Section 2 - Cash and Cash Equivalents

Summary of Cash and Cash Equivalents

Cash handling is a significant risk area and requires strong internal controls. The accounting definition of "cash" includes currency, bank deposits, checks and other financial instruments that can be readily converted to cash.

All employees who handle cash or checks should be familiar with and implement these policies. Supervisors are responsible for designing appropriate internal controls and for enforcing these procedures in all situations.

CASH AND CASH EQUIVALENTS 1.0 (Handling of Cash Receipts) details basic requirements for cash handling wherever cash is received, stored, or processed. These requirements include restrictive endorsement immediately upon receipt, weekly (or more frequent) deposits, storage in as few places as possible, control totals, and separation of duties. Receipts shall not be held pending clarification or for any other reason.

CASH AND CASH EQUIVALENTS 2.0 (Deposits to the State Treasurer) details procedures for deposits through the Bureau of Fiscal Services (BFS).

Special runs and checks are restricted since internal controls are sometimes bypassed, risk of error is increased. See CASH AND CASH EQUIVALENTS 4.0 (CARS Special Run and Payment) for detailed procedures and the respective required approvals relating to CARS special runs and payment. Special runs will not be processed unless these procedures are followed.

Occasionally, checks need to be traced or replaced, a stop payment made, or endorsements may have been forged. Procedures and forms for these requests to the State Treasurer (directly or via BFS) are described in CASH AND CASH EQUIVALENTS 5.0 (Proof of Payment, Stop Payment, Replacement and Forged Checks).

CASH AND CASH EQUIVALENTS 6.0 (Depository Funds and Petty Cash Reports), CASH AND CASH EQUIVALENTS 6.1 (Procedures for Petty Cash Accounts), and CASH AND CASH EQUIVALENTS 6.2 (Cash Reconciliation and Certification) provide details applicable to petty cash, client, or other depository accounts maintained by an organization/entity within the Department.

CASH AND CASH EQUIVALENTS 7.0 (Procedures for Processing E-Payments and Updated Banking Services, including Lockbox and Credit/Debit Card Payments) This policy includes contacts for lockbox issues at the Office of the State Treasurer and at the State's working bank. The policy also includes procedures for establishing a lockbox, making coding string changes to the lockbox and for making changes to the lockbox which involve the State's working bank.

CASH AND CASH EQUIVALENTS 8.0 (Financial Institutions Asserting Holder in Due Course) provides guidance for responding when a financial institution requests reimbursement for a State of Wisconsin check that has had a stop payment order placed on it.

Last Revised: September 8, 2017