Cash Handling Procedure
Division: Business Services
SCC Policy Number: SPR5.3.9-P-1
Approved SCC President/CEO: 6/24/2022
Reference KCTCS Policy: 5.3.9-P Cash Accounting and Handling
The purpose of this cash operations procedure for Somerset Community College (SCC) is to supplement the KCTCS Business Procedures located under web address https://policies.kctcs.edu/administrative-procedures/5-3-9-P.aspx . This manual is designed to provide working procedures, directions and informative notes to help employees responsible for cash handling functions to better understand and perform their duties in accordance with Federal and State regulations and Kentucky Community and Technical College System (KCTCS) Business Procedures.
Applicability of Manual
This manual is for the benefit of employees who are involved in cash handling operations. Any employee of the college involved with cash handling functions is required to read, understand, and comply with this manual. The employee handling cash must sign the acknowledgement form at the end of this manual. Copies of the acknowledgement form are retained on file with the college's business office.
Use and Revisions of the Manual
This manual serves as an elaboration at the college unit level of the business procedures adopted by KCTCS. Any questions regarding the contents of this manual or problems in using this manual are to be brought to the attention of the college’s VP of Administration. From time to time, this manual will be revised to reflect changes in State and Federal regulations, changes in KCTCS policies and procedures, changes recommended by internal and external auditors, and changes endorsed by college management. All additions, deletions, and revisions to this manual require the written approval of the VP of Administration. Any manual user who identifies a need for a revision must submit the suggestion in writing to the VP of Administration. Users will be notified as revisions are made to the manual.
To ensure compliance with cash handling procedures the College has a responsibility to conduct periodic reviews of cash handling activities to determine that all systems are functioning as intended and that all applicable policies and procedures are being followed.
For purposes of this manual, cash refers to US currency and coin, checks drawn on US banks and written in US dollar values (including travelers, cashiers and certified checks), money orders, MasterCard, Visa and Discover credit card sales drafts. Foreign funds are subject to processing charge for conversion of funds to US dollars. The net proceeds, often conversion of foreign funds, must equal amount due the college.
General Cash Handling Guidelines
- Responsibility for handling cash is assigned to individual employees who participate in any cash handling function and to their supervisors. Any employee who handles cash is responsible for that cash. A supervisor of any employee who handles cash is responsible for ensuring that proper and reasonable safeguards are followed. Each employee involved in cash handling operations assumes the responsibility for true and accurate reporting of all funds handled.
- Access to cash must be limited. All funds must be kept secure at all times. Unauthorized persons are not permitted in areas where cash is handled, i.e. the business office. As necessary, signs may be posted to alert persons of a restricted area. Polite verbal warning may also be used, if needed, in addition to signage in order to maintain adequate safeguards. Access to areas where cash is counted or handled must be restricted to only those persons directly involved. Reconciling cash in areas visible by the general public is strictly prohibited.
- While in the possession of the college, cash must be kept in safes, locked boxes or drawers, or in closed cash register drawers. Access doors must be locked at all times in areas where cash is handled. Safe doors must be kept closed during working hours and must be locked at all other times. Large sums of cash must be counted and handled out of sight of the general public.
- Cash must never be left unattended - this applies to cash registers and workstations. If an employee leaves their workstation for any reason, regardless of how brief, all cash must be appropriately secured in a locked place.
- A written cash receipt is to be issued for all cash received. The form of receipt, depending on circumstances, may be either a pre-printed, pre-numbered written receipt or a cash receipt from PeopleSoft. Pre-numbered receipts must be accounted for sequentially and maintained for audit purposes. Voided cash receipt forms must be retained for audit purposes. In cases of a voided receipt, the white and yellow copies shall be forwarded to the Business Office, and the pink copy shall remain in the receipt book.
- Checks must be restrictively endorsed on an immediate basis "For Deposit Only" to the College – NO EXCEPTIONS!
- Funds secured in a safe overnight (college business office), over a weekend, or over a long holiday must be kept to a reasonable amount.
- Safe combinations are to be given to a minimum number of employees and only to those whose functions require access to cash. Safe combinations must be changed when an employee within the department leaves.
- Working funds must be kept to an absolute minimum at all times. All other funds must be in a locked place of safekeeping.
- Checks are accepted only for amounts owed the College. (No personal checks are to be cashed.)
- All overages and shortages greater than $5.00 must be initialed on the daily cash recap sheet by the department head.
- A reconciliation of the daily transaction sheet to the cash recap sheet and the daily deposit ticket must be made by an employee independent of the cash handling function. Also, all cash journal entries will be audited by an individual other than the cashier, generally the Manager of Business Operations or their designee.
- In order to ensure proper separation of duties, employees handling cash receipts must not perform any accounts receivable functions.
Opening and Closing Procedures of Cash Storage Devices
- Two persons must be present at all openings and closings of cash storage devices. Where this control procedure cannot be exercised (because there is only one employee) the supervisor of the respective cash handling location must personally exercise control to maintain the proper level of security to minimize potential loss.
- Unattended cashier stations/drawers must be kept closed and the registers/cash trays locked, with key removed, even when a cashier closes down for a relief period.
- All windows, doors, and entrances where cash is located and stored must be securely locked and all alarms engaged.
Counting Money and Making Change
- All money received must be counted and the amount verified before it is placed in the cash drawer.
