IIT Cash Control Policy

University policy has placed the responsibility for the collection of cash, and cash like payments, with the University's Bursar's Office. In order to properly execute the University's policy, only sites explicitly authorized by the Bursar's Office are authorized to conduct cash transactions. The Bursar's Office has prepared this cash control policy for use by those sites designated to process cash transactions. If your office is processing cash transactions but has not received the Bursar's Office designation as a cash collection site, contact the Bursar's Office immediately.

To ensure proper and consistent cash handling procedures throughout the University, please ensure that all persons responsible for receiving and handling cash funds in your department have read and understand this policy. Please note the reference to "cash" in this policy applies to all forms of cash, including, but not limited to, currency, coin, checks, and credit card documents and receipts.

Particular attention should be paid to security of cash overnight and during the day. Cash funds must not be left unattended during the day. Funds should be stored overnight (or during the day while unattended) in a cash box within a locked cabinet or safe to which there is restricted access, preferably by only the person handling the cash and their supervisor.

Under no circumstances is cash received to be used for making loans, advances, or to pay for petty cash purchases.

General Internal Control Procedures

Except when approved by the Bursar, cash should only be collected by the Cashiers located in MB 104 and DTC 290. Any sites collecting cash must direct all payees to the cashier, unless the Bursar has explicitly approved the site as a cash collection site.

• Permanent financial records, such as log sheets, receipts, monthly reports should be kept in a secure location.
• Deposits to the cashier should be made in a timely manner as frequently as possible.
• Each area collecting cash must have written procedures that document the cash collection process.
• Payers should always be instructed to make the checks payable to IIT.
• All money collected should be deposited directly to the IIT cashier. Again, the money should not be used to pay other expenses or distributed for any purpose prior to deposit.
• Each area should have a back-up employee trained to prepare the deposit to ensure deposits are made on a timely basis.
• Checks should always be made payable to IIT and restrictively endorsed upon receipt. To obtain a restrictive endorsement stamp, contact the Bursar Office at bursar@iit.edu.
• If there are any problems or questions please contact the Bursar at bursar@iit.edu or the Controllers Office at 312-567-3240.

Cash Receipts Review

• Each item should be listed in a cash receipts journal or tracked accurately, in detail, in an alternative method. The Bursar is available to discuss and advise you on proper accounting methods.
• Important required information to record is:
  • A list of persons paying the cash (cash receipt log or journal)
  • The nature of the transaction
  • The amount of the transaction
  • The date of the transaction
  • If the transaction is unusual or extraordinary, a detailed description must be prepared documenting the circumstances.
• Whenever possible, for the item exchanged for cash, use pre-numbered, duplicate copied receipts. Keep a copy as the control copy and maintain it in numerical order by date.

Deposits

• Any cash not deposited should be kept in a locked cabinet or lock box in a secured location. The access to the above should be restricted.
• Never accept post-dated checks.
• Whenever possible, the deposit should be prepared by a person other than the person collecting the cash.
• The daily deposit should be reconciled to the transaction journal or cash receipt log, as previously described in this policy.
• A person (other than the person preparing the deposit) should review the deposit and agree the amount equals to the deposit back-up documents (transaction journal, cash receipt log, etc.). That person should also sign- off on the deposit.
• Cash receipts and deposits should be compared to the university monthly FRS account statements to ensure all the funds deposited were credited to the proper account.
• Large deposit amounts should be placed in a locked bag and walked over to the cashier with a Public Safety escort.
• No deposit should be put through inter-office or campus mail.

Cash Disbursements Review

• Each item or transaction should be accounted for and monthly reconciled to FRS ledger activity.
• The manager or supervisor of the cash center should review the monthly activity and sign off on all deposits. This gives the manager or supervisor an overview of all of the transactions and builds in another cash control procedure.

Cash Audits

In order to ensure that controls are in place and properly executed, all cash collection sites are subject to random audits by the Bursar's Office, the Controller's Office or the University's external auditors.

Controls on cash are important and consequently failure to properly safeguard cash at collections sites, including cash shortages and misuse of cash, could lead to disciplinary actions including termination.

Because cash is subject to random, unannounced review and audit, financial records should be maintained indefinitely in a safe place, preferably a fireproof cabinet.