BUSINESS AND SUPPORT SERVICES
CASH HANDLING PROCEDURES
Navarro College departments that regularly collect cash, money orders, and checks are responsible for ensuring that adequate control procedures have been put in place in order to safeguard such collections and that the funds are timely deposited with the College cashier office.
All departments responsible for the collection of cash, money orders, and checks/or processing of credit card transactions are subject to the standards set forth in this Procedure.
This procedure establishes the standards for the handling of cash, money orders, and checks and the processing of credit and debit card payments received by the College. In addition, the Procedure defines the roles and responsibilities related to the receipt, safeguarding, and deposit of cash, money orders, and other payments received by the College in compliance with applicable state and federal laws and industry standards for the protection of such assets.
DEPOSITORY BANK ACCOUNT
All cash, money orders, and checks collected by departments must be transferred to the College Cashier office for deposit in the College’s depository bank account, in accordance with the procedures set forth in this procedure.
The authority to establish or make changes to the College’s banking and investment accounts is limited to the Vice President for Finance and Administration, or her/his designee. No other person is authorized to open or make changes to a College banking or investment account.
OBTAINING APPROVAL TO ACCEPT CREDIT AND DEBIT CARD PAYMENTS
Departments must seek prior approval from the Director of Business Services and Cashiers office and/or the Director of Budget and Procurement to accept credit or debit card payments in connection with the sale of goods or services. Departments seeking such approval must submit a written request to the Director of Business Services and Cashiers office and/or the Director of Budget and Procurement.
Contributions and donations made with credit card or debit card are processed only by the Cashier Office.
EMPLOYEE BACKGROUND CHECKS
New employee must undergo a pre-employment background check prior to assuming any cash handling responsibilities. Departments must arrange with Human Resources to schedule a background check.
PETTY CASH FUNDS
These procedures provide guidance for full-time employees seeking reimbursement through petty cash and do not apply to employee reimbursement of expenses made directly through Accounts Payable via a purchase order or travel expense voucher.
Petty Cash funds are maintained at the Corsicana location.
Reimbursements must be:
- for amounts less than $20.00
- for a valid College business purpose
- supported by proper documentation
- submitted for reimbursement within 30 days of purchase but no later than sixty (60) days after incurring the expense. The College will follow IRS Revenue Ruling 2003-106 which states that a claim received later than sixty days after incurring the expense the reimbursed amount will be added to the taxable wages section of the W-2.
a) Procedures to request reimbursement through Petty Cash:
For each reimbursement request, please follow these steps:
- Complete a Petty Cash Reimbursement Form (PCRF) available in the Cashiers Office
- Complete and print the form, check for completeness, in particular the description of the expense and the approval signature. Verify that the expense is reasonable, necessary, and appropriate. (See below for allowable expenditures)
- Ensure the expense is adequately documented by a receipt. Receipts and invoices should show the name of the company providing the goods or service and indicate zero balance due.
- Take the completed and signed form to the cashiers’ office for final approval and issuance of cash.
PCRF must be submitted for reimbursement by the full-time College employee who made the purchase. Employees requesting reimbursement should be prepared to show their NC identification upon request. PCRFs with non-authorized approval signatures cannot be reimbursed.
b) Expenses Reimbursable through Petty Cash
- Urgent need lab/classroom supplies
c) Expenses Not Reimbursable through Petty Cash
The following are business expenses that require reimbursement through a Travel Voucher or Purchase Order:
- Business meals
- Travel (mileage, public transportation fare, meals, parking, registration, hotel, etc.)
- Office supplies (whenever possible, should be purchased at the Bookstore)
- Personal purposes (any event or expense not directly related to conducting College business, e.g. birthday cakes, flowers, cards, gifts, etc.)
- Office hospitality items (coffee, sugar, cookies, etc.)
- Postage (employees at the Corsicana campus should utilize the mail room for mailing out information)
- Sales tax (the college is a tax-exempt organization and does not reimburse Texas sales tax)
- Tips or gratuities
- Shipping costs
- Subscriptions, periodicals, etc.
