University of Missouri

Assets

Assets

In addition to cash and inventory, all equipment and supplies, irregardless of original cost, are considered assets of the University.

  • Physically secure your area’s assets.

Cash, inventory, equipment, and supplies must be safeguarded from unauthorized access, use or theft. Examples of access controls to safeguard assets are locked doors, filing cabinets, and drawers, and safes. The number of individuals with access to the keys or lock combinations should be as few as possible. Locks should be changed when employees who had keys to significant amounts of assets terminate.

  • Conduct periodic counts of inventories
  • Compare inventory counts to your department’s perpetual inventory “book” records and investigate differences

Departments with significant inventories should maintain inventory controls over the items. Inventory items received and issued should be recorded, so that a current “book” balance is always known. Periodically, a person who is independent of the inventory purchasing and inventory custody functions should physically count the inventory items. The counts should be compared to the “book” balances. Missing items should be investigated, resolved, and analyzed for possible control deficiencies. “Book” records should be adjusted to the physically counted quantities if missing items cannot be located.

  • Update the fixed asset information distributed to you bi-annually
  • Record asset disposals and transfers between areas timely

Fixed asset listings should be periodically reviewed and compared to assets physically on-hand. Missing items should be investigated, resolved, and analyzed for possible control deficiencies. Fixed asset listings should be updated accordingly.

Bank accounts

Petty cash

There are a limited number of petty cash funds on campus.  The following guidelines are for those departments with a petty cash fund.

  • Keep the petty cash fund in a locked, secure place.
  • Access to the petty cash fund should be restricted to the custodian and a back-up person.
  • Petty cash should be disbursed only by the custodian (or a back-up person in the custodian’s absence).
  • Require original receipts in order to disburse petty cash. Maintain the receipts in the petty cash fund box for reconciling.
  • The person to be reimbursed should indicate on the original receipt what was purchased (if not obvious on the receipt), the business purpose, and account and fund to be charged.
  • The original receipts should be approved and signed by an appropriate, authorized individual, such as the supervisor of the person to be reimbursed.
  • The petty cash fund should not be used for personal expenses, personal loans, or the cashing of personal checks.
  • The Custodian is responsible for regularly reconciling the petty cash fund. (The sum of cash plus original receipts plus any outstanding reimbursements should equal the full, original amount of the fund.)
  • Periodic, surprise counts of the petty cash fund should be performed by someone other than the custodian, such as a supervisor.
  • A petty cash fund remains open on the records of the Accounting Services Department until you request that it be closed. The Accounting Services Department performs an annual written confirmation of the petty cash account balances.
  • Decide if you really need a petty cash fund. If not, contact the Accounting Services Department to close the fund. Deposit the petty cash fund money, indicating on the receipt voucher that it is the closing of the petty cash fund.
  • In the event of an unexplained petty cash shortage, see the section on “Suspected Theft or Misuse of Assets”
  • (See Business Policy and Procedure Manual Section 2:120)

Cash, check, and credit card receipts

  • Procedures should be followed for depositing cash as follows:
  • Maintain a manual or electronic log of all cash, checks, and credit card payments received (include check numbers). This log should list the amount received, its form (cash, check, or credit card), the payor, and the purpose of the payment.
  • Provide numbered receipts for all payments received, regardless of payment type (cash, check, or credit card). Two-part forms should be used, with one copy being kept and one copy provided to the payor.
  • All receipts should be properly accounted for and should agree with the log used to record monies received.
  • Immediately restrictively endorse checks received with a stamp as described in Cash Receipts Manual.
  • Keep cash, checks, and credit card forms in a locked, secure, and restricted facility, such as a drawer or safe, until they are deposited. Limit who has access and keys/combinations to the locked facility.
  • Deposits must be made at least once daily unless otherwise authorized in writing by Campus Administrative Services. If minimal dollar amounts are received, deposits should be made when amounts total $100 or at least weekly.
  • Prepare on-line receipt entries (CRR’s) to the general ledger for each deposit.
  • Require an employee with no cash handling responsibilities to verify that the amounts actually deposited equal the amounts from the log or receipts, not from the receipt voucher.

Gifts

  • Restrictively endorse checks upon receipt by stamping as described in Cash Receipts Manual.
  • Make a record of all incoming gift and endowment checks and cash.
  • Deposit the endorsed checks and cash with other types of cash receipts immediately, using the Gift CRR application.
  • Reconcile your record of incoming gift and endowment checks and cash to the University’s gift system (ADIS) to ensure all amounts have been received and deposited.
  • Notify the campus Development office upon receipt of non-cash gifts.
  • Appraisals of non-cash gifts must be made by an outside appraiser and must be paid for by the donor.
  • (See Business Policy and Procedure Manual Section 2:130)