- Currency for which change will be given must be placed in view of both the cashier and customer until the transaction is complete.
- All change given on a transaction must be counted out to the customer.
- If an interruption occurs during the counting/change making process, the process must be started again from the beginning.
- If a customer informs the employee handling cash that he/she was shorted in a prior transaction, the employee must immediately notify the supervisor so that the drawer can be balanced.
- Only personnel who have signed off on the SCC cash handling procedures are permitted to make deposits to the business office.
- Must be made according to policy.
- Cash receipts must be deposited daily.
- All “cash” gifts received must be deposited daily in the local depository.
- Daily deposits are required regardless of transaction amount to allow for balancing with the General Ledger generated by PeopleSoft.
- All deposits must be sent to the local bank depository on the same day or the next business day, if same day deposit is not possible.
- All cash receipts must be deposited intact. This means no checks may be cashed or disbursements made, including reimbursement of imprest cash expenditures, from receipts.
- All funds deposited to the Business Office by another department must be reconciled to the log and the receipt copied by the Cashier before a receipt is issued for the funds received.
- Under no circumstance should personal funds be mixed with college funds.
- Responsibility for collecting unpaid checks is assigned to the college Business Office. A financial hold is to be placed on the student’s account until the returned check is satisfied.
- A sign stating the amount of the fee for returned checks must be displayed in the department accepting checks and in a prominent location that is clearly visible to the public.
- When the maker of the returned check is a student, the unit will notify the student
of the following:
- That a check has been returned.
- The reason the check was returned.
- The date the check was returned.
- That a service charge has been assessed.
- Total amount due to the College.
- That payment is due immediately.
- That until paid, the student account will have a financial hold. All transcripts will be withheld and the student will not be able to register for future terms until the delinquency is satisfied.
- Payment must be made with cash, “cashier’s check” or a money order. The "insufficient
funds check" cannot be returned to the financial institution for processing, but the
amount of the check, plus processing charges, must be paid to the college.
- When the maker of the returned check is an individual or agency external of the College, the unit will prepare a letter to the maker containing the same first six points above. The seventh point should state that if not paid within 10 days, future collection efforts may be handled through an external source and may result in additional charges.
The level of cash handling safeguards required is dependent on the level of risk at that location. Central cash collection points generally have a higher level of risk than units that occasionally receive cash. To evaluate the level of risk, the following factors are to be considered:
- The amount of money involved.
- The physical-geographic location.
- The hours of operation.
- The past loss experience.
- The number of employees involved.
In general, all cash must be kept in a fire-resistant storage container (safe, chest, cabinet or desk) that is equipped with at least one locking device and that cannot be easily removed from the premises. The department head is charged with the overall responsibility for ensuring adequate safeguards are maintained.
Departments receiving cash on behalf of the College are responsible for maintaining security over that cash. Proper handling, adequate records, and physical security must be emphasized to each employee having access to, or responsibility for, any college assets, i.e. cash, merchandise, supplies and/or equipment.
A sign in sheet must be completed by students as they enter the room to take the test. On the sign-in sheet, the student is to mark the method of payment as either cash or payment voucher. The Assessment Center Administrator maintains the sign in sheet and collects the money individually from the students. Each student is to be given a pre-numbered receipt. All receipts are to be accounted for, even those that may be voided, and retained for audit purposes. A receipt is also given to students who are using a voucher to pay for the exam with the “charge” block marked on the receipt.
Note: The Assessment Center Administrator will bill the third-party agency for payment of the exam. Copies of the “charge” receipts may be used to monitor testing accounts receivable. Please see KCTCS Business Procedures 7.4 for Collection of Accounts Receivable. All payments are to be received and processed by the Business Office. Accounts Receivable records are to be maintained at all times and the Business Office personnel will review the records on an on-going impromptu basis.
As the funds are collected, they are to be placed in a safe keeping device with a locking mechanism. The cash must be counted, verified, and reconciled to the sign-in sheet. On the bottom of the sheet, the total payments by cash, checks and vouchers are entered and reconciled to the total according to the sheet. The employee must sign the sheet as verification of collection and reconciliation.
If a test is given on a weekday, the money is deposited in the Business Office on the same day (or no later than the following day if the test is given late in the day). A copy of the sign-in sheet is given to the cashier in the Business Office along with the deposit. It is the responsibility of the business office cashier to reconcile the sign-in sheet with the deposit before a receipt is given. The cashier is responsible for issuing a total deposit pre-numbered receipt to the Assessment Center personnel. Assessment Center personnel are to keep receipts on file as required by the record retention schedule as outlined in the KCTCS Business Procedures manual. Employees making deposits should never leave the Business Office without obtaining a receipt.
If a test is given on the weekend, the cash lock box is locked in a secure location until the deposit can be made to the business office the following working day.
It is the responsibility of all employees involved in this process to ensure that deposits are made in a timely manner, e.g., no later than the business day following the test date.
Procedures Specific to the Somerset North Campus:
If a student pays for a transcript in person or by phone, an Admissions Office staff member is required to collect the cash, check, or money order. (NOTE: For credit card transactions, the individual should be referred to the Business Office to make payment.) The collection is documented on the transcript log and a pre-numbered receipt is issued to the student. If the transcript request and payment is received through the mail, the check or money order is recorded, marked “for deposit only”, and hand delivered to the Admissions Office. The Admissions Office staff is required to document the collections on the transcript log (see Schedule A for sample log sheet) and issue/mail a pre-numbered receipt to the student, if requested.
