It is the policy of Texas State Technical College (TSTC) to insure through the control of cash and the instruments associated with cash that there is no understatement of cash receipts or overstatement of cash disbursements.

Cash in monies and negotiable instruments is the most liquid asset of the College. This liquidity makes cash highly susceptible to misappropriation by officers or employees. Controls properly administered reduce the possibilities of diversion of cash funds to unauthorized uses. A blanket bond covering TSTC employees is maintained with a bonding company to minimize exposure to the college by theft, fraud or misappropriation of funds.

There should be a division of responsibility so that no person has complete control of all aspects of a financial transaction.

The President has delegated authority to the Chief Financial Officer to receive and disburse cash with specific exceptions reserved to the System’s Chief Financial Officer. The TSTC-Harlingen Chief Financial Officer has primary responsibility for implementing procedures to assure proper control of cash.

The System’s Chief Financial Officer is responsible for the investment of all funds, receipt and recording of interest earned on invested funds and funds realized from the sale of bonds or other instruments issued by the college.

Pre-numbered cash receipts, Colleague computer generated receipts and point of sale system receipts will be used to record all cash receipts or refunds. Charges or other non-cash transactions will be recorded separately from cash transactions.

Cash receipts received through the mail should be received and opened in the presence of two employees and a listing made of the receipts by an employee and the deposit prepared for the receipts by a different employee. The list prepared should then be compared to the deposit for that period. This division of responsibility applies to all cash transactions. No one person should have complete responsibility for all aspects. A cashier should have no responsibility for bank reconciliations, deposits or disbursement media.

Deposits to banks will be made for the total cash receipts for the deposit period. No "less cash" deposits are permissible. After the return of deposit slips from the bank any discrepancies or alterations on the deposit slips will be verified against the retained copies of the deposit and other sources such as cash register tapes for the deposit period. Verification should be accomplished by personnel other than those directly involved in the receipt of cash and preparation of deposits.

Cash transfers from one activity to another such as from a cash generating activity to the Business Office for deposit must be controlled by receipts or verified cash counts by each individual receiving or relinquishing control of the cash. This is necessary for the protection of all personnel involved including local security forces who may be used to make such transfers between activities.

Access to areas where cash is stored or used such as business office cashier cages, vaults and safes will be controlled to insure the integrity of the cash fund and protect the individuals charged with the responsibility for the cash. Persons charged with the responsibility for cash receipts and petty cash must be provided a secure cash drawer for the protection of the individual and to facilitate reconciliation of cash overages and shortages. Locking bank bags will be used for all deposits.

Cash overages and shortages will be reconciled as they occur and necessary adjustments made to accounting records by management personnel. Frequent and/or excessive cash overages and shortages should be thoroughly investigated by management personnel to determine causes and implement required action to correct the situation when warranted.

Refund vouchers will be prepared after verification that a refund is in fact due to the original payer. Verification will include a check of all receivable accounts including loans. After this verification and preparation of the refund voucher a check drawn in favor of the original payer will be prepared. If the refund is made to the person, not mailed, the recipient will sign the voucher carrier signifying receipt of the refund.

Audit findings concerning internal control of cash.

Verification of accurate log containing cash or check received, date received, entity received from, receipt number and receipt date.

Elimination of cash losses.