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Contents

Page

Introduction ............................................................................

Internal Control Practices .......................................................

Incoming Cash Procedures......................................................

3-6

Change ....................................................................................

Petty Cash Floats/Till Floats/Safe Floats .................................

Individual Petty Cash Claims ...................................................

Security ...................................................................................

8-9

Audit Summary .......................................................................

9
8

Payment Card Industry Data Security Standard (PCI DSS) ......

10-16

Unidentified Cash....................................................................

17

10

Credit Control Policy for Credit Balances ................................

18-19

11

Anti-Money Laundering Rules ................................................

18-19

12

Appendices .............................................................................

21-31

Introduction

Purpose of Document

The purpose of this document is to provide a consistent direction for the management of cash and

receivables, ensuring adequate control standards are in place to secure the Universitys col ections and
funds.

These rules and instructions apply to al staff that process or col ect payments on behalf of the

University and forms part of the financial processes documentation, issued from time to time by the
Chief Operating Officer under the authority of the Financial Regulations. Compliance by al Individuals
associated with the University is mandatory and subject to audit. Under the Financial Regulations it is
the responsibility of the Deans of Faculty and Directors of Service to ensure al staff comply with
financial processes.

1) Internal Control Practices


It is recognised that no single control standard effectively or efficiently fits the needs of al cash col
ection areas; however, there are standard control procedures that are mandatory. It may be

possible to vary some procedures in this document for specific local conditions but it is expected that a
compensating control procedure be put in place and must have the prior written approval of the

Credit Control Manager. The fol owing is a list of standard procedures for reference (see relevant

section for ful procedures) which must be adhered to.

Separation of Duties - One of the most important steps to take to protect cash and staff is separation
of duties. With proper separation no single person has control over the entire

cash process. Anyone assigned with cash handling responsibilities should be given training

and clear written procedures regarding their responsibilities with regard to the handling and

control of cash.

Accountability - Cash accountability ensures that cash is accounted for, properly documented,
secured and traceable to specific cash handlers.

Security Cash access should be restricted to as few people as possible. It should always be counted
in a secure location accessible only by Northumbria staff. Cash should be stored in

an insured safe until it can be transported by Security to the Cash Office for banking.

Col ection of cash must be sent to the Cash Office on the same day or fol owing day (CLC is

the exception as security col ections are 3 times per week) as per Financial Regulation 16.3.

Reconciliation & Review - Al transactions must be recorded through a receipting device and
reconciled on a daily basis. Reconciliation activities confirm that transactions have been

correctly recorded and accounted for.

Prepared by Carol Bonner Credit Control Manager & Janet McAllister Cash Officer Northumbria
University June 2014

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2) Incoming Cash Procedures

Floats at the start of each shift the float should be checked and agreed between the cashier and the
line manager/supervisor.

Transactions al sales transactions should be processed through the til /receipting device. This
includes cash, credit/debit cards, cheques, vouchers etc. Any time cash changes hands this must be
agreed verbal y by both parties.

Receipts An official University receipt must be issued if requested by the customer and notices must
be displayed near the point of sale informing customers of this facility.

End of Day Process at the end of the day a flash/z/terminal reading wil be taken by either a
supervisor or team leader. The preferred option is for supervisors/team leaders not to operate the til s but
where they do so then the next line manager should take the reading thereby ensuring

separation of duties. Al cash is counted and the fixed float removed from the total. A drawer record total
sheet wil be used for this purpose. This information is transferred to the Daily Income

Reconciliation sheet which is also used to record:-

Date

Flash/Z/Terminal reading

Vouchers

Account Transactions

Cheques

Chip & Pin Transactions

Pay Point Transactions

Float

The actual cash balance is reconciled to the theoretical cash balance (per

Flash/Z/Terminal reading) and any variances recorded. Refer to section cash

discrepancies particularly with amounts in excess of 5. Any variance requires local

investigation regardless of the amount.

The information (Appendix 2) is recorded daily electronical y at the main sites where there is

an administrative function. Recorded manual y in smal er units and the information passed

daily to the administrator. The electronic copy must be printed on a daily basis, signed and
filed for 6 years plus current.

There must be no alteration to electronic copies once the worksheet has been printed and

signed for. Random checks wil be initiated by senior line management, on instruction from

/or the direction of the Finance Department or Internal Audit

Banking Process Al income however smal must be banked on a daily basis. The actual cash figure is
used for the banking process and wherever possible, consolidate as many cash figures onto one banking
slip.

Complete the deposit slip with the fol owing :-

Date

Name of Payee

Location

Breakdown of Denominations

Total Cash to be Banked (please ensure the total and breakdown tal y)

Security Bag Number

It is essential that the unit copy of the banking slip has al the relevant information legibly

recorded for future audit tracking.

The daily reconciliation sheet together with the Flash/Z report/ Copy Receipts or Car parking

readings should be independently checked to ensure the amount to be banked is accurate and

the deposit slip should be initialed to confirm that the cash agrees with the reports. Two deposit slips
should be placed in the bag with the cash and then sealed. The third deposit slip should be

securely attached to the outside of the bag along with the Daily Income Reconciliation sheet,

Flash/Z and Chip n Pin reading.

