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Roudebush Hall
501 E High St
Oxford, OH 45056

Hours
8:00-5:00
Summer
7:30-4:30

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Cash Collections

MIAMI UNIVERSITY

CASH HANDLING POLICY

 

 

It is extremely important that all cash handling agents establish and adhere to strong internal controls. By doing so, the potential for mishandling of funds can be minimized. Also, by following proper procedures, overages and shortages can be identified and an audit trail will exist so that transactions can be properly reviewed.

 

For the purposes of this policy, the term "cash" includes coins, currency, checks, money orders and credit card transactions.

 

The phone number for the Treasury Services office is (513) 529-7020.

The phone number for the University Information Security Office is (513) 529-9252

 

Treasury Services must be consulted prior to your receiving any cash or doing any credit card processing. Only approved forms of cash and devices/functionality for credit card acceptance will be permitted for University use. Treasury Services retains the right to determine what forms of cash a given Department or Student Organization can accept. All Departments who collect funds must communicate with Treasury Services to coordinate account set-up and banking arrangements, and to provide departmental contact information, the purpose for collecting funds, general ledger funds to be posted, etc.

 

Along with the right to accept any form of cash, a department assumes the responsibility of instituting and following proper cash handling procedures outlined below. Adhering to procedures will help insure the integrity and security of all cash transactions.

 

It is important that we protect our credit card customer's privacy and data as well as maintain compliance with the Payment Card Industry Data Security Standards (PCI-DSS). More information on this is available at Policy:Payment Card Data Security. Since the University could face penalties for failing to comply with these standards, they must be followed immediately and consistently. Failure to do so may result in your department being asked to discontinue the practice of accepting credit cards. Any exceptions to this policy require the approval of the Chief Investment Treasury Officer and the Information Security Officer and will be reviewed on a case by case basis. If you feel that credit card records may have been compromised in any way, whether through malicious intent or due to a weakness in the handling and processing of credit card transactions, please notify Treasury Services Office, or the University Information Security Office immediately.

 

All Departments who collect funds may be subject to periodic, unannounced audits by the Miami University internal audit staff.

 

Separation of Cash Handling Duties

Cash Handling Duties are divided into three categories, the receiving of cash, the depositing of cash, and the reconciliation of deposited funds. In an ideal setting all three categories would be the responsibility of different individuals. In a small department where this is not possible the goal should be the separation of the cash receiving responsibility from the depositing and reconciliation functions.

 

 

  I.    Receiving Cash

 

 

1.    Each cashier should start their day's business with a new beginning cash and their own cash drawer (cash drawers should never be shared). In the case of no register, specific person(s) should be delegated the authority to receive cash.

 

2.    Neither departments nor student organizations are permitted to open their own separate bank accounts-all deposits must be made through Miami University.

 

3.    All checks and money orders should be made payable to Miami University.

 

4.    All checks should be restrictively endorsed with, For Deposit Only Miami University, and should include the department or student organization name.

 

5.    Face-to-face customers should be provided with the option of a receipt for the transaction.

 

6.    Sales Tax may need to be charged on the sales of goods or services at your event. To limit the amount of cash change needed for your event, you may wish to charge even dollar amounts and back into the portion of your revenue that shall be remitted to the state as tax. Sales tax is currently 6.5% (.0065) of gross sales. Please contact TaxCompliance@MiamiOH.edu for any tax related assistance including inquiries to confirm if tax should be collected.

 

7.    All Charitable gifts or donations to Miami University are to be processed through the office of Advancement Services. Gift checks should NOT be deposited directly to the bank by the department or organization. Centralized depositing of charitable gifts by Advancement, ensures proper receipting, recording, and acknowledgement of donations. Without an official University receipt, the donor may not be able to take an IRS tax deduction for the gift given. Donor information is recorded in a database for historical tracking of the donor's relationship to the University. When accepting gifts/donations/sponsorships please be sure to obtain donor names and addresses at the time and forward this information along with the checks to the Advancement Services office using a securely sealed campus mail envelope.

