Budget and Finance Policy and Procedure Office
A Division of The Office of Budget and Finance
A Division of The Office of Budget and Finance
This procedure outlines the basic control methods required when any tangible item (anything of value other than equipment) is transferred from one party to another. For the purposes of this procedure, items of value include, but are not limited to, money, checks, tickets, pre-numbered documents, and controlled documents. This procedure must be followed when transferring deposit bags to the Bursar or a Bursar-designated depository, and will serve as a guide to the minimum controls recommended if any administrative or departmental areas of the University wishing to implement an internal procedure to account for the physical transfer of a non-equipment item.
There are two types of transfers that will be described in this procedure. The first is a direct transfer between two parties consisting of an "originator" and a "receiver." The second is a transfer between two parties consisting of an "originator" and a "receiver" via one or more intermediate parties or "couriers."
This procedure must be followed when transferring secured deposit bags between departments of the University and the Bursar or Bursar-designated depositories, or if utilizing the Auxiliary & Business Services (ABS) "Bank Deposit Bag Tracking System."
Specific guidelines for the preparation and depositing of receipts are specified in procedure FN2001 Processing Cash Revenues.
Specific guidelines on the use of ABS Bank Deposit Bag Tracking System are specified in procedure CR2007 Bank Deposit Bag Tracking System.
Transfers must be thoroughly documented via the use of an Accountability Transfer Form. When transfers occur frequently, the use of an Originating Office Transfer Log or a Courier Transfer Log is recommended.
In accordance with Policy FN01 Cash Revenues, cash receipts (paper money and coins) must be transported for deposit via a physical transfer and under no circumstances by interoffice or U.S. mail. Properly endorsed checks, money orders, and traveler's checks may be sent through the interoffice mail. Empty deposit bags may be returned to the depositing departments via interoffice mail.
The party initiating a transfer will initiate an Originating Office Transfer Log. The party receiving a transfer will sign the document indicating receipt of the item.
Each party generating an Originating Office Transfer Log will retain the log on file as evidence of transfer of accountability. The Financial Records Retention Schedule requires completed Transfer of Accountability Logs and Forms (maintained in chronological order) be maintained from the end of the fiscal year in which the transfer occurred plus two (2) years. After the retention period has expired, the completed log may be recycled or shredded.
Couriers may be utilized for transferring items between the originating party and the receiving party. A Courier Transfer Log is to be used.
Policy FN01 Cash Revenues requires Bursar Deposits, Bank Deposits, and Bank Deposit Bag Tracking System deposits be transported in accordance with this procedure. Appropriate accountability transfer documentation must be maintained. See Procedure FN2001 Processing Cash Revenues and/or CR2007 Bank Deposit Bag Tracking System for specifics.
Couriers may be used to transport confidential materials between designated locations. For those offices utilizing either the Courier Transfer Log or the Originating Office Transfer log, the courier will assume responsibility for the documents by signing an Originating Office Transfer Log. The courier will then fill out the Courier's Transfer Log. Upon delivery of the transfer to the Receiving Office, the representative receiving the transfer from the courier must sign the Courier's Log for all items received and return the form to the courier. This signature completes the transaction, and the courier is relieved of responsibility of the materials.
NOTE: If a party is on a regular courier pick-up schedule the courier should be notified by the originating party if there is no need to stop.
This procedure does not pertain to the transfer of equipment. See the "Relocation of Equipment" section within Procedure CR2019 Accounting for Capital and Non-Capital Property for details on transferring equipment.
Violations of University policy should be reported to the appropriate supervisor, unit manager, Human Resources representative, or the office responsible for the relevant policy or procedure. If these channels are insufficient or unavailable, individuals may submit an anonymous report through the Penn State University Hotline, accessible via the Reporting at Penn State website.
In situations where the use of this procedure is required, it will be the responsibility of the Financial Officer to insure that this procedure is properly implemented in their respective areas.
The Financial Officer is responsible for ensuring that procedures pertaining to the accountability and safeguarding of all cash receipts, cash funds, and other assets are established and followed in accordance with approved University policies and procedures. Regular audits relating to advances, cash, travel, equipment accountability, and other expenditures provide a means to protect University assets. The Financial Officer is responsible for working with Internal Audit when audits are being performed in the administrative area. Audits relating to sponsored activities or other audits performed by external auditors may also be performed. The Financial Officer would also be responsible for working with the external auditor and/or a central university office related to these procedures.
University Records must be retained and managed in accordance with Policy AD35 University Archives and Records Management, and the University's Records Retention Schedules.
Additional questions may be directed to the Office of Records Management.
There no exhibits associated with this procedure.
For questions, additional detail, or to request changes to this procedure, please contact the Policy and Procedure Office.
March 9, 2022