From Procedure to Practice U niversity of V irginia

1. Cash Handling From Procedure to Practice University ofVirginia Devin Herod – Accounting Services B.C. Worsley – Banking Coordinator

2. THE Answers to all your cash handling questions!! Umm … it depends …

3. BPDP Course http://www.virginia.edu/finance/uvabp/

4. Whoops! http://www.fayobserver.com/article_ap?id=117699

5. Whoops! Cash processes are high risk and therefore subject to a lot of scrutiny

6. Can you tell me a story about ARMICS & SAS 112? The Tales of ARMICS & SAS 112

7. SAS 112 – Revised Audit Standards • Auditors are required to consider whether a deficiency in controls, singularly or collectively, could be significant deficiencies • AND • Any significant deficiencies MUST be documented and communicated to the governing body.

8. The Commonwealth’s ARMICS requires DOCUMENTATION of “Critical Functions”

9. Rules & Regulations University Policies - http://www.virginia.edu/uvapolicies/ UNIVERSITY REVIEWS AND RECONCILIATIONS – II.B.2 RECORDS RETENTION AND DISPOSITION – II.C.1 ESTABLISHMENT AND OPERATION OF A BANK ACCOUNT – II.E.1 PETTY CASH, PETTY CASH CHECKING, AND CHANGE FUNDS – II.E.2 CASH BALANCES – II.E.3 CONTROLLING CASH ITEMS – II.E.4 REVENUE GENERATING ACTIVITIES – V.A.1 RESPONSIBILITY FOR THE COLLECTION, REPORTING, AND REMITTANCE OF VIRGINIA SALES TAX – V.A.3 CASHIERING ACTIVITIES – V.B.1

10. Where do we run into trouble? • Moving $$ in GL to grants (G awards) • Unauthorized sales & services • Unauthorized bank accounts • Miscellaneous $$ collections • Returned checks • Securing “cash” items • Documentation, documentation, documentation • Communication with central offices

11. Business Requirements These practices can differ greatly within UVA based on mission, unit, and best practices • Direct Bank Deposits • UVA Cashiering Deposits

12. Matching Requirements to Practices In this case, they used Microsoft Visio, but you can use Word (shapes) or Excel to create flowcharts Here is an example of one unit’s ARMICS documentation for a process that differs from University policy.

13. Matching Requirements to Practices Sample of an ARMICS SWOT analysis