9 Cash Handling Workshop - Risk Management - 9

Managing the RisksA Risk Management Presentation

For UT Dallas Student Organizations

Cash Handling

Presentation 9 of 9

Treasurer’s Responsibilities

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 it’s 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 it’s financial activities for presentation to club officers and members.

Fiscal Responsibilities


• Student organizations must comply with all policies of the Student Organization Center.

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

• Monies raised should be spent on student organization activities

1.2.3.4.

SOF fundingFund-raising activitiesDonationsDues

Sources Of Organizational Funding

Funds for the use of student organizations tocarry out their activities come from three main sources



Cash Handling 101

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CoinCurrencyChecks/Traveler’s ChecksMoney OrdersCredit Card TransactionsCash Equivalents

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TokensTicketsStampsGift Certificates/Cards

What is included in “Cash Handling” ?

It’s not just “cash”…

Cash includes the following forms of money:


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Separate financial dutiesUse a central mailing addressKeep records publicKeeping records - record retentionDefine consequences for embezzlementTreat cash equivalent as if they are cashReconcileSecure the cashTips for deposit

Examples Of

Easy-To-Implement Controls


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Separate Financial Duties

A different person should be involved in each step:

recording of charges/billingcash collectingcash depositingreconciliation,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 statementsregularly. While the financial officer could theoretically be the second signer on a check, heor she should not be the primary purchasing officer or have access to an ATM or checkcard. If so, another person needs to reconcile the bank statements.


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 21Richardson, TX 75080

If statements are being e-mailed or require Web site access, multiple recipients or users should be authorized.


Keep Records Public

• Purposeful mismanagement of funds isdifficult to conceal when financial records

aremade public or readily available to the

studentorganization's members.


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 yearplus 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.


Reconcile the Records & the Transactions


• Verify the processing or recording of transactions to ensure that all transactions are complete, authorized, recorded, & deposited on 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.

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 thatall receipts are posted as revenue to the Statement(s) of Account. None of the moneycollected 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 purchasepostage and then reduce its deposit by the $10 used. To do so would misrepresent theamount of revenue earned and the amount of expenditures incurred in thedepartment/unit’s accounting records.


Fundraising


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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 whichemphasizes safe food handling requirements.

Use of the name of the University or any of its trademark symbols, must be reviewed by SOC staff toensure compliance with University regulations.

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

Fundraising Basics


Before A Fundraiser

Organizations may conduct fundraisers in theStudent Union provided they have reserved abooth and completed the Event RegistrationForm (one week in advance).


• The letter of intent is used for Registered Student Organizations that planto host a fundraiser in which they will donate some or all of the proceedsof the proposed fundraiser to non-profit organizations that are classified as501 (c) class organization.

The letter is to state:

“We, (name of student organization) pledge to donate “X” (percentageamount) of proceeds to (name of non-profitorganization).The donationwill be delivered to (name of non-profitorganization)on (Date).

• The letter of intent must be signed and dated by the president of thestudent organization and the student organization advisor.

Letter of Intent


After A Fundraiser

• Submit the Fundraiser Report with the cash box (which may be keptfor a maximum of 14 days)

• Failure to submit the report or the cash box after the fundraiser iscomplete could result in loss of status as a registered studentorganization.

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


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 ForStudent Involvement (Student Union 2.4) no later than TEN

(10)business days at the conclusion of the fundraiser.


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


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

signatureauthority on the account. Transactions should be

conducted with two members present.

• Remove your information from accounts when you leave.


••972-883-6551utdallas.edu/soc

ConclusionThank you for participating in this session.

Knowing your responsibilities as a UT Dallas student isimportant in keeping you and other members of ourorganization safe.

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

For more information or for questions contact the

Student Organization Center:

MANAGING THE RISKS ● Student Travel

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9 Cash Handling Workshop - Risk Management - 9