Cash and Check Handling Procedures

According to the cash handling policy and sound business practices, departments that collect cash and checks are responsible to properly safeguard, reconcile record and deposit funds promptly. To minimize risk, cash must be stored in a secure location and promptly forwarded to the campus Cashiers Office for processing and to be deposited to the University’s banks.  In order to comply with this policy, the following processes/procedures must be followed:  

  • Departments must maintain segregation of duties between those receiving cash, checks, or credit cards and those responsible for recording and depositing these receipts.
  • Under no circumstances, should funds collected at the department level be used to pay vendors, student workers, consultants, etc. or be used for personal/employee loans. To discuss disbursement options, contact your business manager, the Office of the Controller, or the UniversityTreasury.
  • Departments are encouraged to have camera surveillance over workstations in which cash is handled. Safes being used to store cash or checks must be closed and locked immediately upon depositing the cash into the safe.  Safes should never be left unlocked once the employee walks away from the safe.  
  • Departments must maintain segregation of duties between those with knowledge of the combinations to safes and the accessibility to keys to the money drawers within the safes. It is recommended that no less than two (2) or more than three (3) persons know the combination to the safe and that no less than two (2) or more than three (3) other persons have access to the keys to the money drawers. 
  • Combinations / keys to the safe should be changed at least annually.  They must be changed immediately upon the separation from the department (whether voluntary or involuntary) of any employees to which the combinations are known and / or the keys are accessible.
  • Immediately upon receipt, checks collected should be restrictively endorsed: “For deposit only Rutgers, The State University, Bank Name and Account Number (either Bank of America #xxxxxx3502, Wells Fargo #xxxxxxxxx2319, or JP Morgan Chase Bank xxxxx2375, depending on where your deposits are made), Department Name and GL Account #.  Endorsing the checks reduces the possibility of the checks being stolen and cashed by someone other than Rutgers.  Including the general ledger number aides the Cashiers Office to process properly any returned checks. All departments should use a self-inking stamp which, if not already on hand, can be purchased from Staples.
  • Checks must be hand delivered to the Cashiers Office within one business day of receipt.  If deposits are delayed in delivery to the Cashiers Office, please provide a written explanation for the delay so as to establish an audit trail. Checks held within the department overnight must be locked in a fireproof safe.
  • Please take utmost care and appropriate security measures to ensure the safety of the person delivering the cash or checks to the Cashiers Office. If delivered by courier / public safety, the individual delivering the deposit should deliver the deposits to an authorized individual. Deposit slips will be returned to the department in the same manner as deposits are received.
  • Cash should always be counted in front of the person from whom it was received.
  • Departments should deposit cash and submit cash transmittals on a daily basis no later than the day after receipt of cash or checks (please see limits and security requirements outlined below if deposit are not made on the day of receipt of cash or checks). There are limited exceptions to the requirement to make daily deposits.
  • Cash transmittals must include the following information:
    • Department name AND campus address
    • Deposit bag number
    • Date
    • Account title
    • Account number with object code listed once
    • Bank name
    • Bank number
    • Amounts
    • Preparer’s signature and telephone number – if signature cannot identify the signer, please print the preparer’s name also
    • Approval signature – this must be different than the preparer – if signature cannot identify the signer, please print the approver’s name also.
    • Composition of deposit
    • Line items, composition of deposit, and all items submitted (cash / checks) should be accompanied by a calculator tape
  • Cash deposits in excess of $2,000 must be transported by a uniformed member of the University’s Police Department.  Cash deposits of lesser amounts may be transported by a member of the department so long as security measures are taken so as not to place employees at risk.
  • When preparing cash deposits, cash must be counted by two individuals in front of each other (preferably under camera monitor) and immediately placed in the tamperproof bag in front of both individuals. The bag should immediately be verified, signed and sealed by both individuals.
  • If deposits are held by the department overnight, this should only be done after deposits are placed in the signed and sealed, tamperproof bags.
  • Deposits of amounts greater than $1,000 but less than $7,500 must be stored in a locked, fully fire resistant safe which is rated to resist specialized burglar tools & the deposits must be delivered to the Cashiers Office not later than the following business day.
  • With approval of the Office of the Controller or the University Treasury, deposits of $7,500 or greater may be stored overnight in a locked, fully fire resistant safe which is rated to resist specialized burglar tools ONLY IF the office has an actively working secure alarm system connected to the University Police Department with motion detectors and a secure key system.  If the office is not so equipped, the deposits of $7,500 or greater must be made on the day the funds are received.
  • Departments must purchase specific, tamperproof bags from the Office of Treasury Operations and these bags must be used for making deposits. No department may order bags from other sources without the expressed consent of the Office of the Controller and the University Treasury.  Two sizes of bags are available to meet department needs. These bags must be secured within the department and used sequentially. Legacy UMDNJ units that are currently using 9"x12", 10"x15", and 14"x20" plastic bags, may continue to do so until the unit's supply is depleted.  

Small bag

  • Size: 8 inches by 10.5 inches
  • Color:  White / Opaque
  • Preferred Minimum Order Size:  500 bags (one case)  University Treasury will work with departments where the minimum is not appropriate]
  • Cost:  $0.20 (twenty cents) per bag

Large bag

  • Size: 12 inches by 16 inches
  • Color:  Clear
  • Preferred Minimum Order Size:  500 bags (one case)  [University Treasury will work with departments where the minimum is not appropriate]
  • Cost:  $0.30 (thirty cents) per bag
     
  • Each department must maintain a deposit log, indicating the date, CT number, bag number and amount of the deposit, at a minimum.  Lost, stolen or damaged / voided bags should be noted on the log.  This log sheet must be signed by two people. Log sheets are subject to random / periodic audits.
  • Each cash deposit must be accompanied by a cash transmittal and placed in a separate deposit bag.  Multiple deposit bags for the same business day and a copy of the log sheet should be stapled together, when picked up by police escort or, when applicable, when hand carried to the Cashier’s office.