602 - Policy on Cash Handling

  • Policy Number: 602
  • Policy Title: Olympic College Policy on Cash Handling
  • Policy Owner: Chief Financial Officer
  • Date Approved: Mar. 23, 2026
  • Date Revised: NA
  • Date Reviewed: NA 

Scope 

This policy applies to all employees, departments, programs, and student organizations of the College that receive, handle, store, transport, or deposit cash and cash equivalents. This includes currency, coins, checks, and money orders all collected on behalf of the College, whether received in person, by mail, or electronically. All funds collected are public funds and must be handled in compliance with this policy, regardless of funding source or amount. 

Purpose & Background 

The purpose of this policy is to ensure that all cash and cash equivalents received by the College are properly safeguarded, accurately recorded, and promptly deposited in accordance with Washington State law, the State Administrative and Accounting Manual (SAAM), and State Board for Community and Technical Colleges (SBCTC) standards. This policy establishes minimum internal control requirements to prevent loss or misuse of public funds, ensure accountability, and promote public trust in the College’s financial operations. 

Definitions

  1. Cash: Currency and coin.
  2. Cash Equivalent: Checks, money orders, cashier’s checks, credit/debit card payments, and electronic transfers.
  3. Cash Collection Point: Any College location or department authorized to receive payments.
  4. Cash Handler: Any employee authorized to receive, count, safeguard, or deposit cash on behalf of the College.
  5. Change Fund: Authorized fixed amounts of cash used solely for making change in across-the-counter cash transactions or disbursement; maintained by a single custodian under locked storage.
  6. Overage/Shortage: The difference between the recorded amount and the actual amount of cash on hand.
  7. Segregation of Duties: The division of responsibilities so that no single individual controls all aspects of a financial transaction. 

Policy  

  1. Segregation of Duties
    1. Cash handling duties should be separated among individuals so that no one person is responsible for receiving, recording, depositing, and reconciling cash.
    2. When staffing limitations prevent full segregation, mitigating controls (e.g., supervisory review) must be implemented and documented.
  2. Safeguarding Cash
    1. All cash collection points must be approved by the Chief Finance Officer (CFO) or its delegate prior to handling funds.
    2. All change funds require written authorization from CFO or its delegate. The letter designating the individual assignment to a single custodian, locked and secure storage, reconciliation, and documented turnover.
    3. Departments must follow the Cash Handling procedures for detailed count procedures, reconciliation cadence, vault requests, surprise counts, and prohibited uses.
    4. Each department is responsible for maintaining internal controls consistent with this policy and SAAM Ch. 20.
    5. Mixing public funds with personal funds is strictly prohibited.
    6. The Finance Department establishes standards, monitors compliance, and coordinates training/attestations.
  3. Receipting and Documentation
    1. All cash equivalents must be recorded at the time of collection using an approved receipting method (ctcLink Cashiering, pre-numbered receipt books, or approved point-of-sale systems).
    2. Supporting documentation must identify the payer, amount, purpose, and date.
    3. Alterations to receipts or records are prohibited.
    4. Receipting records supporting deposited amount must be submitted to the Finance Department for bank verification.
  4. Checks and Credit Card Handling
    1. Checks must be made payable to Olympic College and restrictively endorsed immediately upon receipt (“For Deposit Only”).
    2. Credit/debit card transactions must follow the Credit Card Transaction Policy/Procedure and must comply with Payment Card Industry Data Security Standards (PCI-DSS) and be processed only through authorized College systems.
  5. Return of Checks to Sender
    1. If unable to determine proper receipting, staff must first verify with accounts receivable. If still unable to determine proper receipting, contact payer using information provided on the check, remittance advice or envelope. If the receipting cannot be determined after these efforts, the college may return the check to the sender following section 4(e)(iii) through 4(e)(vi). Checks may be returned to the sender for, but not limited to, the following reasons:
      1. Incorrect payee name
      2. Missing or invalid signature
      3. Post-dated or stale-dated checks
      4. Altered, damaged, or illegible checks
      5. Missing or mismatched amount on check (numeric or written)
    2. Approval must be provided by Finance Director or Chief Financial Officer to return check to sender
    3. A brief explanation will be included when possible.
    4. Checks will be returned via mail using the sender’s provided address.
    5. Copies of returned checks will be retained for 6 years plus current fiscal year per State Archiving policy.
  6. Deposits
    1. Deposit intact daily for collections of the preceding day regardless of amount. If OC operates under an OFM‑approved waiver, deposits must occur within five business days of receipt.
    2. Deposits must be placed in tamper‑evident sealed bags with supporting receipts and delivered to bank by an armored car service; deposits are not sent via interoffice mail.
    3. All deposits must be made to authorized public depositaries per SAAM 85.50.10 and RCW 39.58.
  7. Reconciliation and Review
    1. Departments reconcile daily receipts to POS/ctcLink Cashiering and deposit documentation; discrepancies are documented immediately.
    2. Finance performs monthly bank‑to‑ctcLink reconciliations and records deposits‑in‑transit, and change funds per SBCTC CLAM.
    3. Any discrepancies must be reported immediately to the Finance Department and investigated promptly.
    4. Finance/Internal Audit will conduct unannounced cash counts at authorized collection points; deficiencies must be corrected.
  8. Refunds, voids, reversals, discounts & over/short thresholds
    1. Voids, returns, discounts, and reversals must be approved by a supervisor not serving as cashier and documented with reason codes; all such transactions must reconcile to POS/cashiering reports daily.
    2. Overages/shortages above $5 or any repeat pattern over 2 days will be escalated to Finance for investigation.
  9. Transporting Funds
    1. Deposits and change requests must be transported by an armed carrier service directly from the department authorized to handle cash.
    2. Funds received by non-authorized cash handling departments/groups must be accompanied by two employees to the cashier’s office.
    3. Funds and deposits must not be sent through interoffice mail.
  10. Returned/NSF Checks
    1. Finance assesses fees, place holds on accounts where appropriate, and escalate unpaid items to collections.
  11. Event Cash Handling (Student Organizations & Fundraising)
    1. Events accepting cash require preauthorization by Finance and must follow the Change Fund Management procedures.
  12. Compliance and Violations
    1. Failure to comply with this policy may result in disciplinary action, up to and including termination, and may be subject to state audit or legal action.
    2. The Finance Department reserves the right to suspend or revoke cash handling privileges for any department found out of compliance.
    3. Immediate reporting of any suspected or confirmed loss of public funds/assets or other illegal activity to SAO per RCW 43.09.185 and follow SAO’s guidance on preserving records and coordinating with law enforcement.

Related Information

  1. State
    1. Revised Code of Washington (RCW)
      1. 43.88.160 – OFFM Authority
      2. 43.09.185 – Loss Reporting to SAO
    2. Washington State Administrative and Accounting Manual
      1. Chapter 85 – Cash
      2. Chapter 20 – Internal Control
  2. College
    1. Credit Card Transaction Policy
    2. Cash Count & Change Fund Management Procedure
    3. Cashier Batching Procedure