Contents

Introduction ............................................................................

Page

2

1 Internal Control Practices ....................................................... 2

2 Incoming Cash Procedures...................................................... 3-6

3 Change .................................................................................... 7

4 Petty Cash Floats/Till Floats/Safe Floats ................................. 7

5 Individual Petty Cash Claims ................................................... 7

6

Security ................................................................................... 8-9

7 Audit Summary ....................................................................... 9

8 Payment Card Industry Data Security Standard (PCI DSS) ...... 10-16

9 Unidentified Cash.................................................................... 17

10 Credit Control Policy for Credit Balances ................................ 18-19

11 Anti-Money Laundering Rules ................................................ 18-19

12 Appendices ............................................................................. 21-31

1

Introduction

Purpose of Document

The purpose of this document is to provide a consistent direction for the management of cash and receivables, ensuring adequate control standards are in place to secure the University’s collections and funds.

These rules and instructions apply to all staff that process or collect payments on behalf of the University and forms part of the financial processes documentation, issued from time to time by the Chief Operating Officer under the authority of the Financial Regulations. Compliance by all Individuals associated with the University is mandatory and subject to audit. Under the Financial Regulations it is the responsibility of the Deans of Faculty and Directors of Service to ensure all staff comply with financial processes.

1) Internal Control Practices

It is recognised that no single control standard effectively or efficiently fits the needs of all cash collection areas; however, there are standard control procedures that are mandatory. It may be possible to vary some procedures in this document for specific local conditions but it is expected that a compensating control procedure be put in place and must have the prior written approval of the Credit Control Manager. The following is a list of standard procedures for reference (see relevant section for full procedures) which must be adhered to.

• Separation of Duties - One of the most important steps to take to protect cash and staff is separation of duties. With proper separation no single person has control over the entire cash process. Anyone assigned with cash handling responsibilities should be given training and clear written procedures regarding their responsibilities with regard to the handling and control of cash.

• Accountability - Cash accountability ensures that cash is accounted for, properly documented, secured and traceable to specific cash handlers.

• Security – Cash access should be restricted to as few people as possible. It should always be counted in a secure location accessible only by Northumbria staff. Cash should be stored in an insured safe until it can be transported by Security to the Cash Office for banking. Collection of cash must be sent to the Cash Office on the same day or following day (CLC is the exception as security collections are 3 times per week) as per Financial Regulation 16.3.

• Reconciliation & Review - All transactions must be recorded through a receipting device and reconciled on a daily basis. Reconciliation activities confirm that transactions have been correctly recorded and accounted for.

Prepared by Carol Bonner Credit Control Manager & Janet McAllister Cash Officer Northumbria University June 2014

2

2) Incoming Cash Procedures

Floats – at the start of each shift the float should be checked and agreed between the cashier and the line manager/supervisor.

Transactions – all sales transactions should be processed through the till/receipting device. This includes cash, credit/debit cards, cheques, vouchers etc. Any time cash changes hands this must be agreed verbally by both parties.

Receipts – An official University receipt must be issued if requested by the customer and notices must be displayed near the point of sale informing customers of this facility.

End of Day Process – at the end of the day a flash/z/terminal reading will be taken by either a supervisor or team leader. The preferred option is for supervisors/team leaders not to operate the tills but where they do so then the next line manager should take the reading thereby ensuring separation of duties. All cash is counted and the fixed float removed from the total. A drawer record total sheet will be used for this purpose. This information is transferred to the Daily Income Reconciliation sheet which is also used to record:-

Date Flash/Z/Terminal reading Vouchers Account Transactions Cheques Chip & Pin Transactions Pay Point Transactions Float

The actual cash balance is reconciled to the theoretical cash balance (per Flash/Z/Terminal reading) and any variances recorded. Refer to section cash discrepancies particularly with amounts in excess of £5. Any variance requires local investigation regardless of the amount.

The information (Appendix 2) is recorded daily electronically at the main sites where there is an administrative function. Recorded manually in smaller units and the information passed daily to the administrator. The electronic copy must be printed on a daily basis, signed and filed for 6 years plus current.

There must be no alteration to electronic copies once the worksheet has been printed and signed for. Random checks will be initiated by senior line management, on instruction from /or the direction of the Finance Department or Internal Audit

Banking Process – All income however small must be banked on a daily basis. The actual cash figure is used for the banking process and wherever possible, consolidate as many cash figures onto one banking slip. Complete the deposit slip with the following :-

Date Name of Payee Location Breakdown of Denominations Total Cash to be Banked (please ensure the total and breakdown tally) Security Bag Number

It is essential that the unit copy of the banking slip has all the relevant information legibly recorded for future audit tracking.

The daily reconciliation sheet together with the Flash/Z report/ Copy Receipts or Car parking readings should be independently checked to ensure the amount to be banked is accurate and the deposit slip should be initialed to confirm that the cash agrees with the reports. Two deposit slips should be placed in the bag with the cash and then sealed. The third deposit slip should be securely attached to the outside of the bag along with the Daily Income Reconciliation sheet, Flash/Z and Chip n Pin reading.

