date of payment
  • Initials of employee collecting the payment

This applies to receipts collected directly from individuals, as well as receipts received through the mail, by fax, by email or by phone. 

With prior approval by the Bursar, departments who receive large volumes of checks by mail (such as application fees) may document their receipt by creating a spreadsheet which contains the information above.  The check number, date of receipt, initials of the employee and the amount must be noted on the face of the application, registration form or other documentation received with the payment.  The spreadsheet must be reconciled to the payments received.

Cancelled/Voided Transactions

The same day cancellation of a transaction must be approved by a supervisor.  Upon approval, the original receipt should be voided and the payment returned to the customer.  The customer should sign the voided receipt acknowledging the transaction.  

Cash Receipts, Receipt Books, Invoices, and Cash Registers

Each person issuing receipts and/or making deposits MUST have cash handling training in order to facilitate the proper procedures are followed.

Receipts, receipt books, or invoice forms must be sequentially numbered and in duplicate or triplicate form.  Cash receipts or receipt books may be purchased from an office supply.  

NOTE:  01/13/12 - The Bursar's office currently has a limited supply of triplicate receipt books available.  When this supply is exhausted, receipt books must be obtained from an office supply.   Receipt books must be picked up by a department representative and a departmental account number to which the expense for the books should be charged must be provided.  An online IDT will be generated by the Bursar to debit the account for the receipt books.  The distribution of the books will be recorded in the Bursar's Office.

Receipts, receipt books, or invoices MUST be stored in a secured area, and used in sequential order.  If more than one person in a department is issuing receipts or invoices, each person should be assigned their own receipt book, receipt/invoice sequence, and be held responsible for the maintenance, and deposit of all transaction revenues.

  • Original copy - customer receipt.
  • Second copy - retained by department and stored with the cash receipt transmittal form after it is returned by the Bursar's office.  Do not send these copies with the form.
  • Third copy (if applicable) - should remain in the receipt book for reference purposes.
  • All receipts, invoices, and register transactions, including those that are voided, MUST be accounted for. 

For each deposit, the daily starting and ending receipts, invoice numbers, or cash register readings supporting the daily transactions being deposited should be noted on the cash receipt transmittal form.  For example:

mm/dd/yy    12345-12350

When the cash receipt transmittal form is returned to the department from the Bursar's Office, the document number noted on the form should be noted beside the corresponding information in the receipt book.

The retention of deposit documentation, including supporting receipts or reports is the responsibility of the department.  All documentation, including the cash receipt transmittal form and any attached documentation, pertaining to deposit will be returned to the department for retention.

Used receipt copies, register tapes, and/or cash receipt transmittal forms must be retained by the department for the past three years and the current year.

Check Acceptance

There are several different categories of checks.

    Acceptable with Proper Identification

  • Cashier's Check - A check purchased at a bank for any amount; the bank completes all information on the face of the check with a bank officer signing as the maker.
  • Certified Check - A personal check guaranteed by the bank; the check is stamped "certified" and signed by a bank officer.
  • Money Order - An item purchased at a bank, post office, or other business establishment for any amount up to and including $200.  The bank completes only the amount information.
  • Traveler's Check  - A special check supplied by banks or other companies for the use of travelers; these checks already bear the purchaser's signature and must be countersigned in the cashier's presence.
  • Personal Check - A written order payable on demand, drawn on a bank by a depositor; a personal check is written against an individual's funds as opposed to a cashier's check, certified check, money order, or traveler's check, all of which are written against bank funds.
  • Starter Check - A non-personalized encoded check that a person receives from a bank when they establish a checking account.  These are for the person's use prior to receiving encoded checks from the bank.  Starter checks should only be accepted if the encoded routing number and account number appears on the bottom of the check. 

    Unacceptable

  • Third Party Check - A checks made payable to a person or organization other than the one accepting or cashing the check (for example, a paycheck).
  • Foreign Check - A check written on a foreign bank (e.g., a Canadian bank) not specifically prepared as U.S. currency.  The maker's address might be outside the United States; however, it is the bank's address that must be examined.
  • Every check or money order must be reviewed for completeness as follows:

    Item

    Verification

    Account holder's name, address, phone number

    Verify that information is included on the check.  A daytime phone number is preferred.

