Accounting Instructions

6. Cash Handling

Introduction

The University deals with large volumes of cash and to protect both staff and the University it is important that proper security arrangements exist and that cash handling procedures are undertaken by at least two people. Cash transactions should only be dealt with by staff who have been authorised to undertake such responsibilities.

Procedure

Receipt of Cash

• 
  
  A receipt must be issued for all cash received. The receipt should be processed through the Cash Register, or issued manually (Appendix 1 - Income Statement) and shall show
  • Date received
  • Name of the payee
  • Amount received
  • What the payment was made for
  • Type of payment received ie cash, cheque, postal order, credit card, debit card
  • Unique receipt number
  
  
• The receipt should be handed to the person making payment (with the exception of payments received via mail)
• In circumstances where a cash register is not available a manual receipt must be written from an official LJMU receipt book issued by Finance (Income section).
• All supporting documents accompanying a payment shall be kept and cross referenced to the receipt number.
• Completed Banking Analysis sheets shall be forwarded to Finance detailing the receipts and the total payments banked (Additional information is contained in the later section headed Banking of Cash)

Collection of Cash

• The collection of cash from all coin operated machines shall be carried out by two officers on all occasions. The counting and recording of the cash collected shall be undertaken by both officers.
• All coin boxes shall be emptied on a regular basis.
• All cash registers shall be emptied daily and daily z readings taken to be used for reconciliation when banking (ref Banking of Cash). A weekly z reading should be taken at the end of each week.
• All cash collections should be stored in a safe/or safe box where available. (see Security).

Banking of Cash

• 
  
  Cash receipts must be recorded on an official pre numbered Banking Analysis Sheet (Appendix 2 - Banking Analysis Form) detailing:-
  
  1. Receipt number
  2. Payee Name
  3. Sales Account Name or Nominal Code
  4. Value of payment
  5. Type of payment
  
  
• The banking analysis sheet must be reconciled to the cash register z reading and reconciliation records held on site. These will be required for inspection by Audit.
• Any difference in value of the banking to the z reading must be identified and where the difference is greater in value then £5 it must be notified to Audit immediately.
• The cash must be placed in the Security collection bag and the bag number recorded on the corresponding Banking Analysis sheet.
• The white copy Banking Analysis sheet must be placed in the Security collection bag and the bag sealed.
• All collection bags must be stored in a safe prior to collection by the security company (see Security).
• The green copy Banking Analysis sheet must be forwarded to Finance for reconciliation.
• The pink copy Banking Analysis sheet should be retained on site.
• A receipt must be obtained from the security collection company for all bags detailing:
  1. Number of bags collected
  2. Bag number
  3. Time of collection
  4. Name of collection officer
• Proof of identity must be requested and verified before University monies are given to the representative of the security collection company.

Security

• Cash should never be left unattended unless it is in a locked safe or other suitable receptacle.
• Cash retained on site overnight must be locked away and the keys taken home by a nominated member of staff.
• Cash which is the property of the University must be kept separate from private or unofficial monies and must never be used for private or unofficial purposes. University safes should not be used to hold personal items or unofficial monies.
• Every employee involved in the handling of money, change floats etc. is responsible for its correctness and safe custody. Until the employee hands over the money in an authorised manner and obtains a receipt, he or she will be held responsible for any loss or deficiency or failure to account for that money.

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