Glossary of Terms
| ACH | An abbreviation for Automated Clearing House, a widely used system for processing automated deposits directly into and withdrawals from bank accounts. | |
| Accountability | One of four critical policy activities. Ensures that a person who has been delegated responsibility for a task has the knowledge and skills needed to perform the job duties appropriately and is actively involved in the task being performed. | |
| Asset custody duties | A person who has access to cash, safes, lock boxes, files cabinets, etc. where cash, returned checks, or other assets are stored. | |
| Authorization duties | Duties that are normally performed by a supervisor, office manager, or department head and that include the review and approval of transactions - especially unusual transactions such as voids, refunds and cash transfers. | |
| Cash | A term used in the UC cash handling policy that includes a variety of financial instruments in addition to paper money and coins. | |
| Cash handler | As used in the UC Cash handling policy, a cash handler is a person who frequently handles cash, processes payments and prepares deposits to a main cashiering station. In general, this person operates cash handling equipment, e.g. a cash register. In BUS-49, a unit with this level of activity is called a sub-cashiering unit. | |
| Cashier | As used in the UC Cash handling policy, this term refers to a person who works in a main cashiering station. The primary function of this individual is cash handling, payment processing and preparing deposits that go directly to the bank. | |
| Change fund | A fund of money for use by a unit who sells goods or services and hence needs to be able to provide change when transactions are paid in cash. | |
| Currency | A form of money in actual use as a medium of exchange. | |
| Departmental cash handler | A person who only occasionally handles cash or processes deposits to a main cashiering station. Examples of the types of funds that may be received and processed include gifts, donations, and telephone or photocopy reimbursements. | |
| Dual custody | The involvement of at least two individuals in critical cash transactions to check each other and reduce the risk of a loss occurring. | |
| Endorse a check | To sign, stamp, or imprint the back of a check as evidence of the legal transfer of its ownership. | |
| Fiduciary | a. Any person responsible for the custody or administration, or both, of property belonging to another, as, a trustee. b. Of, relating to, or being a trustee or trusteeship. c. Held in trust. One such as an agent of a principal or a company director, that stands in a special relation of trust, confidence, or responsibility in certain obligations to others. |
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| Fund custodian | A person who has been assigned responsibility for administering either a petty cash or change fund. | |
| General Ledger | The permanent record (either paper or electronic) of an entity's financial transactions organized by account number. Typically, it provides beginning and ending balances in each account by accounting period and may contain financial transactions in either summary or detail form. At UCSC, the Financial Information System (FIS) aka Banner, is the campus General Ledger. | |
| GL | An abbreviation for General Ledger (See above) | |
| Main Cashiering Station | A campus unit who deposits directly to a bank. At UCSC there are two main cashiering stations: - The main cashier's office (102 Hahn) - University Extension office (UNEX) |
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| Petty cash fund | A fund of money to allow employees or students to acquire low value goods and services from outside vendors on an immediate or short term basis. Note: Some restrictions apply regarding the items that may be purchased. |
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| Physical Security | One of four critical policy activities. Requires that the safety of people, cash and other assets is maintained and controlled. | |
| Postdate | To affix a date on a check that is later than the date the check is actually written. The campus policy is to deposit all checks when received without regard to the check date. | |
| Reconciliation | One of four critical policy activities. A variety of comparing or reconciling functions performed by the cashier, manager/supervisor or the Accounting Office to ensure that transactions are properly documented and approved, and assurance that appropriate individualsare involved. | |
| Record keeping duties | This includes all duties that result in the creation and maintenance of department records of revenue, expenditures and inventories. These records may be paper records or records maintained in an automated computer system. | |
| Remittance | A payment sent in the mail. | |
| Secure location | BFB BUS-49 defines the requirements of what constitutes a secure location based upon the amount of cash routinely stored. Up to $1,000 can be stored in a locked desk, filing cabinet, etc. (Note: Avoid S-100 locks which are common on campus). Amounts of $1,001 up to $2,500 must be stored in a safe. Larger amounts must be stored in a safe that meets the requirements stated in the policy (pg. 9) and an appropriate alarm system installed to alert campus police. Only staff who have cash handling responsibilities should have access (via key or combination lock) to the secure location. | |
| Separation of duties | One of four critical policy activities. A division of responsibilities for the functions that make up a process among various staff members to ensure that inappropriate transactions do not occur and that any errors are noticed and corrected. Duties that are separated include: record keeping, authorization, asset custody and reconciliation. Frequently referred to as Segregation of duties. | |
| Sub-cashiering unit | As used in UC cash handling policy, a campus unit who frequently handles cash and routinely processes deposits to a main cashiering station. | |
Last Revised 7/6/2006