 

8.    All external grants awarded to Miami University are to be processed through the Grants Office. Grant checks should NOT be deposited directly to the bank. Centralized depositing of grants ensures proper accounting and tracking of the funds. Any questions may be directed to grantsandcontracts@miamioh.edu .

 

9.    Each cashier should balance their business at the end of their shift.

 

10.  An independent designated individual needs to verify that the cash received matches the cash register report of business by cashier. This function is usually performed during the preparation of the deposit. All cash received (register or no register) should be immediately recorded.

 

11.  EFT and ACH Deposits (including wire transfers) are encouraged and facilitated by requesting Treasury Services to complete the required vendor forms with banking information. Departmental contact(s) and/or ledger account information are required by Treasury Services to ensure deposits are properly recorded.

 

12.  Credit Card transactions can be in person, by telephone, by mail, or via a secure PCI compliant university approved internet application. If your department wishes to transact business using credit cards, call Treasury Services to inquire about appropriate approved methods which may include one of the following:

 

a.    Departments that have a regular ongoing need for a stand-alone credit card reader or mobile wireless unit for processing with the credit card present, may wish to purchase one by contacting Treasury Services. Price Range $700-$900

 

b.    Departments that have a moderate but ongoing need to process card transactions where the customer and card may not be physically present may wish to contact Treasury Services to discuss an option called i-terminal.

 

c.    Departments working to purchase large software systems devoted to their purpose should contact Miami University departments of Treasury Services, Purchasing, IT Security, and Legal. These departments are needed to help facilitate, review or approve of any software purchases. Once a contract is decided on, Treasury Services will apply for the necessary merchant IDs to facilitate credit card transactions to our bank accounts and work with departmental personnel to develop deposit transmittals to the ledger system that will reconcile to bank amounts.

 

d.    Areas that have a temporary need for the ability to accept credit cards for specific events, etc may call ahead to inquire about reserving a loaner reader.

 

Departments                        Call Treasury Services (9-7020)           Rm 107 Roudebush

Student Organizations       Call Armstrong Center (9-2266)           Rm 2026 Armstrong

 

All persons overseeing credit card sales using a loaner reader are required to sign a form as the "owner" of the use. This Application Ownership Form will be completed and signed at the time the reader is picked up from one of the above locations. Signing the form acknowledges your responsibility for reviewing university credit card policy, understanding sales tax compliance, accepting credit card fees, confirming the index code for charging card fees, reviewing transactions for legitimacy and appropriateness, card handling, completing a batch settlement each end-of-day (instructions with the unit), forwarding all receipts to Student Organization Treasurer for 4 years retention and safeguarding of any equipment issued to them as owners. A copy of the signed form will be provided to the temporary owner.

 

Note: Lost, broken, or stolen equipment will be charged to the department/student organization responsible for the unit as per the signed Application Ownership Form. $700-$900. As owner, you are responsible for completing the procedure to reflect the cash and credit card transactions in the University ledger account system as outlined below and retaining bank receipt(s) and daily batch settlement reports. Refer to Section III Deposit Submissions Non-Credit Card (Cash) and Credit Card which includes completing an online Deposit Survey.

 

Failure to 1) Promptly deposit any cash to the PNC bank; 2) Batch out the loaner reader each end-of-day having activity or 3) or Complete the survey in a timely manner may jeopardize your groups's claim to revenue from your event and/or your ability to obtain a loaner reader in the future.

 

e.    All departments and student organizations transacting credit card business will have card fees recorded as an expense to their appropriate ledger accounts. These fees are usually processed by Treasury Services monthly. Fees will typically range from 2 to 3% of gross credit card sales based on University contracts.