Coinage - Areas that receive large amounts of coin should use coin only bags and ensure that
individual bags do not exceed 300 in 1 coins and 200 in any other coinage. As many bags as
required can be used and sent to the Cash Office via Security. Banking should be done as

frequently as possible when dealing with heavy coinage so as not to contravene the health and

safety of the staff involved in the transportation. The bags should be made manageable, easy to

transport and not over weighted.

Security officers are only insured to carry 2500 per person (not to exceed 10k) so when staff

request col ection they should inform Security the value of cash to be transported.

Non epos til users should now raise separate sales order for cash, cheques and cards

using one of the fol owing accounts:

Cash in Transit Account

Sundry Income Account

Customer Account

Definition of Cash in Transit Account

This account is used when there is no specific/named customer or business to which the financial
transaction relates to. This is an account within SAP that is used mainly by University Outlets such as
the catering facilities where cash is taken over the counter in return for goods received.

This type of account wil only be used for actual CASH transactions.

The use of this account enables straightforward monitoring of cash deliveries from al University outlets
to ensure it is received in Finance, banked in a timely manner and sales orders are raised at the same
time to match off the cash received.

Definition of Sundry Income Account

This account is again only used when there is no specific customer or business to which the financial
transaction relates to. This is an account within SAP used by Faculties and most Service departments
within the University where cheques or payment is received via the C&P/Paypoint machines within
their own department.

This type of account wil only be used for Cheques, C&P and Paypoint transactions

Definition of Customer Account


A customer account is used to record the financial transactions for goods/services relating to
specific/named person, business, etc. The individual person or business wil be given a unique customer
account. Al financial transactions in relation to the company or person wil be recorded against this
account.

Any type of payment can be used with this account.

The use of this type of account enables straightforward monitoring of al transactions relating to the
specific customer business.

Non Epos Users SAP Sales Orders Cash

Once actual cash figures are agreed, a SAP sales order is raised wherever possible by an administrator
unconnected to the direct handling of the cash. The income for each Cost Centre must be entered on to
the University Finance system (SAP) on a daily basis. Within one SAP Sales order it is possible to
record income for multiple cost centres. The link for STT How to create a Sales Order is:

http://briseus/sap/repository/lessonportal.html

The subsequent SAP sales order number needs to be recorded on a Daily Income Reconciliation Sheet.

The SAP sales order number must be recorded on the banking slip.

Income, however smal , must be recorded through SAP sales order daily. Provision must be made for
this process to continue elsewhere in the event of an administrator being absent.

Epos Users

Sales orders should not be raised for Epos til transactions as the interface wil electronical y transfer the
required data to SAP. Please refer to local instructions for further details.

Personal Items

Staff should ensure personal belongings are stored away from the til s preferably in a locker (see local
instructions for more details).

Lone Working

Where staff work alone the fol owing procedures must be adhered to:

Area to be secured prior to cash counting

Money/sheets sealed and signed for supervisor to counter check at first opportunity not later

than AM of fol owing day.

Cash Discrepancies
In the event of a discrepancy, 10% of the value of the transaction up to a maximum of 10 requires a
local investigation; however anything over this must be reported. The fol owing procedures must be
activated immediately:

The line manager must be informed the day the discrepancy occurs

No-one should be al owed to leave until the manager gives permission

The Manager wil bring in security if they feel this is necessary

No other staff should be al owed to enter the office until the go ahead from the line manager

Carol Bonner the Credit Control Manager must be informed

If the money stil cannot be traced Senior Management wil take whatever steps they feel

appropriate. Staff Management Procedures may be initiated if Senior Management decides

this is necessary.

Discrepancies over 10 or 10% of the value of the transaction wil be reported to Mike

Campion (Campus Services) or the relevant Service Manager for a decision.

Finance wil produce a monthly report of al discrepancies under 10 which wil be sent to

outlet managers with a copy to Mike Campion.

Refunds/Voids

Any refunds or voids which are required must be completed by a manager or supervisor. The receipt
should be kept with an explanation on the back.

Counterfeit Notes

Al outlets were issued with counterfeit detection pens and these should be used as a standard procedure
with all notes taken. Bank of England literature was distributed to al outlets with information on
identifying genuine notes and the process if counterfeit notes are detected. Any counterfeit notes that
are taken and not detected at the point of sale wil be charged back to the original source. Further
information can be found at the fol owing websites:

http://www.bankofengland.co.uk/banknotes/educational.htm

http://www.bankofengland.co.uk/banknotes/about/counterfeits.htm

SAP Sales Orders - Cheques

Cheques should be made payable to Northumbria University. Ensure the amount in words & figures
match and that the cheque is signed and dated. Cheque transactions must be entered in to the til .
NB: If the cheque payment is for an individual student account (tuition/accommodation fees) the
student number should be entered on the back of the cheque and sent to the cash office for processing.

