Cash Management

Standard Operating Procedure

Date Created: February 27, 2017

Faculty/Department Financial Operations /Accounts
Created By: Wendy Wong
or Institute: Receivable
Revision #:
Location Smart Revision Date: April 9, 2021
Wendy Wong
Supervisor Revised By: Wendy Wong
Manager, Accounts Receivable

1 PURPOSE 2

2 DEFINITIONS 2

3 PRACTICES AND PARAMETERS 2

3.1 Rules and Responsibilities for the Decision to Accept Payments 2

3.2 Receipting 3
3.2.1 General Receipts Rules 4
3.2.2 Cash Register Receipts 4
3.2.3 Computerized Point of Sale Receipts 5
3.2.4 Manual Receipts 6

3.3 Float Management 6

3.4 Cheque Handling 7

3.4.1 Cheque Acceptance Guidelines 7
3.4.2 Canadian Currency Cheques 8
3.4.3 Foreign Currency Cheques 8
3.4.4 Dishonored Cheques (NSF) 9

3.5 Deposits 10
3.5.1 Deposit Sheets 10
3.5.2 Supporting Documentation 11
3.5.3 Transelect 12
3.5.4 IVR Receipts 12
3.5.5 Overages and Shortages 12
3.5.6 Month End 12
3.5.7 Cash Audit Tracking 13
3.5.8 Deposit and Recording Frequency 13

3.6 Refunds 13
3.6.1 Method of Recording Refunds 13
3.6.2 Credit Card Refunds 14
3.6.3 Cash Debit and Cheque Refunds 15

3.7 Record Retention and FOIP 15

Page 1 of 15
 Cash Management
Standard Operating Procedure

1 Purpose
To define rules and guidelines that will;
Provide a full understanding of the related cash handling responsibilities and accountabilities to the
units conducting cash sales.
Create strong internal controls to ensure cash sale proceeds are appropriately safeguarded,
deposited, and accurately reflected in the University’s General Ledger.
Ensure appropriate record keeping to maintain the integrity of the University’s accounting strategy.

2 Definitions
“Cash” refers to all forms of monetary transactions including but not limited to cash (bank notes
and coin), cheques, debit card, credit card, money orders, and bank drafts.
“Cash Sales” are the sale of goods and services where the monies are collected at the time the good
or service is supplied. They do not include donations or payment of University invoices.
“Accounts Receivable” or “AR” is a unit within University’s Finance department. It is responsible for
developing, maintaining, and executing institutional procedures for billing and AR business
processes.

3 Practices and Parameters

3.1 Rules and Responsibilities for the Decision to Accept Payments

Any department accepting cash payments must adhere to the rules set forth in the Cash
Management and Billing Policy as well as this procedures document. Departments not willing to
comply with these rules are not authorized to accept cash on behalf of the University.

Page 2 of 15
 Cash Management
Standard Operating Procedure
3.1.1 With the decision to accept payments come rules. Responsibilities, accountabilities and risks.
The general rules, responsibilities, accountabilities and risks are outlined below:
3.1.2 All cash received on behalf of the University of Calgary is considered to be University funds.
3.1.3 All areas accepting payments must do so in accordance with the guidelines for receipting,
float management, cheque handling, deposits, refunds, reconciliations and record retention
as set forth in this document.
3.1.4 Payments accepted by a department or faculty are the responsibility of that unit until such
time as they are deposited with Finance. Cash must be stored in a secure location. During
the day cash must not be left unattended. Overnight (or while unattended during the day)
cash must be stored in a cash box or safe within an area with restricted access. Areas
holding more than $1,000 must use a safe that is secured to the floor.
3.1.5 Only appropriately trained and authorized personnel are permitted to receive cash on behalf
of the University of Calgary.
3.1.6 Payments for University PeopleSoft invoices should not be included in deposits. They must
be forwarded to Accounts Receivable. Donations should not be included in deposits unless
previously agreed upon with the development office. Under no circumstances should
banknotes or coin be sent via campus mail. These forms of payment must be delivered in
person.
3.1.7 All funds received (other than for payment of University PeopleSoft invoices) must be
deposited. Under no circumstances are these monies to be used to cover University
expenditures, make employee advances, grant loans, or to pay for petty cash purchases.
3.1.8 A cash float is under the responsibility of a sole custodian. Only that custodian or their
designate(s) should have access to it. Floats are only to be issued by AR. Floats must be
managed in accordance with section 3.3 of this document.
3.1.9 No cheque should be accepted or debit card/credit card transactions be processed for an
amount greater than the amount owed for the good or service being provided. Change may
only be given for transactions conducted using bank notes or coin.
3.1.10 If a department or faculty accepts a counterfeit bank note it is that unit’s responsibility to
absorb the cost up to and including the amount of the University’s insurance deductible.
3.1.11 Additional cash control procedures may be established by Accounts Receivable for certain
departments.

