Collection of Cash Outside University Cashier's Office

Policy 503.3

Introduction

1.1 Many Appalachian State University departments are responsible for collecting University related receipts from students, faculty, and staff. Sound accounting practice requires that an accurate record of all such receipts be retained in the event of future audit. This statement outlines the policies for the collection of cash outside the Cashier's Office.

Scope

Scope of Statement

2.1.1 It should not be assumed that any cash to be collected does not fall under the scope of this policy statement without first contacting the Office of Internal Audits.

Definitions

Approval Form

Departments that need to collect cash must complete a "Request for Authority to Establish Receipts Collection Point" form before collecting any money. After the form has been approved, an appropriate cash collection method will be designated.

Cash

For the purpose of this statement, cash is defined as currency, coin, and checks received for any program or purpose at Appalachian State University regardless of the source of funding for the program or the collected monies intended use.

Policy and Procedure Statements

Receipting Requirements

4.1.1 Receipt Must be Issued - Departments must issue receipts to persons from which money is collected at the time the funds are received. Official three part, pre-numbered, Appalachian State University receipts are obtained from the Cashier's Office in books of 200 receipts per book. The department is responsible for all receipts issued to it.

4.1.2 Receipt Distribution - The receipts are to be used in strict numerical order, copies distributed in the following order:

1. The original or first copy of the receipt is given to the payer.
2. The second copy of the receipt should be maintained in numerical order and turned in to the Cashier's Office with the funds collected.
3. The third copy of the receipt is maintained in numerical order in the receipt book in the department until all receipts are used.

4.1.3 When all receipts in a book have been used, the book should then be returned to the Cashier's Office and exchanged for a new book.

4.1.4 Void Receipts - In the event a receipt must be voided, all three (3) copies are to be retained in the receipt book. DO NOT DESTROY ANY PORTION OF A VOIDED RECEIPT.

Receipt Exceptions

4.2.1 Use of Cash Registers - Where the volume of sales justifies their use, cash registers shall be used recording tapes listing the amount of each sale. A sales tape produced by the cash register must be given to the customer. When cash registers are used, procedures for their use should be obtained from the Cashier's Office.

4.2.2 Class/ Organization Form - For one-time collection of receipts for a class or organization, the Organization Class/Organization Receipt Form may be used (see Cashier Appendix 4? ).This receipt form is only available through the Cashiers Office, 262-2113. Refer to Cashier Procedure Statement 1 for instructions.

4.2.3 Sale of Admission Tickets - Receipts are not required for funds received from the sale of admission tickets that are either pre-numbered or show the section, row and seat for which they were sold. However, cash reports must be prepared and deposits made daily. After the event, a final cash report and ticket inventory reconciliation should be prepared.

Deposits

4.3.1 24 Hour Limitation - All cash collected in a department must be deposited with the Appalachian State University Cashier within twenty-four (24) hours of its receipt or not later than the following working day. CASH SHOULD NOT BE ACCUMULATED FROM ANY SOURCE.

4.3.2 Exception to 24 Hour Deposit Rule - Any department using official three part, pre-numbered Cashier receipts and signing a Cashier RECEIPT BOOK AGREEMENT must make a deposit with the Cashier's Office a minimum of once each calendar week. More frequent deposits, daily if necessary, must be made at any time cumulative receipts exceed $250.00.

4.3.3 If a department fails to comply with the conditions specified in the RECEIPTS BOOK AGREEMENT, the Appalachian State University Cashier's Office must correspond in writing with the person signing for the receipt book stating the violation and warning that their receipt book and receipting privileges may be taken.

4.3.4 At the second violation of the conditions specified in the Receipt Book Agreement, the Cashier's Office must write the person stating this is their second violation this fiscal year and that the receipt book and ability to receipt funds will be taken if there is another violation. A copy of this correspondence must be sent to the Office of Internal Audits, the department head, dean, vice chancellor, and Controller.

4.3.5 At the third violation of the conditions specified in the RECEIPT BOOK AGREEMENT, the receipt book will be kept by the Cashier's Office and a letter will be sent to the person informing them the receipt book was kept due to non-compliance with cash collection procedures.

4.3.6 They should also be told their vice chancellor must request another receipt book from the Cashier's Office for their use. Copies of this letter should be distributed to the Office of Internal Audits, the department head, dean, vice chancellor, and Controller. Receipt books should not be given to the person or any other person with the program or department until a memorandum from the vice chancellor has been received in justification of the person and the department being allowed to continue to collect funds.

