Certain basic internal control principles must be adhered to in regards to collecting and accounting for cash and cash equivalents. These basic principles are articulated below:
- Ensures that CSU employees who process and/or handle cash and cash equivalents can be held responsible in fulfilling their duties.
Accountability is present when the following three (3) areas are addressed:
- Knowledge of who has or had access to, and why he/she has or had access to, cash and cash equivalents;
- Knowledge of where cash or cash equivalent assets are at all times; and
- Knowledge of what transpired from the beginning of a cash handling process to the conclusion of the process.
Separation of Duties
- That two (2) or more qualified and authorized persons are involved in the key, most sensitive activities related to the collection, handling, depositing, and accounting processes.
Security (Physical and Information)
- That employees involved in the handling of cash and cash equivalents are, at all times, protected from physical harm.
- That cash and cash equivalents are, at all times, protected from loss or misuse.
- That technology resources (i.e. hardware and confidential payment information) are, at all times, protected from loss, corruption or compromise to confidentiality.
Reconciliation of Accounts
- Assurance that cash and cash equivalents collected and reported as deposited are deposited accurately and timely into authorized CSU bank accounts.
- Assurance that general ledger recordings/transactions are accurate.