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Cash & Check Handling

Cash Handling: Cash & Checks

The objective of the Cash Handling process is to ensure that all funds are received, secured, deposited and reconciled in a timely, accurate and well controlled manner.

Only designated Office Coordinator(s) in the SMTD are authorized to receive cash/checks as determined by the CAO, Christian Rafidi cerafidi@umich.edu. Our authorized Cash Handlers, staff who have been designated to receive cash or checks from faculty, staff, students, and vendors, are:

Authorized Cash Handlers by Department

 

All authorized cash handlers must have taken the MyLinc TME103 training course at least once and are certified to receive cash/checks. Information on web-based depository training classes is available on the Treasurer’s Office website.

SMTD may receive funds for a variety of purposes including, but not limited to event fees, program fees, conference fees, etc.

All funds received for each transaction will be counted and a record must be maintained on a separate log in Excel. The log must be saved centrally and access provided to the Financial Manager or emailed weekly to the Financial Manager. All tracking logs must be in Excel and identify recipient, amount, and dates of original receipt. For all checks that do not belong to SMTD we will immediately deposit them to the University’s unallocated account. Unallocated deposits should be made as follows:

  • Account 122500
  • Fund 98000
  • Dept 000500
  • Program 98040
  • We kindly ask that you send an email to unallocatedssc@umich.edu to alert SSC that you are making a deposit to the unallocated account and provide the cash receipt number.

All refunds must be recorded or logged separately. All tracking logs must be in Excel and identify recipient, amount, and dates of original receipt and refund. Before refunding, the transaction must be approved by a higher level of authority within your department, and final approval by the Financial Manager, Michelle Terrell mstaaum@umich.edu, for amounts up to $500, and the CAO, Christian Rafidi cerafidi@umich.edu for amounts over $500.

Cash handling responsibilities are designated as follows:

  • Review and approve refunds, write-offs and/or adjustments: Financial Manager and CAO
  • For transactions where amount is known, ensure the amount received or refunded is accurate by comparing funds received to the invoice, conference fee, etc.: Cash Handlers
  • Review funds received to ensure they are U.S. funds only – no foreign banks except Canadian checks: Cash Handlers
  • Review checks to ensure they are payable to the University and not to individual faculty or staff members: Cash Handlers
  • Review checks for accuracy and completion: ensure date is completed; check is not post-dated; and check is not dated older than six months. Also Ensure the check is signed by the preparer: Cash Handlers
  • If necessary, issue a pre-numbered receipt for funds received and retain a copy of the receipt for balancing purposes: Cash Handlers
  • Record funds received into a daily log detailing each transaction if a pre-numbered receipt is not given: Cash Handlers
    • Record details: payee name(s), amount of check, date of check, date received, check delivery method (e.g., USPS, hand delivered, etc.), purpose of check, shortcode associated with.
    • NOTE: Making copies of checks is strongly discouraged. If there is a valid business purpose, all numbers on the bottom of the check (micr line) must be covered (i.e. placing paper over the numbers) before copying.

Secure cash and checks by placing them in a locked safe, cash box, or locked drawer. The secured place is continually visible to our authorized SMTD cash handler(s). Keys to the drawer are kept in a secure, secret place. For combination locks, the combination should be changed monthly or semi-annually and/or when employees transfer or are terminated. Authorized users in MPathways will be updated by the Financial Manager as changes occur.

 

Depositing Cash & Checks

Depositors in the SMTD are authorized to receive cash/checks as determined by the CAO, Christian Rafidi cerafidi@umich.edu. Our authorized depositors, staff who have been designated to receive cash or checks from the cash handlers/receivers are the following staff:

Authorized Depositors by Department

The Financial Manager will keep the list of authorized depositors in MPathways current with any staff changes such as a new staff member who will be depositing funds/allocating or a staff member who is no longer depositing/allocating funds.