 

f.     If our credit card customer disputes a charge posted to their credit card statement, the amount will be reversed and deducted from our bank account. These are called Chargebacks. These chargebacks can occur for many legitimate and fraudulent reasons. Our bank provides Treasury Services with information and gives us a stated period of time to defend our right to the funds if applicable or decide in favor of the customer. Treasury will pass this information on to the responsible area to take an appropriate action, research and provide all receipts, documentation, and required information back to Treasury. If we are disputing the chargeback and satisfactory documents are provided, our bank will reverse the chargeback and our bank account will be credited. If not, Treasury will perform the appropriate cash entry to record the loss to the department/organization.

 

 

 

Safeguarding Handling and Storing of Cash

 

1.    Cash and Credit Card receipts/reports should be held in a secure manner until deposited (i.e. in a locked location).

 

2.    Access to secure location(s) via keys or combinations should be limited to authorized individuals only.

 

3.    Your deposits should reflect the total collected cash (no expenditure should ever be made from the collected revenues). No checks/money orders may be cashed. Any expenditures or donations to outside groups should be made using the BuyWay system.

 

4.    Do not accept credit card information via email, or send such information to another department via email. Customer card number receipts or information distributed outside the department must show only the last four digits of the credit card number.

 

5.    If you wish to securely store and handle paper or electronic records containing credit card numbers, there is specific policy related to this that must be followed. Reference this information at Policy:Payment Card Data Security

 

Reviewing/Approving Voided Cash Receipts

 

1.    All voids and refunds should be reviewed and approved by the Cashier Supervisor.

 

2.    Documentation for all voids and refunds should become part of Daily Balancing reports.

 

 

  II.    Depositing Cash Promptly

 

1.    The preparation of the deposits should not be done by the person collecting and recording receipts. The person preparing the deposit should verify the cashier balancing form.

 

2.    All cash deposits should be completed on a customized, preprinted departmental/student organization deposit ticket to ensure that the receipts are properly credited to your department. Deposit tickets will be held by each divisions budget manager or student org treasurer. It is advisable to obtain deposit tickets in advance of your event(s). To order a new supply of deposit tickets or should you have any questions about deposits, please visit 107 Roudebush Hall, email TreasuryServices@MiamiOH.edu, or call (513) 529-1788.

 

3.    To maximize cash flow and safeguard assets, deposits need to be made in a timely manner. Section 9.38 of the Ohio Revised Code requires that all deposits exceeding $1,000 must be deposited in the bank by the next business day following the day of receipt.  If your total deposit does not exceed $1,000, the lag may be up to three business days to make the deposit, if the funds are safeguarded.

 

4.    In general, deposits other than credit card, should be made at PNC Bank, Shriver Center Branch unless prior arrangements have been made with Treasury Services.

 

5.    If you are using the night drop box to the left of the PNC bank entrance at Shriver Center, put the cash and/or checks into an envelope or flat bag along with a completed deposit slip. Be sure to retain a copy of the deposit slip for your internal records as you will not receive a regular bank receipt. Student organizations should put the name of their group on the signature line on the back of checks deposited.

 

6.    Remote Capture is a system that allows a customer to scan checks remotely and transmit the check images to a bank for deposit, usually via an encrypted internet connection. If your department routinely processes a volume of checks, contact Treasury Services to evaluate this option.

 

  III.    Deposit Submissions Non-Credit Card (Cash) and Credit Card

 

1.    The deposit tickets for cash deposits are 2-part. The depository bank will validate your deposit(s) and return a copy to you for your records. For daily credit card activity, a batch settlement tape from a credit card reader or a system/online report must be generated for each day that includes any transactions. These documents should report subtotals by card type. All of these receipts need to be kept with the paperwork for that deposit.

 

2.    A Deposit Confirmation Survey (see link below) or Transmittal Form must be completed FOR EACH PNC CASH DEPOSIT and/or CREDIT CARD BATCH SETTLEMENT. Therefore, you may need to complete more than one survey.

 

                            Deposit Survey

 

Your bank deposit will not be credited to your Banner account until this information has been submitted. Treasury Services will match this Deposit Confirmation information to amounts in the bank. The deposit will then be entered into Banner and a receipt from Treasury Services will be emailed to the depositor.