For purposes of internal controls, a second employee must reconcile the transcript collections to the transcript collections log to determine if the collections equal receipts. The reviewer must sign the log on the “verified by” signature line. This must be performed daily and a copy of the completed log sheet (containing all appropriate signatures) must be forwarded to the department head to ensure compliance with cash handling procedures.
If staffing doesn’t permit proper separation of duties, the VP of Student Affairs, or designee, must actively monitor the collection of transcript charges. Overages or shortages must be immediately reported to the VP of Student Affairs, or designee, who must verify the work. If it is determined that the fees are over or short, this finding must be noted on the sales log, signed by the VP of Student Affairs, or designee, and included with the cash receipts brought to the business office for deposit. A business office employee will count the funds, issue a receipt, and sign the log as additional verification that the money was counted and verified. The VP of Student Affairs, in turn, must report the overage/shortage to the College VP of Student Affairs in a timely manner, e.g., within next business day.
Funds collected must be forwarded to the Business Office each business day (by 3:00 p.m.) for deposit and recording in PeopleSoft. The pre-numbered receipts, the cash collected, and the college seal must be kept in a lock box with access to the box being limited at all times.
Procedures Specific to All Other Campuses and Centers:
Transcript fees will be collected only by the campus cashier or Center designee. The cashier will issue the student a cash register receipt. The student will take the cash register receipt to the Admissions staff. The Admissions staff will issue the transcript to the student.
Any cash gift received by any college personnel shall be forwarded immediately to the Office of Institutional Advancement. All gifts or in-kind donations must go through the Office of Institutional Advancement – NO EXCEPTIONS!
When a gift is received by a campus office or by a college representative, the office or representative must forward the following (same day received) to the Office of Institutional Advancement:
- The actual check or written statement of received property.
- Copy of the donor’s letter stating the purpose.
- Restrictions of the gift, if any, and In-Kind Donation Form (if applicable).
The receiving office or representative must furnish:
- The name and the number of the account to which the gift is to be deposited.
- The name and address of the donor.
- The name and address of the person to receive an acknowledgement if different from the donor.
Any additional information that will assist the Office of Institutional Advancement in preparing the College’s letter of appreciation should also be furnished.
The Office of Institutional Advancement is responsible for determining if the funds received are gifts versus payment for goods or services. Private gifts received by the Institutional Advancement Office must be acknowledged through a receipting process. Cash/check receipts will require issuance of pre-numbered receipts. Yellow copies of the corresponding receipts will be attached as backup documentation to the cash journal prepared by the Institutional Advancement Office and forwarded to the cashier in the Business Office for deposit each day. Voided receipt forms must be included with all other receipt forms brought to the Business Office and included in the day’s cash summary prepared by the Business Office. A reconciliation of collections and receipts must be performed. If a separation of duties isn’t possible due to limited staff, the Institutional Advancement Officer must use prudent judgment in handling of receipts.
Copies of any voided receipts must also be kept by the Institutional Advancement Office and included in that day’s receipt documents. Checks must be endorsed immediately using a restricted endorsement stamp. The Business Office cashier will count the cash in the presence of the Institutional Advancement employee and will write a receipt to the employee for the cash. All receipts received after 3:00 p.m. will be deposited to next day’s business.
The Institutional Advancement Office, on a pre-numbered receipt form, must receipt any gifts received in the mail on the date they are received, and forwarded to the Business Office for inclusion in the daily deposit.
As a general rule, the processing of gifts to the college will operate as follows:
The Office of Institutional Advancement will:
- Issue donor a receipt for cash, check, or credit card contribution and/or in-kind donation.
- Assemble all necessary documentation for donor file:
- Copy the check, cash receipt, credit card slip, and appraisal receipt for the in-kind donation. This includes any additional information necessary to properly record the gift donation (matching gift form, gifts designated in memory of, etc.).
- Complete a gift processing form.
- Prepare the cash receipt form with the appropriate chartfield combination.
- Post gift transaction to PeopleSoft Advancement.
- Submit appropriate documentation along with the processing form to the college Business Office.
Regarding the receipt of cash gifts, the College Business Office (Cashier’s Area) will:
- Upon receipt of gift processing form and cash receipt form, deposit donor’s check/cash in the college’s local bank in accordance with established cash accounting procedures.
- The college Business Office prints the AV journal the next business day verifying the deposited funds balances with the transaction recorded by the Advancement Office. A copy of the journal is forwarded to the Office of Institutional Advancement.
Each cashier will have a cash tray and must operate only from that drawer. Cash drawers are not to be used to change large currency bills. Change can only be made during an actual payment transaction. It is the cashier’s responsibility to never leave his/her cash drawer unattended even during surprise cash counts.
A reconciliation of imprest funds must be summarized on the KCTCS reconciliation form. This will be kept with the bank statement reconciliation and is to be completed by the tenth day of the following month. The Business Office employee who verifies end of month imprest cash funds may perform the reconciliation. On a random basis, an individual designated by the VP of Administration will spot audit imprest change funds.
