Cash Handling for SDSC-Sponsored Activities

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. Be familiar with the procedures for handling cash and cash equivalents.
    2. Undergo background check (i.e. fingerprinting & criminal background check). The SDSC Business office will coordinate this task.
  2. Roles and Responsibilities
    1. Fund managers - Individuals responsible for receiving cash or checks
      1. Cash or checks received should be submitted to fund manager.
      2. Fund manager stamps the check and prepares the electronic deposit form
      3. 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)
    2. 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).
  1. 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.