    Bank coding and holder's account number

    Observe that the check has the customer's bank account and routing number encoded on the bottom along with the bank and check number.

    Payee

    Must be payable to Texas Woman’s University. 
    The abbreviation, TWU, is acceptable.

    Information

    Departments accepting checks in person should record legibly the following items on the face of the check: the issuing person’s driver's license number, date of birth (DOB), the accepting department, and the accepting employee’s initials.

    NOTE: All departments receiving mail remittances should review the check for completeness given the applicable items stated above.

    Display of a Return Check Notification

University departments accepting checks must post a sign with the following verbiage stating that a $30 fee will be assessed against the maker of any returned checks.  :

A $30 fee will be charged for
ALL RETURNED CHECKS
Including electronic/web checks
TWU processes all eligible returned checks through the
Denton County District Attorney’s
Hot Check Division. 
There will be an additional charge assessed by the Denton DA.

Endorsement Stamps

Each department must endorse all checks immediately upon receipt.  This prohibits the negotiation of the check if it is stolen.  Endorsement stamps should be purchased from an office supply with the following information:   

Pay to the Order of BBVA Compass Bank
111907445
For Deposit Only
Texas Woman's University
(name of the department) - optional

Reconciling Cash and Receipts

Cash receipts must be reconciled.  On the days in which cash is collected, a reconcilement must be performed at the close of the business day when possible, and no later than the beginning of the next business day.  Cash, checks and credit cards must reconcile with the daily receipts.  All receipt numbers (including voids) utilized for the day’s business must be accounted for.   

Deposit Frequency

Deposits of all transactions must be made at the Bursar’s office within 5 calendar days or when $200 or more in transactions has accumulated, whichever comes first.

Deposits for end of the month transactions should be made no later than the first day of the prior month.    

Preparing the Deposit  

It is the responsibility of the department to accurately count all currency and checks collected.  It is recommended that a second individual recount the currency and checks before completing the deposit. 

cash receipt transmittal form must be completed with the appropriate account numbers and submitted to the Cashier's Office with each deposit.

Click here for the Cash Receipt Transmittal Form and Instructions.

Currency

All currency must be separated by denomination and presented face up and facing the same direction.  A calculator tape or spreadsheet should be included with the breakdown of the amounts for each denomination.  Coins should be counted and secured in an envelope with the enclosed amount noted.

Checks

  • All checks must be endorsed immediately upon receipt.
  • All checks must face the same direction for expediting the bank processing.
  • A calculator tape or spreadsheet must be provided to determine the total amount of checks being deposited. 

Deposit Ticket/Slip Preparation (select departments only)

Click here for example and instructions. [pdf]

Click here for the Cash Receipt Transmittal Form and Instructions.

Departments who are authorized to make Oracle journal entries (see note below) that reconcile to the deposit should note the corresponding document number on the cash receipt transmittal form and on the deposit ticket.  The Bursar's office will verify the entry when the deposit is received.

Note:  Individual training for the preparation of Oracle entries is required.  Please contact the Bursar at payments@twu.edu to arrange for this training.  Upon completion of the Oracle journal entry training, the Bursar will contact the Controller to set up the appropriate privileges. 

Departments not preparing a deposit ticket should submit the deposit in a secured envelope with the cash receipt transmittal form.

Accepting Credit Cards

Departments that wish to accept credit cards as a method of payment must complete the Application to Accept Credit Card/Electronic Payments and submit it to the Bursar for approval. 

Texas Woman’s University accepts the following credit cards: 

  • American Express
  • MasterCard
  • Discover 
  • VISA (departmental transactions only; NOT accepted for Bursar payments)

 When accepting credit cards, the following guidelines should be observed:

  • All University personnel accepting credit cards must adhere to the guidelines of the Credit Card Acceptance and Security Policy. 
  • Charge cards shall be accepted for no more than the amount of purchase.
  • The expiration date is required.
  • If information is received by phone or fax, a contact phone number must be included.

Specialized training for processing credit card transactions (dependent on the processing method utilized by the department) will be conducted by the Bursar upon request by the department head.  Please email payments@twu.edu with your request.

Revised 07/1712; Bursar

 

page last updated 8/11/2014 9:27 AM