4:011 Cash Handling
|Austin Peay State
||March 8, 2017
||Vice President for Finance and Administration
The Bursar's Office is responsible for the collection and control of cash at the University.
To accomodate University customers, the Bursar may delegate this responsibility to
other areas. Only those departments with approved activities are authorized to collect
or receive money from sales, services, gifts or other sources and/or to operate a
change/petty cash/disbursement fund. Departments which are not authorized to receive
cash should direct the payer to the Bursar’s Office. The use of an unauthorized checking
or other account for depositing University cash is strictly prohibited. Foundation
funds are handled through the Office of University Advancement.
The Bursar’s Office controls cash activities, using the Cash Handling Guide to:
-Maximize the University’s cash position.
-Aid in preventing and/or detecting cash loss.
-Promote adherence to federal, state, and other regulations.
-Protect both the individuals handling funds and the University.
-Cash Handling Operations
-Disbursement/Petty Cash Fund
-PCI (Payment Card Industry) DSS
-Standard Cash Controls
-Cash Handling Activities
-Petty Cash/Disbursement Fund
-Guide to Cash Handling
-APSU Policy 4:019
||Represents paper currency, coin, checks, credit card transactions, and electronic
funds transfer. Cash and funds may be used interchangeably.
|Represents departments assigned a disbursement fund and/or a petty cash/change fund
as well as authorized activities collecting or receiving money from sales, services,
gifts or other sources.
||Represents all University-owned cash maintained for a specific operational purpose
and consists of the value of the cash change fund as well as the value of cash and
negotiable items received in the course of business that have not been deposited.
Examples of cash receipts may be items in cash bags, cash drawers, and vaults/safes.
||Represents an established fund for cash transferred from the Bursar to assist approved
cash receipting/departmental activities with making change while handling cash receipting
|Represents an established fund consisting of a small amount of cash transferred from
the Bursar and held by departments to process small payments to suppliers. This type
of fund is only approved in rare circumstances.
|PCI (Payment Card
|The PCI Data Security Standard represents a common set of industry tools and measurements
to help ensure the safe handling of sensitive information, including preventing, detecting
and reacting to security incidents.
The handling of University funds requires that certain basic procedures be followed
precisely. Procedures for the handling of University funds are designed to protect
both employees and the University, and to provide accountability for University funds
in accordance with accepted standards of internal control. Departments wishing to
collect money on behalf of the University or obtain a disbursement/petty cash fund
must submit their request in writing, signed by the appropriate department head. The
completion of the Cash Handling Authorization form will explain the need to handle cash, name the individuals responsible for the activity
and describe the environment for cash handling.
The Bursar will evaluate the requester’s Cash Handling Authorization form for proper cash handling controls. Cash handling controls are extremely important
to the University, the cash handling area and the cash handler (employee). They protect
each and assist them in being more effective and efficient in both performance and
evaluation of economic activities. The loss of public confidence could be averted
through a common understanding and practice of proper cash handling controls. The
Bursar’s Office will evaluate the request and notify the requester of the status of
It is the responsibility of management to develop, practice and monitor efficient
and effective internal cash handling controls for its operation. The basic goal of
designing proper controls for any area is to separate authorization, custody and accounting.
It is recognized that no one control model fits the needs of all cash handling areas
at the University. Also, because the cost of controls may be significant, and the
risk of loss varies according to the value of cash handled, some control procedures
should be applied based on reasonable factors associated with each operation.
Specific procedures must be followed for reporting overages and shortages. Cash handling
employees are subject to the Performance Improvement Process, and employees both in
the probationary period and afterward, are subject to immediate dismissal in accordance
with applicable policies and procedures if certain infractions should occur. More
detailed explanations and guidelines of procedures and controls expected to be established
and adhered to at each cash collection area may be found in the Cash Handling procedures
available on the Bursar’s website.
No cash receipting department should acquire a cash receipting system for their departmental
use without prior review and approval of the Bursar’s Office. It is expected that
the contracted cashiering system used University-wide is to be used for all cashiering
Standard Cash Controls
- Individual responsibility and accountability should always exist in handling University
cash. Specific person(s) should be delegated the authority to receive cash and/or operate
a disbursement/petty cash fund. An accounting record should be established immediately
upon receipt of cash. Cash handlers and applicable department management must attend
annual training to review and evaluate cash handling operations.