A SAP sales order should be raised in the same way as for cash, using Sundry Income account and the
correct material code. The SAP sales order number must be entered on to the back of the cheque or the
relevant 5

sundry account number. A banking slip is not completed for cheques. The cheques should be sent to the
cash office attached to a completed Daily Income Reconciliation Sheet and attached to the outside of the
security bag or in an envelope through the internal mail.

NB: The Finance Department wil perform random audits to ensure these procedures are being adhered
to.

Sundry Income Account Refer to Drawer Cheques

Departments wil be sent an email notifying of any cheques entered on to a Sundry Income Account
which are returned from the bank when there are insufficient funds to honour the cheque. It is the
responsibility of the relevant department to ensure a credit note request is completed and forwarded to
the IT helpline to clear this transaction from the sundry account. The relevant department must raise a
sales order on to an individual customer account to enable the debt col ection process to take effect. If a
new Customer account is required it can be raised within 48 hours by completing a Customer Master
input found at:

https://intranet.northumbria.ac.uk/facultiesandservices/iti/sapsupport/appamendsapmasterdata

SAP Sales Orders Chip & Pin ( Credit /Debit Cards)

Al transactions undertaken with Credit/Debit card payments have to be put through the till as well as the
C&P machine. The end of day Z reading of the C&P machine must take place at the same time as the
Z

reading of the til . The Z reading from the C&P machine and the C&P payments on the til Z reading
must agree. Any discrepancies are investigated and recorded. The C&P value is entered on to the Daily
Income Reconciliation sheet. A SAP sales order must be raised in the same way as for cash using Cash
Office Sundry Income Account. The Z reading from the C&P machine is attached to the Daily Income
Reconciliation sheet and filed. A banking slip is not completed for C&P transaction total. The C&P
transaction slip should be filed local y.

We accept Visa, MasterCard, Switch, and Maestro

N.B. We do not accept American Express.


The Cash in Transit and Sundry Account MUST NOT be used for the fol owing:

Any Income where an individual customer account already exists

Individual cheques >5000 These should be put to the relevant customer account.

Refundable Locker Key Deposits

Refundable Hal s Deposits

Advance Rents

Advance Tuition Payments

Invoiced Sales

Tuition Fees Invoiced through SITS

Field Study Visits

In the case of the above items the sales orders should be raised on established customer accounts. If a
new customer account is required it can be raised within 48 hours. The Customer Master Input Form
can be found at:
https://intranet.northumbria.ac.uk/facultiesandservices/iti/sapsupport/appamendsapmasterdata

Cash Collection Book

The book should be completed with the fol owing information:

Faculty/Department

Member of staff responsible for the cash

Number of sealed bags of cash

Security Bag Number

When Security col ect the bags they wil sign the book that has 3 self-carbonated numbered copies. The
top two copies are given to Security and the third copy remains in the department.

Either on a daily basis or at least weekly the Security Bag Numbers listed in the Cash Col ection Book
wil be matched against the corresponding banking slips, both documents being initial ed to
acknowledge that the reconciliation has taken place. Any omissions must be reported to the line
manager immediately.

Senior Managers wil spot check this process at least once a month.

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3) Change

Telephone change requests are made to the Finance Cash Office 24 hours prior to requirement. The
Cash Office wil always try and accommodate any emergency requests.

Outlet Managers should continuously monitor cash floats and order to requirements from the Cash
Office.

Money in notes to the value of the change required is placed in a Security Bag. NB: Coinage should
not be used for the exchange.

The Cash Col ection book should now be completed with the fol owing information:

Upon receipt of the change from security the carbonated white and blue copies from the Cash

Col ection book need to be signed.

The blue copy is retained and stapled to the corresponding yel ow copy (change requests) in the

Cash Collection book.

When the change is counted and agreed, the amount received is entered on to the blue copy and

initial ed as being correct.

4) Petty Cash Floats/Till Safe Floats

Access to the floats should be restricted to designated personnel and kept in a secure area.

The petty cash float should be balanced on at least a weekly basis and any major discrepancies should
be reported to a Senior Manager (Appendix 3). As the petty cash floats vary in amount a benchmark to
use for discrepancies is 10% up to a maximum of 10. Anything over 10 should be reported.

When the float requires a top-up the petty cash claims should be presented to the Cash Office to be
reimbursed. The claims must have:

Original receipt(s) attached


Cost centre & general ledger code(s)

Authorised signature

Claimants signature

The til /safe float should be balanced on a daily basis and any major discrepancies should be reported to
a Senior Manager (Appendix 3). As these floats are fixed amounts al discrepancies must be reported to
Finance.

At the financial year end every departmental manager (not the float administrator) wil be requested to
sign a confirmation of the float held (Appendix 4). They should check at this time that the float is
correct but they should spot check the float at least four times each year. If the float is no longer
required it should be returned to the Cash Office for the appropriate documentation to be cancel ed.
Should the responsibility change to another member of staff or transferred to a different location the
Cash Office must be notified immediately to ensure the records are amended.

The Finance & Planning Department wil carry out random checks throughout the year across the
campus.

