Fund Handling and Deposit Processing

Fund Handling and Deposit Processing

Goals
  • Removal of cash as a payment method should be reviewed and discussed to assist with supporting the UGA cashless initiative, creating a strategy to minimize fraud, improve transparency and accountability, and help support a safer work environment. 
  • A departmental plan of separation of duties is always required. At no time shall one individual have full control of fund handling and deposit processes. At a minimum, 2-3 different individuals should be involved in the fund process of issuing billing/receivables, receiving funds, recording funds, and reconciling accounts. Dual controls should be established to ensure at least two employees count any cash together before submitting it to the next employee.
  • A chain of custody should be created and maintained throughout the entire fund process. Secure storage and controlled access to resources such as cash, checks, cash equivalents, deposit slips, and account information must be maintained (units should have a documented audit trail).
  • Depositing of funds should be completed daily, and all checks received should be endorsed “For Deposit Only” upon receipt.
  • All funds accepted should be recorded using some recording and receipt system before being entered into the UGA Deposit Management System (TouchNet).
  • Departments should develop internal procedures outlining all steps including controls, monitoring processes, risk assessments, and the reconciliation process of all funds. The separation of duties, including controls and procedures, should be documented, approved by the Unit’s financial leader, and communicated to all parties involved in fund handling. All aspects of UGA Receipting and Depositing Procedures from the resource link below should be included in a department’s internal procedures.
  • Any ACH (Automated Clearing House) forms, agreements, or bank account requests are to be presented to the Bursar and Treasury Services department for review. Banking information should not be entered into any online system, as such processes involve terms and conditions that cannot be agreed to without a legal review. 
  • Verification and management approval of refunds, logs, voided transactions, or any overages/shortages must be documented.
  • Internal Audits will review each unit’s procedures during a regular audit or as needed on a case-by-case basis.
  • Any department/unit accepting funds on behalf of UGA is subject to unannounced audits from either or both the UGA Internal Audit team and/or Bursar and Treasury Services.
Why are these best practices?
  • These practices support the safeguarding and fiscal stewardship of UGA funds and employee safety. These best practices are considered minimum guidelines and points of reference only to support a more detailed departmental procedure covering all applicable policies and procedures relating to funds accepted on behalf of UGA. 
Best Practices
  • A department or unit accepts funds on behalf of UGA and creates internal procedures to record the steps involved using the information in this best practice as a guide, but not relying on this list as the only guide in determining what is appropriate for a particular department. Internal Audit may perform a full review of the department or unit's procedures, if necessary, to ensure compliance with their unique business process using their departmental structure. 

 

Resources

Contributed by Kim Seabolt

Last updated 05/06/2024

 

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