3

Coinage - Areas that receive large amounts of coin should use ‘coin only bags’ and ensure that individual bags do not exceed £300 in £1 coins and £200 in any other coinage. As many bags as required can be used and sent to the Cash Office via Security. Banking should be done as frequently as possible when dealing with heavy coinage so as not to contravene the health and safety of the staff involved in the transportation. The bags should be made manageable, easy to transport and not over weighted.

Security officers are only insured to carry £2500 per person (not to exceed £10k) so when staff request collection they should inform Security the value of cash to be transported.

Non epos till users should now raise separate sales order for cash, cheques and cards using one of the following accounts:

Cash in Transit Account Sundry Income Account Customer Account

Definition of Cash in Transit Account This account is used when there is no specific/named customer or business to which the financial transaction relates to. This is an account within SAP that is used mainly by University Outlets such as the catering facilities where cash is taken over the counter in return for goods received. This type of account will only be used for actual CASH transactions. The use of this account enables straightforward monitoring of cash deliveries from all University outlets to ensure it is received in Finance, banked in a timely manner and sales orders are raised at the same time to match off the cash received.

Definition of Sundry Income Account This account is again only used when there is no specific customer or business to which the financial transaction relates to. This is an account within SAP used by Faculties and most Service departments within the University where cheques or payment is received via the C&P/Paypoint machines within their own department. This type of account will only be used for Cheques, C&P and Paypoint transactions

Definition of Customer Account A customer account is used to record the financial transactions for goods/services relating to specific/named person, business, etc. The individual person or business will be given a unique customer account. All financial transactions in relation to the company or person will be recorded against this account. Any type of payment can be used with this account. The use of this type of account enables straightforward monitoring of all transactions relating to the specific customer business. Non Epos Users SAP Sales Orders – Cash Once actual cash figures are agreed, a SAP sales order is raised wherever possible by an administrator unconnected to the direct handling of the cash. The income for each Cost Centre must be entered on to the University Finance system (SAP) on a daily basis. Within one SAP Sales order it is possible to record income for multiple cost centres. The link for STT ‘How to create a Sales Order’ is: http://briseus/sap/repository/lessonportal.html The subsequent SAP sales order number needs to be recorded on a Daily Income Reconciliation Sheet. The SAP sales order number must be recorded on the banking slip. Income, however small, must be recorded through SAP sales order daily. Provision must be made for this process to continue elsewhere in the event of an administrator being absent.

4

Epos Users

Sales orders should not be raised for Epos till transactions as the interface will electronically transfer the required data to SAP. Please refer to local instructions for further details.

Personal Items Staff should ensure personal belongings are stored away from the tills preferably in a locker (see local instructions for more details).

Lone Working Where staff work alone the following procedures must be adhered to:

Area to be secured prior to cash counting Money/sheets sealed and signed for supervisor to counter check at first opportunity – not later

than AM of following day. Cash Discrepancies In the event of a discrepancy, 10% of the value of the transaction up to a maximum of £10 requires a local investigation; however anything over this must be reported. The following procedures must be activated immediately:

• The line manager must be informed the day the discrepancy occurs • No-one should be allowed to leave until the manager gives permission • The Manager will bring in security if they feel this is necessary • No other staff should be allowed to enter the office until the go ahead from the line manager • Carol Bonner the Credit Control Manager must be informed • If the money still cannot be traced Senior Management will take whatever steps they feel

appropriate. Staff Management Procedures may be initiated if Senior Management decides this is necessary.

• Discrepancies over £10 or 10% of the value of the transaction will be reported to Mike Campion (Campus Services) or the relevant Service Manager for a decision.

• Finance will produce a monthly report of all discrepancies under £10 which will be sent to outlet managers with a copy to Mike Campion.

Refunds/Voids Any refunds or voids which are required must be completed by a manager or supervisor. The receipt should be kept with an explanation on the back. Counterfeit Notes All outlets were issued with counterfeit detection pens and these should be used as a standard procedure with all notes taken. Bank of England literature was distributed to all outlets with information on identifying genuine notes and the process if counterfeit notes are detected. Any counterfeit notes that are taken and not detected at the point of sale will be charged back to the original source. Further information can be found at the following websites: http://www.bankofengland.co.uk/banknotes/educational.htm http://www.bankofengland.co.uk/banknotes/about/counterfeits.htm

SAP Sales Orders - Cheques Cheques should be made payable to Northumbria University. Ensure the amount in words & figures match and that the cheque is signed and dated. Cheque transactions must be entered in to the till. NB: If the cheque payment is for an individual student account (tuition/accommodation fees) the student number should be entered on the back of the cheque and sent to the cash office for processing. A SAP sales order should be raised in the same way as for cash, using Sundry Income account and the correct material code. The SAP sales order number must be entered on to the back of the cheque or the relevant

5

sundry account number. A banking slip is not completed for cheques. The cheques should be sent to the cash office attached to a completed Daily Income Reconciliation Sheet and attached to the outside of the security bag or in an envelope through the internal mail. NB: The Finance Department will perform random audits to ensure these procedures are being adhered to.

