Cashiering Services: Critical Cash Control Procedures

Last Updated: September 19, 2025 4:22:04 PM PDT

If you handle cash or checks for your department, please review the procedures on this page.

Cash control procedures

These cash control procedures are based on UC Business and Finance Bulletin 49 (BUS-49) (PDF) and fall into 4 main areas, which are listed below. See the following links for more information about each area.

Segregation of duties prevents employees from concealing errors or irregularities.
Asset accountability ensures that assets are accounted for, properly documented and secured, and trackable to specific cash handlers.
Physical security focuses on the safety of people and the proper maintenance and control of assets.
Reconciliation procedures ensure proper documentation and approval of transactions.

Segregation of duties

Ideally, the functions in the table below should be performed by different individuals to maintain a system of checks and balances. Sometimes, however, staffing levels require that one individual perform 2 or more of the functions.
Function	Example of duties
Recordkeeping	Ring, process, post/ validate cash register transactions. Record sale transactions manually. Prepare cash receipt back-ups. Post only charges/ payments to an accounts receivable system. Collect and forward all records of sales activity, cash register readings, and sales adjustment (i.e., voids, refunds/ returns, inventory adjustments, daily and monthly balancing records and sales audits) to the department's accounting office for proper reconciliation to the general ledger.
Authorization	Approve voids, refunds, and other correcting entries. Approve departmental deposits. Approve cash transfers. Approve movement of assets. Approve anything that is unusual.
Asset custody	Access any fund ("cash"). Access stored cash or other assets. Maintain custody of petty cash or change fund. Maintain access or custody of returned checks.
Reconciliation	Performed at a supervisory level or by department's accounting office Compare funds collected to the accounts receivable postings. Compare collections to deposits. Compare a surprise count of the asset inventory to the appropriate records. Compare departmental records of revenue (sales) to the general ledger. Once reconciliation is complete, all records of reconciliation process should be stored by the department accounting office along with all records pertaining to sales activity.

Asset accountability

The functions in the table below enable cash handlers to maintain a proper accountability structure.
Function	Example of duties
Individual	Identify every transaction to an individual. Assign each cash handler a separate drawer. Assign each cash handler a separate password. Perform a background check for each cash handler.
Cash	Secure all funds properly. Document all movement ("transfers") with receipts. Secure all cash transactions in a safe place. Give a receipt to every customer. Do not share safe combinations and passwords. Secure keys properly.
Process	Know where an asset is at all times. Document all transfers with receipts. Prepare, maintain, and secure all receipts.

Physical Security

The physical security functions in the table below ensure the safety of people and assets.
Function	Example of duties
Monitoring	Use an armored car or a police escort to transport cash. Open and close a cash handling station with two people present. Store assets properly. Alert campus police with an alarm system as necessary. Secure keys properly. Change safe combinations annually or when there is turnover of staff. Avoid counting cash when visible to others.
Physical layout	Follow the risk management standards cited in BUS-49 policy (PDF). Store assets and cash properly. Avoid counting cash when visible to others. Install and utilize the proper alarm system.
Personnel pre-screening	Perform background checks on all prospective cash-handling employees. Fingerprint all prospective cash-handling employees.
Inventory control	Report shortages and overages to the appropriate contacts. Secure keys properly.

Reconciliation

The functions in the table below ensure proper documentation and approval of transactions.
Function	Example of duties
Transaction recording, documentation and follow-up	Collect receipts. Reconcile daily receipts to the cash register totals.
Authorization and approvals	Reconcile the receipts issued to maintain numerical order. Reconcile and verify the register beginning and ending balances. Perform surprise cash counts on an annual basis or during staff changes.
Segregation of duties	Reconcile bank accounts to major cash handling deposits. Perform receipt number reconciliation control. Reconcile and control register transaction/ dollar values. Control and authorize error, void, and/ or refund transactions.

Buying Cash Registers and Point-of-Sale Equipment

Contact Internal Controls & Accounting to ensure your equipment:

Restricts access, which could include locks and unique login codes
Has a numbering mechanism that automatically generates and records unique, consecutive transaction numbers
Restricts numbering mechanism access to the manufacturer's service representative or appropriate personnel, independent of that cashiering station
Prints a receipt for each transaction with the date, campus, department, cashier, and transaction number
Omits credit card number (except for the last 4 digits) and expiration date on receipts when a card is used Note: Equipment processing credit card payments must comply with Payment Card Industry (PCI) rules.

For more details, see UC Business and Finance Bulletin BUS-49 (PDF)

Using Manual Receipts

You may need to use manual receipts for off-site sales, during power outages, or if your department has infrequent sales transactions. Follow these procedures to comply with UCSD requirements:

Manual Receipts Requirements

Include the following information on each receipt

Cashier initials
Cashier identifier (name, cashier code)
Date
Amount
UCSD department
Method of payment
Items purchased/paid for
A statement that the receipt is an official UCSD receipt

Other requirements

Receipts must have pre-printed consecutive numbers.
Keep a copy of each manual receipt as well as any voided or unused receipts for accounting and auditing purposes.
Balance your receipts against revenue on a daily basis.
Record and investigate any discrepancies.

Note: Order receipt books from Marketplace, or create them using Microsoft Word or Excel.

Selling Admission or Event Tickets

Tickets for events are considered cash equivalents — similar to checks, credit cards, money orders, and bank notes.

Use the following controls when handling tickets

Storage

Store tickets in a secure location with limited access.
Remove small blocks of tickets at a time from storage.

Ticket information

Make sure tickets are printed with:
- Value
- Event description
- Campus department
- Consecutive numbering
- Date(s) of performance or activity

Accounting

Assign each block of tickets to a specific cashier.
Record the cashier and date for each ticket sold.
Consider each ticket both the product being sold and the receipt.
Keep voided tickets for reconciliation and audit purposes.
Balance ticket sales to the revenue they produce on a daily basis.
Each month, someone outside of ticket sales should complete a full accounting of tickets sold against cash received and amount posted to the general ledger.
Keep a record of each reconciliation for audit purposes.

If you need help evaluating your tickets procedures, contact Internal Controls & Accounting. For more information, see:

UC Business and Finance Bulletin BUS-49 (PDF)