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Section 11: Cash and Investments

Processing Cash Payments

Effective Date:

06/11/09

Approved By:

Kerry Kennedy, Vice President, Business Affairs

Last Revised On:

05/01/14

For Assistance Contact:

Director of Financial Services and University Bursar

Associate Vice President, Financial Affairs

 

PURPOSE/SCOPE

All of The University of Texas at San Antonio (UTSA) departments that are authorized to accept cash payment for services must adhere to this guideline. Department heads are responsible for ensuring their affected employees obtain training and follow these procedures.
NOTE: Under this guideline, cash is defined as currency, checks and credit cards unless otherwise specified.
See UTSA Financial Management Operational Guideline (FMOG) - Cash Handling and Management for information on requesting authorization to accept payments on behalf of UTSA and related departmental requirements.

AUTHORITY

Authority is provided by the University of Texas System  Policy UTS166 – Cash Management and Cash Handling Policy.


UNIVERSITY GUIDELINES

Table of Contents

A. Cash Handling Locations

Each department must provide adequate working space for each cash handler in order to maintain control of the cash handling process and allow space to accept payments. All cash handling areas should provide for security and separation between cash handlers and customers. Adequate and secure areas should also be designated for balancing operations.

B. Sales Tax

UTSA is exempt from paying State of Texas sales tax on purchased items; however, it is not exempt from acting as a tax-collecting entity. Departments must collect sales tax when selling taxable items, unless proof of tax exemption is obtained. The department must collect and document the sales tax on the Deposit Transmittal Form using account 20218.

NOTE: The sales tax must be indicated separately from the sales amount on the Deposit Transmittal Form.

1. Taxable and Nontaxable Sales

A tax must be collected on all cash sales involving tangible, personal property, defined as personal property, that can be seen, weighed, measured, felt or touched or that is perceptible to the senses in any other manner, including computer programs.

NOTE: Some services, such as data processing and information services are also taxable.

For more information on taxable and nontaxable sales, departments may contact the Office of Financial Services and University Bursar.

2. Proof of Tax Exemption

Some customers qualify for exemption because of how the purchased item(s) will be used or because of the nature of the purchaser’s organization.

The purchaser must prove their exemption status. An exemption certificate must show the purchaser's name and address; a description of the item; the reason the purchase is exempt; the signature of the purchaser and date; and the name and address of the seller.

Departments must obtain an exemption certificate from the purchaser at the time the transaction is processed. This certificate should be kept in your records as evidence of a tax-exempt sale.

NOTE: If you can identify the business as a governmental entity or a not-for-profit organization, an official purchase order including the above information can serve as a tax-exempt certificate.

3. Tax Rate

The sales tax rate depends on the physical location — by county — of the sale. UTSA must remit the sales tax to the Texas State Comptroller.

NOTE: The current tax rate for Bexar County/San Antonio is 8.25%.

See the Texas Comptroller Local Sales and Use Tax website for a list of local city and county sales tax rates.

NOTE: If an item is delivered outside your county and surrounding areas using a UTSA owned and/or operated vehicle, a different tax rate may apply.

4. Calculating Sales Tax

Tax must be calculated on the amount of taxable sales. The sales tax amount is the total amount of taxable sales multiplied by the tax rate.

EXAMPLE: Taxable sales in Bexar County/San Antonio for $150.00 times the tax rate of .0825 = $12.38 sales tax.

C. Security

Cash and assets cannot be left unsecured or unattended. All assets must be physically protected in safes, locked cash drawers, locked metal boxes or locked drawers at all times, including when retained in a department overnight.

It is the specific responsibility of supervisory level personnel to review cash handling documents that are prepared by personnel reporting to them. Anything that appears questionable should be investigated carefully.

1. Transport of Cash Deposits

Any deposit or combination of deposits that contain more than $5,000 in cash (defined as currency and coins for this section) must be secured in tamper evident bags and must have a UTSA Police escort when the cash is transported to Fiscal Services.

For cash deposits of less than $5,000, a police escort may still be requested or the departmental supervisor or other employee may accompany the courier, at the discretion of the department.