Sundry Income Account Refer to Drawer Cheques Departments will be sent an email notifying of any cheques entered on to a Sundry Income Account which are returned from the bank when there are insufficient funds to honour the cheque. It is the responsibility of the relevant department to ensure a credit note request is completed and forwarded to the IT helpline to clear this transaction from the sundry account. The relevant department must raise a sales order on to an individual customer account to enable the debt collection process to take effect. If a new Customer account is required it can be raised within 48 hours by completing a Customer Master input found at: https://intranet.northumbria.ac.uk/facultiesandservices/iti/sapsupport/appamendsapmasterdata

SAP Sales Orders – Chip & Pin (Credit /Debit Cards) All transactions undertaken with Credit/Debit card payments have to be put through the till as well as the C&P machine. The end of day ‘Z’ reading of the C&P machine must take place at the same time as the ‘Z’ reading of the till. The ‘Z’ reading from the C&P machine and the C&P payments on the till ‘Z’ reading must agree. Any discrepancies are investigated and recorded. The C&P value is entered on to the Daily Income Reconciliation sheet. A SAP sales order must be raised in the same way as for cash using Cash Office Sundry Income Account. The ‘Z’ reading from the C&P machine is attached to the Daily Income Reconciliation sheet and filed. A banking slip is not completed for C&P transaction total. The C&P transaction slip should be filed locally.

We accept Visa, MasterCard, Switch, and Maestro N.B. We do not accept American Express.

• The Cash in Transit and Sundry Account MUST NOT be used for the following: • Any Income where an individual customer account already exists • Individual cheques >£5000 – These should be put to the relevant customer account. • Refundable Locker Key Deposits • Refundable Halls Deposits • Advance Rents • Advance Tuition Payments • Invoiced Sales • Tuition Fees Invoiced through SITS • Field Study Visits

In the case of the above items the sales orders should be raised on established customer accounts. If a new customer account is required it can be raised within 48 hours. The Customer Master Input Form can be found at: https://intranet.northumbria.ac.uk/facultiesandservices/iti/sapsupport/appamendsapmasterdata Cash Collection Book The book should be completed with the following information:

Faculty/Department Member of staff responsible for the cash Number of sealed bags of cash Security Bag Number

When Security collect the bags they will sign the book that has 3 self-carbonated numbered copies. The top two copies are given to Security and the third copy remains in the department. Either on a daily basis or at least weekly the Security Bag Numbers listed in the Cash Collection Book will be matched against the corresponding banking slips, both documents being initialled to acknowledge that the reconciliation has taken place. Any omissions must be reported to the line manager immediately.

Senior Managers will spot check this process at least once a month.

6

3) Change Telephone change requests are made to the Finance Cash Office 24 hours prior to requirement. The Cash Office will always try and accommodate any emergency requests.

Outlet Managers should continuously monitor cash floats and order to requirements from the Cash Office.

Money in notes to the value of the change required is placed in a Security Bag. NB: Coinage should not be used for the exchange.

The Cash Collection book should now be completed with the following information: • Upon receipt of the change from security the carbonated white and blue copies from the Cash

Collection book need to be signed. • The blue copy is retained and stapled to the corresponding yellow copy (change requests) in the

Cash Collection book. • When the change is counted and agreed, the amount received is entered on to the blue copy and

initialled as being correct.

4) Petty Cash Floats/Till Safe Floats Access to the floats should be restricted to designated personnel and kept in a secure area. The petty cash float should be balanced on at least a weekly basis and any major discrepancies should be reported to a Senior Manager (Appendix 3). As the petty cash floats vary in amount a benchmark to use for discrepancies is 10% up to a maximum of £10. Anything over £10 should be reported.

When the float requires a top-up the petty cash claims should be presented to the Cash Office to be reimbursed. The claims must have:

• Original receipt(s) attached • Cost centre & general ledger code(s) • Authorised signature

• Claimant’s signature

The till/safe float should be balanced on a daily basis and any major discrepancies should be reported to a Senior Manager (Appendix 3). As these floats are fixed amounts all discrepancies must be reported to Finance.

At the financial year end every departmental manager (not the float administrator) will be requested to sign a confirmation of the float held (Appendix 4). They should check at this time that the float is correct but they should spot check the float at least four times each year. If the float is no longer required it should be returned to the Cash Office for the appropriate documentation to be cancelled. Should the responsibility change to another member of staff or transferred to a different location the Cash Office must be notified immediately to ensure the records are amended.

The Finance & Planning Department will carry out random checks throughout the year across the campus. An audit sheet will be completed and action taken if there are any variances (Appendix 5).