An audit sheet wil be completed and action taken if there are any variances (Appendix 5).

5) Individual Petty Cash Claims

Petty cash claims are paid out in cash for a maximum of 100 per day. (Exclusions apply see list
below). The claim (Appendix 6) must be presented to the Cash Office for reimbursement as soon as
possible fol owing the purchase. Identification wil be required upon col ection of the cash. Money
cannot be sent through the Internal Post. The claims must have the fol owing details:

Original receipt(s) attached

Cost centre/Internal Order & general ledger code(s)

Brief description of the goods

Authorised signature

Claimants signature

Failure to provide these details wil result in the rejection of the claim until al information provided.

Petty cash claim forms can be found on the Intranet under Forms>Finance and Legal>Procurement,

Purchasing and General Finance Forms.

NB: The fol owing is a list of items that should not be processed through petty cash:
Taxi Fares

Business Entertainment (including deposits for meals)

Hotel Fees

Train/Air Fare

Alcohol

Parking Fees

6) Security

The identity of Security Cash Escorts should be checked when staff are handing over cash to be
escorted to the cash office. (Appendix 7 Cash Escorts Procedure).

Cash draws /til s must be locked and the key removed whenever staff are not present or in a close
proximity.

Cash counting should be undertaken in secure location with no interruptions during the process.

Where Supervisors recognise an increase in cash taken that contravenes the insurance limit of the safe
they should immediately contact the insurance officer.

Safe Locations

Al safes should be located in a secure area and easily accessible for staff to secure the income.

There should be no public access.

Out of view (not located near a window or visible through a window).

Location of safes should not be publicised.

The Insurance Officer and Security should be notified of any changes of location of the safe.

Ordering of new safes should be actioned through the Campus Services and the Insurance Office

notified to ensure we have adequate insurance cover in place.


Safe Inventory

An inventory of al the contents of the safe should be held and updated on a daily basis when changes
occur.

This should be kept in the safe.

Overnight Security of Floats/Cash

When it is necessary to lodge floats or cash overnight with Security the fol owing information is
required:

Write clearly on the top of the page Float/Cash Deposit

Member of staff responsible for the cash

Faculty/Service

Number of sealed bags of cash

Security bag numbers

When security col ect the bag they wil sign the book which has 3 self- carbonated copies. The top two
copies are given to Security and the third copy remains in the department.

On receipt of the float bag from security the carbonated white and blue copies from the Cash Collection
book need to be signed.

The blue copy is retained and stapled to the corresponding yel ow copy (float deposit) in the Cash
Collection book.

The security bag should be checked to ensure it is sealed and that no tampering has taken place.

Floats should be held with Security in the event of the cash exceeding local safe limits.

Safe Insurance Limits

It is important that insurance limits are not exceeded, therefore Supervisors and Managers should be
aware of the limits and if inadequate request further cover, or make alternative arrangements through
the Insurance officer.

Safe Checks

A reconciliation of Safe contents, Petty Cash Floats and Til Float values needs to be undertaken by the
supervisor on a daily basis and a management check a minimum of twice a week to ensure there are no
discrepancies. Senior Management wil perform annual checks. Appendix 2 should be used for this

purpose, once completed and signed the documents needs to be retained at local level for 6 years plus
current.

Random safe checks wil be undertaken by the Finance Department (see section 3).

Safe Keys & Combinations

It is important that when key personnel changes occur that the unit manager or his/her line manager
ensure that combinations/keys are changed promptly. The Insurance Officer (Anne Hudson) should be
informed on completion.

Safe Keys:

The access to safe keys should be limited to designated personnel, no more than 2 staff, the Manager,
and a set held with Security.

Security wil always hold a set of keys.

When the safe keys change hands they must be signed for. (see Appendix 8)

During working hours keys should be kept in a locked drawer and not left lying around the office.

The overnight storage of keys must not be kept in the same office as the safe. Keys should be stored in
a secure environment either in a locked drawer in another location or left with security.

The loss of keys must be reported immediately to the Deputy Finance Director (Accounting).

Safe Combinations:

The safe combinations should be limited to designated personnel, no more than 2 staff and the

Manager.

The combination of the safe should always be changed when a staff member leaves and every six
months thereafter.

A log should be kept of the dates when the changes occur.

The sequence of the safe combination numbers should be selected using random numbers rather than
for e.g. birthdays, anniversaries etc.
7) Audit Summary

Unit Level

Complete, sign and file Daily Income Reconciliation sheet, ensure al sections completed. Administrator
Flash/Z/Terminal reading consecutive numbers/dates daily

Flash/Z/Terminal reading Variations daily discrepancies noted over 10 reported.

Complete, sign and file Daily Income Reconciliation sheet ensure al sections completed.

Unit Manager/Supervisor

Flash/Z/Terminal reading consecutive numbers/dates weekly

Flash/Z/Terminal reading Variations Z Reading Variations daily discrepancies noted over 10


investigated and reported to line manager.

Reconcile security bag numbers with Banking Book and Cash Col ection Book weekly. Complete
twice

weekly safe/float checks complete paperwork, sign and file.