NOTE: Contact Fiscal Services for information on recommended tamper evident bags.

To avoid potential theft, transfers of cash deposits within UTSA should not conform to any set schedule and information regarding the transfer should be limited only to cash handling employees who have attended UTSA Cash Handling training. UTSA Police should be contacted in the event of suspicious activity or if special risks are involved.

Any transfer of cash deposits made off-campus may only be made by contracted armored transport or UTSA Police. Armored transport personnel are required to provide adequate identification before each transport and will provide signed receipts for all items accepted.

2. Transport of Credit Card Deposits

PCI Security Standards Council Data Security Standards require that media (documentation containing credit card numbers) only be transported by secured courier or other method that can be accurately tracked.

Departments transporting forms which include more than the last four digits of the credit card number must incorporate a tracking system, such as a log book, that contains date, time, amount and any other transactional data that would aid in tracking, before transport to any other office. Alternatively, a secured courier (such as UTSAPD) may be used, but departments should consider the cost/benefit before making this decision, as a secured courier will likely incur additional costs.

  • Credit card data presented to Fiscal Services must be logged before the media leaves the department. The receipt provided by Fiscal Services represents confirmation of acceptance and submission of the credit card payment (this form will be shredded by Fiscal Services upon completion of the transaction).

  • The transport between departments of media containing credit card information is not recommended, but if there is a legitimate business reason for the transport, each location sending and receiving the media must keep a tracking log so that the data can be tracked at any point in the transport process. The transporting department must track their submission of the media as well as maintain confirmation of receipt by the receiving department.

NOTE: This requirement is only applicable for departments transporting media containing more than the last four digits of the credit card number.

3. Counterfeit Currency

As required by law, all counterfeit currency must be confiscated and segregated immediately by the cash handler.

If a counterfeit bill is discovered after it is accepted for payment, it must be segregated by the cash handler. A Counterfeit Note Report must be filed with the Secret Service within one business day. A complete description of the counterfeit bill presenter must be made by the cash handler immediately following the payment in accordance with Secret Service procedures.

NOTE: Document counterfeit currency as a shortage (debit) using Account  code 44452 on the Deposit Transmittal Form.

4. Keys and Combinations

Combinations or keys for cash receptacles must be maintained only by designated department/division custodians and supervisors. The safe registration information and combination must be reported to and maintained by each department/division supervisor. Combinations shall be reported under seal to the department/division supervisor and are subject to audit.

5. Theft or Burglary

Losses involving suspected theft or burglary from a pending deposit or departmental petty cash fund — regardless of the dollar amount — must be documented as follows:

  • Pending deposit: Document on a Deposit Transmittal Form as a shortage (debit) using account 44452 in order to balance the deposit.

  • Departmental petty cash funds: Document on a Petty Cash Reimbursement form as a shortage (debit) using account 44452 and submit to Fiscal Services to replenish the departmental fund.

These losses must also be reported to the Office of Internal Audit, Office of Financial Services and University Bursar and University Police before the close of business, followed by a written report within one business day.

6. Physical and Electronic Credit Card Data

Discarded daily detail of credit card information must be shredded. Customer credit card numbers and expiration dates should only be kept until the transaction is successfully completed then should be shredded.

The customer’s signature on the credit card receipt may be maintained as per UTSA Retention Schedule. Credit card receipts are only allowed to display the last four digits of the number. Credit card numbers submitted to Fiscal Services for their processing will be shredded upon successful completion of the transactions.

Credit card information stored on local hard drives must be properly secured and properly disposed of in accordance with the official University Records Retention Schedule. No more than the last four digits of a credit card number should be maintained. If any confidential credit card information is temporarily stored on a local hard drive, the computer must be locked down. Hard drives must be wiped clean before disposal.

Under no circumstances should credit card numbers be transmitted via any electronic format after our receipt from a cardholder.

Departments are responsible for security of their dedicated credit card terminals and must ensure they are operated and stored in a secure environment. Criminals are actively targeting vulnerable merchant terminals to steal credit card data for fraud purposes. Departments must, at a minimum, track and routinely inspect their dedicated credit card terminals, ensuring that unauthorized persons cannot access these machines — both during business hours and when the university is closed. If your dedicated credit card terminal is missing/stolen or if you suspect it has been tampered with, contact the Director of Financial Services and the University Bursar immediately.