5) Individual Petty Cash Claims Petty cash claims are paid out in cash for a maximum of £100 per day. (Exclusions apply – see list below). The claim (Appendix 6) must be presented to the Cash Office for reimbursement as soon as possible following the purchase. Identification will be required upon collection of the cash. Money cannot be sent through the Internal Post. The claims must have the following details:

Original receipt(s) attached Cost centre/Internal Order & general ledger code(s) Brief description of the goods Authorised signature Claimant’s signature

Failure to provide these details will result in the rejection of the claim until all information provided.

Petty cash claim forms can be found on the Intranet under Forms>Finance and Legal>Procurement, Purchasing and General Finance Forms.

7

NB: The following is a list of items that should not be processed through petty cash:

• Taxi Fares • Business Entertainment (including deposits for meals) • Hotel Fees • Train/Air Fare • Alcohol • Parking Fees

6) Security The identity of Security ‘Cash Escorts’ should be checked when staff are handing over cash to be escorted to the cash office. (Appendix 7 ‘Cash Escorts Procedure’).

Cash draws /tills must be locked and the key removed whenever staff are not present or in a close proximity.

Cash counting should be undertaken in secure location with no interruptions during the process.

Where Supervisors recognise an increase in cash taken that contravenes the insurance limit of the safe they should immediately contact the insurance officer.

Safe Locations • All safes should be located in a secure area and easily accessible for staff to secure the income.

• There should be no public access. • Out of view (not located near a window or visible through a window).

• Location of safes should not be publicised.

• The Insurance Officer and Security should be notified of any changes of location of the safe.

• Ordering of new safes should be actioned through the Campus Services and the Insurance Office notified to ensure we have adequate insurance cover in place.

Safe Inventory An inventory of all the contents of the safe should be held and updated on a daily basis when changes occur.

This should be kept in the safe.

Overnight Security of Floats/Cash

When it is necessary to lodge floats or cash overnight with Security the following information is required: • Write clearly on the top of the page ‘Float/Cash Deposit’ • Member of staff responsible for the cash • Faculty/Service • Number of sealed bags of cash • Security bag numbers

When security collect the bag they will sign the book which has 3 self- carbonated copies. The top two copies are given to Security and the third copy remains in the department. On receipt of the float bag from security the carbonated white and blue copies from the Cash Collection book need to be signed.

The blue copy is retained and stapled to the corresponding yellow copy (float deposit) in the Cash Collection book. The security bag should be checked to ensure it is sealed and that no tampering has taken place. Floats should be held with Security in the event of the cash exceeding local safe limits.

8

Safe – Insurance Limits It is important that insurance limits are not exceeded, therefore Supervisors and Managers should be aware of the limits and if inadequate request further cover, or make alternative arrangements through the Insurance officer.

Safe – Checks A reconciliation of Safe contents, Petty Cash Floats and Till Float values needs to be undertaken by the supervisor on a daily basis and a management check a minimum of twice a week to ensure there are no discrepancies. Senior Management will perform annual checks. Appendix 2 should be used for this purpose, once completed and signed the documents needs to be retained at local level for 6 years plus current. Random safe checks will be undertaken by the Finance Department (see section 3).

Safe – Keys & Combinations It is important that when key personnel changes occur that the unit manager or his/her line manager ensure that combinations/keys are changed promptly. The Insurance Officer (Anne Hudson) should be informed on completion.

Safe Keys: • The access to safe keys should be limited to designated personnel, no more than 2 staff, the Manager,

and a set held with Security. • Security will always hold a set of keys. • When the safe keys change hands they must be signed for. (see Appendix 8) • During working hours keys should be kept in a locked drawer and not left lying around the office. • The overnight storage of keys must not be kept in the same office as the safe. Keys should be stored in a

secure environment either in a locked drawer in another location or left with security.

• The loss of keys must be reported immediately to the Deputy Finance Director (Accounting).

Safe Combinations: • The safe combinations should be limited to designated personnel, no more than 2 staff and the

Manager. • The combination of the safe should always be changed when a staff member leaves and every six

months thereafter. • A log should be kept of the dates when the changes occur. • The sequence of the safe combination numbers should be selected using random numbers rather than

for e.g. birthdays, anniversaries etc.

7) Audit Summary Unit Level Complete, sign and file Daily Income Reconciliation sheet, ensure all sections completed. Administrator Flash/Z/Terminal reading – consecutive numbers/dates – daily Flash/Z/Terminal reading Variations – daily –discrepancies noted – over £10 reported. Complete, sign and file Daily Income Reconciliation sheet ensure all sections completed. Unit Manager/Supervisor Flash/Z/Terminal reading – consecutive numbers/dates – weekly Flash/Z/Terminal reading Variations Z’ Reading Variations – daily discrepancies noted – over £10 investigated and reported to line manager. Reconcile security bag numbers with Banking Book and Cash Collection Book – weekly. Complete twice weekly safe/float checks – complete paperwork, sign and file.