- Amounts over $20.00 must be submitted through a purchase order.
SEPARATION OF DUTIES
Departments with cash handling responsibilities must ensure that no single individual is responsible for the collection, handling, depositing, and accounting of cash, money orders, and checks received by the unit. Accordingly, the following departmental duties should be performed by separate individuals:
- Mail – Opens mail and distributes checks and money orders to department cash handler.
- Cash Handler – Collects cash, money orders, and checks; completes deposits for submission to the Cashier Office. Funds collected should be taken to the Cashier’s or Business Office by the next business day for deposit.
- Ledger Reviewer – Reconciles departmental records of cash receipts to the general ledger on a monthly basis.
To the extent possible, a separate employee should be assigned to backup each of the individuals identified above when he or she is unavailable. In order to maintain adequate segregation of duties, the same employee should not be designated as the backup for more than one of these functions.
Cash (i.e., currency and coins) is the most liquid form of payment and the most easily misappropriated. Cash handlers, therefore, must immediately establish a record of cash acceptance in accordance with the security standards set forth in this procedure. In addition, cash must be protected against loss upon receipt and at all points thereafter. To this end, departments with cash handling responsibilities must implement security procedures in accordance with this procedure.
Departments shall not accept non-U.S. currency as payment.
ACCEPTANCE OF MONEY ORDERS AND CHECKS
All money orders and checks presented for payment should be made payable to the “Navarro College.” Departments should instruct their payers to use this name and not a variation of the College’s name (e.g., NC). Checks should never be made payable to an individual employed by the College. Invoices and other notices used to request payment should instruct payers that checks should be made out to Navarro College. Checks should not be accepted if:
- The check date is 90 days or more prior to the date of receipt.
- The check has a future date.
- The payment amount is illegible or the numerical dollar amount does not match the amount written on the check.
- The check is signed by someone other than the holder of the account.
In addition, employees are allowed to cash personal checks in the Cashier Office for amount less than or equal $250.00 depending on availability of cash.
Checks received that are drawn on a foreign bank account may require special handling procedures. The Cashier Office should be contacted to determine the correct procedures.
The person receiving the check must carefully examine every personal check for information that is essential for chasing the check:
- Personalization – The customer’s complete name and address must appear on the check.
- Date – The check date must be current.
- Bank I.D. numbers – The check must have a bank identification number, or routing transit number, that runs across the bottom, along with the customer’s account number and check number. This information is used by a bank to identify the transaction and resolve payment issues.
- Payee – The “Pay to the Order of” section must indicate Navarro College.
- Dollar amounts – Both the written and numeric amount must match.
- Customer Signature – The check should be signed in your presence and verified with photo identification.
- Always write down in the check the driver’s license or state ID number, phone number, and date of birth of the person signing the check. Never allow the check writer to tell you the ID number always look at it yourself and record it carefully.
- Always obtain and verify a physical address for the check writer.
PREPARATION OF RECEIPTS
Departments must prepare a receipt for each collection of cash, money orders, and checks in accordance with the following procedures:
- Receipts must be pre-numbered and used sequentially.
- A copy of the receipt should be provided to each payer making an in-person payment.
- All voided receipts must be retained (i.e., not given to the customer) and have signed approval by a supervisor.
- A receipt should be produced for a check payment received through the mail.
ELECTRONIC CASH REGISTERS AND POINT-OF-SALE EQUIPMENT
Electronic cash registers, micro terminals, and other point-of sale (POS) equipment used by department cash handlers must meet the following security and operational standards:
- All cash registers and point-of-sale equipment must produce a College cash receipt for each customer.
- The cash-recording equipment must be controlled by unique consecutive numbers generated automatically and recorded with each transaction, as well as imprinted on the customer receipt.
- The numbering mechanism providing consecutive transaction number control must be accessible only to the manufacture’s service representative or appropriate College personnel who are independent of the cashiering function.
- Each cash handler must be assigned a unique identifier that is not shared by or accessible to other individuals.
