- d
(Approved by authority of the President)
Purpose
This policy establishes University requirements for the collection, accounting, and safeguarding of all cash and negotiable instruments to reduce financial risk. It also directs the management of banking relationships by the authority delegated under Administrative Order No. 101, Business and Financial Affairs.
This policy:
- Establishes requirements for the collection, accounting, and safeguarding of cash and negotiable instruments;
- Provides internal controls to reduce financial risk to the University; and
- Directs management of University banking and financial institutions relationships to the delegated authority.
Scope
This policy applies to all University units and entities that collect monies on behalf of the University, unless specifically excluded by the Senior Vice President for Finance, Planning & Budgeting.
Definitions
Cash—All physical monetary items such as currency, coins, checks, money orders, and traveler’s checks, excluding credit or debit card transactions. References to Cash in this policy refer to the physical monetary items. References to cash (lowercase) include all types of funds held on behalf of the University.
Segregation of Duties—A process of safeguarding cash by assigning the handling, recording, and reconciling of cash to different individuals to ensure accountability and to reduce risk.
Responsibilities
University Treasurer
- Manages daily cash operations including daily cash forecasts, transfers between custodial banks and operational banks, management of bank accounts, and University bank reconciliation and settlement functions.
- Oversees relationships with financial institutions to ensure liquidity of short-term University assets,
- Approves the establishment and use of University bank accounts, adoption of appropriate controls, and any exceptions to this policy.
- Approves and maintains the UW Cash Handling Policy to ensure adequate controls over cash receipts and disbursements.
UW Medicine Accounting Shared Services
- Manages bank reconciliation and settlement functions for the UW Medical Center and related hospital entities.
Policy Statements
1. Requirements for Business Processes
1.1. Cash Management
- All funds due to the University must be deposited into an authorized University bank account as stated in UW Cash Handling Policy – Deposits.
- UW Treasury monitors bank account balances daily to ensure sufficient funds are available to meet operational needs.
1.2. Banking
- The UW Treasury Office manages relationships with banks, investment firms, financial advisors, and other financial institutions.
- All domestic and international banking services conducted using the University’s Tax ID and/or University of Washington name require approval from the University Treasurer or the designated delegate.
- Associated services include but are not limited to: deposit and checking accounts, wire transfers, ACH payments, lockbox services, loans, credit and debit cards, and safety deposit box rentals.
2. Internal Controls
2.1. Applicable Policies
- University units handling monies must conform to accounting policies and guidelines issued by the state Office of Financial Management (OFM) as set forth in the State Administrative & Accounting Manual (SAAM).
- University cash handling policies and procedures must align with SAAM standards for internal controls under SAAM 85.50 and the UW Cash Handling Policy.
2.2. Unit Procedures Internal Controls
Units must establish, document, and maintain sufficient internal controls when handling the collection and deposit of Cash.
Each department must develop written procedures addressing the following elements of the UW Cash Handling policy:
- Accounting for Cash as received;
- Segregation of duties;
- Safeguarding and secure storage of Cash;
- Transportation of Cash;
- Prompt deposit of Cash;
- Timely reconciliation of Cash activity; and
- Independent monitoring of Cash processes by administrators not directly involved in handling funds.
3. Segregation of Duties and Safeguarding Procedures
3.1. Segregation of Duties
- Responsibilities for invoicing, receiving funds, depositing funds, and reconciling transactions must be assigned to different individuals. No individual may both accept and deposit Cash or perform the reconciliation.
- Cash reconciliations must be reviewed and approved by an individual independent of Cash handling or recording functions, with the reviewer’s signature and date evidencing approval.
3.2. Controlled Access
- Access to all forms of Cash, checks, cash equivalents, deposit supplies, and account information must be controlled.
- Cash and equivalents must be physically protected using safes, vaults, locked cash drawers, locked cash registers, cashier cages, or other approved secured methods.
3.3. Loss Reporting
- Actual theft or loss of University assets must be reported to the University Treasurer and UW Internal Audit, and recorded in the University’s General Ledger.
If potential fraud, theft, or other illegal act is suspected, APS 47.10, Financial Irregularities and Other Related Illegal Acts, must be followed.
Responsible Office and Additional Information
For further information contact the UW Treasury Office.
History
March 3, 2026.