University Policy Office

2.18-Cash Management

Effective: 04/01/2019
Senate Proposal: No
Responsible University Officer: Vice President for Finance
Responsible Office: Financial Services and Operations

Policy Statement

Departments that accept cash, credit cards and checks on behalf of the University must follow internal controls that have been designed and implemented to protect University resources. This policy provides an overview of these controls.


Policy Requirements

Each employee who handles cash and checks is responsible for mitigating the risks of fraud and theft by adhering to internal controls, including but not limited to:

  1. Safeguarding of assets: employees should keep cash and checks in locked and secured areas with access limited to authorized personnel only (custodian and chair/dean/director).
  2. Segregation of duties: to the extent possible, employees who create billings and employees who collect payments should not prepare deposit forms to deposit funds.

All cash and checks collected by, or received in, University departments must be immediately deposited with the Cashier at the Student Financial Services Center or the Auxiliary Services Cash Hub. All cash and checks received must be stored in a locked and secured area until they are deposited at the aforementioned locations. Checks dated more than six-months old will not be accepted.

The Mangaer of Banking Operations must authorize all university departmental sales.

Purpose

This policy provides controls and standardizes cash management policy and procedural elements across all University departments.

Related Policy Information

Cash Banks

A cash bank may be established only when specifically authorized by the Manager of Banking Operations and is to be used only for normal University business.

  1. Loans cannot be granted from a cash bank.
  2. Operating cash and petty cash must be kept separately.
  3. Personal use of cash banks and check cashing from cash banks are prohibited.
  4. All overages and shortages of $25 or more must be reported to the Manager of Banking Operations immediately. If theft is suspected, contact Public Safety and Police Services.

Check Cashing

The Student Financial Services Center Cashier is the only authorized area to provide personal check-cashing services to University students and employees.

Additional information can be found at http://www.mtu.edu/student-billing/services/cashier/

Credit Cards

The University accepts credit and debit cards for payment of many goods and services. Information on acceptance, security and processing of credit cards can be found at http://www.mtu.edu/it/security/policies-procedures-guidelines/.

Exclusions

Donations received for the Michigan Tech Fund do not follow this policy. If a department receives funds that are gifts and intended to be deposited at the Michigan Tech Fund, checks should be sent immediately via campus mail to the Michigan Tech Fund or delivered in person if the gift was made in cash.

Contacts

Office/Unit Name Telephone Number
Manager of Banking Operations 906-487-2242


Definitions

Balanced Fund - Checks and cash on hand must equal the fund total. Petty Cash funds are balanced when the cash on hand plus receipts equal the total of the fund.

Cash Bank - Funds held by a department to process normal business transactions. Types of cash banks include (but are not necessarily limited to) petty cash and operating cash.

Cash Bank Custodian - Employee who accepts responsibility for a cash bank.

Cashier - Any person responsible for accepting cash and/or credit/debit card payments, and/or making change during sales or similar transactions.

Cash Management - The process of collecting, receipting, recording and depositing cash, checks and credit card transactions.

Cash Repositories - Authorized final recipient of cash, checks and credit card activity. Current authorized repositories include the Student Financial Services Center Cashier and the Auxiliary Services Cash Hub.

Checking Accounts - All University funds must be deposited into a Michigan Tech bank account. Financial Services and Operations is the only authorized department to establish Michigan Tech bank accounts. The use of Michigan Tech's name and Federal Employee Identification Number (FEIN) by departments to open bank accounts is prohibited. University funds cannot be deposited into personal/private bank accounts.

Departmental Sales - Departments across campus sell goods and/or services for immediate cash collection.

Financial Manager - Employee who is responsible for revenue and expenses in a university index.

Operating Cash - Funds held by a department (such as the Campus Store, Student Financial Services Center Cashier, Central Ticket Office, Memorial Union) to process normal business transactions.

Petty Cash - Funds used by departments to purchase allowable minor items when it is not practical to obtain via a purchase order or the university purchasing card.

TouchNet Payment Gateway - A secure payment engine which processes online payment transactions.

Responsibilities

Financial Managers - Monitor activity in indexes to ensure proper recording of transactions.

Cash Bank Custodians - Safeguard cash, maintain transaction documentation, reconcile fund, adhere to university policies and procedures, sign the cash bank custodian agreement.

Cashier - Safeguard cash, process monetary transactions responsibly and accurately.

Cash Repositories - Record revenue and prepare bank deposits.

Department Chair/Director - Ensure Financial Services and Operations is informed of any changes to the cash bank amount, purpose or custodianship, ensure cash banks are properly secured, approve cash bank agreement.

Information Technology - Set up electronic payment gateway sales.

Manager of Banking Operations - Review and approve new departmental sales, authorize cash banks, maintain cash custodian agreements.

Public Safety and Police Services - Provides secure courier services of all checks and cash.