UW RECEIPTS HANDLING SELF-ASSESSMENT
1. Are there procedures to establish accountability for revenues immediately upon receipt?
- Ideal Answer: YES. A cash register, pre-numbered receipts, or other mechanism is be used to establish accountability immediately when payments are received. This will provide an audit trail of the funds received and support the recording of the transaction into the University records.
2. Are all checks properly endorsed "for deposit only" to the Department and University?
- Ideal Answer: YES. Checks are promptly endorsed "for deposit only" to the respective department making the deposit and the University to prevent diversion and unauthorized cashing.
3. Are cash and related items (checks, credit card receipts) physically safeguarded against theft and loss?
- Ideal Answer: YES. Cash items are extremely vulnerable to theft and must be secured at all times with access limited to authorized personnel. Locks and safe combinations must be changed when employees with access terminate. Combinations and keys must not be left where easily found by unauthorized persons. Any substantial shortage or apparent theft must be reported immediately to Campus Police and Internal Audit.
4. Is credit card documentation safeguarded and maintained according to State Record Retention Guidelines?
- Ideal Answer: YES. . Records of purchases made with a credit card often include the credit card number. This information is sensitive and must be secured. Departments accepting credit card payments must comply with security requirements known as the Payment Card Industry (PCI) Data Security Standards. Therefore, paper records must be secured in locked file cabinets and electronic records must be placed on secured servers and be encrypted Because of the inherent security risk associated with credit card receipts and in accordance with State Records Retention Guidelines, credit card receipts and related documentation that include credit card numbers are only retained for 90 days.
5. Is the person preparing the deposit slip someone who does not reconcile cash to department accounts or record sales in department records?
- Ideal Answer: YES. There is proper separation of duties between the employees accepting payments and the employees responsible for maintaining the accounting records applicable to the payments. Deposit records are reconciled to SFS to ensure deposits have been posted to the appropriate department/project for the appropriate amount. To ensure that differences are identified, someone who does not handle cash should do this.
6. Are the individuals with the authority to approve and process credit card refunds someone other than those who reconcile refunds to SFS or record sales in department records?
Ideal Answer: YES. . There is proper separation of duties between those with the authority to approve and process credit card refunds and the employees responsible for maintaining the accounting records applicable to the payments. Refund records must be reconciled to SFS to ensure (1) all refunds are appropriate and authorized and (2) refunds have been posted to the appropriate department/account for the appropriate amount. To ensure that differences are identified, someone who does not have the authority to approve or process credit card refunds should do this.
7. Are cash shortages identified, analyzed, recorded, and reported?
- Ideal Answer: YES. Operational cash overages and shortages are recorded to provide an audit trail of these occurrences. The reconciliation process will identify the amounts of cash overages/shortages and management will investigate to determine the underlying cause. Appropriate corrective action will be taken to prevent further losses or errors. Any substantial and/or recurring shortage or apparent theft must be reported immediately to campus police and Internal Audit.
8. Are funds collected and deposited within 5 working days or when total funds on hand exceed a predetermined limit?
- Ideal Answer: YES. All funds collected on behalf of the University are deposited whenever collections exceed $1000 or on a weekly basis, whichever occurs first.
9. Is someone independently reviewing and approving voids and refunded transactions?
- Ideal Answer: YES. A good control activity requires someone review and approve voids and refunds before they are processed. The person reviewing and approving voids and refunds should not be (1) the same person initiating them, or (2) the individual responsible for reconciling deposits and refunds to SFS. The person reviewing and approving voids and refunds will document that approval.
10. Are locking bank bags or campus area drop sites utilized for transporting deposits?
- Ideal Answer: YES. The University utilizes a system of drop sites and secured courier to directly deposit monies to the bank. Use of the University direct deposit system reduces undue risk to the courier and eliminates the need for recounting. Controls will be in place to document the transfer of all deposits to authorized couriers or drop sites via the use of signed transfer logs.
- If you do not utilize a locking bank bag or drop site, have you recently reviewed the level of deposit activity with your Dean's office to determine whether you should consider locking bank bags and direct deposits?