Financial Services

Safe Custody of Funds Policy

All monies are to be adequately secured pending banking.

Policy statement

  • Monies received should be kept in cash registers, approved cash tins or cash drawers, or security cabinets in a secure office space with one person having responsibility for the key/s. Money should not be allowed to accumulate in departments. If funds are kept in a locked cashbox, this is to be kept in a secure location.
  • Money should be banked daily or, if that is not possible, weekly or when receipts total $5000, whichever occurs first.
  • Business Units should ensure that there are adequate safeguards to reduce the risk of misappropriation of funds.
  • Adequate segregation of duties should be in place to ensure that staff members who are involved in the receipting of income transactions are not also involved in the maintenance of debtor records or have the ability to post journals within the accounting system. Wherever practical, staff should not be able to process void transactions such as cancellations, refunds or reversals of cash receipts without prior written approval of their supervisor. Daily reconciliations should be performed between the receipts issued for the day, counts of cash held and the daily banking. These reconciliations should also ensure that all sequential receipt numbers are accounted for and all void transactions are appropriately supported. The reconciliation should be reviewed by a supervisor (with written evidence of this review) and copies maintained by the Business Unit.

Key controls

  • Segregation of duties: responsibilities for billing (raising invoice) adequately segregated from those for collection, deposit of funds and credit issuance.
  • Reviewing and approving of credit notes as per University Financial Delegation.
  • Prompt investigation of credit issuance and disputes with billing amount.
  • Establishment of a documented Revenues and Receivables procedures and controls to ensure all staff know the processes they are expected to follow.
  • Periodic review and approval by legislative bodies of rate of taxes, fines, fees, programs of tax exemption, rate schedules and the like.
  • Regular review on delinquent accounts and take prompt action to collect or consider them for write-off on a timely basis.
  • Retention of records for audit purposes.