D. Accepting Currency

Immediately upon receiving currency for payment, you must:

NOTE: Currency cannot be accepted by mail.

    1. Verify the payment amount, including the sales tax, if applicable.

      NOTE:If you suspect the cash is counterfeit, see Counterfeit Currency for more information.
    2. Record the receipt of the cash payment using a cash register, pre-numbered receipt or log book.

E. Accepting Checks

Immediately upon receiving a check for payment, you must:

    1. Identify the presenter. See Identification for more information.

NOTE: Checks should not be accepted from individuals with a history of writing checks that have been returned unpaid due to non-sufficient funds, closed account, etc. Departments may view a student’s check writing history in Banner via Holding Information Form (SOAHOLD).

    1. Ensure the check is made payable to The University of Texas at San Antonio, UT San Antonio or UTSA.

NOTE: The department name may be included in addition to the above, but cannot appear as the sole payee.

    1. Verify the payment amount, including the sales tax, if applicable.
    2. Stamp the back of the check with a deposit stamp (for example, “For Deposit Only…”).

NOTE: Deposit stamps may be obtained from the Fiscal Services Office.

    1. Record the receipt of the check payment using a cash register, pre-numbered receipt, log book or the UTSA Check Register.

NOTE: Do not photocopy checks. If your internal department procedure requires check photocopies for retention purposes, the entire account number and routing number (printed on the bottom of the check) must be removed.

F. Accepting Credit Cards

Immediately upon receiving a credit card for payment, you must:

    1. Identify the presenter. See Identification for more information.
    2. If a department accepts credit card payments by phone or by mail, they must:
    • Obtain the three- or four-digit credit card security code (CVV/CVC/CID) when accepting the credit card payment.

    • Shred any document, such as an order form, that contains a credit card number once the payment has processed.

    NOTE: If a department elects to retain these documents on file, they must physically remove the entire credit card number and expiration date. An acceptable method for removing a credit card number and expiration date is tearing or cutting out the area that contains this information. Using a marker, correction fluid or correction tape to conceal credit card numbers or expiration dates is not acceptable.

    1. Verify the payment amount, including the sales tax, if applicable.
    2. Record the receipt of the credit card payment using a cash register, pre-numbered receipt or log book.

NOTE: Collection of credit card information via e-mail is strictly prohibited per PCI compliance regulations. Departments utilizing internally developed forms to collect sensitive credit card information must ensure that an e-mail address is not included on their form. If an e-mail address must be included for a legitimate business reason, the department must place a prominent statement on the form stating that UTSA does not accept credit card payment information via e-mail, so as to discourage the unsolicited use of this payment method.

G. Recording the Receipt of Cash, Checks and/or Credit Card Payments

Each department/division must record the receipt of cash, checks or credit card payments using a cash register, pre-numbered receipt (or tickets) or at minimum, posting to a log book.

1. Pre-numbered Receipts (tickets)

An individual — except those who function as cashiers or who prepare deposits — must be appointed to:

  • Periodically review the numeric sequence of used receipts/tickets to insure accountability for all receipts.

  • Provide approval when a receipt/ticket is voided.

2. Log Books

Log books must be bound — such as a ledger book — with pre-numbered pages and must contain the following information:

NOTE: Departments may record check payments in the UTSA Check Register (in lieu of a log book).

  • Date the payment was received.

  • Date on check, if applicable.

  • Payment issuer’s name (for example, the individual submitting the payment).

NOTE: If a UTSA student is the issuer, you must record their Banner ID on the log book and Deposit Transmittal Form.

  • Amount of payment.

  • Deposit date.

  •  PeopleSoft Chartfields.

  • Description or comment referencing the purpose of the payment, if desired.

H. Preparing Deposits

Deposits must be verified by two different department/division employees prior to being deposited at the Fiscal Services Office. Verification must be recorded on the Deposit Transmittal Form with the original signature of the preparer and a countersignature of the preparer’s immediate supervisor. For more information on how to complete this form, see the Deposit Transmittal Form.

