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Procedures for the handling of cash receipts are designed to provide
accountability for monies received in accordance with accepted standards of internal controls. All
employees of the College of Natural Sciences and Mathematics are responsible for complying with the policies
and procedures described below. Failure to adhere to these policies and procedures may result in disciplinary
action being taken against the employee. The charging of fees or agreements to provide services for
compensation are prohibited except with specific knowledge and authorization of the department head, the
college/division administrator, the Budget Office, and the appropriate vice president. Compliance with
these procedures will protect employees when questions arise and protect the University from criticism by
auditors and other reviewing officials. The Office of Student Financial Services is responsible for
receiving all University monies after completion of paperwork for reviewing and forwarding on to the
University’s Bank. Gift receipts will be forwarded to the NSM Development Office who will foward
to the Manager, Donor & Alumni Record.
All employees have an obligation to report any suspected theft, fraud, embezzlement, or any other irregularity
causing a loss of cash. Employees who are aware of criminal activity and fail to report such may be subject to
disciplinary action. Employees are required to cooperate with any police or audit investigation, and they may
be requested to keep their knowledge of the investigation confidential.
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| II: Processing Cash Receipts and Revenue Classification |
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Purpose and Overview
Primary purpose is to review the classification of revenue and other cash receipts, and to provide an understanding
of cash handling and deposit document preparation, approval, and processing. Campus policy as stated in MAPP is
based on State of Texas statutes, UHS Board of Regents Policies and Procedures and UHS System Administrative
Memorandum. The goal is to provide university personnel with an understanding of the policies and to prepare
university personnel so that departments can readily comply with the policy and avoid undue delays and errors in
the crediting of receipts to the department cost center and to the university accounting system.
Definition of Cash
In accordance with MAPP 05.01.01, the term cash includes all forms of payment that
may be received, excluding internal documents such as Service Center Vouchers and
Expenditure Reallocations or Corrections, but including currency (U.S. and foreign),
checks, travelers’ checks, money orders, credit card and debit card charges,
and wire transfers. In short, anything that may be presented to a bank for payment.
While some forms of cash, such as currency, are obviously more sensitive to improper
handling, it is important to keep in mind that the policy does not make a distinction between
the various forms of payment when specifying the requirements for its processing.
Authority to Receive Payments
MAPP 05.01.01 states that cash is not to be accepted or issued by any university employee
for any purpose unless that employee has been authorized by the college/division administrator
for the purpose specified. Individuals authorized to handle cash will have on file in the
department a copy of Addendum A – MAPP 05.01.01. The reason for this prior approval
process is to ensure that monies accepted by a department represent payment for what is truly
university business, and to safeguard against improper use of university and state resources.
A department must begin its compliance with the policy before a payment is presented, by
knowing who in the department is authorized to receive payments and for what purpose. Department
personnel should not assume that such authorization exists.
Receipt of Cash
A complete description of the steps that are to be followed by the receiving department
is provided in the Administrative Procedure section of MAPP 05.01.01. Essentially: A pre-numbered
receipt or the use of an alternate receipt process is required each time cash is received.
The use of receipts are a critical element of internal control, as well as the resolution of
any differences or problems that may arise at a later time with the payer. Any alternate receipt
method must be approved by Operational Support or UHS Treasurer’s office. At this time
the only acceptable alternates are cash register tapes, a dated cash log (per MAPP 05.01.01 IX A. 3),
or a log of pre-numbered event tickets; photocopies of currency are not acceptable receipts.
Departments are encouraged to accept payments only in U.S. funds. If foreign
drafts (checks) are to be accepted for payment, the Treasurer's Office should be contacted prior
to acceptance. Foreign drafts are to be deposited as separate transactions from domestic checks
and cash, using separate deposit tickets, cash receipts, and bank bags. Service and banking charges
incurred for the processing of foreign drafts will be charged back to the department accepting
the foreign draft.
A valid driver license or other identification is required when submitting a
personal check in person. A valid governmental picture I.D., such as an I.D. issued by a state
department of public safety, or a passport, may be accepted as identification. Before checks are
accepted they must be verified against the Bad Check Summary in BAFMIS. If an
individual appears on the Back Check Summary only cash can be accepted for
payments/reimbursement. Checks must be made out to the "University of Houston" (however, there
will be some exceptions when the check received is for an organization associated with the
University of Houston) and be restrictively endorsed (see below) upon receipt.
FOR DEPOSIT ONLY
UNIVERSITY OF HOUSTON
BusUnit - Fund - Dept - Program - Project - SpeedType - PS Acct
Money Orders and Foreign drafts, which are those items drawn against foreign banks
and requiring presentation to that bank for payment must be processed on a separate Journal Entry
Form. These items can be identified by the lack of transit coding at the bottom of the check.
Cash/Check Activity Log
When checks are received, departments must record appropriate information in a cash/check
activity log (such as FileMaker). This log must be reconciled monthly to the university's records.
The check log should include the following information: Name, Check #, Amount, Receipt # issued
via the department's pre-numbered receipt book, Date received, PS journal #, cost center, date
posted to PeopleSoft and Date reconciled.
Timely Processing of Deposits
If the total is greater than $100, then the deposit must be made within one working day. Although
not recommended, a department can take up to five days to make a deposit if the total cash received
is less than $100. A Task Reminder is set to notify the individual to complete the journal entry and
make the deposit. Upon completion of the deposit, the task reminder is updated as completed. Daily
reminders are submitted until the task is marked as completed. Deposits held in departmental areas
must be kept under lock and key. Departments should not hold checks because the proper cost center
cannot be identified or has not yet been created, nor should the department deposit the receipt
to one departmental cost center for later transfer to the correct cost center. There are University
of Houston System and University of Houston clearing cost centers to be used in these cases. Contact
the UH System Treasurer’s office for assistance in the use of a clearing cost center.
Transmittal of Deposits
Deposits shall be made using authorized bank bags obtained from Student Financial Services. Departments
need to make arrangements with the University of Houston Police Department (UHPD) to transmit funds
to Student Financial Services.
Gift transmittals are to be hand delivered to the NSM Development Office, which
will in turn deliver to the Manager, Donor & Alumni Record.
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