Cash paid from the imprest funds and checks written from the imprest bank account must have a supporting receipt/document. According to KCTCS procedures, imprest transactions must be limited to $100 and must conform to the KCTCS procedures for qualified purchases (see attachment Schedule B for authorized imprest cash accounts).
All imprest funds reconciliations are to be completed monthly utilizing KCTCS Form TM11. The reconciliations are to be reviewed and approved by the VP of Administration no later than the 10th working day of the next month.
Requests for all imprest fund expenditures are to be completed on a monthly basis.
Checks written from the imprest bank account MUST have supporting receipts/documents. The monthly reconciliation will check for appropriate receipts/documents that support imprest transactions. If receipts are not included, the College’s VP of Administration must be notified immediately. Imprest purchases are limited to $100.00. Please consult Purchasing Procedures for qualified purchases.
Tuition (Credit Classes)
All tuition payments, fees, fines, and other charges must be paid in the Business Office. All Business Office employees must adhere to the procedures and guidelines set forth under the internal control section of this manual.
End of day reports must be run and balanced to the cash collected at the end of each day with the cash receipts balanced to the query reports.
Please see Schedule C for DAILY CASHIERING – CHECKLIST.
Overalls and shortages must be reported to the College’s VP of Administration that day. Assessed charges cannot be reduced without proper documentation, including tuition waivers.
Nurse Aid Testing
All payments for nurse aide testing shall be processed through the Business Office cashier. The cashier shall verify that the person taking the test is in good financial standing prior to accepting payment. Once the financial status is confirmed, the cashier shall issue a hand-written receipt to the person taking the test. The cashier shall then log the person’s information and payment on the Excel file created by the Nurse Aide Testing Administrator and shared with the Business Office.
It is the Nurse Aide Testing Administrator’s responsibility to ensure that the person requesting a testing slot is eligible for testing prior to referring them to the Business Office for payment. It is the Nurse Aide Testing Administrator’s responsibility to inform each person of the mandatory documents to bring on the scheduled test date. It is also their responsibility to notify the potential tester that the fee in non-refundable, and that lack of following instruction that prevents the person from testing will not warrant a refund of fees paid.
Note: The Nurse Aide Testing Administrator or Administrative Assistant will bill the third-party agency for payment of the exam. Copies of the “charge” receipts may be used to monitor testing accounts receivable. Please see KCTCS Business Procedures 7.4 for Collection of Accounts Receivable. All payments are to be received by the Business Office. Accounts Receivable records are to be maintained at all times and the Business Office personnel will review the records on an on-going impromptu basis.
Registration and payment for customized short-term training, technical skills upgrades, training assistance to industry and Lineman Training, as well as Proprietary and Community Education programs will be performed by the Workforce Solutions Office utilizing the CampusCE software module. Somerset Community College will follow the KCTCS Business Procedures to process registrations and payments associated with noncredit training recorded in the CampusCE database. After the Workforce Solutions staff completes the reconciliation, the funds, along with all required backup documentation, shall be delivered to the Business Office for inclusion in the daily deposit.
Payments must be receipted on pre-numbered registration/fee payment forms. Checks must be immediately endorsed “For Deposit Only”. Receipts must be secured at all times. As departmental offices are not adequately equipped to make change, currency is discouraged. The fees and receipts must be reconciled utilizing the reports available through CampusCE to determine if the collections equal the registrations. Reconciliation is to be performed by someone other than the person who performed the collection of the fees/registration. Where staffing doesn't permit this separation of duties, the department head or designee must monitor the collection activity. In addition, the Business Office shall conduct spot audits of cash handling activity in the Workforce Solutions department. It is recommended that a monthly audit be conducted, but no less than a quarterly audit will be required. Overages or shortages must be immediately reported to the department head, who must verify the reconciliation. If it is determined collections are over or short, this finding must be signed by the department head and included with the Cash Receipt Form when funds are brought for deposit to the College’s business office (cashier’s area). The over or short must also be reported to the College’s VP of Administration. Collected funds must be forwarded to the College’s Business Office (cashier’s area) for the previous business day by 3:00 p.m. (see exception noted below). A completed Cash Receipt Form is to be sent to the business office (cashier’s office) with all funds collected. The Business Office (cashier’s area) will count the funds in the presence of the Workforce Solutions employee and will issue a written receipt to that employee.
Effective December 1, 2015, an exception shall be given for the Workforce Solutions office only to allow payments collected for transactions processed Monday through Thursday to be held until the deposit amount reaches up to $500. At that time, a deposit shall be made with the Business Office and shall include all funds with backup documentation and the daily CampusCE reconciliation reports. This exception is necessary based on lack of staffing. This exception shall be revisited each year to determine the need to extend or terminate based on staffing and budgetary constraints.
NOTE: Instructors must not collect any fees/tuition.
Library Staff shall place a service indicator on the student account when the student owes a fine or a lost book charge. The service indicator shall include the amount due from the student. The student will be referred to the cashier’s window to settle the balance associated with the library hold. The cashier will post the payment to the student account, and will include the payment with the daily bank deposit. Once the library fine has been paid, the cashier will remove the service indicator from the student account.
- Vending machines must be emptied at least monthly.
- Two employees must be present to empty the cash boxes. If this is not possible, a supervisor must verify all work.
- Currency and coin must be counted separately with totals for both included in the deposit bag.
