Cash Handling Procedures

Basis for Procedure

Any campus unit receiving cash or checks related to any grant, contract, donation, will or trust must submit these receipts to Sponsored Programs Accounting accompanied by a Grants/Contracts/Donations Deposit Form in order to provide the information necessary to ensure appropriate identification of funds in accordance with established procedures.

All other cash receipts should be processed in accordance with the following recordkeeping and deposit procedures:

Departments Not on UNMC Cashier Brain System

General Accounting will issue blank pre-numbered receipt slips to UNMC departments. The department copy of the receipt slip will be maintained by the departments for a minimum of three years.
Responsibility for safeguarding the receipt slips issued to a department is assigned to the cashier for that department.
Distribution instructions are noted on the face of the receipt slips. The departments may file their copy in the manner most convenient and useful to them and will maintain the receipt slips for a minimum of three years.
No changes or corrections should be made to the figures in the amount column on the receipt slips. If an error is made, the receipt slip must be voided.
All copies of voided receipts, except the department’s file copy, must be retained with the department’s copy of the receipt slips for a minimum of three years.
As the deposit is prepared, the department will account for the numerical sequence of the receipt slips. If any receipt slips are missing from the numerical sequence, the department cashier will document an explanation and will notify the Controller of any unexplained missing receipt slips. The Controller will investigate and determine what corrective action should be taken.

Departments on UNMC Cashier Brain System

Add all cash and coin in cash drawer to make sure the money balances to the established drawer amount. The total cash and coin should be equivalent to the amount on the Cashier Remittance screen. If the daily deposits in cash exceed the drawer limit, remove the overage amount from the drawer and submit it along with a completed cash overage requisition form and the daily remittance report.
If checks have been receipted, make sure that each check is properly endorsed. Prior to submitting the checks with the daily remittance report, prepare a calculator tape to display your total amount of check deposits. The tape should be equivalent to the amount in the CHECK field on the Cashier Remittance screen. Submit the checks and check tape with the daily remittance report.
If credit cards have been receipted, submit the white copy of the credit card receipt and the transmittal batch with the daily remittance. The transmittal batch total should be equivalent to the amount in the CREDIT CARD fields on the Cash Remittance screen.
If refunds have been issued, each refund must have proper documentation of why the refund was issued. Refunds must be properly endorsed by the appropriate authorities. Each refund must contain the cost center number and G/L account number from which the refund is to be issued. Once all refunds have been receipted in Brain, staple the receipt to the front of each refund. Prior to submitting the refunds with the daily remittance report, prepare a calculator tape to display the total amount of refunds issued. The tape should be equivalent to the amount in the REFUNDS field on the Remittance Report screen.
All cash, checks, credit cards, and refunds should be reviewed again to ensure that the amounts are correct and equivalent to what is displayed in each appropriate field in Brain.
After the drawer has been balanced and closed in Brain, print the daily remittance report and the daily receipt report. Sign on the appropriate line and submit the daily remittance report, daily receipt report, cash, checks, credit cards, and refunds to the Finance Cashier Office.

Income Collections

The departmental cashier will balance and account for all monies, prepare and sign the Cash Remittance Report, and retain a copy of the form for the department’s files for a minimum of three years.
The departmental cashier will place the monies, the Cash Remittance Report and other supporting documentation in a locked money bag.
A designated campus security officer will pick up the locked cash bag from each department on a daily basis (Monday through Friday, excluding holidays) and deliver the locked cash bag to the Finance Cashier Office.
The Finance Cashier Office will verify and receipt all cash transmittals and deposit all cash receipts to the designated UNMC bank daily.

Imprest Cash Funds

There are two types of imprest cash funds:

Change funds - Used for making change in the process of receipting income
Petty cash funds - Used for immediate payment of properly authorized disbursements

There are very few authorized petty cash funds. Most cash funds are to be used only for making change.

Requesting New Imprest Funds

To establish a new cash fund or to increase an existing cash fund, send a written request to the Controller (zip code: 5075), specifying the type of cash fund (change or petty cash) needed or the reason an increase is requested.
A justification for the fund, the name of the person charged with the responsibility of fund control (cash custodian), the appropriate company center, the amount requested and the planned storage location for the cash fund should also be included in the letter.
The request and justification will be reviewed and discussed with individuals requesting the funds before being approved or disapproved. The task of review and discussion may be delegated to others as designated by the Controller.
Following approval, the Finance Cashier Office will notify the cash custodian that the check is available. The cash fund custodian may pick up and cash the check during regular business hours.

Petty Cash

Petty Cash Vouchers

A petty cash voucher must be prepared in ink for each expenditure and supported by a receipt or other proof of payment.
Petty cash vouchers must be signed or approved by a responsible employee who has no direct access to the cash.

Petty Cash Fund Reimbursement

Petty cash funds should be reimbursed when the department determines that the remaining petty cash is not adequate for day-to-day operations. At a minimum, petty cash vouchers should be reimbursed every three months. To reimburse petty cash funds, the department should send the petty cash voucher(s), related proof of expenditure(s), and a list of desired reimbursement currency denominations to the Finance and Business Services Secretary (zip code 5060).

Note: If petty cash vouchers are more than 2 years old, requests for reimbursement must go before the State Claims Board and reimbursement processing can take up to 6 months.

The Finance Cashier Office will notify the cash custodian that the check is available. The cash fund custodian may pick up and cash the check during regular business hours. For petty cash funds in Lincoln, the Finance Cashier Office will cash the check and send the reimbursement to the appropriate cash fund custodian via UNMC courier services.
Petty cash fund overages and shortages should be handled as described below for Change Funds.

Change Funds

Change Fund Replenishment (Fund Shortages)

Change funds will need replenishment only if part or all of the fund has been stolen or if incorrect change has been given, leaving the change fund short of the authorized amount. If funds have been stolen, the department should:

File a report with UNMC Security.
Retain a copy of the security report for their records.
Send a copy of the security report along with a Cash Shortage/Overage Requisition form. Address the reports to the Finance Cashier Office, who will then follow up with the Controller. The department company center number should be noted in the replenishment request so the replenishment can be charged to the proper cost center.

After the paperwork is reviewed by the Controller, the Finance Cashier Office will contact the Department to work in replenishing the change fund as needed.

Change Fund Overages

When change funds are found to be in excess of their authorized amount, the overage should be removed from the daily cash receipts deposit and forwarded to the Finance Cashier Office along with a completed cash overage requisition form.

Eliminating or Reducing Cash Funds

If it is determined that the cash fund is no longer needed or that the amount of the cash fund is excessive, the department should return all or part of the cash fund to the Finance Cashier Office. The Finance Cashier Office will issue a receipt to the department for the cash received.

For additional information, see the Cash Handling Policy.

This page maintained by dkp.

Last Review by Policy Owner: 12/29/12