Department of Athletics: Policies and Procedures Related to Cash and Check Handling

Title

Department of Athletics: Policies and Procedures Related to Cash and Check Handling

1. Intention of This Policy

This Policy is intended to establish protocols to facilitate proper handling, safe custody, and appropriate transfers of cash by the Department of Athletics.

2. Defined Terms

"Department" or "Department of Athletics" means the Department of Athletics of the Institution.

"Institution" means the University of North Carolina-Chapel Hill.

"Petty Cash Manager" means a single individual (other than the applicable Petty Cash Supervisor) who has been designated by the Director of Athletics or their designee as the party responsible for ensuring proper safeguarding, maintenance, replenishment, use, and reconciliation of a petty cash fund.

"Petty Cash Supervisor" means the Director of Athletics, or another individual authorized by the Director of Athletics, to request funds for a petty cash fund.

"Policy" means these Policies and Procedures Related to Cash and Check Handling.

3. Training

Training on the requirements of this Policy shall be provided to any employee of, or other individual acting on behalf of, the Department whose job responsibilities involve handling, custody, counting, deposits, or transfers of cash or checks.

4. Authorization and Segregation of Duties

Cash or checks belonging to the Department may only be handled by:

  1. employees of the Department whose official job responsibilities require such activities, or who have otherwise been authorized to do so by the Director of Athletics or their designee(s); or
  2. any other individual authorized to do so by the Director of Athletics or their designee(s).

Cash access should be restricted to as few individuals as practical.

Duties of employees and any other individuals authorized to act on behalf of the Department shall be divided such that no individual is positioned to unilaterally control all components of the cash or check handling process (including, but not necessarily limited to, receipt, reconciliation, and transfer).

To the extent practical, ensure any receiver of cash or a check shall be prohibited from depositing or transferring such cash or check.

To the extent practical, ensure any depositor of cash or a check shall be prohibited from performing official reconciliation of such cash or check.

5. Permissible Payments Made by Cash or Checks

The Department accepts cash payments directly to the Athletics Business Office as an advance or expense reimbursement.

The Department accepts payments by check through any unit that accepts payments.

6. Acceptance of Payments Made by Cash or Checks

If payment by cash or check is attempted to be made to a recipient individual not authorized to handle such cash or check on behalf of the Department, the Athletics Business Office should be contacted to promptly receive such funds.

Cash and checks should be inspected upon receipt to help ensure authenticity.

Any check received should be restrictively endorsed immediately upon receipt.

A check may typically only be accepted by the Department if it is:

  1. payable in United States currency;
  2. made payable to UNCAA;
  3. signed and dated; and
  4. otherwise compliant with applicable legislation and banking regulations.

The Department does not accept foreign checks.

Any receipt of cash or a check shall be recorded, with such documentation including, at a minimum:

  1. the date of receipt of such funds;
  2. the amount received;
  3. the individual receiving such cash or check on behalf of the Department; and
  4. the item(s) purchased from the Department, or other reason for the Department receiving such funds.

Once deposits are made, documentation and attachments are retained in the Connect Carolina system.

7. Safeguarding, Reconciliation, Deposits, and Transfers of Cash and Checks

Safeguarding

Prior to deposit and when not in use, cash and checks shall be stored in a locked, fireproof location (a safe or lockbox that is difficult to move, for example) within a secure area to which access is restricted for unauthorized individuals.

Cash and checks should never be left unattended in an unsecured area.

Combinations on safes and lockboxes should be changed on a regular basis, with only individuals authorized by the Director of Athletics or their designee(s) permitted to know such combinations.

Petty cash funds, other cash belonging to the Department or Institution, and cash belonging to an individual should never be comingled or stored together.

Petty cash funds and other cash that may be in the custody of the Department from time to time shall be counted regularly under dual controls.

Each petty cash fund shall be counted under dual controls by the applicable Petty Cash Manager or their designee(s):

  1. upon receipt of cash, or upon removal of cash from a secure location; then
  2. again upon storage of the cash in a secure location.

Each petty cash fund shall be counted under dual controls by the applicable Petty Cash Manager or their designee(s) at periodic intervals while in use.

Each petty cash fund shall be counted under dual controls by the Petty Cash Manager or their designee(s) at the beginning and end of each business day.

Each Petty Cash fund shall be counted by the applicable Petty Cash Supervisor or their designee(s) at least once each month at an unannounced time.

Cash other than petty cash that is in the custody of the Department shall be counted under dual controls by the applicable unit manager or other appropriately authorized, trained individual:

  1. upon receipt of cash, or upon removal of cash from a secure location; then
  2. again upon storage of the cash in a secure location.

Cash other than petty cash that is in the custody of the Department shall be counted under dual controls by the applicable unit manager or other appropriately authorized, trained individual at periodic intervals while in use.