3.2 Receipting

A receipt must be issued for every cash transaction made on behalf of the University. All cash
Page 3 of 15
 Cash Management
Standard Operating Procedure
must be receipted using one of the following methods:

• Cash Register Receipts (see section 3.2.2)

• Receipts generated from a computerized point of sale system (see section 3.2.3)
• Manual Receipts (see section 3.2.4)

Every receipt must meet the following criteria:

• “University of Calgary” is clearly imprinted on the receipt
• Each receipt is uniquely numbered
• The University’s GST registration number is clearly displayed
• The product amount, GST amount and total amount are each displayed
• Date of transaction is displayed
• Description of good or service provided
• Department is displayed

3.2.1 General Receipts Rules

• Receipt books must be obtained and signed for at the main campus bookstore. Any
unused receipt books are to be returned to AR.
• Each receipt must be used in sequential order as they are tracked by AR.
• Receipt books must not be left unattended during the day, and must be stored in a
room with restricted access in locked cabinet or safe overnight.
• If multiple people in a department receive cash and/or issue refunds, each person
must maintain custody of their own float, cash funds, deposit book, receipt book, and
refund book. Funds must not be amalgamated or intermixed between depositors.
• Do not use white-out on receipts or on any supporting documentation.

3.2.2 Cash Register Receipts

If a department uses a cash register, receipts from the register must be issued to all
customers. The cash register must have the functionality to process all requirements set
forth in this document.

The cash register must produce two summarized totals for each batch close out:

• X‐tape ‐ the cash register must produce a detail tape locked in the register, which is
a continuous record of the amounts recorded that day, with a total (X total).
• Z‐tape ‐The cash register should also provide, under a separate key control, the
accumulated total amount of sales (Z total) that is carried forward for a longer time
period, until authorized to be reset at zero.

Page 4 of 15
 Cash Management
Standard Operating Procedure

The detail tape (X total) must not be accessible to the person using the register, and the
reset key (Z total) should not be accessible to the supervisor of the activity involved.

In order to obtain effective control, the cash register detail tape (X total) must be accessible
only to a supervisor, who does not operate the cash register. The reset key (Z total) should
be in the custody of management senior to the supervisor.

At the close of the business day, the supervisor should unlock the register and read the X
total. The supervisor should then clear the cash register for the following day, thus
automatically recording on the Z tape the transaction total (X total) of the current day's cash
receipts. The detail tape (X total) should then be removed from the register and retained for
subsequent comparison with the total cash turned in from the register.

The cashier must count the cash and the Deposit Form must be prepared for all receipts by
someone other than the cashier. All differences between cash receipts and the cash register
tapes over $10 must be recorded on a Cash Discrepancy Approval Form. This form must be
reviewed, approved by the supervisor and included with the deposit. Section “E” of the
deposit sheet must also be completed.

3.2.3 Computerized Point of Sale Receipts

Receipts may be issued from a computerized point of sale (POS) system if, in addition to the
receipt requirements listed above, the following criteria are met:
• Receipts cannot be manually altered prior to printing
• The system produces a summary by tender.

Once a tender summary has been printed the department/faculty must balance their cash
immediately.

If an error is made while processing a transaction the incorrect item must be voided in the
POS system. Voided receipts are to be attached to the front of the deposit slip. Each voided
receipt requires a signature from the department’s/faculty’s signing authority.

All differences between cash receipts and the summary by tender over $10 must be
recorded on a Cash Discrepancy Approval Form. This form must be reviewed, approved by
the supervisor and included with the deposit.

