Csuf Cash Management Policy
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CASH MANAGEMENT POLICY CSUF CASH MANAGEMENT POLICY Revised May 1, 2018 Revised May 1, 2018 0 | Page CASH MANAGEMENT POLICY As noted by Integrated CSU Administrative Manual (ICSU AM) Section 6200.00, Campus Administration of Systemwide Cash Management Policy, it is the policy o f the CSU that systemwide cash management policies be implemented in a manner that meets the internal control objectives and documentation retention requirements of the University. Certain basic internal control principles must be adhered to in regards to collecting and accounting for cash and cash equivalents. These basic principles are articulated below: KEY OBJECTIVES 1. Accountability • Ensures that CSUF employees who process and/or handle cash and cash equivalents can be held responsible in fulfilling their duties. • Accountability is present when the following areas are addressed: o Knowledge of who has or had access to, and why he/she has or had access to, cash and cash equivalents; o Knowledge of where cash or cash equivalent assets are at all times; and o Knowledge of what transpired from the beginning of a cash handling process to the conclusion of the process 2. Separation of Duties • Ensures that two (2) or more qualified and authorized persons are involved in the key, most sensitive activities related to the collection, handling, depositing, and accounting processes. 3. Security/Safeguarding of Funds • Ensures that employees involved in the handling of cash and cash equivalents are, at all times, protected from physical harm. • Ensures that cash and cash equivalents are at all times, protected from loss or misuse and physically protected through the use of security systems, lockable receptacles, vaults, or safes. • Ensures that technology resources (i.e. hardware and confidential payment information) are at all times protected from loss, corruption or compromise to confidentiality. 4. Reconciliation of Accounts • Provides assurance that cash and cash equivalents collected and reported as deposits are deposited accurately and timely into authorized CSUF bank accounts. • Provides assurance that general ledger recordings/transactions are recorded accurately and timely. 5. Authorized Bank Accounts • Provides assurance that there are no unauthorized bank accounts with local banks that use the campus name, address, and Federal identification number (FEIN). • Ensure the campus performs such reviews of local banks annually or on a more frequent basis. Revised May 1, 2018 1 | Page CASH MANAGEMENT POLICY TABLE OF CONTENTS Page References 4 I. Introduction 5 A. Key Objectives 5 1. Accountability 5 2. Separation of Duties 5 3. Security (Physical and Information) 5 4. Reconciliation of Accounts 6 II. Definitions 6 III. Roles and Responsibilities 9 A. Office of the CSU Chancellor 9 B. Campus Administration 10 IV. Conditions for Employment in a Cash Handling Environment 12 V. Managing CSUF Bank Accounts 13 A. Bank or Other Financial Institution Accounts Maintained by Related Entities 14 VI. Establishing Credit and Debit Card Merchants 14 VII. Payment Types 16 A. Currency and Coin 16 B. Checks and Cash Equivalents 17 VIII. Payment Channels 18 A. General Cashiering Policies for Receiving and Recording Cash and Cash Equivalents 19 B. Receiving and Recording Cash and Cash Equivalents 19 C. Point of Sale Equipment - Debit and Credit Card Processing 22 D. Point of Purchase (POP) & Back Office Conversion (BOC) ACH Requirements 22 E. Sale of Admission or Event Tickets 23 F. Credit/Debit Card Batch Processing (University of Extended Education ONLY) 24 G. Telephone 24 1. Credit/Debit Card Processing (University of Extended Education ONLY) 24 H. Prohibition on Payment with Credit/Debit Card via Fax Transmissions 25 I. Payment with Credit-Debit Cards via the Internet 25 1. Information Security 26 2. Credit/Debit Card Gateway 26 3. WEB ACH Transactions 26 Revised May 1, 2018 2 | Page CASH MANAGEMENT POLICY IX. Physical Security 26 X. Recording Deposits to the General Ledger 29 XI. R eturned Item Processing 30 A. Cash Equivalents (non-coin & currency) and Checks 30 B. ACH Debit Transactions 31 C. Credit/Debit Card Chargebacks 31 XII. Contracting With Third Party Relationships to Process Cash and Cash Equivalents (Includes Lockbox Services) 32 XIII. Petty Cash and Change Funds 33 XIV. Administration of Student Organization Funds 36 A. Authority 36 B. Administrative Oversight 36 Appendix A: General Information 38 A. Credit and Debit Card Information 38 B. Detecting Counterfeit Money 39 C. Reason Codes for why Payment Types may be Returned 39 Appendix B: PCI-DSS Data Security 40 Appendix C: ICSUAM 6200.00 Annual Compliance Checklist 43 Appendix D: Operational Controls Framework 44 Campus policy requires training when