  • All authorized depositors should receive proper depository training and certification through the MyLinc TME101 course prior to depositing cash/checks. The TME 101 course has to be taken every two years. Information on web-based depository training classes is available on the Treasurer’s Office website.
  • The depositor will obtain funds and pre-numbered receipts and/or the daily receipt log from the cash handler.
  • The depositor will verify that funds received balance to receipts or the daily transaction log. The balancing of funds received should not be performed by the individual(s) receiving funds unless supervised by a higher level authority.
  • Verify that all pre-numbered receipts are accounted for.
  • Record balances by retaining copies of deposits so they can later be reconciled with the deposit amounts. Be sure to maintain a record of all deposits and deposit information.
  • Prepare the cash/checks for deposit. Refer to Preparing & Making Deposits Quick Reference – Page 1 for instructions on preparing cash & coin for deposit.
  • Complete the currency/coin and/or checks portion of the deposit ticket with the appropriate amounts – all funds received should be deposited on the same day.
  • Cash and/or checks should be placed in a Treasury Cash/Checks deposit bag. Coin over $25 is placed in a special CoinLok deposit bag. Insert the deposit ticket into the clear inner pouch of the bag.
    • Record details such as "who" gave the deposit to "whom", date, time, bag serial number (if applicable), amount, delivery method, etc.
    • NOTE: Making copies of checks is strongly discouraged. If there is a valid business purpose, all numbers on the bottom of the check (micr line) must be covered (i.e. placing paper over the numbers) before copying.
  • Create a Cash Receipt Ticket (CRT) if necessary (i.e. need for additional Chartfields other than the default) to ensure all funds are being allocated to the proper accounts. Refer to Section 3 of the Depository Training Guide for detailed instructions on how to create a CRT.
  • Ensure all funds are being deposited into the proper expense or revenue account.
  • Review chart field allocations to ensure each deposit is posted in the correct General Ledger account. Initial/sign.
  • Secure the deposit so that funds are not lost or comingled with other funds.
  • Store deposit in a locked safe or cash box within a locked drawer until deposit is made. The locked safe or cash box within a locked drawer is continually visible to the authorized depositor(s) and the combination is changed on a regular basis. Keys to the locked safe or cash box within a locked drawer are kept in a secure, secret place.
  • All funds collected by the SMTD must be deposited into a University account on the date of collection. Where this is impractical and where the total deposit is less than $500, the deposit may be made within one business day of collection. The Treasurer’s Office must approve any exceptions to this policy. Refer to Section 5 of the Depository Training Guide for detailed instructions and additional guidance on how deposits should be made.
    • For Development Funds, follow the Development depository process. Any cash gifts should be deposited, checks are to be forwarded to the Development Office through a Development Office gift drop box. For more information on special depository situations, see Section 2.5 in the Depository Training Guide.
  • Depositor will deposit funds either through:
    • an automated deposit station
    • at a University depository bank branch.
    • Via Remote Deposit Capture
  • Depositor will receive acknowledgement of deposit made via:
    • Receipt detailing the amount, date and account from the bank teller when depositing at a University depository branch
    • Receipt detailing the deposit bag serial number and date of deposit from the automated deposit station
    • Acknowledgement (i.e. receipt, email, etc.) detailing date, amount and recipient from the department making the deposits (where possible)
    • Receipt of branch acceptance (deposit bag number) is available on the Treasury website a few business days later. (for departments that have deposits taken to Briarwood bank branch via courier).
    • Deposit Detail Report from Remote Deposit Capture

 

Reconciliation

The individual performing reconciliation should not be the individual making the deposits. The Financial Manager will verify weekly deposit activity using Business Objects. Refer to the Run the FN03 JrnDetail Report in Business Objects Step-by-Step Procedure or Section 6.1 of the Depository Training Guide for detailed instructions on how to access this report.

  • Reconcile SOA to ensure all current period deposit activity is accurately reflected on the SOA and consistent with the receipt log/receipts issued by comparing it to CRT confirmation pages, ticket book copies, etc. Confirm significant deposits or high volume activity the next business day. Verify regular deposit activity weekly. Maintain proper evidence of reconciliation.
  • Investigate and resolve all discrepancies on a timely basis.
  • Reallocate funds thru a JE if deposit is not allocated correctly and take appropriate steps to ensure future allocations are correct.

 

Monitoring & Oversight

Periodically, the CAO and/or Financial Manager will compare planned budgets to actual and trends over time to ensure reasonableness and appropriateness.

The Financial Manager will review the following reports in Business Objects:

  • CMB Treasurer's Office Certification Courses Report to monitor individuals who have taken the TME103 and/or the TME101 courses.
  • FN03 JrnlDetail Deposit Management Report in Business Objects to monitor deposit activity, depositors and their certification status, and discrepancy trends.

The Financial Manager will review the standard Cash Handling report provided in M-Reports to monitor the following:

  • SMTD deposit locations and their activity
  • Discrepancy trends

 

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