cash handling - risk management

Managing the Risks

A Risk Management Presentation

for UT Dallas Student Organizations

Cash Handling Presentation _____ of ______

Center for Student Involvement

972-883-6551 utdallas.edu/sof

SECTION 1: TREASURER’S RESPONSIBILITIES

Cash Handling

Managing the Risks

CASH HANDLING MANAGING THE RISKS

TREASURER’S RESPONSIBILITIES • Receive money due to the organization and record the transactions

• Safeguard cash which has been received but not yet deposited or is being used during the course of an event. Good practice would be to deposit within one business day of receipt.

• Authorize payment of bills incurred by the organization while carrying out its activities.

• Maintain the necessary records to back up receipts and expenditures.

• Prepare oral and written reports regarding the organization's financial position and the results of its financial activities for presentation to club officers and members.

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Fiscal Responsibilities • Student organizations must comply with all policies of the

Center for Student Involvement

• Must provide annual fiscal reports and should retain receipts and supporting documentation of expenditures

• Monies raised should be spent on student organization activities

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SOURCES OF ORGANIZATIONAL FUNDING

Funds for the use of student organizations to

carry out their activities come from three main sources

1. SOF funding

2. Fund-raising activities

3. Donations

4. Dues

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SECTION 2: Cash Handling 101


Cash Handling

Managing the Risks

What is included in “Cash Handling” ?

It’s not just “cash”…

Cash includes the following forms of money:

• Coin

• Currency

• Checks/Traveler’s Checks

• Money Orders

• Credit Card Transactions

• Cash Equivalents

– Tokens

– Tickets

– Stamps

– Gift Certificates/Cards

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Examples of Easy-to-implement Controls • Separate financial duties

• Use a central mailing address

• Keep records public

• Keeping records - record retention

• Define consequences for embezzlement

• Treat cash equivalent as if they are cash

• Reconcile

• Secure the cash

• Tips for deposit

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Separate Financial Duties

A different person should be involved in each step:

• recording of charges/billing

• cash collecting

• cash depositing

• reconciliation,

• management review.

• This is the best way to assure ourselves that the process works well.

• The student organization financial officer should reconcile the bank's financial statements

regularly. While the financial officer could theoretically be the second signer on a check, he

or she should not be the primary purchasing officer or have access to an ATM or check

card. If so, another person needs to reconcile the bank statements.

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Use A Central Mailing Address Student organizations should use their UT Dallas mailing address to

receive bank statements and notifications.

800 West Campbell Road, SU 21

Richardson, TX 75080

If statements are being e-mailed or require Web site access, multiple

recipients or users should be authorized.

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Keep Records Public

• Purposeful mismanagement of funds is difficult to conceal when financial records are made public or readily available to the student organization's members.

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Define Consequences for Embezzlement

To address embezzlement in your organization's constitution

or bylaws. Include

– Definitions

– Methods for policing

– Consequences for breaking the rules

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Keeping Records - Record Retention

The following documents must be kept for the current year

plus three more:

– Carbon copy of pre-numbered receipt

– Electronic sales log

– Completed deposit forms

– Bank approved deposit slips

– Cash over/short record

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Treat Cash Equivalent as if They Are Cash

Cash equivalents: parking permits, event tickets, stamps or gift cards

• Secure in a locked safe or drawer.

• Record the sale.

• Balance sale – sales log against the list of available tickets, etc.

• Deposit money promptly.

• Reconcile sales against statement of accounts.

• Resolve all outstanding issues.

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Reconcile the Records & the Transactions • Verify the processing or recording of transactions to ensure that all

transactions are complete, authorized, recorded, & deposited on a

timely basis.

• Reconciler should not collect or deposit money to maintain proper

segregation of duties.

• It is management’s responsibility to regularly review the reconciliation

process to assure timeliness, accuracy and resolution of all

outstanding issues.

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Safeguarding Money

• Organization funds must be kept secure at all times.

• Deposit cash or keep it locked away in cash box

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Tips for Deposit • Deposit must be prepared by someone who didn’t collect the cash or open the mail.

• You are strongly encouraged to make these deposits daily.

• Deposit all funds intact.

Intact means the entire amount of money (income) collected must be deposited so that

all receipts are posted as revenue to the Statement(s) of Account. None of the money

collected may be used for other purposes prior to deposit of the cash.

• For example, the department/unit cannot use $10 of its money collected to purchase

postage and then reduce its deposit by the $10 used. To do so would misrepresent the

amount of revenue earned and the amount of expenditures incurred in the

department/unit’s accounting records.

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Cash Handling

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SECTION 3: FUNDRAISING

• May raise funds through bake sales, shirt sales, mugs, etc.

• May not take items on consignment and should not assume the risk for profit or loss.

• There must be an identifiable inventory of the items you are selling.

• Organizations conducting food sales must comply with the university’s Food Policy which

emphasizes safe food handling requirements.

• Use of the name of the University or any of its trademark symbols, must be reviewed by CSI staff to

ensure compliance with University regulations.

• Only membership dues and approved ticket sales may be collected inside academic buildings.

FUNDRAISING BASICS

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Before A Fundraiser

Organizations may conduct fundraisers in the

Student Union provided they have reserved a

booth and completed the Event Registration

Form (one week in advance).

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Letter of Intent • The letter of intent is used for Registered Student Organizations that plan

to host a fundraiser in which they will donate some or all of the proceeds of the proposed fundraiser to non-profit organizations that are classified as 501 (c) class organization.

The letter is to state:

“We, (name of student organization) pledge to donate “X” (percentage

amount) of proceeds to (name of non-profit organization). The donation will be delivered to (name of non-profit organization) on (Date).

• The letter of intent must be signed and dated by the president of the

student organization and the student organization advisor.

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After A Fundraiser • Submit the Fundraiser Report with the cash box (which may be kept

for a maximum of 14 days)

• Failure to submit the report or the cash box after the fundraiser is complete could result in loss of status as a registered student organization.

• Evidence of donation: a cancelled check/ a letter from a representative of the organization- the letter of receipt

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Letter of Receipt: • Any student organization that will host a fundraiser, in which some

or all of the proceeds will be donated to a non-profit organization,

will need to present a letter of receipt after the funds have been

donated to the organization. The letter must be typed, signed, and

dated by a representative from the non profit organization.

• Your organization must have this letter turned in to the Center For

Student Involvement (Student Union 2.4) no later than TEN (10)

business days at the conclusion of the fundraiser.

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Student organizations may receive donations from non-university entities; however, non-university organizations may not co-sponsor activities on campus.

Organizations may thank their donors (i.e., “Special Thanks to…”) but may not advertise for companies or use corporate

Receiving Donations

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Off-campus Bank Accounts for Student Organizations

• Using the name of The University of Texas at Dallas (including any

abbreviation thereof, the University’s trade-marks or logos) is strictly

prohibited

• It is strongly advised that at least two members hold signature

authority on the account. Transactions should be conducted with two

members present.

• Remove your information from accounts when you leave.

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MANAGING THE RISKS

Conclusion

Thank you for participating in this session.

Knowing your responsibilities as a UT Dallas student is important in keeping

you and other members of our organization safe.

We want our involvement in co-curricular life to be a successful and positive

experience.

For more information or for questions contact the Center for Student

Involvement:

• 972-883-6551

• utdallas.edu/csi

cash handling - risk management

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