Cash Handling Procedures

Purpose

To define and outline University policy with respect to handling, receiving, transporting, and depositing of cash.  Cash is defined as currency, coin, check, money order, traveler’s check, debit card, and all credit card transactions.

Persons/Areas Affected

This policy applies to all campus departments receiving cash deposits and payments.  Cash handling procedures are designed to assist and protect both the individuals handling the funds and the University.  The Bursar’s Office is responsible for ensuring that funds are properly receipted and recorded, and should be contacted if questions arise regarding these procedures.  All funds are subject to audit at any time by State Auditors, Internal Auditors, External Auditors, or the Bursar.

Policy

  1. Advance approval is required before a department starts collecting cash receipts.  Request may be submitted to the Bursar, Head Cashier, or individual designated by the Chief Financial Officer.
  2. All Cash collected must be deposited at the Bursar’s Office within one business day after collection/receipt of such money.  Exceptions to this policy are as follows: (a) if the total amount is less than $50.00 then the deposit can be made weekly and (b) Refundable deposit checks received for copies of blueprints by the Department of Planning, Design & Construction shall be held by the department. Once blueprints are returned to Planning, Design & Construction, the refundable check shall be returned to the vendor. If any blueprints are not returned, the deposit checks shall be sent to the Bursar's office for deposit. 

    The timely Deposit of money received provides the following benefits:

    • Improved control of funds, which reduces the risk of loss due to errors, carelessness, or theft
    • Improved interest earnings
    • Lowered risk of returned checks due to nonsufficient funds or closed accounts
    • Assistance in bank reconciliation
  3. All deposits should be delivered to the Bursar's Office and never sent through campus mail.  Special arrangements should be made for transportation of large deposits by checking with the Bursar’s Office.
  4. Cash should be physically protected through the use of vaults, locked cash drawers, cash registers, cashier cages, locked metal boxes, etc.
  5. All checks should be made payable to Missouri State University and be restrictively endorsed to the University immediately upon receipt.  This protects the check if lost or stolen.
  6. Processing Credit Card Payments brings an additional liability to the University and the departments that accept these payments.  Mishandling credit card transactions can open the University and the department that performs the transaction, large fines and severe financial penalties.
    • Advance approval is required before a department starts accepting credit card payments.  Request may be submitted to the Bursar, Hear Cashier or individual designated by the Chief Financial Officer.
    • Credit card information should only be collected on the University’s Secure Server. 
    • Credit card information cannot be taken over the phone.
    • Credit card information cannot be processed through the mail.
    • Credit card information cannot be stored on a computer or anywhere in an office.
    • Departments processing credit card payments are responsible for paying all related fees and charges.
  7. Expenditures or refunds cannot be made from cash receipts.  Departments needing to establish petty cash funds should check with the Financial Services Office.
  8. There should be a separation of duties between the person receiving cash and the person responsible for maintaining the accounting records.
  9. No employee or department may establish a University bank account or deposit University funds into an unauthorized account.
  10. It is the Department Head’s responsibility to ensure that the above policies are followed.

Money Received Report Guidelines

  1. Include the following on the Money Received Report:
    • Name of department making the deposit
    • Date of the deposit
    • Name of contact person
    • Phone number of contact person
    • Departmental budget number
    • Description of what the funds were collected for
    • List checks, cash, and credit cards on report and provide a deposit total
    • Money received reports are available online at www.missouristate.edu/eforms
  2. Determine that all checks are properly endorsed.
  3. Write the departmental budget number on the front of each check.

Failure to follow these policies and procedures may result in the individual’s personal liability to the University for any shortages, fines or penalties.