Best Practices Self Assessment
Office of Internal Audit
Process: Cash Handling
Last Updated: August 2013
Function Practice
currently used
in operations Self-Identified Recommendations for Improvement
Best Practice Yes/No
Hiring & Training
Background checks and/or bonding are required for all new
1 employees responsible for cash handling.
Cash handling training is required and updated periodically
2 for those who are responsible to handle and monitor cash.
Cash handling policies and procedures are available for
3 reference.
Segregating Duties
There is more than one qualified person involved in the cash
1
handling process.
For example, one person is not responsible for all of these
2
functions:
a) receiving cash
b) recording cash receipts
c) reconciling cash collected with the cash receipts log
d) depositing funds
e) posting to, or adjusting accounting records (SAP)
Mail Receipting
All funds mailed are received by an individual other than the
cashier
1
Cashier restrictively endorses all checks upon receipt.
2
All checks and cash received are recorded on pre-numbered
receipt forms or a cash register/receipt system immediately
3
upon receipt.
Audit.UNL.EDU
Page 1 of 4
Best Practices Self Assessment
Office of Internal Audit
Process: Cash Handling
Last Updated: August 2013
Function Practice
currently used
in operations Self-Identified Recommendations for Improvement
Best Practice Yes/No
Cashier identifies the purpose of the check (may determine
the proper account coding) and verifies that check is for the
4
proper amount.
Cashier verifies that check is made payable to the University
of Nebraska - Lincoln.
5
Cashier totals all checks received that comprise a batch and
signs batch total to be deposited.
6
Over-the-Counter Receipting
Cash receipting is monitored adequately. Extent of controls
1 depend on dollar magnitude and costs to implement.
Examples include:
a) If a cash register is used, supervisor makes daily cash
register readings,
b) Surveillance cameras at time of cash count
c) Surprise counts/audits by supervisor
d) Pre-numbered receipts, periodically completely accounted
for and customer sign posted, "Do Not leave without a receipt"
e) All voids processed on a cash register are authorized by the
cashier's supervisor
Cashier verifies that check is made payable to the University
2 of Nebraska - Lincoln and restrictively endorses all checks and
money orders received.
Cashier acknowledges amount collected/received for each
3 batch.
Cashier creates a batch report which provides the total of
4 batch and purpose (account) for which funds were received.
Cashier supervisor prepares a Departmental Deposit Form or
5 Bursar Advice/Remittance and deposits funds intact and
timely.
Petty Cash
The Bursar has provided written authorization of each petty
1 cash/change fund and external bank account prior to
establishment.
Audit.UNL.EDU
Page 2 of 4
Best Practices Self Assessment
Office of Internal Audit
Process: Cash Handling
Last Updated: August 2013
Function Practice
currently used
in operations Self-Identified Recommendations for Improvement
Best Practice Yes/No
An individuals who does not receive or distributes funds from
2 the petty cash, reconciles the receipts to the balance of petty
cash and occasionally does so on a surprise basis.
Disbursements from petty cash require a detailed, original
3 receipt for reimbursement.
The department prohibits employees from using petty
4 cash/change funds to make loans (IOUs) or to cash personal
checks.
Any amounts that are short or over during reconciliation are
reported to the supervisor. Suspected inappropriate activity is
5 evaluated by the supervisor for remediation or the Office of
Internal Audit is contacted for an additional review.
The Office Manager annually assesses the use of the petty
6 cash/change fund for the appropriateness of the assigned
fund (e.g., not too large or too small).
Record Keeping
Organized and complete supporting documentation for all
1 deposits is used for reconciling deposits with SAP.
Records for all cash receipts are retained by the department to
provide supporting documentation as to the nature of the cash
2 receipts received. Records are retained according to the
Record Retention Policy.
Reconciliations
Departmental accountant/Cashier Supervisor reconciles sales
1 receipts, batch totals, and other collection reports to deposit
slips.
Departmental accountant, or other individual not depositing or
reconciling the funds, posts transactions to the departmental
2 subsidiary ledger and general ledger timely and accurately.
Departmental accountant/Cashier Supervisor reconciles
3 revenue posted to G/L and bank deposit slips.
Treasurer/Bursar reconciles bank statements to the General
4 Ledger (SAP)
Audit.UNL.EDU
Page 3 of 4
Best Practices Self Assessment
Office of Internal Audit
Process: Cash Handling
Last Updated: August 2013
Function Practice
currently used
in operations Self-Identified Recommendations for Improvement
Best Practice Yes/No
Protecting Assets
1 Access to information on checks is limited and kept secure.
Cash is transported securely and during normal working
2
hours.
3 Cash is counted in a private, secure location.
Cash is stored in locked safe with limited access. Accountant
4 or other individuals responsible for reporting revenue should
not have access.
5 Personal funds are not comingled with cash.
Cash is stored as it was batched with copy of batch control
6 sheets.
Depositing Funds
1 Cash is deposited daily or per University policies.
Cashier's supervisor prepares a Departmental Deposit Form
or Bursar Advice/Remittance and deposits funds intact and
timely. Any deposit over $10,000 must be delivered to the
2 Bursar's office within 24 hrs. All funds received must be
delivered to the Bursar's office within 48 hours.
A designated person is the depositor of funds and has a
Cashnet user account created by the Bursar. All deposits
3 should be entered into Cashnet (online) before they are sent
to the Bursar for processing.
Cash transferred from a department to the Bursar's Office is
4 secured in a lockable bag.
Returned Checks
Departmental Accountant identifies the batch, cost object, and
1 GL account check was posted to. SAP records are adjusted
accordingly.
Department continues its efforts to collect the funds due and
2 notifies supervisor if funds remain uncollected.
Audit.UNL.EDU
Page 4 of 4
