Administrative Policies
University Policy Number 2105
Subject: Cash Handling
Responsible Parties: Fiscal Services
Procedures: http://fiscal.gmu.edu/Procedures/cashhandman.pdf
Related University Policies: Review of Internal Controls http://www.gmu.edu/facstaff/policy/newpolicy/2103adm.html
I. SCOPE
This policy applies to all George Mason University faculty, staff, students,
organizations, and individuals that handle cash receipts or accept payment
in any form on behalf of the University. The scope includes activities
at all campuses and all locations at which University business is conducted.
This policy does not apply to agency funds collected by the University
on behalf of others and deposited to index 88 funds.
II. POLICY STATEMENT
As an agency of the Commonwealth of Virginia, George Mason University
has an obligation to properly account for, report, and manage deposits
of cash receipts in the manner prescribed by the State Treasurer and in
accordance with the Code of Virginia. This administrative policy implements
the state's policy regarding cash receipts.
The University's Cash Office has the primary responsibility for collecting and depositing all cash receipts at the University. Advance written approval from the Assistant Vice President and Controller is required for any other department to collect cash receipts. Additional approval is required for departments wishing to process credit card receipts. Departments that collect cash receipts must maintain written procedures for cash receipts collections in their department. They must also permit periodic audits of their records and procedures by the University's Director of Accounting for Internal Controls, Internal Auditors or State Auditors as requested.
Internal control procedures must be in place at all locations handling
cash to ensure the following objectives are met:
(1) All cash receipts are collected.
(2) Cash receipts are accurately and properly recorded.
(3) Cash receipts are properly safeguarded during the time between collection
and deposit.
(4) Cash receipts are deposited on a timely basis.
(5) Checks are restrictively endorsed immediately upon receipt.
(6) Cash receipts are reconciled to accounts periodically.
(7) To the extent possible, different people perform the collection, recording,
and reconciliation functions at each location.
All cash receipts totaling $500 or more at any location must be deposited
no later than the next banking day following the day of receipt. Cash
receipts totaling less than $500 must be deposited at least weekly. All
cash receipts must be deposited at the end of the fiscal year regardless
of amount. Exceptions to this policy must be obtained in writing from
the University's Assistant Vice President and Controller.
III . DEFINITIONS
Cash Receipts: The term "cash receipts" as used in this policy
includes any collections of currency, coin, checks or credit cards.
IV. RESPONSIBILITIES
Cash Office: The Cash Office has the primary responsibility
to collect all cash receipts on behalf of the University and to deposit
all funds on a timely basis in accordance with state guidelines and policies.
The Cash Office is also responsible for providing guidance and assistance
to departments that collect cash receipts at other locations.
Departments Collecting Cash Receipts: Departments collecting cash receipts on behalf of the University are responsible for complying with all aspects of this policy. This includes obtaining advance written approval to collect cash receipts, maintaining internal controls and written procedures surrounding the collection, deposit and reconciliation of cash receipts, and permitting audits of cash receipts operations and procedures on request.
Assistant Vice President and Controller: The Assistant
Vice President and Controller is responsible for administering this policy,
overseeing the Cash Office operations and procedures, and for granting
and rescinding authority for individual departments to collect cash receipts
on behalf of the University.
IV. COMPLIANCE
The Assistant Vice President and Controller will terminate cash
collection privileges for any department found not to be in compliance
with this policy.
V. EFFECTIVE DATE AND APPROVAL
The policies herein are effective September 1, 1999. This administrative
policy shall be reviewed and revised annually to become effective at the
beginning of the University's fiscal year.
Approved:
_______________________
Maurice W. Scherrens
Senior Vice President
________________________
Peter N. Stearns
Provost
Date approved: August 2, 2004