The purchase of electronic cash registers, micro terminals, and other Point-of-Sale (POS) equipment used for departmental cash-handling operations must be approved in advance by the Director of Business Service and Cashiers Office or the Vice President for Finance and Administration, or their designees.
PROCESSING CREDIT AND DEBIT CARD TRANSACTIONS
All credit and debit card transactions must be processed in accordance with the Payment Card Industry Data Security Standards (PCI DSS) adopted by the College. In accordance with those standards, credit and debit card payments may be processed for both “cardholder present” and “cardholder not present” transactions, as follows:
a) Cardholder Present – Under these circumstances, the cardholder is physically on site to present his or her credit/debit card for “swiping” through the POS terminal. The transaction is completed when the authorization code is received and the cardholder has signed the card transaction receipt. The employee processing the transaction must verify the authenticity of the signature by comparing the signature on the receipt to the signature on the back of the credit/debit card. If the card has not been signed, the processor should ask to see the cardholder’s driver’s license.
b) Cardholder Not Present – When the cardholder is not physically on-site, the cardholder’s data (i.e., name, card number, expiration date, billing address, etc.) would typically be collected by mail, telephone, or via a College website. This transaction is completed when the cash handler enters the cardholder’s information into the POS terminal and obtains either an authorization code or rejection message from the system.
Mailed and telephone requests to charge a customer’s credit or debit card must be processed as follows:
- The authorization form must be correctly signed by the cardholder (mailed requests only).
- The credit or debit card account number and three-digit security code must be provided along with the card expiration date.
- The correct billing address for the credit and/or debit card must be provided.
- Prior to processing, all authorization forms must be stores in a safe or locked cabinet or drawer, accessible only by authorized persons, in order to protect cardholder information.
- When processing a debit card transaction, the PIN number should never be gathered or entered for the customer. PIN debit transactions are only allowed in a cardholder present environment where the customer enters the PIN directly into an approved keypad.
- After a transaction has been authorized by the system, only the last four digits of the account number and the authorization code may be retained. All other information must be redacted or destroyed once a transaction has been authorized.
- Departments should only store cardholder data for payments taken by phone no more than three days to verify processing then shred.
For date security reasons, credit or debit card information should never be requested or transmitted via e-mail. Departments may accept credit or debit card payments via fax transmission only if the fax machine is housed in a secure location with restricted access.
All donor contributions made by credit or debit card are processed by the Foundation office, which will send the donor a written acknowledgement confirming the receipt of his or her gift to the College.
SALE OF ADMISSION OR EVENT TICKETS
Procedures for the safeguarding and sale of admission or event tickets must meet the same standards and security requirements as those set forth in this Procedure.
Each ticket is considered both a product and a receipt. Tickets shall have the price of admission indicated and shall be consecutively pre-numbered. When tickets are produced by electronic means, the numbering system must not be accessible to the ticket seller. All ticket sales must be balanced to recorded revenue on a daily basis by the department selling the tickets. The department must also develop adequate controls to safeguard the tickets and ensure that the number of tickets sold corresponds to the expected revenue from such sales.
A full accounting of all tickets sold or issued and payments received must be taking to the Cashier office to receive and verify the cash.
RECONCILIATION OF CASH COLLECTED
a) Each cashier should start their day’s business with a new beginning cash and their own cash drawer (cash drawers should never be shared).
b) All checks and money orders should be made out to Navarro College.
c) All checks should be restrictively endorsed with “For Deposit Only Navarro College.”
d) Each cashier should balance their business at the end of their shift.
e) The Head cashier needs to verify that the cash received matches the cash register’s report of business by cashier.
DEPOSITING CASH PROMPTLY
The preparation of the deposits should not be done by the person collecting and recording receipts. The person preparing the deposit is the Office Manager. To maximize cash flow and safeguard assets, deposits need to be made on a daily basis. All deposits are prepared in the Cashiers Office. The Navarro College Police department takes the locked bank bags to the College depository bank.
Approved: October 2, 2015
Updated: September 6, 2016, August 13, 2019