Page 5 of 15
 Cash Management
Standard Operating Procedure
3.2.4 Manual Receipts
If a department does not use a cash register or computerized point of sale system, a manual
receipt must be completed for each transaction or payment received. Only official
pre‐numbered triplicate University of Calgary receipts may be issued.

The receipt must not be altered after being issued. If an error is made while processing a
transaction all copies of the incorrect receipt must be marked “void”. Both original and
yellow copies must be attached to deposit slip; the pink copy should be kept by the
department/faculty. A replacement receipt is to be issued.

3.3 Float Management

• To request a new float, or increase the amount of a float a Cash Float

Request Form must be completed and e-mailed to arhelp@ucalgary.ca.
The form must be authorized by the appropriate budget owner/project
holder.
• The amount requested must be justified and commensurate with the
unit’s needs, and is subject to approval by AR. The Custodian must present
University of Calgary issued photo id to AR before funds will be released
• A Cash Float is to be assigned to a sole custodian. The custodian is
responsible to ensure the float contains the authorized and issued amount
of cash at all times. Funds derived from any other source must not be
added to the float.
• The float must be kept in a secure, locked place under the control of the
custodian. Only the custodian or their designate(s) should have access to
the float.
• A float can only be used to provide change for the purpose of concluding
currency transactions. The float shall not be used for any other purpose
such as personal loans, cashing cheques, purchases, salaries, wages or
honoraria.
• The float must be counted every day that transactions are processed as
part of the end of day balancing process. Both the custodian and Unit
Head must confirm the value of the float in writing to Finance on April 1 of
each year.
• When the custodian of a cash float terminates his/her employment or
intends to be absent for an extended period of time, the custodianship of
the cash float must either be transferred to another employee within the
same department or returned to AR prior to their departure from the
University of Calgary.
• When a float is transferred from one custodian to another, a Cash Float
Transfer Request Form must be completed and emailed to
Page 6 of 15
 Cash Management
Standard Operating Procedure
finance@ucalgary.ca by the individual who is being granted new
custodianship of the float. The new custodian must bring University issued
photo ID and sign a Float Signature card.
• When a cash float is no longer required by a department or the
department requires a decrease in their cash float, a Cash Float Deposit
Form must be completed and e-mailed to finance@ucalgary.ca. The funds
are to be deposited as per section 3.5 and AR will provide the custodian
with the chartfield to be credited.

3.4 Cheque Handling

Cheques must not be held for extended periods as delays in depositing may result in the
payment being returned by the bank as a dishonored item.

3.4.1 Cheque Acceptance Guidelines

Departments and faculties are responsible for ensuring the acceptability of each cheque.
Upon receiving a cheque departments/faculties must verify that the information on the
cheque is accurate and current.
This includes the following:
• The date on the cheque is valid (dates are valid up to 6 months after the
date recorded on the cheque)
• The cheque is made payable to “The University of Calgary”
• The body and figure match
• The cheque is signed
• The cheque is in an appropriate currency (refer to section 3.4.2 – Canadian
Currency Cheque & 3.4.3 – Foreign Currency Cheques).
• For foreign currency cheques, the cheque has appropriate micro‐encoding
(refer to section 3.4.3 – Foreign Currency Cheques).

Cheques that do not meet all of the above listed criteria should not be accepted; however in
some cases the information on the cheque may be altered to meet the above listed
requirements:
• If the date or body and figure are incorrect they may be altered and
initialed by the customer.
• If the cheque is missing a signature the customer may sign it.

No University employee may alter the cheque in any way, all changes must be done by the
person who has written the cheque.

Page 7 of 15
 Cash Management
Standard Operating Procedure
Immediately upon receipt, cheques must be restrictively endorsed to show “For deposit to
the credit of University of Calgary”. The department must include the department name and
department ID on the back of the cheque.

