UTMB HANDBOOK OF OPERATING PROCEDURES

Section 4 Fiscal Policies Subject 4.4 Accounting, General Policy 4.4.13 Cash Handling and Reporting

04/01/90 -Originated 12/07/04 -Reviewed w/changes -Reviewed w/o changes Financial Management -Author

Cash Handling and Reporting

Audience

This policy applies to all UTMB employees, faculty and staff.

Definitions	Cash: Under this policy, cash refers to currency, checks, credit cards, web payment, and electronic payments (ie: Automated Clearing House (ACH) and wire transfers).
Policy	It is the policy at UTMB that the handling, receipting, depositing, and reporting of all cash operations or cash related activities at UTMB be consistently managed. Consistent management of UTMB’s cash operations requires the proper administrative authorization to manage cash operations, individual responsibility and accountability of access to and control of actual cash and cash operations, employee training of proper cash handling requirements, and internal control of cash handling. All departments that use departmental petty cash, change funds or accept cash, checks or credit cards in the name of UTMB for any purpose must contact the Finance-Accounting Department and have specific written approval. A copy of this written approval must be kept on file at all times in the department, and the original kept on file in the Finance – Accounting Department.
Billing & Mailing of Payments	All contracts, memorandums of understanding, affiliation agreements, interagency agreements, royalty agreements, vendor agreements or any other solicitations involving payments to UTMB should instruct the sender to remit payment to a UTMB lockbox account. The payment should be made out to UTMB and should not be made out to any individual employee. Departments must coordinate specific billing information through Finance-Accounting. Each department will be required to provide billing and account information needed to identify the payment for proper allocation.

Department Head Responsibilities

HANDLING AND MONITORING CASH The department head at each location where cash is maintained or accepted is responsible for assuring that proper procedures are followed for handling and monitoring cash. All cash received should be recorded and handled under appropriate internal controls. If the department head has appointed a custodian, the custodian of a petty cash or change fund has the ultimate responsibility for the fund. SECURITY MEASURES The department head and/or their custodian shall ensure that adequate security measures are taken for the control of the institutional funds and the safety of all personnel handling cash. When not in use, cash or related items must be stored in a safe, cash register, locked drawer or locked box. Cash or cash related items should never be left unattended during working hours. All cash operations or processing areas must be secured from entry by unauthorized people. When safes are used, the combination must be changed periodically and sent under seal to the Office of the Chief Financial Officer. CASH OVER/SHORT DIFFERENCES (UNRECONCILED CASH) Cash over/short amounts, often referred to as unreconciled cash amounts, must be accounted for as soon as discovered. Cash shortages in excess of $25.00 must be reported to University Police, and an incident report must be completed and provided through the appropriate administrative channels to the Department of Finance-Accounting. PETTY CASH/CHANGE FUNDS RESTRICTIONS Absolutely no borrowing, lending, or check cashing from any UTMB cash operation is permitted. Private or personal funds may not be combined with petty cash or change funds. Except for off campus-locations, petty cash and change funds are not to be used to purchase stamps.

Department Head Responsibilities, continued

CLOSING CASH FUNDS When the need for cash funds ceases to exist, all cash must be returned to Finance - Accounting and verified to properly close out the cash fund. Any custody change or custody transfer must be in the presence of the current custodian and either the new custodian or the department head. The Department of Finance – Accounting must be notified if the custodian of a petty cash or change fund transfers to a different department or terminates employment with the University within three (3) business days. INTERNAL AUDIT All procedures are subject to a compliance review and/or audit by the Internal Audit Office. An annual confirmation of all change funds and petty cash funds is to be conducted by the Finance – Accounting Department and should include verification of fund amount and identification of the custodian.

Employee Clearance for Cash Handling	All prospective employees with job responsibilities involving the handling of cash in any capacity must be screened and cleared through University’s Human Resource Department prior to assuming their duties.
Employee Training	Each employee handling cash must attend a Cashier Training Inservice within the first 30 days of employment and attend a renewal class every two years. Employees who are not located at the main UTMB campus in Galveston and who handle cash must attend a Cashier Training Inservice within the first 90 days of employment. Employee training should be coordinated with the Finance – Accounting Department. The training should include employees that handle cash and their supervisors.
Return Check Policy and Check Endorsement Guidelines	RETURN CHECK POLICY UTMB or its agent may re-present all returned unpaid checks electronically and will impose a $25.00 Return Check Fee. RETURN CHECK SIGNAGE Signage must be posted in all cash collection areas informing customers of the University’s Return Check Policy.

Return Check Policy and Check Endorsement Guidelines, continued

CHECKS All checks should be made payable to the “University of Texas Medical Branch.” A restrictive endorsement in the name of the University must be placed on each check at the time of receipt. The restrictive endorsement must say the following: For Deposit Only UTMB-Galveston (Your Department Name) If this check is returned unpaid, I understand that UTMB or its agent may re-present the check electronically. I agree to pay and authorize my account to be debited electronically for a returned check fee of $25.00. Each check received by a UTMB employee must be stamped with an endorsement stamp that states the return check policy, as described above, and must make sure customers sign below the endorsement. The endorsement stamp must specifically include the exact wording above and departments who need endorsement stamps can obtain them from the Finance-Accounting Department. CASHIERS Prior to finalizing the transaction, Cashiers must write the customer’s Texas Driver’s License number on the front of the check along with their Unit History Number if applicable RECEIPTS/BILLS All customer receipts and bills must contain the new return check policy. DATABASE A database of customers with outstanding returned checks will be available to each collection area. If a department would like to use this service, please contact Finance-Accounting Department.

Deposit Guidelines

Deposits should be made daily if total receipts are $200.00 or greater, or five (5) business days if the accumulated deposit is less than $200.00. All departments transmitting daily deposits are to utilize a tamper proof locked bag. Any deposits to be transmitted to one of three central campus deposit areas with cash in excess of $1000.00 must be escorted by an armed security officer.

Web Guidelines	Any website developed with the intent of accepting payments, must be coordinated with the Finance-Accounting Department and the Office of University Advancement. Payment information must be closely guarded and protected by the appropriate web security standards approved by the web security officer. Web security standards and requirements are available at http://www.utmb.edu/policy/is/listing.htm All web payments must be applied to a ledger account that is maintained by the department. Prior to the website going live, the Finance-Accounting Department will require documentation that internal controls have been met and the department sponsoring the website has met all of the required guidelines issued by the Finance-Accounting Department regarding websites.
Unrelated Business Income Taxes (UBIT)	Prior to accepting cash in the name of UTMB for sales or services rendered, the Finance-Accounting Department must make a determination regarding whether the payment received will be considered UBIT. If the payment activities are considered to be UBIT, additional requirements may be imposed on the requesting departments.
References	Regents' Rules and Regulations, Part II, Chapter III, Section 1