1. Cash and/or Checks

All cash and check payments received must be deposited at the Fiscal Services Office using a Deposit Transmittal Form:

  • Total receipts up to $500: Once per week.

  • Total receipts over $500: Within one business day.

    NOTE: Deposits cannot be delayed. A check may be photocopied if it requires additional research or internal handling; however the account and routing number must be removed.

2. Credit Cards

All credit card payments received must be deposited at the Fiscal Services Office within one business day that credit card transactions are processed using a Deposit Transmittal Form.

NOTE: If your department processes credit card payments online with a 3rd party vendor or a dedicated credit card machine, see Credit Card Settlement for more information.

I. Recording and Reporting Overages/Shortages

All overages (credits) and shortages (debits) must be recorded on the Deposit Transmittal Form using account 44452.

Shortages and overages of $50.00 or more in cash receipts must be reported immediately to the Office of Financial Services and University Bursar.

NOTE: If losses involve possible or suspected theft or burglary, see Theft or Loss for more information.

J. Reconciliation

All departments must review sub-ledgers on a monthly basis to insure that income/receipts have been posted properly.

If applicable, departments must reconcile credit card income — on the monthly Statement of Account (SOA) — to internal records. Timing issues between months may cause some payments to be recorded in the month following their submission.

Normal departmental trends in cash receipt levels should be monitored. If, without an apparent reason, the level of cash receipts reported drops below the normal expected level for a period of time, the records should be carefully reviewed. Assistance from the Office of Internal Audit should be requested if needed.

K. Credit Card Settlement

Dedicated credit card machines and online processing methods only

Departments with a dedicated credit card machine must settle batches daily with a printed settlement report which lists total collected balances for each card type. This settlement report must be attached to the Deposit Transmittal form, along with copies of individual credit card slips, and submitted to Fiscal Services daily in order for the departmental account to be credited for the payments.

Departments using the online payment processing method must also settle batches daily and should submit a similar report in place of the dedicated machine credit card slips and settlement report.

Failure to do so will delay the posting of departmental revenue and will cause your department to be considered out of compliance.


DEFINITIONS

See FMOG – Cash Handling and Management for definitions.

REFERENCES/LINKS

RELATED FORMS/WORKSHEETS

See FMOG – Cash Handling and Management for a list of related forms.


REVISION HISTORY

Date Description

05/01/14

Updated DEFINE information for transition to PeopleSoft.

04/01/13

Updated Tax rate in Bexar County that increased from 8.125% to 8.25% per attachment.

03/04/11

Completed correction for 02/21/11 revision by adding guideline regarding accepting credit card payments via email. Credit card information cannot be collected via email. Departments using internally developed forms to collect credit card information should not list their email address (to discourage the unsolicited use of this payment method).

02/21/11

Added procedures for transport of credit card data. Added policy stating that departments are responsible for the security of their credit card terminals. Added information stating that departments accepting credit card payments via phone or mail must shred any document containing credit card information once the payment has processed.

01/14/11

Updated Physical and Electronic Credit Card Data section to reflect no more than last four digits of a credit card number should be maintained.

10/04/10

Added a requirement that prohibits credit card numbers from being transmitted electronically after being received from a cardholder to the Physical and electronic credit card data subsection.

08/23/10

Added Transporting of Cash Deposits, a new subsection under Security.

06/16/10

Modified the Accepting Currency, Accepting Checks and Accepting Credit Cards sections. Departments must immediately comply with procedures when accepting currency, checks or credit cards for payment.

11/18/09

The Petty Cash Reimbursement form must be used to document cash shortages from departmental petty cash funds due to suspected theft or burglary.

07/17/09

Corrected section I. Recording and Reporting Overages/Shortages: Replaced Office of Internal Audit with the Office of Financial Services and Univ. Bursar as contact.
Corrected section C. Security: Under Theft or Loss, added the Office of Financial Services and Univ. Bursar as additional contact.

06/17/09

Changes to format only. No changes to content.


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