3.4.2 Canadian Currency Cheques

The following types of Canadian currency cheques are acceptable for regular deposit:

• Canadian currency cheques (with or without micro‐encoding) drawn on a

Canadian bank
• Canadian currency cheques (with or without micro‐encoding) drawn on a
foreign bank and negotiated through an affiliated Canadian bank with a
Canadian Address

Canadian currency cheques (with or without micro‐encoding) drawn on a foreign bank must
be sent for collection through the Treasury unit of Finance (see section 3.4.3)

3.4.3 Foreign Currency Cheques

The following foreign currency cheques are acceptable for regular deposit:

• US currency cheques drawn on a US bank with micro‐encoding

• US currency cheques drawn on a Canadian bank with micro‐ encoding
• US currency cheques drawn on a Foreign bank and negotiated through an
affiliated US bank with micro‐encoding

The following Foreign currency cheques cannot be deposited directly into the University’s
bank account, but must be sent for collection through the bank by Accounts Receivable:

• US currency cheques without micro‐encoding drawn on a Foreign bank

and negotiated through an affiliated US bank
• US currency cheques drawn on a Foreign bank and negotiated through an
affiliated Canadian bank
• US currency cheques without Micro‐encoding
• Pounds Sterling cheque drawn on a British bank
• Canadian currency cheques drawn on a foreign bank
• All other foreign currency cheques not listed as acceptable for regular
deposit.

Foreign currency cheques that require collection must be sent to AR. Any cheque being
Page 8 of 15
 Cash Management
Standard Operating Procedure
considered for collection must be greater than $100 CAD, otherwise the collection fee will
exceed the value of the item. Each item should include the following:
• Account information
• Location of the financial institution (if unavailable, contact the Royal Direct
Centre at 1‐800‐769‐2520 for assistance in determining the origin of the
item)

The cost of sending a cheque to collection is between $100 and $160, these fees will be
charged to the department depositing the funds. The time required for a foreign cheque to
come back from collections can take over six months. AR will not record the deposit until the
funds have come back from collection. It is strongly suggested that all payments are
requested in Canadian dollars.

The following forms of payment are NOT accepted:

• Travelers cheques
• Money orders and bank drafts from any foreign bank

3.4.4 Dishonored Cheques (NSF)

• If the returned payment relates to payment on a University invoice, the
payment will be reversed from the customer account and a $25 service
charge will be added to the receivable. The billing department is required
to obtain a replacement cheque and AR will provide further information to
assist with this process.
• In the event the department is successful in collecting the dishonored
funds from a University invoice payment, the cheque must be forwarded
to AR for proper processing.
• If a cheque from a cash sale is returned as dishonored by the bank, AR will
prepare a journal entry to debit the department’s bad debt account. This
will include a $25.00 service charge. A copy of the journal entry along with
the dishonored item will be forwarded to the department/faculty. It is the
department/faculty’s responsibility to collect the funds from the
customer.
• AR will compare the date on the dishonored cheque to the date of
deposit. If a cheque is held by a department or faculty for more than a
month and that cheque is returned dishonored, a service charge will not
be applied to the customer, but rather charged to the department, as the
culpability lies with the department, not the payee.
• In the event the department is successful in collecting the dishonored
funds from a cash sale, the corresponding deposit must be credited back
Page 9 of 15
 Cash Management
Standard Operating Procedure
to the bad debt account. The cheque number and an explanation
indicating the cheque is a repayment of a dishonored item should be
recorded in the line description.
3.5 Deposits
Depositors are required to complete an RBC deposit slip and place the slip and cash/cheques
into a Brinks deposit bag. The bag is to be sealed and all faculties/units on the main and
downtown campuses will deposit the bag at the main campus bookstore. Faculties/units
located on the foothills campus will deposit bags at the medical bookstore.

RBC slips and Brinks bags are available at the main campus bookstore.

Physical deposit of funds from the University to the Bank may only be performed via armored
car pick up service. To request this service, please contact AR at arhelp@ucalgary.ca.

In order to maintain the integrity of accounting records, deposits must be legible, laid out and
assembled according to the standard set forth.

All cash received and/or refunded must be documented using the appropriate slips as well as
recorded on a deposit sheet and deposited through the appropriate bookstore in a timely
fashion.

There are two types of deposit, online and manual. Both require a deposit sheet to be filled
out appropriately. There are a limited number of high volume departments that have been
given access to create on‐line deposits. For information about on‐line deposits please contact
arhelp@ucalgary.ca. All of the departments, regardless of deposit type, must adhere to the
following procedures.

