Cash Receipts Manual
CRM 101 - Functional Responsibility and Authority
Organization of the Cashiering Function
The line of functional authority and responsibility for cash handling activities is from the Board of Curators to the President to the Vice President for Finance and Administration. Authority is then delegated to the Office of the Treasurer and Controller and in turn, to the Campus Business Services office, the campus Cashiers Offices and the cash handling departments and units.
NOTE: References to Campus Business Services throughout this manual are used to indicate Administrative Services at Rolla, Financial Services at Kansas City and St. Louis, Accounting at Hospitals and Clinics, Controller's Office at UM System, and Business Services at Columbia.
Office of the Treasurer
The Office of the Treasurer has primary responsibility for the collection, control and custodianship of all University funds and securities including those for which the University has agreed to act as fiscal agent on behalf of individuals, other institutions, organizations and governmental agencies.
The Office of the Treasurer has Specific Authority to:
- Establish and terminate cash funds and locations of cashiering operations and set limits on the use of funds.
- Establish and enforce policies and procedures governing the receipt, handling, custody and disbursement of money and securities.
- Require the establishment and maintenance of records giving full account of monies received and paid by the University.
- Propose for Board consideration, banking depositories to be used and policies governing their use.
- Establish and maintain banking arrangements for receiving, holding and disbursing University monies and securities.
- Authorize at the bank those individuals who can endorse checks, cancel endorsements or receive money from the bank.
- Delegate responsibility and authority to others and define the limits of responsibility and authority of those designated persons.
- Establish and enforce minimum security standards applicable to all University cash handling operations.
Controller
The Controller has responsibility for ensuring that cash receipts and disbursements are recorded accurately and timely in the University accounting system. This office is also responsible for the daily reconciliation of the cash receipts recorded in the accounting system to the amounts deposited in the University bank accounts. Bank reconciliation is a critical control function necessary to safeguard cash.
Internal Auditing
Throughout the University, ongoing reviews of internal controls are conducted by Internal Auditing. As a part of these audits, Internal Auditing will assess the adequacy of cash handling procedures and compliance with University policy.
Campus Level Responsibility for University Funds and Securities:
Campus Business Services
- Establish and terminate certain cash funds, designate locations of cashiering operations and set limits on the use of cash funds.
- Establish, implement and enforce campus cash handling standards.
- Collect, control and maintain records of custodianship for all campus funds.
- Designate a campus Cashiers Office to function with specific designated responsibility.
- Delegate responsibility and authority to others and define the limits of that delegation.
- Designate those campus employees authorized to endorse checks, cancel endorsements or receive money from the bank.
- Interpret, implement and enforce specific security standards applications consistent with University standards.
- Establish and maintain a record of all money safes, including safe description, rating, location.
- Conduct periodic reviews of cash handling activities for Cashiers and other areas to determine that all systems are functioning as intended and that all applicable standards are being followed.
Campus Cashiers Office
- The Cashiers Office has administrative responsibility for all cash collections on a campus. The Cashiers Office has the responsibility and authority to:
- Receive and deposit funds.
- Act as advisor for all cash handling activities of the campus.
- Verify that deposits of Cash Receipts Locations (CRLs) and Cash Transmittal Locations (CTLs) are handled and prepared in accordance with University policy and procedures.
- Supply departments with temporary change funds.
- Conduct periodic reviews of all cash handling activities within the Cashiers Office to determine that all systems are functioning as intended and that applicable standards are being followed.
- Monitor direct deposit areas for timely deposits and recording of those deposits.
- Provide banking services for all departments not authorized to deal directly with the bank.
- Submit foreign funds received by the University to the depository bank for exchange.
Definitions:
- Cash Receipts - includes coins, currency, checks, money orders, credit cards and other payment forms which may be processed by a financial institution.
- Cash Receipts Location (CRL) - a physical location (other than the Campus Cashiers Office) for the collection of money for or payment of money to the University. An CRL forwards its receipts to an CTL, if it is not itself an CTL.
- Cash Transmittal Location (CTL) - a CRL that is authorized to transmit money received directly to the campus bank account, the Campus Cashiers Office or the credit card processing company
Approval for CRLs/CTLs:
Authorization - Any request or requirement to be an CRL must be authorized by Campus Business Services (Office of the Treasurer for UM System). The request should indicate whether the CRL also seeks authorization to be an CTL and, if so, whether it seeks authorization to deal directly with the bank, as provided in CRM 301 - Dealing Directly With the Bank. If this location is not a CTL, the request should indicate the CTL to which the monies are transmitted.
Request Must be Made in Writing - All requests for CRLs or CTLs must be made in writing and must include the following:
Cash Receiving Locations:
Must be Authorized - Any request or requirement for the collection of monies for or payment of monies to the University at a location other than the Campus Cashiers Office must be authorized by the Campus Business Services office (Office of the Treasurer for UM System).
Securities:
All securities received at the campus level must immediately be reported and delivered to the Office of the Treasurer through the Campus Development Office.
Created: 04-27-04
