FINANCIAL MANAGEMENT
Policy
30302: Cash Management
The Department of the Treasury (“TREASURY”) is responsible for
developing, monitoring, and controlling the Commonwealth’s cash management
services. Treasury is able to negotiate
high quality cash management services contracts at the most advantageous price
by taking advantage of the size and volume of the Commonwealth’s consolidated
banking activity. Germanna Community
College is responsible for developing, monitoring, and controlling the cash
management services as they relate to non-state funds.
Treasury, under the authority of Sections 2.1-180,
2.1-180.1, and 2.1-209 of the Code of Virginia (1950),
as amended, governs the procurement of bank-related cash management services
for funds of the Commonwealth. As an
Agency of the Commonwealth we are required to adhere to the requirements
outlined in the Department of General Services, Division of Purchases and
Supply, Agency Procurement and Surplus Property Manual, and
the CAPP Manual, Topic Number 20210. Any specialized cash management services may be procured after
prior review and formal approval by Treasury. Germanna Community College has the responsibility of maintaining
control over cash and cash items, optimizing the cash available for investment,
identifying and correcting delays in the receipt, deposit, or transfer of
funds, and estimating cash flows both for State and non-State funds.
3.0 Procedure
3.1.
All cash items received
must be recorded immediately and deposited within 24 hours. Items received after the daily bank run will
be locked in the departmental safe.
3.2.
After the day’s deposit
is completed, it is stored in the safe until the courier takes it to the bank.
3.3.
Cash items on hand,
i.e., cash box change drawer, must be accurately stated and controlled by
appropriate safeguards.
3.4.
Every morning the
cashier obtains the cash drawer from the safe and verifies the contents of the
drawer. The drawer should contain $200
in coin and bills. The exception to
this is during Fall Registration when the amounts in the drawers are increased
to cover the influx of students.
Increases can range from $100 to $300 and should always be documented so
everyone knows the amount expected to be in the drawer.
3.5.
The bank bag containing
the collections from the previous day is given to Business Office personnel for
deposit preparation and verification.
3.6.
A receipt must be
issued to the person presenting the cash stating, at a minimum, date, amount
received, and reason for cash.
3.7.
Student Information
System (SIS) collections are recorded through the SIS system which prints out
receipts for the payer and Germanna Community College.
3.8.
Non-SIS receipts for
State funds are recorded through the cash register using a Business Office
receipt. The cashier fills out the
receipt and signs it as verification that he/she has recorded it. Checks presented are validated immediately
with the Germanna Community College stamp, either by hand or through the cash
register. Charge payments are also
keyed through the register.
3.9.
Local, Federal and
Petty Cash funds are not receipted through the cash register. A hand receipt is done using a Business
Office receipt.
3.10.
Access to cash drawers
and deposits are restricted to authorized personnel only. Cash and cash items will not be left
unattended or unprotected.
3.11.
If the cashier must
leave her station and there is no one else from the Business Office in the
room, he/she must place the cash drawer in the safe until he/she returns.
3.12.
If there is an
emergency, whether it be a drill or an actual emergency, cash drawers will be
locked in the safe unless there is an apparent risk of personal injury. At a minimum, the cashier’s window must be
pulled and locked and all exterior doors must be locked.
3.13.
Ensure proper
separation of duties.
3.13.1. In order to maintain proper controls, the
cashier will run the nightly closeout reports for all systems and complete the
Daily Cash Summary Report (“DCSR”). The
closeout reports, along with the DCSR and all cash, will be put into a bank bag
in the safe.
3.13.2. The Fund Accountant, or other Business Office
personnel, will prepare a deposit from the bank bag and verify that the totals
on the closeout reports agree with the totals on the DCSR.
3.13.3.
A courier will pick up
the deposit and take it to the bank, returning with a validated deposit ticket.
3.13.4.
Bank statements will be
reconciled by Business Office personnel.
That same person cannot be responsible for preparing the deposits. The Business Manager must sign each
reconciliation after verifying the validity of the transactions listed.
3.14.
Agency responsibility
for investment of idle non-State cash.
3.14.1
To maximize revenue,
cash accounts are analyzed no less than monthly and projections are made
jointly by the Business Manager and the Vice President for Administrative
Services as to the amount of cash that will not be needed in the short-term by
the institution. All excess funds are
then transferred to our investment accounts with LGIP (see Investment
Policy Number 30950).
3.14.2
The Exception to this
is any Federal Funds under Title IV.
The managing of Federal Funds is dictated by the U.S. Department of
Education and the institution must adhere to their guidelines and regulations
(see The Blue Book for detailed information).
3.15
Agency responsibilities
for payment of cash management and banking services are as follows:
3.15.1
Bank Service charge for
accounts used for petty cash funds.
3.15.2
Bank service charges for
accounts used for non-State funds and local funds (i.e., endowment funds,
private funds belonging to the students of the agency).
3.15.3
Bank service charges
for services that may reduce agency administrative or personnel costs but do
not enhance the cash management objectives of the Commonwealth.
3.15.4
Bank service charges
for any account established for specific State agency or institution programs
which are intended to be paid out of program funds.
3.15.5
Bank service charges
for federally funded programs where banking costs can be clearly identified as
part of the administrative costs of the program.
3.15.6
Charges for
discretionary banking or bank-related services such as courier services,
postage, data processing, or the purchase of night depository bags.
3.15.7
Charges related to the
acceptance and processing of credit card transactions.
3.15.8
Other charges that may
pertain to accounts that handle State funds, will be paid by Treasury.
4.0 Definitions
4.1. The
Department of the Treasury (“TREASURY”) is responsible for developing, monitoring,
and controlling the Commonwealth’s cash management services.
4.2.
The term “cash” in this
policy represents actual cash items as well as items that represent cash, such
as checks, money orders, and charge slips.
4.3. Daily Cash Summary Report (“DCSR”).
5.1. Code
of Virginia (1950) Sections 2.1-180, 2.1-180.1 and 2.1-209
5.2. Department
of General Services, Division of Purchases and Supply
Agency Procurement and Surplus
Property Manual
5.3. Department
of Accounts, CAPP Manual, Topic Number 20210
5.4.
Business Office
Procedures Manual, Germanna Community College
5.5.
The Blue Book
5.6.
Germanna Community
College Investment Policy, number 30950
Jane D. Krakowsky
Business Manager
540-727-3015
7.0
Approval and
Revision Dates
8.0
7.1.
Jane D. Krakowsy ................................................... August,
2002
7.2.
Presidents Council.................................................. October
7, 2002