3.5.1 Deposit Sheets

• A deposit sheet is required for all monies deposited at the main or medical
bookstore.
• Where multiple cash registers are used, and they are not linked via an
electronic POS system that produces a single batch report for all registers,
a separate and exclusive deposit book must be used for each machine in
order to allow for accurate and appropriate tracking and auditing.
• Deposit books must be stored in a secure location. A pre‐numbered,
duplicate, official University of Calgary deposit book is to be used for all
deposits. For control purposes, their issuance is tracked by AR. Any unused
deposit books are to be returned to AR. Each deposit sheet must be used
in sequential order as they are tracked by AR.

Page 10 of 15
 Cash Management
Standard Operating Procedure
• Every section of the deposit sheet must be completed and should include
the following information:
 All receipts are to be recorded in Section A or B of the deposit
sheet.
 All refunds are to be recorded in Section C of the deposit sheet.
 All IVR (credit card telephone authorization) and transelect
totals are to be recorded in Section C of the deposit sheet.
 A Cash and Coin Listing in section D Over/short information is to
be recorded in Section E
 Complete cheque listing
 Accurate and complete accounting distribution
 Period Covered by Receipts
 Date of Deposit
 Depositor’s Name
 Depositor’s Phone Number
 Depositor’s Signature

• If an error occurs or an item needs to be changed on the deposit slip the

alterations are to be made in the following way:
 The information being changed is to be crossed out in such a
way as to still be legible
 The new information will be written beside the old information
• All changes must be initialed by depositor
Do not use white‐out on deposit books or any supporting documentation.
• If a deposit sheet is void mark all copies as “void” and submit the white
copy of the deposit sheet with your next deposit or send via campus mail
to AR.

3.5.2 Supporting Documentation

Appropriate supporting documentation must be provided for every transaction processed.
This will be through the use of receipts, refund slips, transelect batch reports, and IVR paper
chits.

Other documentation may be required to support the deposit and includes the following:
• contract
• purchase order (PO)
• work order
• notice of award communications with the customer

If the unit creates the deposit in PeopleSoft, all supporting documentation must be uploaded
Page 11 of 15
 Cash Management
Standard Operating Procedure
in PeopleSoft. If a unit sends cash/cheques to Accounts Receivable to deposit, the
documentation must be submitted with the funds.

3.5.3 Transelect
Where payment has been made or a refund has been given using a transelect machine (Visa,
MasterCard, Amex, Debit) a transelect batch report is to be printed for each transelect
machine used and must be printed every time a transelect machine is closed. A copy of all
End of Batch Reports (including batch reports with a zero total) must also be retained in the
unit and reconciled to ensure that all batch information has been included in the deposits
(see section 3.6 – Reconciliation)
The batch report must read “Closed” and “Balanced –Yes” at the bottom of the printout. If
the batch does not show as closed and balanced your department is required to contact
Moneris (1‐866‐319‐7450) to confirm the status of the batch (be sure to have your merchant
number ready prior to making the call). The reference number for the phone call is to be
noted on the transelect slips.

Transaction slips that contain the customer’s credit card numbers and/or signature must be
kept in a secure location by the issuing department.

3.5.4 IVR Receipts

Where Visa or MasterCard transactions have been processed manually (IVR) a copy of the
paper chit is to be attached to the front of the deposit sheet and submitted with the deposit.

3.5.5 Overages and Shortages

All overages and shortages are to be recorded in Section E of the deposit sheet. Cash
differences in excess of $10.00 must be accompanied by a Cash Discrepancy Approval Form.

3.5.6 Month End

Month End is a period of time where transactions for the new month are being conducted
while outstanding transactions from the prior month are being completed and deposited.
Due to this overlap it is imperative that special care be taken to differentiate between old
month and new month business. This is especially important during the Year End period
(March – April).

During month end, if transactions are simultaneously being conducted for the current and
prior month, separate receipts and deposit sheets are to be used for each month.

Page 12 of 15
 Cash Management
Standard Operating Procedure

All old month deposits must be delivered to the bookstore prior to noon on the first business
day of the new month.

Please refer to the Finance Calendar for detailed information about Month End and Year End
scheduling.

3.5.7 Cash Audit Tracking

AR through the use of a specially designed tracking system, keeps a record of all deposit
sheets, receipts, cash register Z‐ Tapes, Grand Totals and refund slip numbers as well as
certain accounting information.

As such it is necessary for depositors to issue and submit these slips in sequential order,
even if they have been marked as void.

