Cash Transaction Procedures

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(investment fund calls or reallocation transfers). The College requests advance notification for incoming wires, and most agencies provide such notification. Investment accounts are established with authorized account(s) – generally, only one - to which the investment firms can transfer funds. To add an account to the list, the fund managers typically request significant documentation, sometimes a board resolution. These industry-standard requirements of the fund managers mitigate the risk of any individual at the College directing funds into an unauthorized account. Other agencies provide different types of controls. The Commonwealth of Virginia, for example, sends emails to at least two individuals at the College before transferring funds into a designated College bank account for the state tuition assistance program. Cash is sometimes received by departments other than the business office. An example of such receipts would be athletic event concessions, t-shirts sold for a fundraiser, etc. In these cases the department collects the money and then brings it into the business office with a checklist. If the activity occurs after business hours, the department places the deposit into a locking bank bag and puts it into one of the two safes located outside the business office. One safe is in Nininger Hall and the other is in the Kline Campus Center. The safes have two compartments with a drop slot into the top compartment. The department notifies the Campus Police and Safety Department to request a cash transfer. Either the Chief of Campus Police or the Sergeant of Campus Police delivers the deposit to the business office the next morning. The Controller is the only other person, besides the two named individuals from Campus Police, who has access to the top compartment of the safes. The bottom compartments are used to secure any petty cash funds before the event. The departments control the combination to the bottom compartment. Procedures for the receipt of cash, checks and securities as donations are established jointly between the Office of Institutional Advancement and Finance. See OIA Contribution Processing Procedures for these procedures. Cash Disbursements For disbursements made by check, the process is mostly performed by the Accounts Payable Manager (APM) in accounts payable. The APM receives a voucher or purchase order, approved from the appropriate department chair, with a general ledger account number assigned. Sometimes the request comes via email. The APM is responsible for contacting the department chair/manager for any missing GL numbers. For invoices received directly by the APM, the APM first attempts to match the invoice to an approved purchase order. If there is a match and all items from the invoice have been properly received by the ordering department, then the invoice can be paid without additional processing. Any discrepancies are resolved by the APM with the ordering department before vendor payment is initiated. Some invoices are first received by the ordering departments and are approved by the department chair/manager and then sent to the APM to be paid. The APM runs accounts payable checks on Mondays and Thursdays. See AP Check Processing Procedure for more details. After checks are written, the Controller transmits a file to the bank which includes the check number, check amount and the payee information. Any check that is presented for payment which is not on file
with the bank is flagged and must be approved for payment by the Controller on the bank website. If it is not approved, the check will be returned. Accounts payable checks are posted into the general ledger by the Controller. The backup position for this task is the AA. Checks are issued by the APM for employee travel advances upon receipt of a properly approved form in the business office. Faculty travel advances require prior approval by the Academic Dean. The employee then must return any money with receipts to the cashier when their trip is complete. The Controller generates a list of outstanding travel advances. Employees with advances outstanding longer than two weeks may not receive another travel advance and after a month, the list of outstanding advances is reported to the appropriate vice president for handling. Petty cash may be used to reimburse employees for authorized purchases of less than $25. A form with the necessary approvals is required before the funds are reimbursed. The employee signs the petty cash form to indicate that they received the funds. The Controller reconciles the petty cash box every two weeks and submits a request for reimbursement of the funds. To initiate an outgoing wire transfer, the Controller or the VP calls the bank wire room to initiate the transfer; an individually-assigned pin number is required and the bank periodically changes the pin number. The only employees with a pin number are the VP for Finance, the Controller and the President. Some, but not all, of the investment managers will call to verify that the transfer is legitimate. After the wire has been sent, the Controller will confirm receipt with the destination agency. The bank randomly calls an authorized person other than the person initiating a wire, for verification; the pin number and wire details (amount, destination account, etc.) are required for that verification.
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Cash Transaction Procedures

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