CASH MANAGEMENT TRAINING FY2018

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1 CASH MANAGEMENT TRAINING FY2018 Katie Mahoney The Office of Finance & Administration University of Southern Maine University of Maine System - 1 -

2 Cash Collection The following are highlighted sections of Administrative Practice Letter Cash Management Training Section I- F. The entire APL can be found at Deposit of Cash Receipts At a minimum, cash (includes cash, checks and/or bank cards) receipts must be deposited when receipts exceed $100 or once a week, whichever comes first. Timely and accurate deposits reduce the risk of lost or misplaced receipts and make account reconciliation easier. Cash should NEVER be sent through the mail MaineStreet combinations need to be written on the face of each check. Cash, checks and bank card information needs to be kept in a secure location (fireproof safe, locked filing cabinet of cash register). Recording of Receipts A receipt must be issued for all cash collection. Receipts must be recorded using one series of pre-numbered receipts, cash registers or an appropriate ticketing system with carbons retained in book. Verify amount of cash collected equals amount on receipt. Segregation of Duties Adequate segregation of duties helps to prevent misappropriation of funds and aids in detecting errors. The responsibilities of one person should complement and check those of others. Audit Requirement Finance and Administration is responsible for ensuring that each cash collection location is audited at least once a year and the results are reported to the UMS Department of Internal Audit. Staff have access to view all accounts to which they deposit funds to verify these deposits. Retain all original collections backup, including the Schedule of Collections and any cash register tapes. Retain the deposit receipt with the day s backup. Logically file all backup so that information can be retrieved as needed. Ensure that job descriptions include responsibilities regarding appropriate cash handling procedures. Indicate the reconciliation of support to the accounting system, by checking off the respective amounts traced, noting any discrepancies and the resolution, and signing the day s support along with the date the reconciliation process was completed. Petty Cash Funds maintained in Portland & Gorham Student Financial Services offices Less than $20.00 Does not reimburse for sales tax, alcohol, returnable bottle deposits or an expense that requires IRS reporting. Must have original receipt. Funds are subject to a yearly audit. Must be kept in a secure location (fireproof safe, locked filing cabinet, or cash register)

3 Issuing Checks (Student Financial Services) The imprest account is designed for small check amounts and emergency situations. The imprest account does not have Payee positive pay, a fraud prevention feature of banking. The University s accounts payable system does have the Payee positive pay control feature to prevent a check from being cashed fraudulently. Why Deposit Slip Descriptions are so important and where to find them in GL Important things to note on the deposit slip. 1. Chartfield combination. 2. A contact name and phone number in case the cashier has questions about the deposit. 3. The description. The description can be 30 characters long. Include as much information as possible. This next screen shot is of the detail of account code You can find this by clicking on the underlined amount in the Current Month column

4 How to find out who to contact if you have a question about a Transaction Within the Display Detail view of GL. Within the Current Month column, locate the Account code and transaction amount you have questions about (the amount needs to underlined). By clicking on the underlined amount you see On this page we see the line description and the Journal ID By clicking on the Journal ID, you can see who processed the transaction

5 What is a BAD combination? And how to fix it. A bad combination is when a charge or expense is placed within a chartifield combination that does not contain a budget. These can be found when looking at the opening page of GL. Start by searching by just entering a department code. Below, I searched for department Notice that there are two lines. One line has an Operating Unit and the other does not. Click on any part of the line that has the Operating Unit. You can see that there is activity in the Current Month and Year to Date but nothing in Base or Current Budget. From this screen we can see that Postage has been charged here. A Journal Entry (JE) will need to be done to move these expenses out of here and into the correct combination (most likely the combination with no operating unit)

6 Journal Entries (JE) are entered into MaineStreet by the Finance & Administration office (724 Law Portland). This description should tell why the JE is being done. Provide dates, names and department codes. These lines show in the GL detail. Provide as much detail as possible. Up to 30 characters

7 How to find definitions for chartfields? Unsure of what account code to use? Want to know what the definition to an account code is. These next steps will help you find your answer. First open a GL search. On the Right side on the screen click the button. This is the next screen you will see. Choose Account from the drop-down menu. Notice in the codes start with a 6. field there is a 6 entered. All non-compensation expense - 7 -

8 Click the button. There are over 500 expense account codes to choose from. This same tool can be used to find the definitions to Business Units, Department, Fund, Program and Project codes

9 Where to buy a custom stamp? Office Max create a custom stamp When sending checks with a deposit, please write or stamp the chart field combination on the face of the check. This is helpful if the bank returns the check due to insufficient funds. The back of the check should be endorsed or stamped For USM deposit only. This helps to secure the funds of the check should something happen before it gets to the bank. Where to get pre-numbered receipts? Office Max search under receipts. There are many styles to choose from. Student Accounts office Michele Regan, Accounting Support Specialist, Or Virginia Johnson, Bursar, Who does what? Internal deposit slips Portland and Gorham Student Financial Services office Journal Entries & Internal Departmental Orders Finance & Administration Katie Mahoney , 724 Law, Portland Amy Blaisdell , 728 Law, Portland Payments on Purchase Orders Strategic Procurement Melissa Campbell