Safe Insurance levels not to be exceeded daily.

Senior Management

Reconcile security bag numbers with Banking Book and Cash Col ection Book monthly on a spot
check basis.

Verify consistency and accuracy of the Daily Income Reconciliation sheet monthly spot checks, with a
report to Finance on completion.

Safe checks to be completed annual y.

8) Payment Card Industry Data Security Standard (PCI DSS)

The Payment Card Industry Data Security Standard (PCI DSS or simply PCI) was published nearly ten
years ago, and in that time has undergone a series of revisions as technology, and information security
best practises have developed. It is now updated every 3 years, with the current version (3.0) released in
November 2013.

PCI DSS was introduced to help prevent increasing levels of Credit and Debit Card fraud. In the years
since its introduction, card theft has become increasingly sophisticated and is now the domain of
organised crime. The threat has not reduced, however, the introduction of improved security through
PCI DSS has been a significant factor in managing the risk. The PCI DSS is a multifaceted security
standard that includes requirements for security management, policies, procedures, network
architecture, software design and other critical protective measures. This comprehensive standard is
intended to help organizations proactively protect customer account data.

PCI DSS compliance is required to do business with credit card providers.

Background

A security breach and subsequent compromise of payment card data has far-reaching consequences for

affected organisations, including:

1. Regulatory notification requirements;

2. Loss of reputation;

3. Loss of customers;

4. Potential financial liabilities (for example, regulatory and other fees and fines); and litigation.

However:

is not a regulation or law, more of a contractual obligation, as such, adoption has been slow

Compliance does not guarantee complete Security - Systems are never "secure", only "more secure.

There have been a number of high profile, large data breaches, mainly in the US (TK Maxx,
Heartland, and Target).

Compliance can be costly, both initial y gain and to maintain.

Compliance and security is a process, not an end state.

If outsourcing is used, it is important to note that responsibility for the security of cardholder data is
not removed. An organisation must ensure that the outsourced service is also PCI DSS compliant.

As of PCI 3.0, SAQ covers using a Third-Party Website for Payment Processing.

Key Definitions

PAN Primary Account Number - Unique payment card number

CDE - Cardholder Data Environment

CHD Cardholder Data

CNP Card Not Present

SAD - Sensitive Authentication data

CAV/CVC/CVV/CSC/CID/CAV2/CVC2/CVV2 Card Verification Codes


MO/TO - Mail-Order/Telephone-Order

SAQ - Self-Assessment Questionnaire

VPT - Virtual Payment Terminal

POS - Point of sale hardware and/or software used to process payment card transactions at merchant
locations.

PDQ Point of Sale terminal for card authentication (stands for Pretty Damn Quick).

Merchant - Entity that accepts payment cards.

Acquirer - Also referred to as merchant bank, acquiring bank, or acquiring financial institution.
Entity that initiates and maintains relationships with merchants for the acceptance of payment cards.

10

11
Compliance Levels

1 - Any merchant -- regardless of acceptance channel -- processing over 6M Visa transactions per year.
Any merchant that Visa, at its sole discretion, determines should meet the Level 1 merchant
requirements to minimize risk to the Visa system.

2 - Any merchant -- regardless of acceptance channel -- processing 1M to 6M Visa transactions per


year.

3 - Any merchant processing 20,000 to 1M Visa e-commerce transactions per year.

4 - Any merchant processing fewer than 20,000 Visa e-commerce transactions per year, and al other
merchants

-- regardless of acceptance channel -- processing up to 1M Visa transactions per year.

Any merchant that has suffered a hack that resulted in an account data compromise may be escalated to
a higher validation level.

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Proving Compliance

(Self-Assessment Questionnaires & Attestation of Compliance)

13
Scope

14

Examples

15
Dos & Donts

Do

Understand the risks to card data.

Fol ow procedures.

Do Not

Write down PANs.

Email PANs.

Implement procedures which permit staff to come into contact with the PAN.

NB: The merchant paper copy should be kept for 18 months in secure environment and then destroyed
as confidential waste.

https://www.pcisecuritystandards.org

(Official source of standards, but also Fact Sheets and Information Supplements)

http://www.barclaycard.co.uk/business/accepting-payments/pci-dss

(Our current Acquirer)

https://www.barclaycarddatasecuritymanager.co.uk

(Videos)

http://www.pcicomplianceguide.org

For further information and advice please contact:

Steven Gilray

IT Security Manager

0191 227 4343

steven.gilray@northumbria.ac.uk

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9) Unidentified Cash

Process for Clearing Unidentified Cash Account 8945 Summary:

Account 8945 is a holding account where Bank payments are transferred to as no account details have
been provided. The payments are held on this account pending investigation to ascertain the correct
account details.

Money received can be for the fol owing customers, Commercial, Sponsor, Franchise and Student.
Upon completion of the investigation the money wil either be transferred to the appropriate account or
wil remain here until the customer claims the payment, sometimes this may not be until we receive the
remittance receipt or when we commence chasing the overdue debt.

