DIVISION OF FINANCE. Committed to Service Excellence. Cash Handling. Presented by Stacie Sodolak. May 19, 2011

Transcription

1 DIVISION OF FINANCE Committed to Service Excellence Cash Handling Presented by Stacie Sodolak May 19, 2011

2 Goals Review updated TAMUS regulation Receipt, Custody, and Deposit of Revenues Review New TAMUS regulation Working Funds Discuss Sales Tax Mitigating Risks Resources Contact information

3 SYSTEM REGULATION Receipt, Custody, and Deposit of Revenues Updated March 30,2011 Purpose o To establish standards for incoming deposits and cash handling o To provide a workable, controlled, cash handling environment

4 SYSTEM REGULATION Internal Controls Documented Procedures o Guidelines Available Control Measures osafe guard assets oreliable bookkeeping & accounting information oclear audit trail oprotect Employees

5 SYSTEM REGULATION Internal Controls Segregation of duties o Reduces risk of fraud or theft o Protects employees

6 SYSTEM REGULATION Internal Controls Segregation Roles o Authorization: Individual responsible for safekeeping of funds. This individual would be the custodian. o Custody: Individual who accepts cash payments, endorses checks, issues receipt, transports cash, and may prepare deposit. These individuals have direct access to cash. o Record Keeping: Individual who records receipts into departmental records, posts accounts receivable payments and charges. These individuals do not have access to cash. o Reconciling: Individual comparing amount of cash collected based upon cash register tape totals, manual receipts/book, receipt or admission number sequences, number of participants, etc. to the amount deposited and recorded in FAMIS. These individuals do not have access to cash.

7 SYSTEM REGULATION REQUIREMENT Accountability o Includes the authority to carry out the task (documented in job descriptions and/or custodial forms)

8 SYSTEM REGULATION REQUIREMENT Individual Accountability o Involves delegation of authority-knowing who has access to cash and why they have it Cash Accountability o Involves security-knowing where an asset is at all times Process Accountability o Requires documentationknowing what has occurred from the beginning to the end of the process

9 SYSTEM REGULATION RECEIPTS An official receipt from ipayment System must be made for each payment received o Face to face sales o Payments received via mail if unexpected (No AR set up) Each receipt is generated electronically o Assigned to user generating receipt o Voids tracked in system o Must print out and give to customer at time of exchange of funds o No need to keep physically secured o Stored in ipayment database

10 SYSTEM REGULATION CUSTODY Adequate/Proper facility for securing funds o Locked safes o Secure work area Responsibility o Designated individuals Must retain custody and control over cash funds at all times Must limit access Combinations/Keys must be when custody changes hands or when information has been compromised

11 SYSTEM REGULATION CUSTODY Transfer of custody o Must document transfer of funds from one person to next o Transfer of custody log allowed o Must be reviewed/reconciled o ipayment keeps a log as you enter checks into the system

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13 Transfer Log Example Transfer of custody Log Date Payfile $ #CK To From Approved Reconciled By: 8/25/ $ /26/2008 Kevin Gustavus 8/25/ $ /25/2008 Damon Wallace 8/25/ $ /25/2008 Faith Stringer

14 SYSTEM REGULATION DEPOSIT OF FUNDS All funds must be deposited daily o Must make deposits of $200 or more daily o Less than $200 every 3 business days regardless of amount o Excess of $2,500 transmittals (excluding endorsed checks) Must be accompanied by security guard You can also contact Student Business Services and they can send a courier service for one time pick up

15 SYSTEM REGULATION DEPOSIT OF FUNDS Immediate endorsement of checks o NO authorization for any department to use collected funds for any purpose whatsoever other than for deposit Includes no cashing of personal checks Purchases should not offset amounts due

16 TAMU M0.02 CHECK ENDORSEMENT All checks must be endorsed on the back left end in the space designated for endorsement. Endorsement must be typed, rubber stamped, or hand-printed in ink Department name is the name of the department, section, unit, or planned event receiving the funds, and xxxxxx is the FAMIS account number which will be credited with the revenue. The depositing department may include a support account as well. If a check is returned as uncollectible or for deposit correction and the check endorsement is missing or incomplete, a processing fee for research will be assessed once the department that deposited the check is identified.