 

All of your receipts and signed credit card documentation need to be kept with the paperwork for that deposit. All paperwork needs to be retained in an orderly manner for four years so that it can be reviewed at any time by administrative staff or auditors.

 

 

  IV.    Reconciling Daily and Monthly Activity

 

1.    One individual should verify and initial all deposits prior to making a deposit.

 

2.    Daily reconciliation is accomplished by comparison of the following:

a.  the cash receipt records (cash register balancing records, pre-numbered receipts,

     or activity reports.)

b.  the completed Deposit COnfirmation Survey or Transmittal Form.

c.  the deposit receipt(s) .

 

3.    Monthly balancing is accomplished by comparing monthly reports from General Accounting to deposits.

 

4.    All differences should be documented and resolved promptly.

 

5.    All documents related to your cash deposits should be retained for a period of 4 years. Please forward them to the appropriate personnel as required.

 

 

Monitoring the Cash Receipts Process

 

1.    Management should do a periodic review of the internal controls in place to determine that the controls are:

a.  sufficient to safeguard cash collected

b.  understood by staff,

c.  carefully followed by all staff.

 

2.    A member of management should be designated to take responsibility for reviewing and approving the reconciliations in a timely manner.

 

3.    The designated member of management should also review the nature, extent, and resolution of overages and shortages.

 

4.    Management should periodically do an unannounced verification of prepared deposits, comparing the deposits with cash receipt records.

 

5.    Management should ensure that sales tax is collected and accounted for as required by the Tax and Compliance Coordinator.

 

 

 

 

GLOSSARY OF TERMS:

 

ACH:                Automated Clearinghouse; an electronic network for processing computer

                          based transactions in batches between participating depository institutions.

                         Transfers include direct deposit, payroll and vendor payments.

 

Cash:                Includes coins, currency, checks, money orders and credit card

 

Centralized Payment Card System:

 

                         University's system-wide credit/debit card system administered by Treasury

                         Services that processes VISA, MasterCard, Discover and American Express

                         credit card transactions.

 

 Credit Card:      Includes all sales made that charge a customer's credit card for the benefit of

                         Miami University and it's student organizations.Examples include transactions

                         done via credit card readers, wireless readers, registers, and various online

                         software as pre-approved by the University.

 

Departments:    Areas of the University that are non-Bursar and non-auxiliary related.

 

Depository bank:

 

                        Departments and student organizations make their deposits to the PNC bank in

                         Shriver Center

 

EFT:                Electronic Funds Transfer; Electronic transfer of money from one bank account

                        to another via computer-based systems without bank staff intervention; various

                        types including direct deposit, credit card, e-checks, wire transfers including

                        International wires such as SWIFT.

 

Gift:                 A gift is an irrevocable contribution of money or property from a donor to the

                       University.The donor is given a receipt appropriate for claiming the gift as a

                       a donation on their tax returns. A donor can designate a department or area the

                       gift will benefit but can not have any further involvement once the University

                       accepts the gift.Examples:A professor cannot make a gift to the University that

                       supports his own research; a donor cannot gift funds to a particular student.

 

Grant Funds:   Funds granted to the university for a specified purpose.Grant funds are applied

                       for through the Office for the Advancement of Research and Scholarship(OARS) and

                        once awarded, are administered through the Grants and Contracts Office                    

 

PCI-DSS:       Payment Card Industry Data Security Standards.Everyone storing, processing

                      or transmitting cardholder information is required to follow PCI-DSS.It consists

                      of 12 basic requirements grouped in 6 categories for establishing and maintaining a

                       reliable and secure payment processing environment.

                       A merchant's total Visa transaction volume over a one year period determines their

                     "level" which in turn determines the necessary requirements for actual formal compliance

                       validation.

 

Redacted:      Sufficiently marked out so as not to be readable when held to a light.Last 4 digits

                      should remain visible                

 

Remote Capture:

 

                      A technology-based method that lets banks accept checks endorsed as

                     'for deposit only' to be scanned front and back and submitted to the bank,encrypted

                      electronically over the internet.