a new employee commences work in a cash handling job and at least once per year for all cash handling employees to refresh knowledge concerning policies, procedures and techniques and to provide updated information on internal and external policies. Please contact the Office of the University Controller or Director of Student Financial Services for more information. Revised May 1, 2018 3 | Page CASH MANAGEMENT POLICY REFERENCES California State University System Integrated CSU Administrative Manual (ICSUAMs): Current 3102.06 - Returned Items 3102.08 - Recording Deposits to the General Ledger 3102.09 - Bank Reconciliations 3102.10 - Change Funds 3141.01 – Administration of Student Organization Funds 6100.00 - Centralized Management of Cash and Investments (Renumbered from Policy 3101.0) 6200.00 - Campus Administration of Systemwide Cash Management Policy (Supersedes Policy 3101.02) 6201.00 - Sensitive Positions and Cash Handling (Supersedes Policy 3102.01) 6202.00 - Segregation of Cash Handling Duties (Supersedes Policy 3102.02) 6320.00 - Petty Cash (Supersedes Policy 3103.11) 6330.00 - Incoming Cash and Checks (Supersedes Policies 3102.03; 3102.04; & 3102.11) 6340.00 - Debit/Credit Card Payment Policy (Supersedes Policy 3102.05) 13680.00 – Placement and Control of Receipts for Campus Activities and Programs Superseded 3101.01 - Centralized Management of Cash and Investments (Renumbered to Policy 6100.00) 3101.02 - Campus Administration of Systemwide Cash Management Policy (Superseded by Policy 6200.00) 3102.01 - Sensitive Positions and Cash Handling (Superseded by Policy 6201.00) 3102.02 - Segregation of Cash Handling Duties (Superseded by Policy 6202.00) 3102.03 - Acceptance of Cash and Cash Equivalents (Superseded by Policy 6330.00) 3102.04 - Physical Protection of Cash and Cash Equivalents (Superseded by Policy 6330.00) 3102.05 - Debit/Credit Card Payment Policy (Superseded by Policy 6340.00) 3102.11 - Deposits and Transfers to the Bank (Superseded by Policy 6330.00) 3103.11 - Petty Cash (Superseded by 6320.00) Campus CSUF Petty Cash & Change Funds Policy CSUF Invoicing/Billing Policy CSUF Tax Compliance – Form 8300 Reporting CSUF eCommerce Program CSUF PCI Compliance Website CSUF PCI DSS Business Standards CSUF eMarket CASHNet Forms CSUF CASHNet Item Code Request Form CSUF Trust Funds Guidelines CSUF Student Life Resource Manual Other Payment Card Industry Data Security Standards (PCI-DSS) Bank Secrecy Act Revised May 1, 2018 4 | Page CASH MANAGEMENT POLICY I. INTRODUCTION CSU ICSUAM 6200.00, Campus Administration of Systemwide Cash Management Policy, states it is the policy of the CSU that systemwide cash management policies be implemented in a manner that meets the internal control objectives and documentation retention requirements of the University. This document establishes the California State University, Fullerton (“CSUF”) policies and procedures related to handling and processing cash and cash equivalents. Its purpose is to ensure that important CSUF assets are protected, accurately processed, and properly reported. Policy statements are specifically identified and numbered as Policies in this document. Procedural statements are included, but do not have specific numbers. All policy statements are indicated in bold type. Certain basic internal control principles must be adhered to in regards to collecting and accounting for cash and cash equivalents. These basic principles are articulated below: A. Key Objectives of this document: 1. Accountability a. Ensures that CSUF employees who process and/or handle cash and cash equivalents can be held responsible for fulfilling their duties. b. Accountability is present when the following areas are addressed: i. Knowledge of who has or had access to, and why he/she has or had access to cash and cash equivalents; ii. Knowledge of where cash or cash equivalent assets are at all times; and iii. Knowledge of what transpired from the beginning of a cash handling process to the conclusion of the process. 2. Separation of Duties a. Ensures that two (2) or more qualified and authorized persons are involved in the most sensitive activities related to the collection, handling, depositing, and accounting processes. 3. Security/Safeguarding of Funds a. Ensures that employees involved in the handling of cash and cash equivalents are at all times protected from physical harm. b. Ensures that cash and cash equivalents are at all times protected from loss or misuse Revised May 1, 2018 5 | Page CASH MANAGEMENT POLICY and physically protected through the use of security systems, lockable receptacles, vaults, or safes. c. Ensures that technology resour ces (i.e. hardware and confidential payment information) are at all times protected from loss, corruption or compromise to confidentiality. 4. Reconciliation of Accounts