The UC & Faculty Practice Group establishes the minimum requirements related to the handling and processing of Cash and Cash equivalents to ensure that these assets are protected, accurately processed, and properly reported. Each Ambulatory Practice is expected to adhere to these minimum requirements and establish local implementing procedures accordingly. In addition, UCLA is committed to ensuring that those engaged in the handling and transporting of Cash are protected and that associated risks are minimized. The BUS-49 policy covers basic practices for the campus for the safe and secure handling and transporting of Cash and cash-like assets by authorized individuals and units.
All transfers of cash accountability should be documented. Documentation should include amount transferred, date, and signatures of both persons involved in the transfer. The documentation should be kept in a location separate from the cash funds.
Departments should ensure that employees assigned cash handling responsibilities receive appropriate training, and are familiar with university campus policy guidelines and departmental procedures.
Written procedures for receiving, recording, reconciling, safeguarding and depositing cash should be prepared and provided to employees with cash handling responsibilities. Also, responsibilities for handling cash should be documented in employee job descriptions.
All cash should be recorded immediately recorded upon receipt. The recordings may be made on a cash register, a computer system data entry terminal, by means of pre-numbered receipt forms, or on a handwritten log. Each individual cash receipt should be identified and controlled by a unique, sequential transaction number, such as a cash receipt number. The cash receipt records should provide the following:
Checks should be made payable to the UC Regents and should be endorsed immediately upon receipt. An endorsement stamp may be obtained from the Payment Solutions and Compliance Office for this purpose.
All voided cash transactions should be supported by documentation stating the reason for the void. The documentation should also include the signature or initials of the person recording the void and the signature or initials of a supervisor responsible for reviewing voids.
Funds held overnight should be minimized. Cash should be kept in a locked safe or other secure area. The degree of security provided should be commensurate with the amounts stored. Per UC BUS-49 Policy.
Combinations or keys to safes and other storage facilities should be restricted to the Manager and a designated backup. Combinations or locks should be changed as necessary, and whenever a person with the combination or key is separated. Persons responsible for cash should be instructed to maintain confidentiality of safe combinations.
Appropriate precautions should be taken when transporting cash from the department to the Main Cashier's Office. Cash should not be sent through Campus Mail. It is recommended to obtain an escort from Public Safety or schedule pick-ups from Armed Guard Security Services to transport deposits.
Cash receipts should be deposited with the Main Cashier Office on a timely basis. UC BUS-49 policy requires a deposit at least weekly, or whenever accumulated receipts on hand exceed $500.00.
Cash receipts should be deposited intact. The funds deposited should reflect amounts on hand, less the amount of any assigned change funds. The deposit and supporting records should reflect any cash overages or shortages.
Cash receipts should not be used for petty cash disbursements, check cashing, or other purposes.
The following reconciliation procedures should be performed or reviewed by a supervisor not directly involved in receiving and recording cash:
Adequate separation of duties reduces the likelihood that errors (intentional or unintentional) will remain undetected by providing for separate processing by different individuals at various stages of a transaction and for independent reviews of the work performed. The basic idea underlying separation of duties is that no one employee or group of employees should be in a position both to perpetrate and conceal errors or irregularities in the normal course of their duties.
In general, the principal incompatible duties to be separated are authorization, custody of assets, and recording or reporting of transactions. In addition, a control over the processing of a transaction generally should not be performed by the same individual responsible for recording or reporting the transaction.
Potential problem areas are only an indication of where separation of duty controls are breaking down or are lacking. If overlaps in the performance of these duties are identified, it may be an indication to management that structural changes would enhance the protection of assets. In smaller departments, it may not be possible or reasonable to have complete separation of controls. In these cases, additional management review and supervision is necessary to ensure that proper internal controls are maintained.
The following chart can be used to determine the levels of internal controls available in your department. For three person office or a two person office the roles change.