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Funds Handling Policy

 

West Virginia University Policy
Division of Administration and Finance


WVU-CO-36

FUNDS HANDLING POLICY

PURPOSE

The purpose of this policy is to provide guidance to ensure that each University department has detailed Funds Handling procedures specific to their unit. These procedures must be revised annually and presented to the Revenue Services Unit within Financial Services for approval and are subject to periodic review by Internal Audit.

Funds handling includes currency, coin, checks, money orders, traveler’s checks, credit card payments, electronic funds (i.e. wires, electronic funds transfers (EFT), Automated Clearing House (ACH) transactions) and e-commerce. A University unit that handles receipts must show a commitment to strong internal controls and adherence to Funds Handling guidelines. Internal controls are necessary to safeguard assets, prevent mishandling of funds, and to accurately record receipts to ensure the reliability of financial reporting.

SCOPE

This policy applies to all departments and divisional campuses of West Virginia University, inclusive of West Virginia University Research Corporation (WVURC).

POLICY

All departments are responsible for documenting detailed Funds Handling Procedures specific to their unit. These procedures must be revised annually and presented to the Revenue Services Unit within Financial Services for approval and are subject to periodic review by Internal Audit.

INTERNAL CONTROLS

TRAINING – Departments should ensure that employee’s assigned Funds Handling responsibilities receive appropriate training by completing the University’s Funds Handling Training Program. They should also be knowledgeable of their role in the process, and familiar with campus policy guidelines and departmental procedures. The proper internal control environment should be maintained with education and awareness through regular communications between management and staff.

SECURITY – Departments are responsible for safeguarding assets from the time of receipt to deposit. All funds received within a department are the responsibility of that department until they are deposited with the Revenue Services Unit within Financial Services or directly with the bank. All funds must be kept in a secure location with restricted access and security must be maintained during transport.

SEPARATION OF DUTIES – Collection of receipts, bank deposit preparation, and reconciliation functions should be performed by different employees. If lack of staff exists for proper separation of duties, additional compensating controls are required to mitigate risks.

TIMELINESS – In order to ensure accurate financial reporting, maximize investment potential, and reduce the possibility of theft and loss, all receipts are to be deposited within 24 hours (in accordance with West Virginia State Code 12-2-2) and recorded intact in a timely manner.

RECONCILIATION – Departments making deposits are responsible for verifying that they receive credit for all deposits made and that the proper accounts are credited. Reconciliations should be performed on all funds received to ensure that they accurately reflect funds deposited and recorded.

MONITORING – Departments should implement processes for approvals and review. The review process should incorporate steps to track trends and substantiate the reasonableness of receipts. Departments should also evaluate overall internal controls to ensure that reasonable controls exist that support Funds Handling Guidelines.

PROCEDURE

The Funds Handling Guidelines for departmental procedures development rests with Financial Services. Please refer to the funds handling guidelines located on the Financial Services website.

RESPONSIBILITY FOR IMPLEMENTATION

All employees must comply with this policy. It is the responsibility of the Dean or Director to implement and maintain this policy within their college, department, or unit. Responsibility for implementation of this policy rests with Financial Services, which can be reached at 293-4002 or P.O. Box 6001, to answer questions or provide additional information regarding this policy.

RESPONSIBILITY FOR INTERPRETATION

The responsibility for interpretation of this policy rests with Financial Services, West Virginia University.

Effective Date: July 23, 2010
Approved By: Narvel G. Weese, Jr., Vice President for Administration and Finance