- All cash transactions must be established through proper documentation.All cash should be immediately recorded upon receipt. The recordings must be made using
one of the following University approved methods: cash receipting system, cash register,
pre-numbered receipt forms/tickets, or on a hand-written log. Checks should be made
payable to Austin Peay State University and should be restrictively endorsed immediately upon receipt. All transfers of cash
accountability should be documented. Documentation should include amount transferred,
date, and cash custodian signatures.
- Cash funds must be properly balanced and reconciled.Cash handling units must maintain written cash balancing procedures. Each cashier
should balance their business at the end of their shift by comparing cash receipting
records to funds on hand, as described in the Cash Handling Guide Procedures. Monthly
balancing is accomplished by comparing monthly reports from Accounting to deposits.
- Cash handlers must operate in a secure environment at all times.Access to cash should be restricted at all times to the person accountable for the
funds. The degree of security provided by the storage facility should be commensurate
with the amounts being stored.
- Cash funds must be deposited in a timely manner. Deposits should be made daily to maximize cash flow and safeguard assets. If an event
falls on the weekend, the funds should be deposited the next business day. Weekly
deposits are allowed in the case of collections of less than $500. Collections should
be deposited intact (no expenditures should ever be made from a collection).
- Management should monitor cash operations.Management should perform periodic unannounced cash counts and do a periodic review
of the internal controls in place to determine that these controls are:
- Sufficient to safeguard cash collected;
- Understood by staff;
- Carefully followed by all staff.
The Bursar’s Office will conduct required annual cash counts.
|Cash Handling Activities
These procedures address three cash handling situations:
- Activities using cash provided by the Bursar’s Office for a disbursement/petty cash
- Activities collecting money that have access to a change fund provided by the Bursar’s
- Activities authorized to collect money without the use of a permanent change fund
provided by the Bursar’s Office. The last two examples are similar and specific procedures
will be discussed in the Cash Receipts section.
The fund (change or disbursement) provided by the Bursar may not be used for both
a change and a disbursement fund. Separate funds should be requested if both types
of cash funds are warranted.
Departments requesting wire transfers to a University bank account must notify the
Bursar’s Office in advance of each expected transfer and provide the amount and account
number to be credited.
A petty cash/disbursement fund is a set amount of cash provided by the Bursar for
frequent small dollar purchases. With the availability of the University’s Purchasing
Card, the need for a disbursement fund is rare. The requester should only apply for
a disbursement fund if their needs cannot be satisfied with a University issued purchasing
The Bursar has also made provisions to reimburse departments directly for authorized
expenses. The individual requesting reimbursement should not have access to a disbursement
fund or a University’s Purchasing Card. The procedures for these transactions are
outlined in the Reimbursements of Personal Funds for Authorized University-Related
Expenses section below. Meals, food, flowers, travel, personal services, contractor
services, employee gifts and dues or subscriptions cannot be reimbursed by the department’s
disbursement fund or directly by the Bursar.
Departments wishing to receipt money must complete a Cash Handling Authorization form. The
requester may have to provide more detailed procedures, depending on the volume of
funds and complexity of operations. Under no circumstances should a department accept
funds without approval from the Bursar. Fees to be collected by departments must be
approved in advance in accordance with University Fees and Charges Policy. Generally,
there are three methods of receipting funds remitted to the University. The first
method is a manual receipting process utilizing the University official pre-numbered
receipt books, pre-numbered tickets, cash registers or other devices to establish
accountability for money received. The second method is the University-approved cash
receipting system for departments with higher volume of receipting. As a third alternative,
the Bursar may recommend the use of the University's online storefront payment application
in cases where money is being receipted for activities such as conferences, seminars
and events. The complexity of the operations and needs of the users define which
method will work best. It is the responsibility of the requester with the assistance
of the Bursar to develop, implement and monitor proper receipting activities.
All cash receipting personnel and supervisors must attend annual cashiering training
provided by the Bursar's Office.
The Bursar’s credit card handling policy requires that each unit be certified as a
credit card processing site and the method of processing credit transactions must
be approved by the Bursar. This certification will include, but is not limited to,
the site becoming PCI compliant, the secure handling of charge card numbers, data
collection, system security, physical security, disaster recovery, reporting, reconciliation,
privacy policies and continuing audit results.
The privilege to handle University funds will be removed from any area that does not
adhere to the policies, procedures and guidelines.
APSU Policy 4:011 (previously 4:012) – Rev: March 8, 2017
APSU Policy 4:011 – Rev: February 22, 2016
APSU Policy 4:011 – Rev.: December 2, 2005
APSU Policy 4:011 – Issued: May 16, 1988
President: signature on file