Safe Insurance levels not to be exceeded daily.

Senior Management Reconcile security bag numbers with Banking Book and Cash Collection Book – monthly on a spot check basis. Verify consistency and accuracy of the Daily Income Reconciliation sheet – monthly spot checks, with a report to Finance on completion. Safe checks – to be completed annually.

9

8) Payment Card Industry Data Security Standard (PCI DSS) The Payment Card Industry Data Security Standard (PCI DSS or simply PCI) was published nearly ten years ago, and in that time has undergone a series of revisions as technology, and information security best practises have developed. It is now updated every 3 years, with the current version (3.0) released in November 2013. PCI DSS was introduced to help prevent increasing levels of Credit and Debit Card fraud. In the years since its introduction, card theft has become increasingly sophisticated and is now the domain of organised crime. The threat has not reduced, however, the introduction of improved security through PCI DSS has been a significant factor in managing the risk. “The PCI DSS is a multifaceted security standard that includes requirements for security management, policies, procedures, network architecture, software design and other critical protective measures. This comprehensive standard is intended to help organizations proactively protect customer account data.” PCI DSS compliance is required to do business with credit card providers. Background

A security breach and subsequent compromise of payment card data has far-reaching consequences for affected organisations, including: 1. Regulatory notification requirements; 2. Loss of reputation; 3. Loss of customers; 4. Potential financial liabilities (for example, regulatory and other fees and fines); and litigation.

However:

• is not a regulation or law, more of a contractual obligation, as such, adoption has been slow • Compliance does not guarantee complete Security - Systems are never "secure", only "more secure“. • There have been a number of high profile, large data breaches, mainly in the US (TK Maxx, Heartland,

and Target). • Compliance can be costly, both initially gain and to maintain. • Compliance and security is a process, not an end state. • If outsourcing is used, it is important to note that responsibility for the security of cardholder data is

not removed. An organisation must ensure that the outsourced service is also PCI DSS compliant. • As of PCI 3.0, SAQ covers using a Third-Party Website for Payment Processing.

Key Definitions

PAN – Primary Account Number - Unique payment card number

CDE - Cardholder Data Environment

CHD – Cardholder Data

CNP – Card Not Present

SAD - Sensitive Authentication data

CAV/CVC/CVV/CSC/CID/CAV2/CVC2/CVV2 – Card Verification Codes

MO/TO - Mail-Order/Telephone-Order

SAQ - Self-Assessment Questionnaire

VPT - Virtual Payment Terminal

POS - Point of sale hardware and/or software used to process payment card transactions at merchant locations. PDQ – Point of Sale terminal for card authentication (stands “for Pretty Damn Quick”).

Merchant - Entity that accepts payment cards.

Acquirer - Also referred to as “merchant bank,” “acquiring bank,” or “acquiring financial institution.” Entity that initiates and maintains relationships with merchants for the acceptance of payment cards.

10

11

Compliance Levels

1 - Any merchant -- regardless of acceptance channel -- processing over 6M Visa transactions per year. Any merchant that Visa, at its sole discretion, determines should meet the Level 1 merchant requirements to minimize risk to the Visa system. 2 - Any merchant -- regardless of acceptance channel -- processing 1M to 6M Visa transactions per year.

3 - Any merchant processing 20,000 to 1M Visa e-commerce transactions per year. 4 - Any merchant processing fewer than 20,000 Visa e-commerce transactions per year, and all other merchants -- regardless of acceptance channel -- processing up to 1M Visa transactions per year.

Any merchant that has suffered a hack that resulted in an account data compromise may be escalated to a higher validation level.

12

Proving Compliance (Self-Assessment Questionnaires & Attestation of Compliance)

13

Scope

14

Examples

15

Do’s & Don’ts

Do

• Understand the risks to card data. • Follow procedures.

Do Not • Write down PANs. • Email PANs. • Implement procedures which permit staff to come into contact with the PAN.

NB: The merchant paper copy should be kept for 18 months in secure environment and then destroyed as confidential waste. https://www.pcisecuritystandards.org (Official source of standards, but also Fact Sheets and Information Supplements) http://www.barclaycard.co.uk/business/accepting-payments/pci-dss (Our current Acquirer) https://www.barclaycarddatasecuritymanager.co.uk (Videos) http://www.pcicomplianceguide.org

For further information and advice please contact: Steven Gilray IT Security Manager 0191 227 4343 steven.gilray@northumbria.ac.uk

16

9) Unidentified Cash

Process for Clearing Unidentified Cash Account 8945 Summary: Account 8945 is a holding account where Bank payments are transferred to as no account details have been provided. The payments are held on this account pending investigation to ascertain the correct account details. Money received can be for the following customers, Commercial, Sponsor, Franchise and Student. Upon completion of the investigation the money will either be transferred to the appropriate account or will remain here until the customer claims the payment, sometimes this may not be until we receive the remittance receipt or when we commence chasing the overdue debt. Actions: • Payments receipted into the University Bank Account daily. • Daily drop down of the overnight banking allows us to identify & allocate payments prior to posting to

