4.6.5 Handling of Cash and Cash Equivalents

A. Purpose

The purpose of this policy is to establish guidelines related to the handling and processing of payments made to The University of Texas at Tyler and to define those areas on campus authorized to collect these payments.

B. Persons Affected

This policy impacts all employees of The University of Texas at Tyler. 

C. Definitions

  1. Cash – U.S. currency and coin.
  2. Cash Equivalents – Money orders, travelers’ checks, cashiers’ checks, certified checks, credit/debit cards and wire transfers.
  3. Cash handling department – Campus operating unit authorized to collect University funds; deposits all funds collected to the Faculty/Staff Cashier’s Office.
  4. Faculty/Staff Cashier’s Office – campus operating unit from which collections are deposited directly to the University’s bank account.
  5. Change fund – fund exclusively restricted for the use of providing change when processing authorized collections of cash in the department.  It shall NOT be used for cash purchases, making loans to employees or students, or cashing checks.
  6. Custodian - individual appointed by the Vice President of Business Affairs, entrusted with the responsibility of safeguarding the assigned University funds.
  7. University Funds – includes Cash and Cash Equivalents.  

D. Policy and Procedures

1.  Policy Statement

All payments to the University of Texas at Tyler should be made, ideally, at the Faculty/Staff Cashier’s Office (ADM 125).  However, if a department provides a documented reason as to why payments cannot appropriately be made at the Faculty/Staff Cashier’s Office, the Vice President of Business Affairs (VPBA) may authorize the department to collect these payments on a temporary or permanent basis.  Note:  payments delivered inadvertently to a department should be taken to the Faculty/Staff Cashier’s Office within (1) one business day of receipt.

Each department authorized to accept payments shall maintain a documentation file containing the following:

  • Comprehensive written funds handling procedures individualized for the department and approved by Student Business Services.  Audit Services may review the procedures periodically to ensure that an effective system of internal controls has been developed and implemented.
  • A copy of the Handbook of Operating Procedures Handling of Cash and Cash Equivalents and the Student Business Services Handling of Cash and Cash Equivalents policy.
  • A record of training provided by the Student Business Services Office to those employees designated to accept payments.

2.  Establishing a Cash Handling Department

A staff or faculty member, in coordination with the budget authority of that department, will send a completed Department Cash Handling Request Form to the VPBA, stipulating the location of, justification for, and responsible parties assigned to the point-of-sale cashiering fund.  This form and cash handling procedures for establishing a cash handling department are available on the Student Business Services web page. 

3.  Physical Security

Cash and assets shall never be left unsecured or unattended.  All assets shall be physically protected in safes, locked cash drawers, locking cash registers, cashiers cages, locked metal boxes, or locked drawers at all times.  Safes and drop safes should be bolted in place and small receptacles secured in locked areas, and, to the extent possible, safes and lockboxes used should be fire-proof.  Combinations or keys for cash receptacles shall be maintained only by designated Custodians and supervisors.  The safe registration information and combination must be reported to and maintained by the VPBA.  Combinations shall be reported under seal to the VPBA and are subject to audit.

4. Theft or Loss

On discovery of a possible theft or loss of funds, the VPBA shall be notified and the Student Business Services Office or Audit Services will conduct an interview before the close of the business day if possible and definitively within one (1) business day of the notification.If a theft is discovered, the supervisor/Custodian shall make a verbal report to the campus Police and the Student Business Services Office before close of business followed by a written report within (1) one business day.

All counterfeit currency must by law be confiscated and segregated immediately by the cashier.  If a counterfeit note is discovered subsequent to acceptance as tender for the transaction, then it must be segregated by the cashier and the account shall not be credited.  A Counterfeit Note Report must be filed by campus Police with the United States Secret Service within (1) one business day of the discovery.  A complete description of the passer shall be made by the cashier immediately following the transaction in accordance with United States Secret Service Procedures. 

E. Audit

All Change funds, and other Cash on hand, are subject to periodic, unannounced cash counts by management and/or Internal Audit.  Additionally, The UT Tyler Institutional Audit Committee may request an operational audit of the area with the change drawer at any time.

F. Review

This policy shall be reviewed by the Director of Student Business Services every five years or as legislation changes.

G. Relevant Federal and/or State Statutes, Board of Regents Rule, UTS Polic(ies), and/or Coordinating Board Rule(s)

University of Texas System U. T. Systemwide Policies UTS166 Cash Management and Cash Handling Policy

Date approved:  07/06/2016