Cash Management

Cash management centers around who has control of the funds and methods used for depositing, disbursing, and investing current operating cash and reserve funds. To mitigate the inherent risks in cash management, effective internal controls must include:

• Segregation of duties prevent and detect fraud.
• Physical safeguards to prevent theft,
• Authorization procedures to ensure accountability.
• Regular reconciliation to prevent errors and misstatements, and
• Adequate cash flow management to meet current obligations with timely collection of receivables, strategic timing of payments of bills, and forecasting operating cash needs.

Policy

The Board of Regents delegates the authority to the President to establish bank accounts on behalf of the University, to deposit, disburse, and invest funds from such bank accounts. The President further delegates this authority to the Chief Financial Officer (CFO).

• No one person shall have control over all aspects of cash transactions.
• Deposits will be made in a timely manner. All payments must be deposited into the board-authorized accounts of the University.
• All disbursements must be appropriately authorized.
• Bills will be paid within the legal limits granted by the vendor, but not aged to the point where KSU will develop a reputation for slow paying.
• All cash accounts will be reconciled monthly by individuals without access to cash, accounts receivable, or accounts payable.

Procedures

Commercial bank accounts are established at Fifth Third Bank to transact various University depository and disbursement activities. All accounts, except for the Federal Perkins Loan Fund and State accounts, sweep daily to the General account.