- The funds must then be brought to the Business Office for verification of totals, recording within PeopleSoft, and deposited. The cashier will issue a hand-written receipt to the employee making the deposit.
Cash Handling Procedures Specific to SCC Center Locations
Effective July 1, 2013, cashier positions at Center locations were eliminated. However, SCC recognizes the continued need to serve students regarding payment of tuition and charges. In instances where the payment is related to the student account, the Student Self Service option shall be the preferred method of payment and students shall be encouraged to utilize this method. In instances where the student does not have the ability to complete an online payment , or the payment is not for a charge posted directly to the student account, the following procedures shall be followed.
The Center Director and/or designee trained in cash handling procedures shall collect payments from the students/customers. Each student/customer shall be given a pre-numbered, hand-written receipt from the designated Center staff. All receipts are to be accounted for, even those that may be voided, and retained for audit purposes. In cases of a voided receipt, the white and yellow copies shall be forwarded to the Business Office, and the pink copy shall remain in the receipt book.
As the funds are collected, they are to be placed in a safe keeping device with a locking mechanism. Funds shall be secured at all times in a place out of sight of the general public. Funds shall be locked in the Center’s safe when staff leave the office. Checks shall be immediately endorsed “For Deposit Only” – No Exceptions.
At the end of the day, the designated Center staff shall verify that the payments reconcile to the amount of cash/checks collected. If the amounts do not balance, the Center Director is responsible for verifying the daily collections and shall contact the Manager of Business Operations if the funds cannot be reconciled. If the amounts balance, the designated Center staff shall complete a bank deposit ticket, initial the deposit slip, and transport the deposit to the local bank. Upon completing the deposit with the bank teller, the designated staff shall verify that the deposit amount validated by the bank teller matches the amount on the college deposit ticket. All discrepancies are to be resolved before leaving the bank.
Upon return to the Center that same day, the designated staff shall scan and email the college deposit slip and the bank deposit slip (if a separate slip is provided by the bank) to the London cashier. The designated staff shall place all original documents, including deposit tickets, receipts, and all other applicable backup documentation, in UPS/FedEx mail to the Somerset Cashier for delivery the next business day.
Business Office Responsibilities
Upon receipt of the emails containing the scanned daily deposit documentation, the London Cashier shall verify that the deposit amount reconciles and that the cash and check transactions have been accurately recorded. The London Cashier shall process the cash/check transactions either through the PeopleSoft Student module, or through a cash receipts journal in the PeopleSoft Financials module.
Should the payment require a posting on the student account through the PeopleSoft Student module, the London Cashier shall ensure that the correct target key is used as shown below:
McCreary Center Cash Target Key
Clinton Center Cash Target Key
Russell Center Cash Target Key
Casey Center Cash Target Key
Should the payment require a cash receipts journal through the PeopleSoft Financials module, the London Cashier shall ensure that the correct cash account is used as shown below:
McCreary Center Cash Account Number
Clinton Center Cash Account Number
Russell Center Cash Account Number
Casey Center Cash Account Number
The London Cashier shall process all transactions through PeopleSoft no later than the next business day following receipt of the Center emails. Once the daily transactions are completed, the London Cashier shall forward the Center emails to the designated Business Office Staff to process the EFT (electronic funds transfer) from the local depository to the KCTCS central depository.
NOTE: Should the London Cashier identify any discrepancies between the deposit amount and the backup documentation, they must contact the Center staff responsible for the deposit to attempt to resolve the discrepancy. Should the London Cashier and the Center staff not be able to determine a resolution, the Manager of Business Operations shall be notified and a complete audit of the daily activities shall be completed. In the event that the cash total is over or under the deposit total, the Center staff shall be responsible for documenting the reasons for the variances and acknowledge they have been made aware of the reconciling item. Repeated occurrences of reconciling issues will be grounds for removing cash handling privileges from that specific individual, with possible additional consequences as determined by the VP of Administration.
Upon receipt of the original documentation from the Centers, the London Cashier shall attach the PeopleSoft student receipts and the cash journals to the deposit package, and forward the complete package to the designated Business Office Staff for audit and verification of the EFT. A monthly deposit folder shall be maintained for each Center, and after all monthly activity has been completed, including the EFT process, the folders shall be forwarded to the Manager of Business Operations or designee for completion of the monthly bank reconciliation and the final audit of all transactions.
Cash Handling Procedures Specific to the Cosmetology Programs
To fully support the Cosmetology program curriculum and training goals, Somerset Community College recognizes the need for expanded cash handling operations. This expansion includes the use of cash registers programmed specifically for services provided during salon/client days, along with allowing students to serve as cashiers for the collection of fees. The specific process is outlined below and will be effective in the Spring 2015 semester.
Risk Assessment and Accountability
In order to minimize the risk of cash overages and shortages, a cash register shall be utilized to record each transaction during all salon/client days. These cash registers are being provided by the Business Office, and will be pre-programmed for services specific to the Cosmetology program. The Cosmetology programs shall purchase all supplies needed to operate said cash registers, i.e., register tape. Should any of the three programs close, the cash registers shall be returned to the Business Office. Each location’s instructor shall be responsible for managing the daily operation of the new cash handling processes, with the Program Coordinator having the final and ultimate responsibility for risk and accountability.