Actions:

Payments receipted into the University Bank Account daily.

Daily drop down of the overnight banking al ows us to identify & allocate payments prior to posting to
SAP.
Check remittances already received to see if they match bank information

If a payment cannot be identified on the daily banking drop down, it wil be al ocated to 8945.

The fol owing procedure is carried out:

Check any new remittances received, as they come in daily, these are checked against 8945 and once
the payment is verified against the remittance, the account is cleared against the payment indicated.

If the payment on 8945 represents a down payment or partial payment then these are transferred to the
appropriate account without clearing.

Remittances can be for single payments to individual accounts or multiple payments to multiple
accounts.

Check with the Treasury Officer to see if any further information received from the bank.

On occasions we do not receive remittances from the sender; we have to check SAP to see if we can
identify the organisation and the invoices the payment covers. If we can identify them, then we clear
them down, if we cannot identify them then we wil contact the organisation directly to ask them to
identify the invoice the payment covers.

Process for Clearing Unidentified Cash Account 13830 Summary

Account 13830 is a holding account for International student payments where no account details have
been provided. The payments are held on this account pending investigation to ascertain the correct
account details.

Upon completion of the investigation the money wil either be transferred to the appropriate account or
wil remain here until the customer claims the payment, sometimes this may not be until we commence
chasing the overdue debt.

Actions:

Payments receipted into the University Bank Account daily.

Daily drop down of the overnight banking al ows us to identify & al ocate payments prior to posting to
SAP.

If a payment cannot be identified on the daily banking drop down or cheques and bank transfers
received in the cash office the payment wil be posted to 13830.

The fol owing procedure is carried out:

Check with the Treasury Officer for any bank letters received from Barclays to see what information
has been provided to identify the student.

If a student name has been provided we wil search on SITS


Check with the International Office for any information that may identify the student

Students come into Finance & Planning office for statements of accounts and receipts for payments
and many of the payments are identified.

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10) Credit Control Policy for Credit Balances Introduction Background

As the University has a policy to request advance payments from students in respect of tuition fees, it is
expected that credit balances wil exist in the debtors ledger. However, credits may also exist for other
reasons e.g. non-refundable deposits, overpayments or suspended studies.

The credit balances could result in the debt of the University being understated and wil cause
inconsistencies within the ageing of the debt. Therefore, these balances must be kept to a minimum
while taking into consideration any money laundering issues connected to the payment. (See section
10). To achieve this, the balances must be reviewed on an individual basis to ensure they are justifiable,
then action taken to clear the credits.

Procedures

The fol owing procedures must be performed on a regular basis by Credit Control to reduce the volume
of credit balances.

1. Review of down payments using the General Ledger accounts and ageing

2. Review customer accounts for credit balances

3. Raise invoices/credit notes on receipt of a withdrawal notification

Some students select to suspend their studies and this may result in the down payments being utilised in
later years. These credits can be dealt with using 3 options

1. If the student requests a refund, this wil be administered immediately.

2. If the Faculty or Student informs Credit Control that this balance wil be utilised in later years, a note
wil be entered onto their account and the balance wil remain in down payments.

3. If neither options 1 or 2 have occurred, the balance wil be investigated after 3 years for refund, write
off or invoice to be raised.

All credit balances >3 years must be investigated using the fol owing procedure:

1. Review al credit balances by account

2. Raise invoices for al non-refundable deposits.

3. Attempt to refund the money to the original source these actions must be documented
4. Write off all refunds that cant be refunded to source after thorough investigations

5. Clear balances within the account

The Credit Control Manager wil sign off al refunds under 5k, write offs and invoices created
directly into SAP for the purpose of clearing credit balances. The Deputy Finance Director
(Accounting) will sign off refunds 5k - 10k and the Chief Operating Officer wil sign off refunds
over 10k.

Invoices for non-refundable deposits wil be raised to administration income within the Finance &
Planning Departments profit centre.

11) Anti-Money Laundering Rules Cash

Payments:

When accepting large quantities of cash e.g. to pay for fees or accommodation, the fol owing questions
should be asked and the response recorded.

1. Why isnt the payment being made by cheque, bank transfer or credit/debit card?

2. If the student doesnt have a bank account, why not?

3. The student and the cashier must complete and both sign off the form.

Further consideration is required regarding the country which the student is from. Is the student from a
high risk country? For a summary of the high risk countries (See Appendix 10).

Do not accept overpayments in cash unless you are aware that an invoice is due to be raised.

If the cashier is in any doubt regarding the source of the funds, they should probe further or refuse to
accept the cash.

Refunds:

Al refunds must be returned to the original payment source. Agents:

1. Franchise partners/agents should be on the British Councils approved list (procedure to be

confirmed by the International Office).

18

2. Agents demanding special arrangements for payments of deposits and tuition fees should be viewed
with suspicion.

Reasons for a Student Requiring a Refund of Overpayment:

1. Visa refusal
2. Withdrawal from University

3. Sponsor paid too much to include living expenses (discouraged but sometimes unavoidable)**

4. Discount and/or scholarship applied to account (refund procedure not applicable to this document as
payment due to student by any method that they require. However, ensure that original payment has

cleared).

