KENTUCKY STATE UNIVERSITY POLICIES AND PROCEDURES

POLICY TITLE: Cash Handling Policy

VOLUME, SECTION & NUMBER:

ENTITIES AFFECTED: All Divisions and Departments

ADMINISTRATIVE AUTHORITY: Finance and Administration

APPROVED BY:

Kentucky State University Board of Regents

EFFECTIVE DATE:

August 9, 2024

POLICY STATEMENT:

Cash is the most liquid asset an organization has. Therefore, internal controls should be strongest in this area. Continuous follow-up and attention should be a priority with cash receipts.

Access to cash should be limited and all funds secured so that no one individual can access it without another responsible employee present. The work of one employee serves to verify that of another so that any errors which may occur can be detected promptly.

PROCESS:

Cash receipts (check or cash) should be recorded in the accounting system and then immediately endorsed with a For Deposit Only stamp. Checks should be scanned and stored for audits, reconciliation, and safekeeping. Cash should be verified by the documentation which accompanies the cash receipt. Copies of checks and cash documentation should be attached to each deposit record.

Gift receipts/acknowledgements are covered under the Gift Acceptance Policy. All other cash receipts (check and cash) should be received or have supporting documentation (e.g., invoice) that can provide a back-up reconciliation document.