Program Site Responsibilities
The site instructor shall be trained in cash handling procedures and will have daily oversight of cash operations. In order to provide each student with hands-on experience working with the cash operations of a salon, the site instructor shall develop a log assigning two students per salon/client day to operate the cash register and process sales transactions. Any concerns the daily student cashiers have shall be reported to the site instructor who shall attempt to resolve the issues. Should the site instructor not be able to resolve the issues, the site instructor shall contact the Manager of Business Operations for assistance. Where warranted, the Manager of Business Operations shall conduct a full site audit to resolve any issues.
The cash registers are programmed to allow two cashiers to process transactions each day on the same register. The site instructor shall assign the cashier numbers to the student cashiers on each salon/client day. The students shall sign the log acknowledging their cashier assignment for the day, and this log shall be included in the total deposit sent to the Business Office cashier. The student cashiers shall record each transaction under their specific cashier number. The student cashiers will collect money from clients in the form of either cash or a credit/debit card for services rendered.
As the funds are collected, they are to be placed in the cash register. Funds shall be secured at all times. If the reception counter is not manned at all times, the site instructor shall assign one of the student cashiers with the responsibility of safeguarding the cash register key when not in use. No one other than the two daily student cashiers and the site instructor shall have possession of the cash register key – no exception!
The practice of making change for students, employees, or visitors from the cash register/change fund is strictly forbidden. Change is given only in the case of processing cash payments from the sale of services. Change funds are not to be used to purchase supplies for the Cosmetology program. Supplies must be ordered through the approved KCTCS purchasing methods, either via procard or purchase order.
At the end of each salon/client day, a daily reconciliation process shall be completed. To start this process, the cash change fund issued to the Cosmetology Program from the Business Office shall be counted out and removed from the cash drawer. The change fund will be stored in a secure, locked drawer/cabinet until the next client day. At this point, the cash register X tape is printed and the designated student cashiers, along with the site instructor, shall verify that the payments noted on the cash register X tape reconciles to the amount of cash and debit/credit cards transactions. If the amounts balance, the cash register Z tape shall be printed to close out all transactions in the register. If the amounts do not balance, the site instructor is responsible for verifying the daily collections and shall contact the Manager of Business Operations if the funds cannot be reconciled. Once the amounts balance, the site instructor shall complete a Daily Cashiering Balance Sheet, and shall take the Balance Sheet, Student Cashier Assignment Log, cash register tapes, credit card receipts and the daily batch report, and money to the Business Office cashier for inclusion with regular daily deposits, with the exception of the Clinton Center Cosmetology program. For the Clinton Center, the Cosmetology site instructor shall deliver the daily deposit package to the Center Director or the Administrative Assistant for deposit.
Business Office Responsibilities
At the beginning of each semester at a time determined by the Site Instructors and the Manager of Business Operations, all students enrolled in the Cosmetology program shall be trained in the KCTCS/SCC cash handling procedures. A sign-in sheet acknowledging attendance at this training will be completed each semester and maintained on file by the Business Office (see Schedule F). It is understood that students will not be involved in cash handling until such time as they have received the mandatory training from the Business Office.
Upon receipt of the daily deposit package from the Cosmetology programs, the Business Office Cashier (or Center Director/Administrative Assistant for Clinton) shall verify that the deposit amount reconciles with the Daily Balance Sheet and that the cash and credit card transactions have been accurately recorded. The cashier shall write a hand-written receipt to the Cosmetology representative for the daily deposit. The Cosmetology representative shall attach the Business Office receipt to their records as evidence that the deposit was submitted for inclusion in the daily college bank deposit. The Business Office shall process the cash transactions through a cash receipts journal in the PeopleSoft Financials module.
NOTE: Should the Business Office Cashier identify any discrepancies between the deposit amount and the backup documentation, they must contact the Program Site Instructor responsible for the deposit to attempt to resolve the discrepancy. Should the Business Office Cashier and the Program Site Instructor not be able to determine a resolution, the Manager of Business Operations shall be notified and a complete audit of the daily activities shall be completed. In the event that the cash total is over or under the deposit total, the Program Site Instructor shall be responsible for documenting the reasons for the variances and acknowledge they have been made aware of the reconciling item. Repeated occurrences of reconciling issues will be grounds for removing cash handling privileges from that specific program or individual, with possible additional consequences as determined by the VP of Administration.
Cash Handling Procedures Specific to the Theatre Department
Box Office Advance Sales
Box office hours are at the discretion of the department and are primarily based on the Theatre Assistant’s schedule. The hours and dates of tickets sales should be posted on the box office door once they have been determined. The box office is also open in the lobby of the theatre for one hour prior to curtain on performance nights. For advance sales made at the box office window, credit cards are accepted as well as cash and check. For door sales, only cash and checks are permitted.
Tickets & Seating
All ticketed performances have assigned seating. The theater assistant is in charge of preparing and printing tickets for each performance.
Ticket Prices (includes Kentucky sales tax)
Preparing the tickets & Seating Chart
- Open “Stoner Tickets” (found in the Templates folder) and SAVE AS in the appropriate production folder.
- Use Ctrl+F function to “Find & Replace” the information on the ticket template: Title, Date, etc.
- Print tickets on colored cardstock, using a different color for each performance to help keep track of each night’s tickets.
- Cut tickets with paper cutter.