Cash other than petty cash in the custody of the Department shall be counted under dual controls by the applicable unit manager or other appropriately authorized, trained individual at the beginning and end of each business day.

Cash shall only be counted in private, secure spaces that mitigate the risk of access by unauthorized individuals.

Any such counting shall take place by an authorized individual with at least one other person monitoring such activities.

Any counting of cash shall be documented, with such documentation including, at a minimum:

  1. the amount of cash;
  2. the date and time of such counting;
  3. the location of such counting; and
  4. the individuals present.

No individual shall create a physical, photographic, or scanned copy of any check received on behalf of the Department.

Reconciliation, Deposits, and Transfers

To the extent practical, reconciliation should be performed by an individual who was not part of the receipt, handling, or recording of the applicable funds.

On a regular basis, the applicable unit manager or other authorized individual(s) shall:

  1. reconcile cash and checks collected to records of transactions, with such activities taking place under dual controls; and
  2. document each such reconciliation, with such documentation including, at a minimum:
    1. the date of the reconciliation;
    2. the confirmed amount of cash;
    3. any discrepancies; and
    4. the name and signature of each individual involved in the performance of such reconciliation.

All cash and checks received by the Department shall be deposited in an expedient manner.

Cash receipts shall be deposited in full, with no amount thereof being withheld for use for other purposes (use for other payments or as petty cash, for example).

Physical transfers of cash to facilitate a deposit should take place:

  1. securely;
  2. under dual controls whenever practical; and
  3. at varying times to minimize predictability.

Cash and checks should never be transferred via interoffice mail or other comparable means.

At the beginning and completion of each deposit or physical transfer, each involved individual shall be responsible for verifying under dual controls the involved amount(s), and ensuring documentation is created of such deposit or transfer that includes, at a minimum:

  1. the date of the deposit or transfer;
  2. the name and signature of each individual acting on behalf of the Department who is involved in such deposit or transfer;
  3. the item(s) deposited or transferred (the total amount of cash or number of checks, for example);
  4. in the case of checks, each check number, as well as each check's corresponding amount and the name on the check; and
  5. the total amount deposited or transferred.

Outstanding vouchers and receipts, received cash and checks, and documentation of transactions should be periodically reconciled and compared to a general ledger by the Department's Chief Financial Officer or their designee(s) to ensure accuracy, with documentation of such activities including, at a minimum:

  1. the date of the reconciliation;
  2. the name and signature of each individual involved in the reconciliation; and
  3. verification that there are no discrepancies, or specification of any discrepancy that exists.

Any discrepancy shall be promptly reported to the Director of Athletics or their designee(s) so that appropriate measures may be taken to immediately address any issue(s).

8. Petty Cash

Petty cash should not exceed $500.

Purchases shall not be made using petty cash.

Replenishment of Petty Cash Funds

The Athletics Business Office shall be responsible for replenishing any petty cash fund.

Any additional cash added to a petty cash fund shall be documented, with such documentation including, at a minimum:

  1. the amount of cash added to the petty cash fund;
  2. the date such cash was added to the petty cash fund;
  3. the individual responsible for requesting the additional cash for the petty cash fund;
  4. the individuals responsible for physically adding the additional cash to the petty cash fund; and
  5. the purpose for such additional cash to be added to the petty cash fund.

Closing a Petty Cash Fund

The applicable Petty Cash Supervisor must approve closure of a petty cash fund.

All remaining cash from a petty cash fund shall, upon closure, be returned to the Athletics Business Office.

Any closure of a petty cash fund shall be documented, with such documentation including, at a minimum:

  1. the date such petty cash fund was closed;
  2. the reason for closure of the petty cash fund;
  3. the date of transfer of any remaining petty cash; and
  4. the names and signatures of the individuals involved in transferring, and receiving the transfer of, such remaining petty cash.

9. Periodic Audits

Random and periodic audits of cash and checks in the custody of the Department may be conducted from time to time by the Department's Chief Financial Officer or their designee.

Any discrepancies or other issues identified in the course of any such audit shall be promptly reported to the Director of Athletics or their designee(s), as well as any other appropriate individual(s) or office(s) of the Institution and/or law enforcement.

10. Violations

Any suspected theft, improper use of funds, or other violation of this Policy shall be immediately reported to the Director of Athletics or their designee(s), as well as any other appropriate individual(s) or office(s) of the Institution and/or law enforcement.

Any Department employee or other individual found to have violated this Policy may be subject to criminal prosecution and/or punishment from the Department and/or Institution, with such punishment from the Department and/or Institution potentially up to and including termination of employment or association with the Department and/or Institution.

Any individual found to have violated this Policy shall not be permitted to serve as a Petty Cash Manager or Petty Cash Supervisor.

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