Managing the Risks - Cash Handling - Presentation 9 of 9

Managing the Risks
A Risk Management Presentation
For UT Dallas Student Organizations

Cash Handling
Presentation 9 of 9

Treasurer’s Responsibilities

MANAGING THE RISKS ● Cash Handling

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.

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


Sources Of Organizational
Funding
Funds for the use of student organizations to
carry out their activities come from three main sources
1. SOF funding
2. Fund-raising activities
3. Donations
4. Dues


Cash Handling 101


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

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


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 bank's 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.


Use A Central Mailing Address
Student organizations should use their UT Dallas mailing address to
receive bank statements and notifications.
800 West Campbell Road, SU 21
Richardson, TX 75080
Fraternities and Sororities should use their UT Dallas mailing address to
receive bank statements and notifications.
800 West Campbell Road, SU 22
Richardson, TX 75080
If statements are being e-mailed or require Web site access, multiple
recipients or users should be authorized.

Keep Records Public
• Purposeful mismanagement of funds is
difficult to conceal when financial records are
made public or readily available to the student
organization's members.


Define Consequences For
Embezzlement
To address embezzlement in your organization's
constitution or bylaws. Include:
– Definitions
– Methods for policing
– Consequences for breaking the rules


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


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.

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.


Safeguarding Money
• Organization funds must be kept secure at all times.
• Deposit cash or keep it locked away in cash box


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.


Fundraising


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.

Before A Fundraiser
Organizations may conduct fundraisers in the
Student Union provided they have reserved a
booth and completed the Event Registration
Form (one week in advance).


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.


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


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 Student
Organization Center (Student Union 2.416) no later than TEN (10)
business days at the conclusion of the fundraiser.


Receiving Donations

Student organizations may receive donations from
non-university entities; however, non-university
organizations may not co-sponsor activities on campus.
Organizations may thank their donors (i.e., “Special
Thanks to…”) but may not advertise for companies or
use corporate


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.


Conclusion
Thank you for participating in this session.
Knowing your responsibilities as a UT Dallas student is
important in keeping you and other members of our
organization safe.
We want our involvement in co-curricular life to be a successful
and positive experience.
For more information or for questions contact the Student
Organization Center:
• 972-883-6551
• utdallas.edu/soc
MANAGING THE RISKS ● Student Travel

Review Your Knowledge
1) Clink on the link below to get started
https://elearningpilot.utdallas.edu/webapps/portal/frameset.jsp
2) Login with your netID and Password
3) In the my organizations box click on Risk Management Quizzes
2012-2013
4) 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 results
8) 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%

Managing the Risks - Cash Handling - Presentation 9 of 9

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Managing the Risks - Cash Handling - Presentation 9 of 9