Cash Handling for SDSC-Sponsored Activities

SDSC routinely sponsors Conferences and Training Workshops which require charging registration fees. In order to comply with the university policy under the UC Business & Finance Bulleting 49, SDSC has implemented the following procedure for handling and processing cash and cash equivalents. Below is an excerpt from the UC B&F Bulletin 49.

The University of California maintains financial policies that comply with state and federal law, and that incorporate recognized best practices for prudent oversight of the University's financial assets. This Bulletin establishes the University's policies related to handling and processing cash and cash equivalents, and defines the roles and responsibilities related to receipt, safeguarding, reporting and recordkeeping for all University cash and cash equivalents. Its purpose is to ensure that these important University assets are protected, accurately and timely processed, and properly reported.

UC Business & Financial Bulletin 49

  1. Before you can handle and process cash or cash equivalent, you are required to
    1. Take the Cash Handling eCourse (06_CASHWBT) through UC Learning.
    2. Undergo background check (i.e. fingerprinting & criminal background check). The SDSC Business office will coordinate this task.
  2. Roles and Responsibilities
    1. Conference Coordinators - Individuals responsible for receiving registration fees
      1. Per policy, two individuals are required when collecting or receiving registration fee payments. Identify two people who will take the roles of Coordinators.
      2. When opening registration forms with payments, two people must be present - one to open the envelope, and one to witness and log payments.
      3. Create a log sheet for payments and keep all cash/checks in a locked place.  All checks must be stamped on the back with the department endorsement stamp.
      4. Must provide receipts to attendees and keep a copy for the record.
      5. Reconcile the receipts, log and cash/checks to ensure that all transactions are recorded and accounted for at the end of the day.
      6. Should not count cash/checks in public areas that is visible to others.
      7. Per policy and to minimize risk of asset loss and enhance safety to cash handlers, Coordinators should submit cash/checks, receipt copies and log sheet to the SDSC Business Office on a daily basis.
    2. Business Office Reviewer - Individuals in the SDSC Business office who will review transactions, cash/checks, prepare the deposit forms and deposit to the Cashier's Office (most likely the Fund Managers)
      1. Assign Index number for the event (i.e. conference or workshop) and provide it to Coordinators.
      2. Receives and reviews log, cash/checks and receipt copies from Coordinators.
      3. Do not count cash in public area that is visible to others.
      4. Prepares deposit forms and obtain necessary signatures.
      5. Makes the deposit to Central Cashier's Office. Deposit should be done on a daily basis or at least weekly or when collection meets or exceeds $500, whichever come first. A good practice of Buddy System should be done whenever depositing cash/checks to the Central Cashier's Office.
      6. Reconcile deposits with General Ledger and prepare reconciliation report.
      7. Submit to Supervisor/Manager for approval
      8. If deposit cannot be performed right away, transactions documents and cash/checks must be kept in a secured location (i.e. safe or locked storage facility)
    3. Business Office Approver - Individual who oversees the SDSC protocol for handling and processing cash and cash equivalent and approves reconciliation reports (most likely the DBO/MSO or designee)
      1. Ensures that requirements by potential cash handlers are met prior to designating them as Coordinators and Business Office Reviewers
      2. Reviews and approves reconciliation report documents.
      3. Perform unscheduled audit of all transactions, reconciliation documents, cash/checks on hand and physical security for cash/checks (i.e. safe or locked cabinet).
  3. Adherence to the 4 Principles of Cash Handling
    1. Separation of Duties - No single individual should have control over entire cash handling and processes.
    2. Accountability - Ensures that cash and cash equivalent are accounted for, properly documented and secured, and traceable to specific cash handlers.
    3. Physical Security - Focuses on securing all assets and safety of cash handlers.
    4. Reconciliation - Confirms that transactions are correctly recorded with proper documentations.  Routine reconciliation of accounts provides good checks and balances.
  4. Refund Process
    1. All cash and checks received for conference or workshop registration fees must be deposited to the Central Cashier's Office promptly. All checks received must be stamped on the back with the department endorsement stamp.  Cash or checks should not be held in anticipation that attendees might cancel and requests their payment back.
    2. If attendees cannot participate in the conference or workshop and would like a refund, reimbursements must be done via Payment Authorization. Inform attendee that it may take some time for them to receive their reimbursement.
    3. Coordinators must inform Business Office when refund is required and provide all necessary information (i.e. Name, amount, address, reason for the request, index number).
    4. Business Office Reviewers will process the Payment Authorization via Financial Link.
    5. Business Office Reviewer will review and reconcile transaction with General Ledger as a result of the refund, and generate a reconciliation report for approval.
    6. Business Office Approver reviews and approves reconciliation report.


Cash Handling eCourse: Log into UC Learning and search for 06_CASHWBT.

Internal Control Practices: Cash

Payment Authorization