Make as many checks as possible that reasons are genuine. Checks may include:

1. Verification of reason given for withdrawal with Registrars.

2. Check of any official documentation.

3. If payment is federal loan then check ID of students and al ow refund.

4. If payment is from unknown third party ask for documentary evidence of who the person is that made
the payment and that they wish the overpayment to be made to the student. A letter of authorisation
should cover our requirements.

5. If a large amount is required and previously paid by cash this should be forwarded to financial
accounts to refer to SOCA for a decision to refund.

For tuition fees two bands of refund amounts have been identified with control over each band as fol
ows; (i) Refunds less than 5,000

Credit Control Manager for authorisation.

(i ) Refunds over 5,000

Deputy Finance Director (Accounting) for authorisation.

(i i) Refunds over 10,000 Chief Operating Officer for authorisation.

Payment procedure:

Payment made by bank transfer

Refund to originating bank via cashiers

If payment made by cheque

Proof required of account that cheque

came from

Refund to that account

If payment made via the web


Refund to original card through web via cashiers

If payment made by credit card

Refund to original card via cashiers

through the cash Office

If payment made in cash

Refund by cheque.

International students cheque >500 sent to home

country address

NB For high business risk category customers then check and verify al transactions over 100.

Who does this policy apply to?

These rules are applicable to al areas of the University accepting cash or dealing with agents who are
col ecting cash on the Universitys behalf.

Who do I contact for further information?

For further information, please contact Carol Bonner, Credit Control Manager.

Email: carol.bonner@northumbria.ac.uk

Tel: 0191 243 7594

19
Appendix 1

20
Appendix 2

21

Appendix 3

SHA C

ETTYP

AYDN

SU

AYDRU

SAT

K
Y

DA

HEC

FRI

T CA

1000

LO

DARSU

FE FA

TH

LY

ESDA

EEKW

EDNW

AY

ESD

TU

YYY

/ Y

DANOM
DD / M:

ate

TA

EDK

ISO

TO

EC

2014

tio

ER

le

FLO

04/

SU

mpo
28/

50

20

10

50p

20p

10p

5p

1p

22

Appendix 4

I certify that as at 31 July 2013 hold a petty cash float/imprest to the sum of

........................................... Comprised as follows:-

Cash in hand Paid vouchers

Signed by Float

Administrator .

Name in Block Capitals ..........................................................................


Signed by Budget Holder .......................................................................

Name in Block Capitals ..........................................................................

Date .......................................................................................................

Dept/Service: Dept

Please return this certificate to the Cash Section, Finance Department no later than

9 August 2013.

Thank you

Cash Office Use Only

Record no: Voucherno

Venue:

Venue

Contact:

Contact

Email:

Email_Address

23

Appendix 5

TILL FLOAT AUDIT

FLOAT NUMBER

Date:

AMOUNT

FLOAT

ADMINISTRATOR

OUTLET/SCHOOL

LOCATION
RECONCILIATION

Z Reading

50

Float

Amount

20

10

0.50p

0.20p

0.10p

0.05p

Bronze

TOTAL

TOTAL FLOAT

SIGNATURE

PRINT NAME

FLOAT CHECKED BY

AGREED

CORRECT

INCORRECT

ACTION TAKEN

REASON

24

Appendix 6

To be presented to the Cash Section, Finance Department, by the claimant in person

NAME

DEPARTMENT

I hereby acknowledge receipt of the sum of

As per the voucher(s) attached, which was expended on behalf of

Northumbria University in connection with its approved and authorised activities.

Signature of Claimant:

NB: WHERE ITEM(S) PURCHASED INCLUDE VAT, THE RECEIPT MUST BE A VAT
RECEIPT (VAT REGISTRATION NUMBER SHOULD BE SHOWN). RECEIPTS

SHOULD BE SECURELY ATTACHED TO THE BACK OF THE CLAIM & NUMBERED.

Description of Goods

Value

Cost Centre Internal Order General Ledger

A LIMIT OF 100 PER CLAIM FOR RECEIPTS DATED ON SAME DAY

AUTHORISED .....................................

_____________________________________________________________________________________

FINANCE DEPARTMENT USE ONLY

NET AMOUNT . BATCH NO: 19/

VAT AMOUNT
25

Appendix 7

University of Northumbria

Campus Services Security CASH ESCORTS PROCEDURE

Description

Cash escorts are an area of particular risk where precautions can be taken to minimise that risk.

Procedure

A minimum of two officers are to be deployed for the task, one to carry, and the other to observe and
protect. The appropriate cash handling bag should be used to contain the cash. Where there are staffing
problems, another able bodied, suitable employee from another department can be utilised as the second
person e.g. Caretaker, Finance employee etc: Where this method is utilised, the Security officer should
perform the observe and protect

role.

Escorts should be carried out as discreetly as possible, varying times and routes as necessary.

The escorting team must maintain radio checks with Security Control at a maximum of 5 minute
intervals.

