The careful and responsible management of something entrusted to one's care. As University employees, we are responsible to our stakeholders, to be good "stewards" of the public trust.
Accountability
One person has sole responsibility for a fund. This helps to protect the University and the Employee.
Access to cash should be restricted at all times to only the person (custodian) accountable for the fund.
All transfers of cash and responsibility should be documented.
A supervisor should sign and verify overages/shortages and all voids/refunds.
Key Components: Funds are secured, passwords are not shared, receipts to each customer
Separation of Duties
More than one qualified person is involved in the key activities related to the collection, handling, depositing and accounting processes for cash received. Example: The person collecting cash, issuing cash receipts, and preparing the deposit, should be someone other than the person reconciling the general ledger.
Physical Security
Counting of cash must not be visible from outside the office.
Deposits must be adequately protected from loss while in transit.
Only authorized individuals are allowed in the work area.
The level of security required, depends on the amount of cash/cash equivalents being stored. Example: Larger amounts may require a safe with certain rating requirements and an alarm system, versus small amounts could be stored in a cash box.
Safe combination should be given ONLY to supervisory/authorized personnel and should be committed to memory.
Safe combinations should be changed whenever an employee leaves the unit/position, and at a minimum of once per year.
A log must be maintained showing the date of combination change and the reason for the change.
Key Components: Assets are properly stored, overages/shortages are reported, keys are secured, deposits are timely
Reconciliation
Cash and cash equivalents collected and reported as deposited, are reconciled with the General Ledger, and are verified as accurate.
A supervisor, or someone other than the custodian, should perform surprise counts of the petty cash or change fund.