2. Cash Control Presentation The University of Texas @ Austin

3. Cash Control Presentation Objectives Review appropriate cash & internal control procedures Examine resources available to ensure adherence to procedures Discussion

4. Internal Control: What is it? A plan of organization and procedures that helps ensure that: –bookkeeping and accounting data is reliable –assets are safe –a clear audit trail exists –employees who do their jobs well are protected

5. Internal Control: What does it do? A sound system of internal control: –minimizes possibilities of errors –minimizes possibilities of misuse of funds –provides a clear audit trail –provides for the early detection of errors and/or irregularities

6. Internal Control: How do we get it? Separation of duties –custody –recording –authorization –monitoring/ reconcile

7. Internal Control How do we get it? (continued) The custodian is the person who receives cash or check payments on behalf of the University.

8. The recorder is the person who consolidates and reviews cash receipts and prepares the deposit for either the Cashier’s Office or the bank. Internal Control How do we get it? (continued)

9. The approver reviews transactions/deposit s for accuracy, proper authorization, etc. The approver also determines if a transaction should continue to be executed. The authorizer is responsible for authorizing a transaction such as a journal voucher, purchase or refund. Internal Control How do we get it? (continued)

10. The reconciler reviews and reconciles ledgers, bank statements or statement of accounts every month to identify errors or discrepancies, and either resolves them or brings them to the attention of supervisors. Internal Control How do we get it? (continued)

11. Cashier Approver/Authorizer Recorder Reconciler

12. 3 Types of Separation of Duties -Separating the custody of assets from the accounting role -Separating the authorization/approver role from the custody of assets role -Separating duties within the accounting function Internal Control How do we get it? (continued)

13. RolesCustodianRecorderApprover/ Authorizer Reconciler Conflicting Roles RecorderCustodian Approver/ Authorizer Recorder Reconciler Approver/ Authorizer

14. Internal Control: How do we get it? (Cont.) sound procedures for authorizing, recording, and reporting transactions qualified and trained personnel consistently adhering to the above

15. Cash Control Presentation The University of Texas @ Austin THE END