Authorized by Regents' Policy 7.9 "Property Management"
Process Owner: Vice President for HSC/UNM Finance and University Controller
Faculty, staff, students, and volunteers who receive University monies are responsible for the collection, safekeeping, and deposit of all monies entrusted to them and for the safety of employees who handle the monies. For the purposes of cash management, the term "monies" is defined to include cash, checks, credit card payments, money orders, and other negotiable instruments whether received in person, by mail, or by telephone.
1.1. Mandatory Cash Handling Training
Individuals responsible for handling cash and their direct supervisor must take the cash management training course offered by the University Employee and Organizational Development Department. Supervisors are responsible for ensuring that new employees, students, and volunteers responsible for monies take the required training as soon as possible after being assigned cash handling duties, but no later than sixty (60) days after the assignment date.
1.2. Change Fund
Departments that need to retain a cash balance for making change must request approval by sending a Petty Cash Reimbursement form, with a justification for the fund amount requested, to the appropriate Financial Services accounting office. Change funds should only include cash and must be intact at all times. Overages and shortages must be recorded immediately upon discovery. If a fund is not used for a large portion of a year, departments should deposit the fund until it is needed again and send a copy of the Money List to the appropriate accounting office.
1.3. Petty Cash
Main campus and Health Sciences Center (HSC) departments that wish to establish a petty cash fund should refer to "Petty Cash Fund" Policy 7210, UBP.
1.4. Bank Accounts
All funds must be deposited in a University account; no bank accounts may be set up except those established by the UNM Controller's Office with the approval of the Executive Vice President for Administration.
All gifts to the University must be reported to the UNM Foundation. The execution of any formal acknowledgment forms must be processed by the Foundation; however, the department receiving the gift may and should express appreciation and gratitude for the gift.
Monies received should be deposited at the University Cashiers Department intact by the next working day following receipt. When less than $50 is involved, monies may be accumulated up to a week. No checks shall be cashed, no purchases shall be made, and no substitution of cash, checks, or other documents shall be made from the actual monies received. The Cashiers Department is housed within the University Bursar's Office, which is the centralized area responsible for the cashiering, depository, and collection functions of the University. The Bursar's Office is located in the Student Services Center.
2.1. Money List and Credit Card Reports
A Money List form, available at http://www.unm.edu/%7egacctng/forms.html, must be prepared immediately upon receipt of monies. The Money List, which accompanies the deposit, shows the amount paid and the University index number and account code where the monies are to be deposited. A separate Credit Card Report available at http://www.unm.edu/~gacctng/forms.html must also be prepared immediately to record credit card receipts. The department preparing the Money List and Credit Card Report should keep a copy. The department is also responsible for maintaining all documentation necessary for reconstruction of the Money List and Credit Card Report should the deposit be stolen. This documentation includes, but is not limited to, copies of the checks.
2.1.1. Confidential Information
Customer social security numbers and credit card numbers should not be kept in any format after the transaction has been processed. Paper containing these numbers must be shredded.
2.2. Checks Larger Than $100,000
For investment purposes, it is desirable to deposit large checks in the bank as quickly as possible.
2.3. Transporting Deposit
Whenever monies being deposited are transferred from one individual to another individual, the transfer of responsibility must be documented in writing. A locked bag, supplied by the Cashiers Department, must be used to transport the deposit. The bag containing the deposit will be placed in a locked box at the main Cashiers Department or a satellite location. The bag will be opened, counted, and receipted in the presence of two (2) cashiers. If the deposit matches or the discrepancy is within ten dollars ($10) of the departmental Money List, a deposit receipt will be returned in the locked bag to the initiating department. If the deposit is not within ten dollars ($10) of the Money List, a copy of the receipt and correcting documentation will be mailed to a department employee not responsible for monies or the preparation of the deposit.
The Bursar's Office may advise departments that receive a large number of checks to prepare a separate deposit slip for the checks and place the items in a special locked bag. The Cashiers Department sends the unopened bag directly to the bank for counting and receipting. The University Bookstore, New Mexico Student Union, and Housing, have been authorized to have their deposits picked up by armored transport and taken directly to the bank.
Deposits with cash in excess of $500 must be transported by the Bursar's Department. The Bursar's Department will transport any deposit upon request, even if the deposit is less than $500. The employee from the Bursar's Department must present identification and sign for each locked bag. Contact the Supervisor of Cashiers at least twenty-four (24) hours in advance to schedule transport services.
Deposits with cash in excess of $5,000 must be transported in a locked bag by armed transport to the bank. Contact the Bursar's Office to make arrangements.
