1508 Cash Collection and Deposit
Subject Area: Cash
Responsible Office: Financial Services
Sponsor: Chief Financial Officer
Originally Issued: July 1998
Revised: August 2009, January 2010
Refer Questions To: Dana Earles, 773-702-1958
Purpose: To establish sound internal control practices to safeguard cash receipts and deposits against theft or loss.
- Cash - The term cash includes currency, checks, money orders, and credit card receipts.
- Endorsement - All checks must be restrictively endorsed to the University immediately upon receipt. The endorsement must include "For Deposit Only to Northern Trust Major Depository - Bank Account #2." Endorsement stamps are available from the Bursar's Office.
- Frequency of Deposit - To safeguard cash and to insure the timely and proper posting of accounts, cash receipts must be deposited intact on the day of receipt by preparing the Associate Vice President for Finance's Form No. 133, "Report of Money Received", for deposit to the University Cashier in the Bursar's Office. If this is not possible (e.g., the cash receipts were received after the Bursar's Office has closed for the day), the cash receipts must be safely secured overnight and deposited on the next business day, or deposited in the after hours depository available in the lobby of the Administration Building. Instructions for proper use of the after hours depository are available from the Bursar's Office.
- Place of Deposit - Cash must be deposited with the University Cashier.
- Safekeeping of Cash - Cash must be physically protected through the use of vaults, locked cash drawers, cash registers, locked metal boxes, etc. Each department is responsible to make whatever provisions are necessary to properly safeguard cash receipts prior to deposit with the University Cashier.
- Separation of Duties - Accountability for the handling of cash must be assigned to a specific individual(s) and there must be a clear separation of duties between the individual(s) receiving cash and the individual(s) responsible for maintaining the accounting records.
- Reconciliation - The Bursar's Office must acknowledge each deposit with a written receipt and each department must reconcile cash received and deposited to the University Financial Accounting System on a monthly basis.
- Compliance - Each Division, School, Department, or Local Business Center is responsible for complying with this policy and for developing detailed written operating procedures. The Bursar's Office and Financial Services are available for consultation and review of Division, School, or Department procedures.