9 Cash Handling Workshop - Risk Management - 9


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9 Cash Handling Workshop - Risk Management - 9

  1. 1. Managing the Risks A Risk Management Presentation For UT Dallas Student Organizations Cash Handling Presentation 9 of 9
  2. 2. Treasurer’s Responsibilities MANAGING THE RISKS ● Cash Handling
  3. 3. 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. MANAGING THE RISKS ● Cash Handling
  4. 4. 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 MANAGING THE RISKS ● Cash Handling
  5. 5. Sources Of Organizational FundingFunds for the use of student organizations tocarry out their activities come from three main sources 1. SOF funding 2. Fund-raising activities 3. Donations 4. Dues MANAGING THE RISKS ● Cash Handling
  6. 6. Cash Handling 101 MANAGING THE RISKS ● Cash Handling
  7. 7. 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
  8. 8. 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
  9. 9. 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 banks 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
  10. 10. Use A Central Mailing AddressStudent organizations should use their UT Dallas mailingaddress to receive bank statements and notifications. 800 West Campbell Road, SU 21 Richardson, TX 75080 If statements are being e-mailed or require Web siteaccess, multiple recipients or users should be authorized. MANAGING THE RISKS ● Cash Handling
  11. 11. Keep Records Public• Purposeful mismanagement of funds is difficult to conceal when financial records are made public or readily available to the student organizations members. MANAGING THE RISKS ● Cash Handling
  12. 12. Define Consequences For Embezzlement To address embezzlement in your organizationsconstitution or bylaws. Include: – Definitions – Methods for policing – Consequences for breaking the rules MANAGING THE RISKS ● Cash Handling
  13. 13. 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
  14. 14. 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
  15. 15. 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. MANAGING THE RISKS ● Cash Handling
  16. 16. 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
  17. 17. 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
  18. 18. Fundraising MANAGING THE RISKS ● Cash Handling
  19. 19. 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 SOC 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
  20. 20. Before A FundraiserOrganizations may conduct fundraisers in theStudent Union provided they have reserved abooth and completed the Event RegistrationForm (one week in advance). MANAGING THE RISKS ● Cash Handling
  21. 21. 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-profitorganization).The donation will be delivered to (name of non-profitorganization)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
  22. 22. 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
  23. 23. 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
  24. 24. Receiving Donations Student organizations may receive donations fromnon-university entities; however, non-universityorganizations may not co-sponsor activities on campus. Organizations may thank their donors (i.e., “SpecialThanks to…”) but may not advertise for companies oruse corporate MANAGING THE RISKS ● Cash Handling
  25. 25. 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. MANAGING THE RISKS ● Cash Handling
  26. 26. 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 successfuland positive experience.For more information or for questions contact the StudentOrganization Center: • 972-883-6551 • utdallas.edu/soc MANAGING THE RISKS ● Student Travel
  27. 27. Review Your Knowledge1) Clink on the link below to get started https://elearningpilot.utdallas.edu/webapps/portal/frameset.jsp2) Login with your netID and Password3) In the my organizations box click on Risk Management Quizzes 2012-20134) Click on the quiz title that you will take.5) Click Begin. As you proceed make sure all answers are saved.6) Once you have answered and Saved all ten questions click save and submit.7) Wait for the submission report. Click ok to view results8) If you have scored an 80% you may move on to the next quiz. If you have not scored an 80% you must retake the quiz until you have received a score of 80%