- Sort tickets by date and then by row. Use rubber bands to keep them sorted.
- Double check all the seat numbers listed are available during the performances.
- Open “Stoner Seating Basic” (found in the Templates folder) and SAVE AS in the appropriate production folder.
- Block out any unavailable seats and update the dates. Note each date has a separate tab in the workbook. It helps to highlight the date in a color that matches its ticket color.
Selling The Tickets In Advance
When a sale is made, the following procedures will be followed:
- Open the seating chart saved for the production.
- Ask the patron how many tickets they need, and for which performance.
- Consult the chart to see which seats are available. Dress house from center of house outward. Highlight the seats you choose to sell using the fill button in the toolbar. Using the drop down menu, select “Insert Comments,” type in the Comment box(es) above the seat(s) the name of the patron purchasing the tickets. (Often, someone will call back later and want an additional seat nearby so this helps that process go smoothly.)
- Find the corresponding printed ticket(s), double check with the patron that they are the correct date.
- Remind the patron to arrive ten minutes before curtain, and that children under 6 are not permitted.
- Accept payment.
- Record sale on receipt book supplied by Business Office, including patron’s name and phone number. The patron gets the white copy.
- Cut the ticket stub(s) and note on it the type of sale made, and note payment method. (CC=credit card, $=Cash, CK = Check) Keep the stub for closing your cash box and making your box office report at the end of the day.
- After the transaction, check the seating chart to make sure the correct seats have been marked sold and save the updated chart.
All ticket sales are final. Once the stub has been cut, a sale has been made.
When assigning seating, try to leave empty seats open in groups of 2 or 3. To make the theater feel fuller, try to spread assigned seats out among the center section and front of the side sections first, leaving empty seats between parties to be filled by later ticket buyers.
Some patrons will request the larger seats. These are portable chairs and are denoted on the tickets by “PORT” or on the seating chart by a different color. Try to accommodate seating requests when possible.
The credit card machine should be locked up when not in use. When in use, the credit card machine must be plugged into an outlet and connected to the network. Although the machine prints a receipt for each transaction, a handwritten receipt must also be created for the business office. Staple the yellow copy to the credit card receipt, give the white copy to the patron along with a copy of the credit card receipt, and keep the pink copy in the receipt book.
All persons who handle cash must go through cash training with the business office. Contact the Manager of Business Operations to schedule cash training. Cash received must be taken to the cash office daily. Every time cash changes hands, a receipt must be written to track it. You will need to check out receipt books from the cash office. These are serialized and should be stored in a locked cabinet when not in use. Pink copies of receipts always remain in the book. When all the receipts are used, the book is returned to the Business Office. When cash is being handled, the office door must be kept shut and locked. Extra precautions should also be taken with tickets as they have cash value.
- Each day, complete a “box office form” and take all income generated, the matching ticket stubs and corresponding receipts indicating the amount of money from ticket sales to the Cashier’s office.
- Cashier will confirm deposit is balanced with all funds/receipts accounted for, and will write a receipt back to the Theatre employee for the amount of funds deposited.
- At conclusion of run and once all monies and unsold tickets have been deposited with the Cashier in the Business Office, generate a Box Office Report for theatre director. See previous reports in binder labeled “Box Office Receipts” for formatting of report.
Box Office Door Sales
Door sales begin at one hour prior to curtain. All tickets are $8.00 each, which includes KY sales tax.
Presold tickets will be kept apart with the names of the patrons on the tickets.
Keep track of how the house is dressing on the seating chart. The hard copy of the seating chart is for your reference only. Do not show the patron the seating chart. Unless a patron insists, do not allow the patron to choose their seats. Inform them that you are giving them the best available seat given the available seating. If a patron wishes to sit with someone who has already bought tickets, check to see if you can accommodate. If not, sell them seats closest to the other party. Avoid showing the patron the seating chart.
Selling The Tickets At The Door
When a sale is made, this is the procedure to follow:
- Ask the patron how many tickets they need.
- In pencil, cross out the seats you sell the patron on the seating chart.
- Find the corresponding printed ticket(s).
- Accept payment.
- Record sale on receipt, including patron’s name and phone number. The patron gets the white copy. Yellow copies are sent to the Business Office with deposit. Pink copies stay in the receipt book.
- Cut the ticket stub(s) and check the appropriate box on the stub , and note payment method. (CC=credit card, $=Cash, CK = Check) Keep the stub for closing your cash box and making your box office report at the end of the day.
All ticket sales are final. Once the stub has been cut, a sale has been made.
Dressing the House
Unsold tickets and tickets turned back in should be sold from the center of the house outward. Fill out the center section of the house first and then from the aisles toward the wall. Arrange unsold tickets in groups of singles, two, three and four. Pre-arrange these groups to sell at the point of purchase.
Some patrons will request the larger seats. These are portable chairs and are denoted on the tickets by “PORT” or on the seating chart by a different color. Try to accommodate seating requests when possible.
Although the machine prints a receipt for each transaction, a handwritten receipt must also be created for the Business Office. Staple the credit card receipt to the yellow copy, give the white copy to the patron, and keep the pink copy in the receipt book.
Every time cash changes hands, a receipt must be written to track it. You will need to check out receipt books from the cash office. These are pre-numbered and should be stored in a locked cabinet when not in use. Pink copies of receipts always remain in the book. When all the receipts are used, the book is returned to the Business Office. When cash is being handled, the office door must be kept shut and locked. Extra precautions should also be taken with tickets as they have cash value.
