Number: 
03-110-211
Type: 
Rule
Policy Steward: 
Manager of Student Account Services
Format Updated: 
University Policy & Standards Converted: 
Status: 
Current
Revision Date: 
Monday, October 25, 2010

This information replaces FIS 102-10 Cash Handling on Behalf of Third Party & 102-11 Contracting with a Third Party

 

102-10 Cash Handling on Behalf of a Third Party

In unusual circumstances, an OSU employee may be asked to provide cash handling duties for a third party.  OSU cash handling standards apply in these circumstances and every effort should be made to provide employees who are acting as cashiers with protection from risk. 

Prior to engaging in cash handling for a third party review the procedures below with the third party to ensure that they can comply.

  • A locking cash box should be used and each cashier should have their own cash box.
  • Reasonable measures should be taken to ensure that proper security is maintained on cash drawers including, but not limited to, funds being attended at all times or locked and secured in an area not easily accessible by the public.
  • Counting the funds in the cash box should be done at each transfer of custody and should be done in dual custody with an OSU and third party representative present.
  • If credit or debit cards will be accepted, ask the third party to provide documentation on their credit card security procedures and review those together.  If timing allows, review these procedures with Business Affairs Cashier’s prior to the event.
  • If checks will be accepted, the third party must provide an endorsement stamp so the checks can be restrictively endorsed as soon as they are received. If no endorsement stamp is provided, write “For deposit only” on the reverse of the check to reduce the risk of fraud.
  • Tools for documenting the sales or transactions should be obtained from the third party in the format they prefer for tracking and reconciling. A log, tally sheet, ticket journal, or receipt book should be used. If the third party does not provide these types of forms, the OSU employee must still perform the documentation noted below.
    • Keep a copy of an event program, advertisement, notification, etc. as a record of the date, time, and sponsor of the event.
    • Maintain a list of all OSU employees and third party individuals who will have access to the cash and cash equivalents.

Prior to the event, record the starting balance of the fund. The starting fund in the cash box should be counted in dual custody to verify the initial amount of the fund.  Document the starting balance on a voucher, log, or tally sheet which both parties sign and date to acknowledge that the count was completed and both people are in agreement on the starting amount of the fund.

During the event, record each transaction that affects the change fund.  This log should be complete and accurate so as to provide the detail required to balance and reconcile the change fund at the end of the event.

At the end of the event, complete a count of the ending change fund in dual custody with a representative of the third party.  Document the ending balance on the voucher, log, or tally sheet used for the starting balance and have both parties sign and date to acknowledge that the count was completed and both are in agreement on the ending amount of the fund.

Once the dual custody count of the ending cash fund is completed, the funds in the locked cash box can be transferred back to the third party. If the cash and cash equivalents cannot be immediately handed over to the third party, the cash box should be secured in a locking cabinet, office, etc.  Be aware this requires a second dual custody count at the point when the funds are handed over.  This must be done so both parties again agree on the balance of fund at the point of transfer.

Both the OSU employee and the third party should receive full copies of all documentation.

For additional information see the Cash Handling Handbook.

 

102-11 Contracting with a Third Party for University Business

The University or an individual department may need to engage a third party to assist in the processing and management of cash, cash equivalents, credit cards, and ACH transactions. Third parties may provide:

  • Lockbox services
  • Web/Internet interfaces to internal and external clients
  • Processing of currency, coin and other cash equivalents
  • Processing of electronic bank account payments, such as ACH
  • Credit and debit card processing

Relying on third parties to process University cash, cash equivalents, credit/debit card, and ACH transactions requires extreme care in the selection and ongoing management of such third parties. Accordingly, the following polices are necessary to safeguard University assets:

  • Business Affairs, in conjunction with the State Treasury, must approve any third party relationship where the third party is in possession of University assets to process University cash, cash equivalents, credit/debit card, and/or ACH transactions.
  • Before a department enters into any such relationship, Business Affairs must review the third party’s cash handling procedures, security standards, and references.
  • At least bi-annually, Business Affairs will review third-party relationships whereby the third party processes cash, cash equivalents, credit/debit card, and/or ACH transactions.  The review will include, with the department, an assessment of cash handling/processing and adequacy of services provided.
  • Third parties that assist the University or individual departments with management of cash and cash equivalents must provide documentation of regulatory compliance (including, but not limited to, Payment Card Industry Data Security Standards and State statutory or regulatory privacy requirements). They must also provide accurate and timely handling of cash, cash equivalents, credit/debit card, and/or ACH transactions and transactional data as is established for the University and state agencies.

For additional information see the Cash Handling Handbook