17 CHECK ENDORSEMENTS FOR DEPOSIT ONLY Texas A&M University CLAR- CHC Symposium FAMIS Acct. No.: FOR DEPOSIT ONLY Texas A&M University Department Name & FAMIS Acct. No.xxxxxx

18 ACCEPTING CHECKS Must give receipt o Collecting name and address is optional but is very useful for research LOOK AT THE CHECK! o Is it signed? o Do the written amount and number amount agree? LOOK AT THE ID! o Does the face in front of you match the face on the ID? o Does the signature on the check match the signature on the ID? NSF Checks o Post sign in plain sight Temporary Checks o It is highly recommended you do not accept temporary checks o If you do so, it is encouraged you set a maximum amount and collect all pertinent information Endorse Immediately

19 ACCEPTING CHECKS IN FOREIGN CURRENCY DO NOT ACCEPT FOREIGN CHECKS IN US CURRENCY!!!!!!! o The fees to accept this type of check are usually more than the check itself If you must accept a foreign check, make sure it is a Foreign bank and in Foreign currency. Make a separate deposit with both the bank deposit slip and ipayment file. Write Foreign on bank deposit slip and ipayment comments Deposit as US dollars: 100 Euros as 100 US Dollars Bank will notify us of adjustment in conversion rate FMO will adjust your account

20 SYSTEM REGULATION Working Funds Established March 30, 2011 Purpose o To provide procedures necessary to maintain proper controls over working funds Temporary Permanent

21 SYSTEM REGULATION Working Funds Annual Certification Letter Verify amount is still necessary Verify procedures are documented Verify no change in custodian Surprise Cash Audits

22 QUIZ TIME!!!!

23 Quiz What is the purpose of System Regulation Receipt, Custody, and Deposit of Revenues? A. Establish Control Measures B. Safe Guard Assets C. Get employees into trouble D. A&B

24 Quiz What is an appropriate form of receipt to give to a customer? A. Cash register receipt B. Official TAMU manual receipt C. ipayment receipt D. All of the above

25 Quiz Name the four responsibilities examined for segregation of duties. Authorization Custody Record-Keeping Reconciliation

26 GREAT JOB!!

27 Sales Tax Discussion

28 SALES TAX When do I collect sales tax? o Whenever you sell a taxable item unless proof of tax exemption is obtained o Exemption Certificates must be kept on file How do I know what is taxable? o Taxable items are flagged as taxable in ipayments o Information available on Sales & Receivables website ( o Ask us! If we are unsure, we have contacts with the State that we can ask.

29 Sales Tax Frequently Asked Questions o es/docs/questions.asp o Addresses several scenarios in which TAMU departments may need to collect sales tax

30 Sales Tax Most Common Mistake o Treating a Sale of a taxable item as a Reduction to an Expense. o Meals o Clothing Sales

31 Sales Tax State Audit in FY2009 o Audit period October July 2008 o 6 departments found in violation o $35, sales tax fine to State Next Audit? o Potentially FY2012 or FY2013

32 QUIZ TIME!!!!

33 Quiz 2 When should sales tax be collected? A. Shirt Sales B. Meal Sales C. Registration Fees D. A&B

34 Quiz 2 Where can I find more information regarding sales tax? A. FMO website B. AR@tamu.edu C. State Comptroller website D. All of the above

35 AWESOME!!

36 Mitigating Risks

37 Mitigating Risks Protecting Security Sensitive Information Don t leave funds unattended Don t maintain credit card numbers Don t copy checks Limit access to information Lock up over night or when unattended

38 Mitigating Risks Responsibility Theft is considered a Misdemeanor Knowing and not reporting makes you an Accessory Risk & Misconduct Hotline o eport_custom.asp?clientid=20488

39 Mitigating Risks Recognizing Potential Risk Factors Returned Check Policy o FMO is required to notify supervisors of employees that have returned checks made payable to TAMU Payment and Travel Card Policy o FMO is monitoring personal use of these cards

40 Mitigating Risks Reduce Common Deposit Errors o Verify deposit slips match actual deposit amounts Cash and checks should be added together Make sure it s the check in the bag and not the stub Make sure the deposit slip is included Make sure all checks are included Verify tape and amount with co-worker Fill out deposit slips completely Only balance ipayment files after verification Make sure ipayment files are balanced

41 QUIZ TIME!!!!

42 Quiz 3 How can I mitigate risk? A. Leave Cash Unattended B. Ignore wrongdoing by others C. Limit Access to Information D. Credit Card #s to my boss

43 Quiz 3 If I am aware of misconduct and don t report it, I can be charged and punished as an accessory. A. TRUE B. FALSE

44 Congratulations!!

45 QUESTIONS?

46 RESOURCES TAMUS Regulation web site o TAMU Rules/SAP web site o Sales/Rec web site o Guidelines for Cash Handling Procedures o Sales Tax Information o Management Advisory Services web site o

47 Sales & Receivables Contacts Tammy Bage Wendy Kotarski Penny Scott Rhonda Smith Linda Kettler Stacie Sodolak