Policy 5404 – Cash Handling Policy and Procedures

Effective Date: 2/20/2004

Responsible Office: Office of the Comptroller

This policy outlines the University rules and procedures for the proper handling of cash, including the responsibilities of University employees involved in the cash handling process.

Cash is defined as currency, coin, check, money order, travelers check, credit card, or debit card.


  1. University employees who receive and/or deposit cash must properly safeguard the cash and deposit it timely with the Cashiers’ Office.
  2. Only University employees (full, part-time, or student) are permitted to handle cash as defined under this policy and in accordance with the procedures outlined below.
  3. The full amount of all cash collected, including cash collected by departments, must be deposited with the Cashiers’ Office. Cash collected is not to be used to make disbursements or refunds, and deductions may not be made to pay expenses. If a department requires a petty cash fund to provide change to customers or to make small purchases, a request for a Permanent Cash Advance may be submitted to the Comptroller (See Permanent Cash Advance Policy #5405).
  4. Access to cash should be restricted. All cash, including cash collected by individual departments, must be safeguarded from fire and theft and stored in a locked safe, cabinet, or drawer depending on the amount of the cash. When possible, departments should encourage the use of check payments instead of currency. An individual department should not accept payments by currency without prior approval of the Comptroller’s Office.
  5. All checks should be made payable to “Louisiana Tech University.” Checks payable to Louisiana Tech University cannot be deposited with the Louisiana Tech University Foundation and checks payable to the University Foundation cannot be deposited with the Comptroller’s Office.
  6. All bank accounts for the University must be set up by the Office of the Comptroller. No employee may establish a University bank account or deposit University funds into an unauthorized bank account.


  1. General Procedures
    1. All cash (currency, coin, check, money order, travelers check, credit card, or debit card) must be deposited with the Cashiers’ Office, 103 Keeny Hall, in a timely manner. The office hours are 8:30 a.m. to 4:00 p.m. (Summer hours are 8:00 a.m. to 3:30 p.m.).
    2. The Cashiers’ Office must handle cash in compliance with University policy and with internal Comptroller’s Office procedures.
  2. Departmental Procedures
    1. Cash Collected by a Department
      1. Immediately upon receipt, all checks and money orders must be restrictively endorsed. An endorsement stamp may be ordered from the Louisiana Tech University Bookstore. All new endorsement stamps should contain “For Deposit Only Louisiana Tech University” in the first line and “Department Name” as the second line.
      2. All cash received by the department and submitted to the Cashiers’ Office requires a completed three-part pre-numbered departmental deposit ticket.
        • The deposit tickets must be used in consecutive order.
        • The department must maintain a record of all deposit tickets using the log sheet issued by the Cashiers’ Office. The department should update the log sheet as the deposit tickets are used. All voided tickets must be retained by the department and then returned to the Cashiers’ Office with the next deposit. The department should send a copy (not the original) of the log sheet to the Cashiers’ Office at the end of each month.
        • The Comptroller’s Office will update the Cashiers’ log as the deposit tickets are used by the department and presented to the Cashiers for deposit. The Comptroller’s Office will periodically reconcile the Cashiers’ log to the log sheets submitted monthly by the departments.
        • The department must complete the name of department, date, name of contact person, and telephone number blocks located at the top of the deposit ticket.
        • To ensure proper credit, the departmental deposit ticket should include the correct University FIS account number and budget-object code along with a brief description of the transaction. If the entire deposit is to be credited to one account, only the first box on the deposit ticket should be used. If the deposit is to be credited to various account or budget-object codes, a separate box on the deposit ticket should be completed for each account or code. Any questions concerning the completion of the form should be addressed to the Office of the Comptroller at 257-4325.
        • The Cashier will verify that the deposit ticket total agrees with the cash received and stamp all three copies of the ticket. The yellow copy will be returned to the department and the Cashiers will retain the white and pink copies.
      3. All cash received by departments must be supported by appropriate documentation as listed below:
        • All deposits must be accompanied by three-part pre-numbered departmental tickets. Credit card transactions must be supported by the individual credit card sales receipts.
        • Any other documents which will help to ensure the proper documentation and coding of the funds should be included with the deposit. This supporting documentation may include a copy of the check, computer printout, supporting spreadsheet or itemized list, reconciliation, internal memorandum, or letter from the payer.
        • If the deposit is for a gift or other restricted purpose, please ask the donor to indicate this on the front of the check or attach any available supporting documents such as a letter.
        • The department must retain copies of supporting documentation, including any receipts issued to students or other customers.
      4. Whenever departments find discrepancies or have questions about their deposits, they should contact the Comptroller’s Office at 257-4325.
      5. A department should immediately contact the Comptroller, University Police, appropriate Dean or Division Head, and the Office of Internal Audit if monies are found to be missing, or if there is suspicion of theft or diversion of funds.
    2. Segregation of Duties
      1. Departments handling cash should separate, to the extent possible, all duties relating to cash handling. A system of checks and balances should be established in which tasks are performed by different individuals in order to assure adequate controls. For example, one person should prepare the deposits and a second person should review the department’s monthly ledger verifying the deposits.
      2. It is the department head’s responsibility to ensure that any amount deposited with the Cashiers’ Office includes all monies received.
      3. The department head or his designee should review the department’s account on a regular basis, but not less than monthly. The department head will receive monthly ledgers of all departmental accounts and may also access the departmental accounts and transactions on-line.
  3. Checks Returned By Depository Bank
    1. Checks returned by the depository bank for non-sufficient funds, stop payments, or closed accounts result in additional service fees to the University. Students whose checks are returned to the Comptroller’s Office for any of these reasons will be assessed a returned check fee as set by the Comptroller’s Office. Students with a returned check will not be permitted to present personal checks to the Cashiers’ Office for the current quarter. Students with three or more returned checks will lose check writing privileges for the current quarter and the following quarter. Students who have five or more returned checks will permanently lose their check writing privileges at the University.
    2. Each department is responsible, when appropriate, for collecting funds owed when checks are returned by the depository bank.
  4. IV. Exceptions

    Any unusual circumstances or special projects not fully covered under this policy should be addressed to the Office of the Comptroller.