3. Internal Control
Internal control is necessary to prevent or detect any possible errors or irregularities involving monies. Internal control requires segregation of accounting, custodial, and authorizations functions from each other. Specifically, UNM cash management internal controls are maintained by:
- limiting access to monies;
- immediately recording payment transactions;
- segregating duties;
- billing on a timely basis; and
- reconciling accounts.
3.1. Limiting Access to Monies
Access to monies must be restricted to the employee responsible for the monies. Separate cash drawers should be used to accommodate employee breaks. All monies received after the daily deposit must be placed in a secure location.
3.2. Recording Payment Transactions
3.2.1. Person Paying Is Present
When money is received in the presence of the person making payment, the recording of the transaction must take place immediately by:
- using a cash register or other locked mechanical device with each payment recorded separately or
- issuing pre-numbered printed receipts with each employee who accepts monies responsible for an assigned block of receipts.
3.2.2. Person Paying Is Not Present
Where the recording of monies cannot be observed by the person making payment, two (2) individuals must be present when:
- opening mail;
- emptying collection boxes or similar containers (for example, parking meters) that produce no automatic record; and
- recording monies.
Checks must be payable to The University of New Mexico, UNM, or department; e.g. Cashiers Department, Parking Services. Do not write the individual's social security number on the check or any other document. All checks must be restrictively endorsed immediately upon receipt. Do not wait until the deposit is made. The University's endorsement renders the check non negotiable and must be stamped on the back of all checks. The endorsement stamp must contain certain required information and stamps may be obtained from the Bursar's Office. Do not endorse and deposit a check with a restrictive endorsement or a legal settlement check prior to contacting the Bursar's Office.
220.127.116.11. Returned Checks
Each department should post a notice that it is University policy to charge a returned check fee plus normal bank fees for each returned check. Only cash or certified funds will be accepted to redeem a returned check. When a check received by the University is returned for non payment, an aggressive effort is made to collect the amount of the check from the issuer. The University will take the actions listed below.
- A returned-check fee is charged to the issuer.
- The issuer's check-cashing privileges are suspended until the amount of the original check, plus any associated fees, are paid in full. After the second occurrence of a returned check, the issuer's check-cashing privileges are suspended for six (6) months. After the third occurrence of a returned check, the issuer's check-cashing privileges are permanently canceled.
- If the check was used to pay for charges eligible for disenrollment and is not redeemed prior to the disenrollment deadline, the student is removed from all classes.
- If the check was originally submitted for deposit by a UNM department, the amount of the check is charged back to the department originally credited.
- If preliminary collection procedures are unsuccessful, then legal action may be taken. Legal action taken will include all legal remedies up to and including the placement of a lien on earnings and/or personal property.
18.104.22.168. Foreign Checks
Due to strict federal export control rules related to Homeland Security, departments must consult the Denied Countries List (the Black List) at http://www.treas.gov/offices/enforcement/ofac/programs/. Checks and other forms of deposit from countries on this List cannot be accepted under any circumstances because of fines, up to $1,000,000 per occurrence, imposed by the Federal Government. When a check or other form of deposit drawn on an allowable bank outside the U.S. is deposited, the student or department does not receive immediate credit. UNM's bank will collect the funds and charge a fee for foreign check collection. The student or department will be credited the amount net of collection costs once the bank has deposited funds into the University's account.
22.214.171.124. Negotiating Checks Payable to UNM
Occasionally a check is made payable to the University with the intent that the money be transferred to a student or an employee. The Bursar's Office is the only organization authorized to negotiate checks payable to the University as described below. Checks payable to the University are not endorsed over to the person presenting the check.
- Financial aid checks made payable to UNM may be deposited and replaced with a University check payable to the student or deposited to the student's bank account.
- Non financial aid checks made payable to UNM may be deposited and subsequently replaced with a University check payable to the presenter or deposited to the individual's bank account after twenty-one (21) days. Prior to issuing a replacement check, the Cashiers Department verifies the intended disposition of the check with the issuer.
126.96.36.199. Checks Received for an Unknown Purpose
When a check is received by a University department, and the purpose is unknown, the check should be sent to the Cashiers Department immediately. If the Cashiers Department cannot identify the appropriate index for deposit, the check is deposited to a holding index. When the appropriate index is identified, the amount is transferred from the holding index.
3.2.4. Credit Card Payments
The University accepts payments made by MasterCard, Visa, Discover, and American Express. Departments that wish to begin accepting credit card payments must obtain prior approval from the Bursar's Office to enter into a credit card processing agreement or to acquire electronic credit card data entry equipment.
