Cash Management Policy

Definitions

• Cash = defined as coin, currency, checks, and money orders
• Deposit Location = a department on campus where cash can be deposited
• Deposit Slip = official form required to be completed in order to deposit cash Departments with access to CashNet (Transact) can use the deposit slip printout within CashNet (Transact)
• Electronic Funds Transfer (EFT) = electronic transfer of money from one bank account to another, includes Automated Clearing House and wire transfers
• Petty Cash = an accessible store of currency and coin kept by departments for small expenses
• Remote Deposit = departments that can process a check deposit using a remote scanner that is approved by one of the college’s banks

Oversight

• This policy is overseen by the Controller and Business Services. This policy will be reviewed every three years.

General Guidelines

• All cash collected must be deposited into a college bank account. A deposit slip must be submitted with a cash deposit to a deposit location. Deposits must be made as soon as practical, ideally on the date of collection.

Deposit Locations

• The only approved deposit locations are Business Services and Philanthropy and Engagement (for donations only). In addition to these locations, there is a deposit drop box located in DeWitt. These deposits are picked up daily and processed by Business Services.
• Cash must not be submitted to Business Services or Philanthropy and Engagement through campus mail.

Internal Controls

• At deposit location
  • Funds should be receipted at a deposit location and all customers should be provided a receipt.
  • Cash handling duties should be assigned so that cash collection, deposit preparation, and reconciliations are assigned to different employees. Employees who handle cash should not create invoices or update accounts receivable records.
  • Multiple employees should not work simultaneously out of the same cash drawer. The cash drawer should be closed out at the end of business every day.
  • Bank deposits, including remote deposits, should be made daily.
  • It is prohibited to extend personal loans using college cash.
• For the cash collector
  • The college recognizes that departments outside of Business Services and Philanthropy and Engagement may handle cash. Whenever practical, adequate cash handling and internal controls should be put in place. This can include but is not limited to:
    • Multiple employees should not work simultaneously out of the same cash drawer.
    • A cash close out should be performed at the end of each business day.
    • Any deposits made in a day should match a daily deposit report generated by the cash register.
    • A second employee should verify the amount of cash collected.
    • Employees handling cash should not be responsible for creating invoices or updating accounts receivable records.
    • Cash should be turned into a deposit location or a deposit drop box as soon as practical, generally within one day of collection. A deposit slip or CashNet deposit printout must be included.

Payments Received By Check

• Checks should be made payable to Hope College
• The identity of the individual presenting the check should be validated
• Checks for student or other accounts receivable should have an ID number noted in the memo line.
• Checks must be restrictively endorsed using an endorsement stamp upon receipt.

Foreign Currency

• Hope College does not accept physical foreign currency or checks from foreign banks regardless of whether the checks are issued in United States dollar (USD) or a foreign currency.
• Payments from foreign accounts must be paid by wire transfer or, if to pay a balance on a student account, through CashNet. Please contact Business Services with questions related to wire payments.

Cash Equivalents

• For purposes of this policy, cash equivalents refers to anything that can be easily exchanged for cash or used like cash, such as a gift card. All internal controls previously outlined in this policy should be followed for cash equivalents. Cash equivalents should never be stored in a personal office. Employees should contact Business Services regarding storage of cash equivalents.

Petty Cash

• With approval from Business Services, some departments may maintain a small amount of cash on hand (referred to as petty cash).
• Receipts for all transactions using petty cash should be maintained by the department head (or their designee). When petty cash needs to be replenished, those receipts should be submitted on a payment request form to Business Services.
• Departments with petty cash are required to go through an annual petty cash audit conducted by the Accountant in Business Services.
• Adequate internal controls should be developed by the department when it comes to handling petty cash.
• The department head is ultimately responsible for the petty cash held by a department.