The Control Room Operator should, as far as is practicable, cover the escorting team by CCTV during
the operation.

The escorting team should remain alert, and beware of complacency, and if threatened or attacked, the
fol owing procedure should be used.

Personal safety of the security team is paramount

Using professional judgment, consider the risk to the team.

If judged at risk of injury or harm, surrender the cash

Note description of individuals responsible, and method / direction of travel

Contact Security Control by radio with details as soon as is practicable

Security Control to inform Police immediately

When taking a request for a cash escort, the Control Room Operator is to balance the needs of the
customer with the operational requirements of the Security team, and a time should be mutual y agreed
for the col ection.
Cash for collection must be in appropriate cash bags closed with the correct seal, and a cash col ection
receipt, which records the seal numbers, must be signed by both the person releasing the cash, the
Security officer col ecting, and on delivery, the person receiving the cash. The receipt is to be filed
within Security Control in the correct file.

Limits for transporting cash

The amount of cash carried, is limited by the number of Security officers escorting same. Limits are set
by the University Insurers via the Finance office, they are not to be exceeded under any
circumstances, and are as follows.

Up to 2500.00 1 person Up to 5000.00 2

persons Up to 7500.00 3 persons Up to

10000.00 4 persons

When taking a request for a cash escort, the Control Room Operator is to enquire as to the amount of
cash to be transported.

Under no circumstances is the 10000.00 limit to be exceeded. If there is a greater amount, the

customer must be instructed to divide the cash into amounts which fal within the limits.

The duty Senior Security Officer, or in his absence, the nominated supervisor, should ensure that
THE

ESCORTING TEAM ARE FULLY AWARE OF THIS PROCEDURE BEFORE ESCORTS ARE
PERFORMED.

P.P.E

Security staff are to familiarise themselves with the risk assessment and any remedial actions plans in

relation to this task, in particular, the instructions and guidance relating to the wearing of personal
body

armour.

26

Appendix 8

KEY TRANSFERS

SAFE KEY

CURRENT KEY HOLDER:


TRANSFERRED TO:

DATE:

SIGNED:____________________________

SIGNED:____________________________

27

Appendix 9

Risk by Country

Country ranking by risk category, A is for Low Risk, D is for High Risk

Country

Risk Country

Risk Country

Risk

Australia

Algeria

Afghanistan

Austria

Bangladesh

Albania

Belgium
A

Benin

Belarus

Canada

Brazil

Bolivia

Denmark

Bulgaria

Bosnia Herzegovina

Finland

Burkina Faso

Burundi

France

A
Cameroon

Cambodia

Hong Kong

Colombia

Central African Rep.

Iceland

Costa-Rica

Comoros

Ireland

Egypt

Cuba

Japan

Gabon
B

Dem. Rep. of Congo

Luxemburg

Guatemala

Equatorial Guinea

New Zealand

Indonesia

Gambia

Norway

Iran

Georgia

Singapore

Jordan

B
Guinea

Spain

Kazakhstan

Guinea Bissau

Sweden

Lesotho

Guyana

Switzerland

Mali

Haiti

Taiwan

Mozambique

Iraq
D

United Kingdom

Peru

Ivory Coast

United States

Philippines

Korea (North)

Botswana

Romania

Kyrgyzstan

Chile

Russia

Laos

D
Czech republic

Salvador

Liberia

Estonia

Senegal

Malawi

Greece

Tanzania

Mongolia

Hungary

Turkey

Myanmar

Italy
A

Vietnam

Nepal

Korea (South)

Uruguay

Nicaragua

Kuwait

Papua New Guinea

Nigeria

Country

Risk Country

Risk Country

Risk

Malaysia

Angola

C
Rwanda

Netherlands

Argentina

Sierra Leone

Portugal

Armenia

Somalia

Qatar

Azerbaijan

Sudan

Slovenia

Cape Verde

Tajikistan
D

Thailand

Chad

Turkmenistan

United Arab Emirates

Congo

Uzbekistan

Bahrain

Djibouti

Zambia

China

Dominican Rep,

Zimbabwe

D
28

Cyprus

Ecuador

India

Ethiopia

Italy export

Ghana

Latvia

Honduras

Lithuania

Jamaica

Mauritius

Kenya

C
Malta

Lebanon

Namibia

Libya

Oman

Macedonia (FYR)

Poland

Madagascar

Slovakia

Mauritania

South Africa

Niger

Trinidad
A

Pakistan

Croatia

Paraguay

Israel

Sao Tome

Mexico

Serbia Montenegro

Morocco

Seychel es

Panama

Syria

Saudi Arabia

A
Togo

Swaziland

Uganda

Tunisia

Venezuela

Overseas students paying large sums of cash at the Cash Office wil be asked a number of questions. The
information wil be transferred on to a form for the student to sign to ensure we have adhered to al the
regulations (Appendix 10). The form wil be scanned and kept electronical y for audit purposes.

29
Appendix 10

30

31

32

northumbria.ac.uk
Document Outline
Introduction
Purpose of Document