Cash requires clear accountability for deposit in a timely manner and custodianship to safeguard it. A department must be authorized by the Controller's Office before engaging in any business activities, including cash handling.
What is Cash?
Cash includes but is not limited to:
- Credit/Debit Cards
- Electronic Funds
The Credit and Accounts Receivable Office is responsible for overseeing cash handling and ensuring that adequate internal controls are in place in authorized departments to protect and secure the University's assets. In an effort to maintain an effective system of internal controls, departments authorized to handle cash are subject to audits at any time.
The following PowerPoint presentation provides a brief overview of cash handling practices: "Don't Lose the Lettuce".
These internal controls must be followed when handling cash:
- Timeliness – All cash items collected for the University from any source must be deposited daily with the Cashier's Office or weekly for minimum deposit amounts of $200 or less.
- Receiving Checks – All checks must be made payable to Pepperdine University.
- Responsibility to Safeguard Personal Financial Information – The department must ensure the security and confidentiality of customer personal financial information in compliance with the University's Information Classification and Protection Policy.
- Documentation – The department must establish written procedures describing its cash handling practices.
- Cash Handling Responsibility – The cash handling responsibility is to be assigned to a single individual, the Cash Custodian.
- Separation of Duties – It is critical that the responsibility for the physical security of assets is separate from the responsibility for related record keeping. There must be a separation of duties between staff responsible for receiving and depositing cash versus the staff responsible for the accounting records.
- Recording Cash Received – A system must be in place to record the receipt of cash at the time it is received.
- Balancing – Cash receipts are to be balanced daily to the sales records.
- Cash Security – Cash should be physically protected from loss at all times. Any thefts must be immediately reported to the Public Safety Department and the Cash Custodian's supervisor.
- Routine Reconciliation – Routine reconciliation is required monthly at a minimum to ensure that all cash sales are recorded properly.