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.
phone number for the Treasury Services office is (513) 529-7020.
phone number for the University Information Security Office is (513) 529-9252
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 PCI-DSS.
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.
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.
Neither departments nor student
organizations are permitted to open their own separate bank accounts-all
deposits must be made through Miami University.
All checks and money orders should be
made payable to Miami University.
checks should be restrictively endorsed with, For Deposit Only Miami University,
and should include the department or student
Face-to-face customers should be
provided with the option of a receipt for the transaction.
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.
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.
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 email@example.com
Each cashier should balance their
business at the end of their shift.
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
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.
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:
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
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.
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
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
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.
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
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.
and Storing of Cash
Cash and Credit Card receipts/reports
should be held in a secure manner until deposited (i.e. in a locked location).
Access to secure location(s) via keys or
combinations should be limited to authorized
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.
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.
If you securely store paper records
containing credit card numbers, all but the last four digits should be redacted
within 60 days or as soon as refunds, chargebacks or disputes are no longer
likely, but no more than 180 days. Do not store full credit card information in
a customer database or electronic spreadsheet.
Reviewing/Approving Voided Cash Receipts
voids and refunds should be reviewed and approved by the Cashier Supervisor.
for all voids and refunds should become part of Daily Balancing reports.
Depositing Cash Promptly
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.
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.
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.
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.
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.
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
Deposit Submissions Non-Credit Card (Cash)
and Credit Card
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.
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.
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
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.
Reconciling Daily and Monthly Activity
One individual should verify and initial
all deposits prior to making a deposit.
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) .
Monthly balancing is accomplished by
comparing monthly reports from General Accounting to deposits.
All differences should be documented and
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
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.
member of management should be designated to take responsibility for reviewing
and approving the reconciliations in a timely manner.
designated member of management should also review the nature, extent, and
resolution of overages and shortages.
should periodically do an unannounced verification of prepared deposits,
comparing the deposits with cash receipt records.
should ensure that sales tax is collected and accounted for as required by
the Tax and Compliance Coordinator.
GLOSSARY OF TERMS:
Clearinghouse; an electronic network for processing computer
in batches between participating depository institutions.
Transfers include direct deposit, payroll and vendor payments.
coins, currency, checks, money orders and credit card
Centralized Payment Card System:
system-wide credit/debit card system administered by Treasury
Services that processes VISA, MasterCard, Discover and American Express
Credit Card:      Includes all sales
made that charge a customer's credit card for the benefit of
University and it's student organizations.Examples
done via credit card readers, wireless readers, registers,
and various online
software as pre-approved by the University.
of the University that are non-Bursar and non-auxiliary related.
Departments and student organizations make their
deposits to the PNC bank in
Funds Transfer; Electronic transfer of money from one bank account
to another via computer-based systems without bank staff
types including direct deposit, credit card, e-checks, wire
wires such as SWIFT.
gift is an irrevocable contribution of money or property from a donor to 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
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
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
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
Redacted:      Sufficiently marked
out so as not to be readable when held to a light.Last 4 digits
should remain visible
A technology-based method that lets banks accept
checks endorsed as
to be scanned front and back and submitted to the bank,encrypted
over the internet.