Petty Cash Policy and Procedures
Cash Receipting
SUNDRY RECEIPT REQUIREMENTS
Employees that receive a payment in person by check or cash need to issue a sundry receipt to the payee. Each sundry receipt includes an original white, yellow, and pink copy. Departments are required to give the original white receipt to the payer, the yellow copy should be attached to the departmental deposit, and the pink copy remains in the sundry receipt book.
Financial Services will provide a sundry receipt book upon request from departments. When all receipts in the sundry receipt book have been fully used, the book, along with the pink copies, should be returned to the Cashier's Office window for replacement. If the sundry receipt book is not full at the end of the fiscal year (August 31), will not need to be returned for replacement, however, departments are required to provide a reconciliation report form by at least two weeks after the new fiscal year begins.
PAYMENTS RECEIVED BY MAIL
Employees that receive checks in the mail are not required to issue a sundry receipt. However, the receiving department must record each check received in the cumulative check log kept by the department, which is used to reconcile their account. Acknowledgement letters may reference the receipt number on the face of the document, in lieu of the sundry receipt, in accordance with Section 2.1 of System Policy 21.01.02 Receipt, Custody, and Deposit of Revenues.
ENDORSEMENT OF CHECKS
All checks received by the department must be endorsed immediately upon receipt using the departmental endorsement stamp provided by the Financial Services department, regardless of whether they were received in person or in the mail. The departmental endorsement stamp allows the employee to set the date when the check is received. Each departmental stamp has a number that identifies the department who is receiving and depositing the check. The endorsement stamp also includes the legend “For Deposit Only.”
If a departmental stamp is not available, checks must still be immediately endorsed with the words “For Deposit Only” and “ETAMU”.
CHECK LOG REQUIREMENTS
All departments that receive checks for deposit are required to keep a cumulative check log. The check log must include the date when check was received, name of payer, name of employee receiving payment, description of receipt, payment received in person or in the mail, sundry receipt number, check date, check number, amount and date of deposit. Departments are required to attach a copy of the current portion of the check log to the departmental deposit worksheet every time they submit a check for deposit. The check log is subject to review by Financial Services staff.
DEPOSIT REQUIREMENTS
Individuals making the deposit should be separate from the individual who completes the check log and check receipts. In offices with limited personnel, supervisors should review and approve each step of the process, including the deposit and reconciliation, in order to maintain separate functions.
A deposit is required the next business day whenever the amount on hand reaches or exceeds five hundred dollars ($500) and at least once every three business days regardless of amount. Employees transporting cash and coins in excess of $5,000 must be accompanied by an East Texas A&M University police officer.
All deposits must be taken in person to the Cashier's Office window by an East Texas A&M University staff employee. University police officers will escort any employee making a deposit in excess of $5,000; however, they should not be asked to act as a courier.
Departments making deposits of cash funds and negotiable securities in the amount of $2,500, up to $4,999.99, will be required to use a minimum of two personnel for transporting these funds, with a third party notified of the transport.
Required documents needed by departments submitting deposits will need to attach the following documents along with the deposit, if applicable:
- Endorsed Checks
- Cash / Currency
- Credit Card Receipts
- Check Log
- Yellow Copy of Sundry Receipts
- Reports / Documentation
EXCEPTIONS TO DEPOSIT REQUIREMENTS
Employees making deposits due to the following reasons will not need to comply with the check log requirements above; however, they will be required to include a brief comment about the reason for the deposit.
- Travel Reimbursement
- Travel Advances
- Sales Tax Reimbursement
- Expenditure Reimbursements
- Deposits made directly at the Cashier’s Office window by the payer
CASH REGISTER REQUIREMENTS
Departments that use a cash register must record all sales through the cash register and provide a cash register receipt to the customer. Each department needs to prepare a daily reconciliation between the total collections and the total sales per the cash register tape. Any discrepancies should be noted and explained on the department deposit worksheet.
SAFEGUARDING OF ASSETS
Cash, checks, and credit card information should be secured at all times. We recommend that departments have a safe on site where cash is collected. All collected funds should be kept in the safe until deposited and all petty cash should be kept in the safe when not in use. Access should be restricted to supervisory and authorized personnel. If your department does not have a safe for overnight cash storage, then you must have a box that can be locked. The cash box must be secured in a locking/fire resistance drawer, that is not easily movable, to which access is limited to the person collecting the cash and his/her immediate supervisor.
Whether the department uses a safe or a locked cash box, it is important to change the combination on a regular basis, at least once a year; or when someone who knows the combination leaves the department.
If the department uses keys to access the safe, cash box, or a locked drawer, then make sure that the keys are kept in a secure, secret place.
A locked box in a locked cabinet or closet with a full-time employee as the main person responsible for the keys is acceptable.
RESPONSIBILITIES OF DEPARTMENTS AND EMPLOYEES
Cash Procedures / online training:
Departments are responsible for training their employees who handle cash and prepare deposits with their internal procedures. In addition, departments are responsible for sending a request to the Financial Services department to assign the Cash Procedures online training to all new employees and student workers as soon as they know they will be handling cash. All administrative assistants are required to take this training. Training is annual.
Credit Card Training / PCI Compliance:
Departments are responsible for training their employees who process credit and debit card transactions with their internal procedures. Departments must notify the Bursar / Director of Cashier’s Office, Associate Director, to assign the PCI compliance training to all new employees and student workers that will process credit card payments.
REPERCUSSIONS
The supervisor of the individual making the deposit and/or the Vice President of Finance and Administration may be contacted if deposits violate the cash receipting procedure consistently.
Cash Receipting Forms
Check Log Template
Department Deposit Worksheet
Sundry Receipt Book Reconciliation Template
Processing Returned Checks
Prompt Payment Resources
Forms
Financial Systems Access Form
Departmental Deposit Worksheet
Petty Cash Authorization
Check Log Template