If AR discovers a gap in the sequential ordering of any of these documents, departments are
required to work in conjunction with AR in order to reach a resolution for this issue.

3.5.8 Deposit and Recording Frequency

All departments and faculties must make their deposits based on the following guideline:

• $100.00 or more must be deposited within 2 business days of receipt

• $99.99 or less may be held for a maximum of 5 business days.

Departments depositing directly through armored car pick up service must record their
revenue in PeopleSoft within two business day of the deposit.

3.6 Refunds
3.6.1 Method of Recording Refunds
• Every refund must be issued using the same method of recording as the
original transaction i.e. manual receipt, cash register, POS System.
• All in‐person refunds, regardless of how they are issued require a refund
slip. Departments must use a University of Calgary official triplicate refund
book. Departments may also use their own custom form, provided that it
has been approved by AR.
• Refund books must be stored in a secure location.
• Do not use white‐out on refund slips or any supporting documentation.
Page 13 of 15
 Cash Management
Standard Operating Procedure

Manual
Refunds for transactions originally recorded using manual receipts must be handled by
completing an official University of Calgary triplicate manual refund slip. Refund books must
be obtained at AR. All refunds slips must be authorized and signed by the Units’ signing
authority as well as the customer. Refund books must be stored in a secure location. Every
refund slip must record:

• “University of Calgary” is clearly imprinted on the refund slip

• Each receipt is uniquely numbered
• Date of transaction is displayed
• Description of good or service provided
• Original receipt number is recorded
• Department is displayed

Any unused refund books are to be returned to AR. Each refund slip must be used in
sequential order as they are tracked by AR. The refund slip must not be altered after being
issued.

If an error is made while processing a refund, all copies of the incorrect refund slip must be
marked “void”. Both original and yellow copies must be attached to deposit slip; the pink
copy should be kept by the department. A replacement refund slip is to be issued.

Cash Register & POS System

Refunds for transactions originally recorded using a cash register must be handled by ringing
the refund through the register. Refunds for transactions originally posted through a POS
system should be refunded through the POS system. Both transactions also require
completion of a manual refund slip.

The refund slips must match to the information provided on the cash register Z‐tape or the
daily transaction listing produced by the POS system.

If an error is made while processing a refund the incorrect item must be voided in the cash
register. Voided refunds must be attached to the front of the deposit slip.

3.6.2 Credit Card Refunds

Where a payment was made via credit card, the refund must be processed to the same
credit card that was originally used for payment whenever possible.

Refunding a credit card payment via any other method, or to a different credit card than was
Page 14 of 15
 Cash Management
Standard Operating Procedure
originally used for payment is in direct breach of our contractual obligations to our credit
card processing provider.

3.6.3 Cash Debit and Cheque Refunds

Cash, cheque and debit card refunds may be provided for payments originally made by
debit, cash, cheque or guaranteed funds.

Where the original payment method was by cheque, a refund may not be processed until 3
weeks after the cheques was deposited, to ensure the funds have cleared the bank. If the
cheque was from a US bank, the waiting period is 6 weeks. If the cheque was not eligible for
regular deposit and has been sent for collection through the Treasury department, a refund
must not be process unless the department has confirmation from AR that the funds have
been received.

Cash refunds may not be taken out of your float; at all times, your float must contain the
authorized and issued amount of cash. If you do not have the funds required to provide a
cash refund, the refund must be provided via debit card or cheque. For rules and procedures
for requesting cheque refunds please visit the Supply Chain Management website located at
http://www.ucalgary.ca/finance/scm.

3.7 Record Retention and FOIP

University of Calgary records must be maintained both departmentally and centrally for a set
period of time as dictated by the University of Calgary Retention and Disposal Procedure. This
includes copies of deposits, receipts, refunds, transelect batch reports, IVR’s, and all other
backup.

For regulations concerning appropriate retention time periods and disposal of documents,
please refer to the University of Calgary Master Record Retention Schedule at
http://archives.ucalgary.ca/marrs

Debit and credit card transactions must be treated with the same level of security as any
other confidential information. Failure to do so may result in unauthorized use of a credit card
number, for which the University may be held accountable. The protection of cardholder
information must be considered a priority. Detailed information about the rules relating to
confidential information can be found at the FOIP website:
https://www.ucalgary.ca/legalservices/foip

Page 15 of 15