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Business Services Guide

Cash Management

Cash Requirements

District Business Services will ensure that adequate cash exists in the county treasury prior to signing off on the Accounts Payable check run. In the case of student financial aid, District Business Services will ensure that adequate cash will exist in the financial aid bank account by the time the funds are released to students.

Cash Flow Projection

At the beginning of the fiscal year, District Business Services will prepare a cash flow projection to assure that adequate cash is available to meet the needs of the district. The cash flow projection will take into consideration the timing of receipt of student fee payments, apportionment payments, property taxes, etc. To the extent that sufficient cash will not be available, District Business Services will arrange for short-term borrowing.

The cash flow projection is prepared in June with Tentative Budget information and then updated in September with final budget information and Advance Apportionment information from the Chancellor's Office.

Internal Controls Over Cash Handling

Cash is the most liquid of assets and is susceptible to loss if not properly controlled. It is extremely important that all departments handling cash implement and adhere to strong internal controls. Proper controls must be put in place to safeguard collections until deposit.

Cash handling duties are divided into three stages: receiving, depositing, and reconciling. All three stages must be performed by different individuals.

Recommended Controls Over Receiving Cash

Recommended Controls Over Depositing Cash

Recommended Controls Over Cash Reconciliation

Revolving Funds

The business offices at the two colleges each have a revolving fund account, which may be used for emergency and other authorized purposes.

Checking Accounts

No individual may open an external checking account for whatever purpose, including co-curricular funds and student body funds. Only certain individuals have been delegated this responsibility by the Board of Trustees.

Petty Cash Funds

A petty cash fund earmarks an amount of cash to be used by the department or college to handle small, miscellaneous, emergency purchases. Petty cash purchases may not exceed $100. Change funds and petty cash funds must be pre-approved by the college business office and the Vice Chancellor, Business Services.

District Business Services may audit any petty cash fund at any time, with or without advance notice.

Fraud

Any individual who has a reasonable basis for believing a fraudulent act has occurred shall contact the Vice Chancellor, Business Services, Lorenzo Legaspi at (925) 485-5203 or llegaspi@clpccd.org.

Contact Information

Please contact Barbara Yesnosky if you have any questions regarding Cash Management. She can be reached at (925) 485-5231.