GAP 200.025, Procedures for Handling Cash and Check for Deposit

  1. General
  2. Internal Controls for Handling Cash and Check Deposits

 


 

I. GENERAL

Any area handling cash or check deposits should establish, document, and maintain adequate internal control procedures to ensure security of University assets.  The following minimum safeguards should be followed by all Duke departments.

 

II. INTERNAL CONTROLS FOR HANDLING CASH AND CHECK DEPOSITS

Processing Environment

Cash and checks should be counted in a secure area with access limited to authorized employees.  Authorized employees should be kept to the minimum necessary to achieve adequate internal control. All funds should be promptly deposited; until deposited, funds should be kept in locked drawer/cabinet with access limited to authorized employees. Custodians of petty cash funds should not process non-petty cash funds.

Departments processing deposits on a regular basis with University Cashiering should obtain a locked deposit bag from that office.  The department will be issued keys to this bag. 

  • The bag key should be maintained by a person separate from the individual who counts and prepares the deposit.
  • The person who delivers the locked bag to University Cashiering should not have access to the bag key.
  • Deposit bags should be stored in a secure location with access limited to authorized employees.

Preparing Deposits

When preparing deposits, cash and checks should be counted twice and verified to the prepared deposit ticket.  The count should be verified by a separate authorized employee.

Any supporting documentation for the deposit (sales slips, invoices, check stubs, letters, etc) should be maintained by the department; do not send this documentation to University Cashiering.  For security reasons, departments are discouraged from keeping copies of checks as back-up. If a copy must be maintained, the MICR line on the bottom portion of the check copy must be obliterated for security/privacy reasons.

Making Deposits

Cash and checks should be deposited with the appropriate office on a timely basis.  Please reference GAP 200.026, Deposits to the University, for requirements and procedures for depositing funds on a timely basis. 

When transporting deposits or deposit bags to University Cashiering, departments are encouraged to

  • deliver the deposit directly from the department to University Cashiering
  • use DUPD as an escort if deposits are made on a regular basis or in the event of a large deposit
  • conceal the deposit/deposit bag while in transport to prevent unwanted attention

Deposit Processing at University Cashiering

Before accepting custody of the bag for processing, the cashier will open the bag in the presence of the person delivering the deposit to verify the cash in the bag matches the deposit ticket.  If the cash does not match the deposit ticket, the cashier will return the bag to the person delivering it for additional processing in the department.  An e-mail notice will be sent to the department.

In many cases, deposits will be processed immediately at the counter, and a receipt provided to the person delivering the deposit.  In some cases, the bag will be held for processing and a receipt available for pick-up by the department within 24 hours.  

Reviewing Receipts and Reconciling

Receipts should be reviewed for accuracy, both against the prepared deposit ticket and any supporting documentation.  After review, the receipt, and supporting documentation for the deposit, should be provided to the individual responsible for reconciling the general ledger accounts to which funds have been credited (this person should be separate from the persons who prepared and delivered the deposit).

During reconciliation, the supporting documentation should be scrutinized to ensure that the funds were deposited to the appropriate general ledger accounts.