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

Managing the Risks

Cash Handling
SECTION 1:
TREASURER’S RESPONSIBILITIES

CASH HANDLING  MANAGING THE RISKS

Managing the Risks

Cash Handling
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.


Managing the Risks

Cash Handling
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


Managing the Risks

Cash Handling
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


Managing the Risks

Cash Handling
SECTION 2:
Cash Handling 101


Managing the Risks

Cash Handling
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


Managing the Risks

Cash Handling
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


Managing the Risks

Cash Handling
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.


Managing the Risks

Cash Handling

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.


Managing the Risks

Cash Handling
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.


Managing the Risks

Cash Handling

Define Consequences for Embezzlement
To address embezzlement in your organization's constitution
or bylaws. Include
– Definitions
– Methods for policing
– Consequences for breaking the rules


Managing the Risks

Cash Handling
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


Managing the Risks

Cash Handling
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.


Managing the Risks

Cash Handling
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.


Managing the Risks

Cash Handling
Safeguarding Money
• Organization funds must be kept secure at all times.

• Deposit cash or keep it locked away in cash box


Managing the Risks

Cash Handling
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.


Managing the Risks

Cash Handling
SECTION 3:
FUNDRAISING


Managing the Risks

Cash Handling
FUNDRAISING BASICS
• 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.


Managing the Risks

Cash Handling
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).


Managing the Risks

Cash Handling
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.


Managing the Risks

Cash Handling
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


Managing the Risks

Cash Handling
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.


Managing the Risks

Cash Handling
Receiving Donations
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


Managing the Risks

Cash Handling
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.


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

MANAGING THE RISKS

Cash Handling - Risk Management

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