4.3.7 The following policies should be observed in the preparation of deposits:

All checks must be endorsed with the receiving department's name and Appalachian State University. The following example for an endorsement stamp has been approved:

FOR DEPOSIT ONLY

NORTH CAROLINA STATE TREASURER

BY APPALACHIAN STATE UNIVERSITY

2073083000434-800004

Change Fund - If a change fund has been authorized for the department, it must be entirely in currency and coin after a deposit is made.

4.3.8 Deposit Information - A statement with the following information must also accompany the deposit:

1. The budget code(s) to which funds are to be deposited, and the amounts applicable to each.
2. The amount of the total deposit.
3. A note of explanation if the deposit is not in balance with the total of the receipts covered.

4.3.9 Cash Over or Short - It is the department's responsibility to insure that the total of the receipts equal the actual dollar amount collected and deposited with the Cashier, or to document any overage or shortage. Cash overages must be deposited in the Cashier's Office; notations pertaining to cash over or short must be included with the deposit when it is delivered to the Cashier.

4.3.10 Validated Receipt - The University Cashier is required to complete and validate a two part Appalachian State University receipt reflecting the following information:

1. Name of the department making the deposit.
2. Budget codes to be credited with deposit.
3. Amounts applicable to each budget code.
4. Total amount of the deposit.

4.3.11 The Cashier will give the person making the deposit the original copy of the validated receipt which is attached to the last receipt that is covered by the validated receipt or to the daily cash report if receipt forms are used. The copy of the validated receipt form is kept by the University Cashier and attached to the applicable receipt forms taken from the deposited receipt book. The original validated receipt is the department's only documentation for deposits made.

Security Courier Service

4.4.1 Offices or departments which have daily receipts can arrange for courier service from the Office of Public Safety to pickup the deposit daily, take it to the Cashier's Office for deposit, and return the money bag and validated cashier receipt afterwards. The following conditions are necessary in order to obtain this service:

4.4.2 Necessary Conditions

1. Department must make a daily deposit
2. Department must complete deposit in agreement with the guidelines of this policy statement.
3. Deposit must be secured in a locked money bag for transportation.
4. Cashier must be supplied with a key to the money bag.
5. A written request for the courier service must be submitted to the Director of Public Safety.

4.4.3 Additional Information - If questions arise regarding policies and procedures on cash collections, please contact the Office of Internal Audits prior to any action.

Request for Authority to Establish Receipts Collection Point

4.5.1 Procedure Description - Any department requiring a cash collection point must complete a "Request for Authority to Establish Receipts Collection Point" form. When approved this form will provide the department and the Controller's Office with the necessary documentation to collect funds as required by N.C. General Statutes 14 7-77, Daily Deposit of Funds to Credit of Treasurer.

4.5.2 Date of Request : Date submitted to the Controller's Office.

4.5.3 Requesting Department/Unit : The name of the Department which will be responsible for the cash collection, receipting and depositing the funds.

4.5.4 Campus Location of Receipts Collection Point : The actual location where the funds will be collected.

4.5.5 Name and Campus Address of Primary Individual Responsible for Collection Point : The person and his or her campus address that will be at the collection point and responsible for the funds at the collection site.

4.5.6 Name and Campus Address of Individual(s) Responsible for Collecting and Depositing Receipts : The names and campus addresses of persons that are accountable for the collection and depositing the funds in accordance with the policies and procedures outlined in the Cashier's Section, Policy 2, of the RESOURCE MANUAL .

4.5.7 State the need to collect receipts : Describe the activity that requires the collection of funds.

4.5.8 Give an estimate of the amount of anticipated collections on a daily basis : As accurately as possible, determine the amount of funds to be collected each day.

4.5.9 Accounts/Activities and General Sources of Receipts Collected : If an account number in which to deposit the money collected has been established, please list the account number and the account name. If an account has not been established, contact the Controller's Office for additional instructions. If the existing account number is sufficient, another is not needed just because the collection point is new.

4.5.10 After the form has been completed, the person originating the request should sign his or her name and title, date and telephone number.

4.5.11 When approved, the Controller will sign, date and return the form to the responsible person.

4.5.12 The responsible person will take the form to the Cashier's Office where they should be issued a Cashier's Receipt Book. All money should be receipted at the time it is received.

4.5.13 After completion and approval of the form "Request for Authority to Establish Receipts Collection Point", the Controller's Office will send a copy to the Cashier's Office and the Office of Internal Audits for inclusion with other collection points on file. The collection point will be subject to cash counts and reviewed periodically by the Internal Auditors and the State Auditors.