SAP. • Check remittances already received to see if they match bank information • If a payment cannot be identified on the daily banking drop down, it will be allocated to 8945. The following procedure is carried out: • Check any new remittances received, as they come in daily, these are checked against 8945 and once the

payment is verified against the remittance, the account is cleared against the payment indicated. • If the payment on 8945 represents a down payment or partial payment then these are transferred to the

appropriate account without clearing. • Remittances can be for single payments to individual accounts or multiple payments to multiple accounts. • Check with the Treasury Officer to see if any further information received from the bank. • On occasions we do not receive remittances from the sender; we have to check SAP to see if we can identify the

organisation and the invoices the payment covers. If we can identify them, then we clear them down, if we cannot identify them then we will contact the organisation directly to ask them to identify the invoice the payment covers.

Process for Clearing Unidentified Cash Account 13830 Summary Account 13830 is a holding account for International student payments where no account details have been provided. The payments are held on this account pending investigation to ascertain the correct account details. Upon completion of the investigation the money will either be transferred to the appropriate account or will remain here until the customer claims the payment, sometimes this may not be until we commence chasing the overdue debt. Actions: • Payments receipted into the University Bank Account daily. • Daily drop down of the overnight banking allows us to identify & allocate payments prior to posting to

SAP. • If a payment cannot be identified on the daily banking drop down or cheques and bank transfers received in

the cash office the payment will be posted to 13830. The following procedure is carried out: • Check with the Treasury Officer for any bank letters received from Barclays to see what information has been

provided to identify the student. • If a student name has been provided we will search on SITS • Check with the International Office for any information that may identify the student • Students come into Finance & Planning office for statements of accounts and receipts for payments and

many of the payments are identified.

17

10) Credit Control Policy for Credit Balances Introduction Background As the University has a policy to request advance payments from students in respect of tuition fees, it is expected that credit balances will exist in the debtor’s ledger. However, credits may also exist for other reasons e.g. non- refundable deposits, overpayments or suspended studies. The credit balances could result in the debt of the University being understated and will cause inconsistencies within the ageing of the debt. Therefore, these balances must be kept to a minimum while taking into consideration any money laundering issues connected to the payment. (See section 10). To achieve this, the balances must be reviewed on an individual basis to ensure they are justifiable, then action taken to clear the credits.

Procedures The following procedures must be performed on a regular basis by Credit Control to reduce the volume of credit balances.

1. Review of down payments using the General Ledger accounts and ageing 2. Review customer accounts for credit balances 3. Raise invoices/credit notes on receipt of a withdrawal notification

Some students select to suspend their studies and this may result in the down payments being utilised in later years. These credits can be dealt with using 3 options

1. If the student requests a refund, this will be administered immediately. 2. If the Faculty or Student informs Credit Control that this balance will be utilised in later years, a note will

be entered onto their account and the balance will remain in down payments. 3. If neither options 1 or 2 have occurred, the balance will be investigated after 3 years for refund, write off

or invoice to be raised. All credit balances >3 years must be investigated using the following procedure:

1. Review all credit balances by account 2. Raise invoices for all non-refundable deposits. 3. Attempt to refund the money to the original source – these actions must be documented 4. Write off all refunds that can’t be refunded to source after thorough investigations 5. Clear balances within the account

The Credit Control Manager will sign off all refunds under 5k, write offs and invoices created directly into SAP for the purpose of clearing credit balances. The Deputy Finance Director (Accounting) will sign off refunds £5k - £10k and the Chief Operating Officer will sign off refunds over £10k. Invoices for non-refundable deposits will be raised to administration income within the Finance & Planning Department’s profit centre.

11) Anti-Money Laundering Rules Cash Payments: When accepting large quantities of cash e.g. to pay for fees or accommodation, the following questions should be asked and the response recorded.

1. Why isn’t the payment being made by cheque, bank transfer or credit/debit card? 2. If the student doesn’t have a bank account, why not? 3. The student and the cashier must complete and both sign off the form.

Further consideration is required regarding the country which the student is from. Is the student from a high risk country? For a summary of the high risk countries (See Appendix 10). Do not accept overpayments in cash unless you are aware that an invoice is due to be raised. If the cashier is in any doubt regarding the source of the funds, they should probe further or refuse to accept the cash.

Refunds: All refunds must be returned to the original payment source. Agents:

1. Franchise partners/agents should be on the British Council’s approved list (procedure to be confirmed by the International Office).

18

2. Agents demanding special arrangements for payments of deposits and tuition fees should be viewed with suspicion.

Reasons for a Student Requiring a Refund of Overpayment: 1. Visa refusal 2. Withdrawal from University 3. Sponsor paid too much to include living expenses (discouraged but sometimes unavoidable)** 4. Discount and/or scholarship applied to account (refund procedure not applicable to this document as

payment due to student by any method that they require. However, ensure that original payment has “cleared”).