Student Rush Line
When the box office opens, a “student rush line” list will be kept and students will be listed on a first-come/first-served basis. Each student will list their name and the name of their teacher.
At fifteen minutes prior to curtain (or at any earlier time designated by the theatre director) unclaimed tickets will be released, for no charge, to students on the “student rush line” list. Check them off the list as tickets are released. Mark the stub accordingly. Release tickets from the unsold group before you release presold tickets.
Pre-numbered receipt forms must be used to receipt miscellaneous funds. Sufficient documentation must be attached to the daily cash recap sheet describing the purpose of the funds.
Any exception requires prior written approval by the VP of Administration. Emergency situations should be brought to the attention of the VP of Administration as soon as possible.
Authorized Imprest Cash Accounts as of May 16, 2022
- Business Office - $1,000 (checking) - Evetta Thompson
- Business Office – $100 (Cashier) - Chelsey McCown
- Business Office – $100 (Cashier) - Sarah Edmon-Burton
- Business Office - $350 (Extra Change Funds) - Evetta Thompson
- Cosmetology - $50 (change) - Jennifer Owens
- Assessment Center - $20 (change) - April Russell
- Business Office - $100 (Cashier) - Melissa Bray
- Assessment Center - $30 (change) - Lora Acrey
- Cosmetology - $100 (change) - Joni Upchurch
Daily Cashiering Checklist
- Opening (AM/PM) Campus Cashier (may also be Head Cashier) opens cashier office, opens registers, and opens cashiers using the copy feature. College Manager of Business Operations creates/deletes valid registers and creates cashiers as needed.
- Each cashier shall utilize a cash register to record all transactions, including tuition payments. Each cashier is assigned individual cash drawers for their own cash registers. Sharing/changing between drawers is not allowed – NO EXCEPTIONS.
- Process payments received by mail.
- Process any returned items from bank, process any student repayment of financial aid because student dropped/withdrew from class(es).
- Deposit any departmental funds, i.e., transcripts, vending, B&I, library fines/receipts,
and copier receipts.
- Note: Any service for which the college invoices must go through the Accounts Receivable (AR) module. A cash receipt journal may be used for cash received not related to a student payment or for non-service items not required to be processed through the AR module.
- Process journal entry vouchers for those deposits or receive departmental funds through A/R module. (It is recommended the Head Cashier perform this task.)
- End of the day:
- Each Campus Cashier:
- Runs query report (K_TARGET_KEY_ENTRIES_CSHOFFICE) and verifies amounts by cashier and verifies the correct target / tender keys were used.
- Cashiers organize receipts or other student documentation required for balancing.
- Cashiers balance out individual registers and reconcile to PeopleSoft and give receipts and supporting documentation to the Head Campus Cashier.
- Individual cashiers are responsible for voiding and re-receipting if needed.
- Where payment reversals and payment quick posting are required, the Manager of Business Operations must be consulted prior to actual posting.
- The Primary Campus Cashier closes, balances, and transmits the credit card machine totals.
- Each Primary (Closing Cashier) Campus Cashier:
- Runs query report (K_TARGET_KEY_ENTRIES_CSHOFFICE ) to a cashier tender total query and verifies amounts by register and verifies the correct target keys were used.
- Runs query report (K_SF_RCPTS_BY_BUSDAY) to a cashier tender total query and verifies amounts by register.
- Combines funds (money) of all cashiers and again verifies the total amount as compared to the query.
- Prepares deposit(s) and daily balance sheet. If a discrepancy occurs, the Primary Campus Cashier runs further queries until discrepancy is located.
- Each Campus Cashier:
- After balancing the open cashiers, the Head Cashier closes the registers and then closes the cashiering office.
- Documentation in closing is to include:
- Excel spreadsheet and any adding machine tape of the checks received attached to the deposit.
- Copy of bank deposit slip.
- Cash register tapes.
- Adding machine tape of cash over/short to be clearly attached to the deposit detail.
- Credit card detail batch report.
- List of all returned checks processed including student name, id #, and amount of returned item.
- All documentation is to be attached to the closing query reports.
- Deposit(s) are typically to be made by 4:30 p.m. each day by the designated business office employee.
- Documentation (Balance Sheet) is forwarded to the Manager of Business Operations.
- Head Cashier runs the G/L Feed report daily to verify totals from SF journals match the deposit.
- Funds transfer is called in, at least weekly (Friday) or when the compensating balance is exceeded by $500.00, from local bank account to College’s cash account at the System’s Office. (Emphasis should be given to daily transfers.)
- All student payments must go through the student financials.
- All invoiced payments for services rendered by the college must go through the AR module. Non-service items where a college invoice is not applicable may be posted into the General Ledger via a cash receipt journal.
- For the Student Financials in particular:
- In all cases where students are being receipted, payments must be applied to a specific term.
- Before exiting the Target Key field, cashiers are to observe for the correct payment type based on the Target Key description.
- In cases where student is paying for multiple terms, care should be exercised to ensure that target and tender types match and are equal, and the intended term is specified.
- Use of cashiers’ access is to be strictly limited to the individual logged on – no sharing of passwords or screens!