/Institutions/University-of-Dubai/json/2024-2025/Policy-and-Procedure-Manual-local.json

/Institutions/University-of-Dubai/json/2024-2025/Policy-and-Procedure-Manual.json

Policy and Procedure Manual 2024-25 > Fiscal Resources and Financial Management and Budgeting > Cash Management Policy

Cash Management Policy

Policy 

1. Management of Cheques & Cash 

1. The Finance Department is responsible for assessing the cash necessary to meet the daily obligations and provide for these requirements.  

2. The Finance Manager and the Finance Assistant Manager are responsible for initiating all transactions with banking institutions for all units of the University.  This includes any bank accounts, external financing arrangements (letters of credit, borrowings), safekeeping agreements and receipt processing arrangements. 

3. The current account shall be funded only in an amount sufficient to match outstanding cheques.  

4. The signing authority on all transactions is determined by the BOT. 

5. A dual signature is required on all cheques and money transfers. 

6. The cheque signers shall not sign blank cheques under any circumstances. 

7. The primary cheque signer shall not have access to any accounting functions. 

8. All cheque signers employed by the University shall be adequately bonded. 

9. University personnel handling accounts payable shall not be authorized to sign cheques or approve money transfers.  

10. All cash and cheques received must be deposited to the bank within one working day of receipt.  Post Dated cheques must be presented for deposit on their due date.   

11. All cash and cheques must be stored in the University safe or in locked cash drawers until deposit at all times It is the responsibility of the Finance Department to make whatever provisions necessary to properly protect the cash receipts in the department.  

12. Accountants  must ensure that all cheques issued to the University are prepared accurately, this means:
    

    • Cheques are signed. 

    • Cheque dates are clear and within dates of acceptance. 

    • Are issued in the name “University of Dubai”. 

    • The numeric amount and the written amount are consistent. 

    • Student (or issuer) ID number is clearly written on the back of the cheque. 

    
    

13. Cheques must be endorsed immediately upon receipt. 

14. Cash and cheque collections occurring outside of the Finance Department offices must be remitted to the Finance Department within one working day. 

15. Incoming cheques and cash must be recorded in the system, on a log, worksheet, ledger etc. Multiple copies of receipts for each transaction are to be kept, including  soft and hard copies and to be filed. Modification of any record should be done with the approval of the Manager of Finance. 

16. Automatic backup of all transactions are made in the well-equipped server machine within the office of the IT Department. Records are also kept in the form of a spreadsheet and documents in the Finance Department. 

17. Access to the cash receipts module, credit card terminals and cash registers shall be restricted to authorized personnel only in the Finance Department. 

18. Cash pick-ups and transfers by the college employees should not conform to any regular time or day of the week schedule. Such transfers should be irregular, subject to change without notice, with times known only to a select few. 

19. The unapplied cash account shall be reviewed twice during each full semester by the Finance Department. 

20. Accountants  are responsible for the contents of their register. 

21. Reconciliation of receipts and deposits should be balanced on a daily basis. 

22. Cash refunds must be authorized by the University President. 

23. The university safe shall be located in a visible position.

24. Surveillance systems shall monitor all cash registers at all times. 

 

2. Petty Cash 

Petty cash funds are used for expenditures in connection with approved University activities. The amount and significance of which are so small as to preclude requesting disbursement by cheque. The amount of the fund requested should be limited to the minimum operating requirements to prevent theft of the cash. 

1. The Finance Manager is responsible for approving and controlling all petty cash funds. 

2. A custodian can only be responsible for one petty cash fund.  The custodian is responsible for controlling and safeguarding the fund. 

3. All petty cash expenditures must be supported by a signed authorization and original receipt.  Original receipts are not required for local travel mileage claims and local per diem allowances.  Photocopies or facsimiles of receipts will not be accepted. 

4. All petty cash funds must be replenished and reconciled on a monthly basis and original authorizations and receipts must accompany replenishment requests. 

5. Periodically, the petty cash funds may be counted on a surprise basis by the Finance Manager. 

6. Reimbursements for petty cash expenditures are authorized for approved expenditures of up to AED 500 per transaction. 

7. Petty cash advance (IOU) is limited to AED 500. Requests in excess of the threshold must be approved in advance by the Finance Manager or the University President. 

8. Petty cash may not be used for personal advances, the reimbursement of unauthorized gifts, personal loans, traffic citations, personal expenses, interest charges or personal services. 

9. Petty cash must be kept in a locked box or a locked drawer (or the University safe) when the custodian is absent. 

10. Delegation of custodianship is permitted under certain circumstances, and must be authorized and approved by the Finance Manager. 

11. No cash is to be used from the daily cash collections to replenish petty cash.