Make as many checks as possible that reasons are genuine. Checks may include: 1. Verification of reason given for withdrawal with Registrars. 2. Check of any official documentation. 3. If payment is federal loan then check ID of students and allow refund. 4. If payment is from unknown third party ask for documentary evidence of who the person is that made the

payment and that they wish the overpayment to be made to the student. A letter of authorisation should cover our requirements.

5. If a large amount is required and previously paid by cash this should be forwarded to financial accounts to refer to SOCA for a decision to refund.

For tuition fees two bands of refund amounts have been identified with control over each band as follows; (i) Refunds less than £5,000 Credit Control Manager for authorisation. (ii) Refunds over £5,000 Deputy Finance Director (Accounting) for authorisation. (iii) Refunds over £10,000 Chief Operating Officer for authorisation. Payment procedure:

Payment made by bank transfer Refund to originating bank via cashiers

If payment made by cheque Proof required of account that cheque came from Refund to that account

If payment made via the web Refund to original card through web via cashiers

If payment made by credit card through the cash Office

Refund to original card via cashiers

If payment made in cash Refund by cheque. International students cheque >£500 sent to home country address

NB For high business risk category customers then check and verify all transactions over £100.

Who does this policy apply to?

These rules are applicable to all areas of the University accepting cash or dealing with agents who are collecting cash on the University’s behalf.

Who do I contact for further information?

For further information, please contact Carol Bonner, Credit Control Manager.

Email: carol.bonner@northumbria.ac.uk Tel: 0191 243 7594

19

Appendix 1

20

Appendix 2

21

Appendix 3

MO

ND

AY

TUES

DA

YW

EDN

ESD

AY

THU

RSD

AY

FRID

AY

SATU

RD

AY

SUN

DA

YP

ETTY

CA

SH

FLO

AT

£50

£20

£10

£5 £2 £1 50p

20p

10p

5p 1p

TOTA

L

CH

ECK

ED

SUP

ERV

ISO

R

1000

Co

mp

leti

on

Dat

e:

DD

/ M

M /

YY

YY

28/0

4/20

14

WEE

KLY

SA

FE F

LOA

T C

HEC

K

22

Appendix 4

I certify that as at 31 July 2013 hold a petty cash float/imprest to the sum of £........................................... Comprised as follows:-

£ p Cash in hand Paid vouchers

Signed by Float Administrator . Name in Block Capitals .......................................................................... Signed by Budget Holder ....................................................................... Name in Block Capitals ..........................................................................

Date .......................................................................................................

Dept/Service: «Dept»

Please return this certificate to the Cash Section, Finance Department no later than 9 August 2013. Thank you

Cash Office Use Only Record no: «Voucherno» Venue: «Venue» Contact: «Contact» Email: «Email_Address»

23

TILL FLOAT AUDIT

FLOAT NUMBER Date: AMOUNT

FLOAT ADMINISTRATOR

OUTLET/SCHOOL

LOCATION RECONCILIATION

Z Reading Float Amount

£50

£20

£10

£5

£2

£1

0.50p

0.20p

0.10p

0.05p

Bronze

TOTAL TOTAL FLOAT

SIGNATURE PRINT NAME FLOAT CHECKED BY

AGREED

CORRECT

INCORRECT ACTION TAKEN

REASON

Appendix 5

24

Appendix 6

To be presented to the Cash Section, Finance Department, by the claimant in person

NAME DEPARTMENT I hereby acknowledge receipt of the sum of £ As per the voucher(s) attached, which was expended on behalf of Northumbria University in connection with its approved and authorised activities.

Signature of Claimant: NB: WHERE ITEM(S) PURCHASED INCLUDE VAT, THE RECEIPT MUST BE A VAT RECEIPT (VAT REGISTRATION NUMBER SHOULD BE SHOWN). RECEIPTS SHOULD BE SECURELY ATTACHED TO THE BACK OF THE CLAIM & NUMBERED.

Description of Goods Value Cost Centre Internal Order General Ledger

A LIMIT OF £100 PER CLAIM FOR RECEIPTS DATED ON SAME DAY

AUTHORISED .....................................

_______________________________________________________________________________________________

FINANCE DEPARTMENT USE ONLY NET AMOUNT £……………………. BATCH NO: 19/ VAT AMOUNT £……………………

25

Appendix 7

University of Northumbria Campus Services Security CASH ESCORTS PROCEDURE

Description Cash escorts are an area of particular risk where precautions can be taken to minimise that risk.