Federal law requires that the University protect against exposure and possible theft of account and personal cardholder information that has been provided to UNM. UNM must comply with the Payment Card Industry's Data Security Standards (PCI); therefore, the following requirements apply to all employees in UNM departments accepting credit card transactions:
- Limit access to cardholder information to only employees who have a legitimate business need-to-know.
- Remove the first twelve (12) digits of the credit card number from any document where the complete number is visible.
- Store only essential information. Do not store the Card Validation Code or the PIN Number.
- Never E-mail credit card information.
- Do not store credit card information in personal computers or online.
- Shred documentation containing credit card information when it is no longer needed for business or legal reasons.
- Lock credit card terminals and paper storage areas when un-attended.
- Establish a mechanism for systems with multiple users that restricts access based on a user's need-to-know.
- Obtain approval from Bursar and the Director of Information Assurance of all web-based systems that accept credit card transactions.
- All media used for credit cards must be destroyed when retired from use.
Employees must report any known and/or suspected violations immediately to the Bursar. If an actual or suspected incident of identity theft occurs, it should be immediately reported to the UNM Police Department. For more information pertaining to identity theft refer to "Identity Theft Prevention Program" Policy 2040, UBP.
188.8.131.52. Merchant Numbers and Fees
A department with a low level of credit card payment activity may be authorized to use the University Controller's Office merchant number. The title associated with this merchant number is "UNM Cashier's Office." Departments that have considerable credit card payment activity must have their own merchant numbers and titles. The title associated with the merchant number appears on the customer's credit card billing statement.
The bank charges a processing fee to the University each month, which the Bursar's Office charges to the appropriate departmental index on a monthly basis.
184.108.40.206. Processing Credit Card Transactions
The volume of credit card activity determines whether a department may process credit card sales and refunds through the Cashiers Department or must acquire terminals and process transactions directly. Contact the Bursar's Office for information.
It is the responsibility of each department using credit card terminals to batch each day's activity. The transactions must be processed on a Credit Card Report. The report, including the appropriate documentation, must be submitted to the Cashiers Department on the next working day following the receipt of the daily settlement report.
220.127.116.11. Charge Backs
If a departmental credit card transaction is disputed by the bank for a reason which cannot easily be resolved, the full amount is charged back to the department.
3.2.5. Electronic Transfer of Funds
Departments wishing to accept wire transfer payments must contact the University Credit Collections and Merchant Services Department for specific requirements. The department accepting the wire transfer payment may be charged any wire transfer fees assessed by the bank.
3.3. Segregation of Duties
Duties for receiving and recording monies must be segregated. No single employee should be in a position that allows the employee to both receive money and record the payment into the financial system. This segregation of duties preserves responsibility and accountability and is necessary to ensure that a person who has access to monies cannot conceal a fraud or error. When the size of a department does not allow for proper segregation of duties, the University Controller's Office will provide assistance in designing a system that ensures adequate internal control.
3.3.1. Duties of the Employee Accepting Monies
Access to monies must be limited to the employee who is responsible for the monies. The following duties should be performed only by employees responsible for monies:
- Receive monies either in person, by mail, or electronically (for example, telephone).
- Prepare customer receipts.
- Deposit monies.
3.3.2. Duties Performed by Someone Who Does Not Have Access to Monies
The following duties should be performed by someone in the department who does not have access to monies:
- Authorize extension of credit.
- Approve customer's discounts, returns, or allowances.
- Compare the deposit receipt to customer receipts recorded on the departmental report of transactions.
3.4. Billing and Reconciliation of Accounts Receivable
All accounts receivable activity of the University, with the exception of University Health Sciences Center patient receivables and Contract and Grant receivables, should be channeled through the centralized accounts receivable system under the direction of the Bursar's Office. The Bursar's Office is responsible for:
- Preparing corrections to customer accounts.
- Posting payments to accounts receivable subsidiary accounts.
- Balancing the accounts receivable trial balances to the general ledger and preparing aging reports.
- Billing and collecting accounts receivables.
- Estimating the percentage of revenue that may be uncollectible.
- Approving the write-off of receivables as uncollectible.
Timely reconciliation of payments is critical to ensure accountability for monies. If some of these duties have been delegated to a department, the Bursar will test and review transactions and processes to ensure internal accountability.
4. Cash Disbursements
With the exception of petty cash reimbursements, all cash disbursements will be made by check or direct deposit into the individual's bank account. Cash disbursements equal to or greater than $50,000 require two signatures from individuals authorized by the bank to sign on the account.
Any exceptions to this policy must be approved in writing by the Vice President for HSC/UNM Finance and University Controller.