Everyone in the UB community has the responsibility to safeguard cash and cash equivalents. Show This policy provides guidance for the administration of and internal controls over university cash handling operations. University at Buffalo (UB, university) departments that handle cash and cash equivalents must have both an awareness of and commitment to strong internal controls. Internal controls encourage good stewardship, safeguard assets, promote accurate financial reporting, prevent mishandling and loss of funds, and protect employees from allegations of impropriety. The university’s objective is to minimize handling cash and cash equivalents across all departments and affiliates. To reduce risk and prevent theft, loss, or misappropriation of funds, whenever practical, acceptance of cash and checks should be avoided. The university’s preferred method for receiving payments is via the ePay process, collection through a student account for student-related charges, electronic funds transfer (EFT), and credit or debit cards. Cash transfers between affiliates (State, Research Foundation (RF), University at Buffalo Foundation (UBF), Faculty Student Association (FSA)) will be conducted via EFT and credited to departmental accounts. University departments that collect cash and cash equivalents are responsible for implementing strong internal controls.
Controls and safeguards must be adequate to provide management with reasonable assurance that cash and cash related transactions are properly accounted for and controlled. This policy applies to all cash collected by university departments and deposited into a state, Research Foundation, or University at Buffalo Foundation account. Armored Car Service Service operated by a security firm to transport cash deposits from the university to a financial institution. Cash Currency, coin, checks, credit/debit card recordings, bank notes, bullion, traveler’s checks, registered checks, and money orders. Cash Handling Includes the responsibility for receiving cash, maintaining accounting records, preparing deposit slips, making bank deposits, disbursing cash, and reconciling cash. Cash Receipts Payments received in return for goods or services; includes cash, checks, debit/credit card payments. Cash Register Machine used to regulate money transactions with customers. Counterfeit Currency Currency that is made in imitation, so as to be passed off fraudulently or deceptively as genuine. Electronic Funds Transfer (EFT) The electronic transfer of money from one back account to another over a computerized network without any paper money changing hands or direct intervention of bank staff. Examples of EFT include credit or debit card payments, direct deposit, wire or ACH transfers. Event Ticket A slip of paper or cardboard that serves as evidence that the holder has paid a fare or admission or is entitled to a service. Event tickets are pre-numbered and tracked in sequential order for seating and reconciliation purposes. Internal Control The integration of the activities, plans, attitudes, policies, and efforts of the people of a department working together to provide reasonable assurance that the department will achieve its mission. An action or procedure designed to promote efficiency, assure the implementation of a policy, or safeguard assets to avoid fraud and error. Lock Bag A deposit bag with a lock to transport cash and checks securely between locations. While no bag is completely theft proof, lock bags offer a higher degree of security due to their locking system and construction of the bag. Lockbox A post office box established for receiving payments. A lockbox service with a financial institution may be established to process payments and deposit them directly into the university’s bank account. Payment Card Industry Data Security Standard (PCI DSS) An information security standard for organizations that handle cardholder information, defined by the Payment Card Industry Security Standards Council. Post Dated Check A check written for disbursement at a future date from the date the check is written because payment is not due until the later date. Pre-Numbered Receipt A press numbered, triplicate form that acts as a record of receipt when cash is received. The original is given to the payer and copies are retained for accounting purposes. Reconciliation An accounting process that compares two separate sets of records to ensure the figures are accurate and in agreement. Record of Receipt A document or form that provides an acknowledgement of having taken into possession a specified amount of money. Refund To reimburse or give back money that was paid previously for goods or services. Remote Deposit Capture Ability to deposit a check remotely through scanning a digital image of the check and transmitting the image to the bank. Restrictive Endorsement The action that limits the negotiability of a check or money order to the deposit of a bank account. Returned Check Check that is returned by the bank to the depositor due to reasoning such as insufficient funds, improper endorsement, amount mismatch between words and numbers, post dated or stale dated checks, or stop payment orders. Segregation of Duties The means by which no one person has sole control over the lifespan of a transaction. No one person should be able to initiate, record, authorize, and reconcile a transaction. Stale Dated Check A check that was written more than six months prior to being deposited to the bank. The bank is no longer obligated to process this check after this time period. State Accounts State accounts include: • Dormitory Income Fund Reimbursable (DIFR) – self-supporting accounts used to administer room rental fees and charges. • Income Fund Reimbursable (IFR) – self-supporting accounts used to track cash collections and the matching expenditures associated with the educational and related activities provided to students and other customers. An IFR account differs from a State Operating account in that it is supported by cash receipts. • State Operating – accounts that are a combination of allocation from state tax dollars and campus revenue from tuition and certain other sources. • State University Tuition Reimbursable Account (SUTRA) – self-supporting programs funded from tuition revenue related to overseas programs, contract courses, summer session, and enrollment overflow. SUTRA accounts operate similar to IFR accounts. What category includes currency coins and deposits in bank accounts?Cash typically includes coins, currency, funds on deposit with a bank, checks, and money orders.
What category is cash in bank?What are Cash and Cash Equivalents? Cash and cash equivalents is a line item on the balance sheet, stating the amount of all cash or other assets that are readily convertible into cash. Any items falling within this definition are classified within the current assets category in the balance sheet.
What are the items included as cash?Cash is money in the form of currency, which includes all bills, coins, and currency notes.
What are the 5 account classifications?The chart of accounts organizes your finances into five major account types, called accounts: assets, liabilities, equity, revenue, and expenses.
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