Procedure A minimum of two officers are to be deployed for the task, one to carry, and the other to observe and protect. The appropriate cash handling bag should be used to contain the cash. Where there are staffing problems, another able bodied, suitable employee from another department can be utilised as the second person e.g. Caretaker, Finance employee etc: Where this method is utilised, the Security officer should perform the ‘observe and protect’ role. Escorts should be carried out as discreetly as possible, varying times and routes as necessary. The escorting team must maintain radio checks with Security Control at a maximum of 5 minute intervals. The Control Room Operator should, as far as is practicable, cover the escorting team by CCTV during the operation. The escorting team should remain alert, and beware of complacency, and if threatened or attacked, the following procedure should be used. • Personal safety of the security team is paramount • Using professional judgment, consider the risk to the team. • If judged at risk of injury or harm, surrender the cash • Note description of individuals responsible, and method / direction of travel • Contact Security Control by radio with details as soon as is practicable • Security Control to inform Police immediately When taking a request for a cash escort, the Control Room Operator is to balance the needs of the customer with the operational requirements of the Security team, and a time should be mutually agreed for the collection. Cash for collection must be in appropriate cash bags closed with the correct seal, and a cash collection receipt, which records the seal numbers, must be signed by both the person releasing the cash, the Security officer collecting, and on delivery, the person receiving the cash. The receipt is to be filed within Security Control in the correct file.

Limits for transporting cash The amount of cash carried, is limited by the number of Security officers escorting same. Limits are set by the University Insurers via the Finance office, they are not to be exceeded under any circumstances, and are as follows. Up to £2500.00 – 1 person Up to £5000.00 – 2 persons Up to £7500.00 – 3 persons Up to £10000.00 – 4 persons When taking a request for a cash escort, the Control Room Operator is to enquire as to the amount of cash to be transported. Under no circumstances is the £10000.00 limit to be exceeded. If there is a greater amount, the customer must be instructed to divide the cash into amounts which fall within the limits. The duty Senior Security Officer, or in his absence, the nominated supervisor, should ensure that THE ESCORTING TEAM ARE FULLY AWARE OF THIS PROCEDURE BEFORE ESCORTS ARE PERFORMED. P.P.E Security staff are to familiarise themselves with the risk assessment and any remedial actions plans in relation to this task, in particular, the instructions and guidance relating to the wearing of personal body armour.

26

Appendix 8

KEY TRANSFERS SAFE KEY

CURRENT KEY HOLDER:

TRANSFERRED TO:

DATE:

SIGNED:____________________________

SIGNED:____________________________

27

Appendix 9 Risk by Country Country ranking by risk category, A is for Low Risk, D is for High Risk

Country Risk Country Risk Country Risk Australia A Algeria B Afghanistan D Austria A Bangladesh B Albania D Belgium A Benin B Belarus D Canada A Brazil B Bolivia D Denmark A Bulgaria B Bosnia Herzegovina D Finland A Burkina Faso B Burundi D

France A Cameroon B Cambodia D Hong Kong A Colombia B Central African Rep. D Iceland A Costa-Rica B Comoros D Ireland A Egypt B Cuba D Japan A Gabon B Dem. Rep. of Congo D

Luxemburg A Guatemala B Equatorial Guinea D New Zealand A Indonesia B Gambia D Norway A Iran B Georgia D Singapore A Jordan B Guinea D Spain A Kazakhstan B Guinea Bissau D Sweden A Lesotho B Guyana D Switzerland A Mali B Haiti D Taiwan A Mozambique B Iraq D United Kingdom A Peru B Ivory Coast D United States A Philippines B Korea (North) D Botswana A Romania B Kyrgyzstan D

Chile A Russia B Laos D Czech republic A Salvador B Liberia D Estonia A Senegal B Malawi D Greece A Tanzania B Mongolia D Hungary A Turkey B Myanmar D

Italy A Vietnam B Nepal D Korea (South) A Uruguay B Nicaragua D Kuwait A Papua New Guinea C Nigeria D

Country Risk Country Risk Country Risk Malaysia A Angola C Rwanda D Netherlands A Argentina C Sierra Leone D

Portugal A Armenia C Somalia D Qatar A Azerbaijan C Sudan D Slovenia A Cape Verde C Tajikistan D Thailand A Chad C Turkmenistan D United Arab Emirates A Congo C Uzbekistan D

Bahrain A Djibouti C Zambia D China A Dominican Rep, C Zimbabwe D

28

Cyprus A Ecuador C

India A Ethiopia C

Italy export A Ghana C

Latvia A Honduras C

Lithuania A Jamaica C

Mauritius A Kenya C

Malta A Lebanon C

Namibia A Libya C

Oman A Macedonia (FYR) C

Poland A Madagascar C

Slovakia A Mauritania C

South Africa A Niger C

Trinidad A Pakistan C

Croatia A Paraguay C

Israel A Sao Tome C

Mexico A Serbia Montenegro C

Morocco A Seychelles C

Panama A Syria C

Saudi Arabia A Togo C

Swaziland A Uganda C

Tunisia A Venezuela C

Overseas students paying large sums of cash at the Cash Office will be asked a number of questions. The information will be transferred on to a form for the student to sign to ensure we have adhered to all the regulations (Appendix 10). The form will be scanned and kept electronically for audit purposes.

29

Appendix 10

30

31

northumbria.ac.uk

32