Cash Management Policy

Responsible Unit: Finance | Executive lead: CFO 
Created: 1/2008 | Reviewed/Revised: 5/2011; 6/2015; 6/2016; 1/27/2023 | Effective: 1/27/2023 
Compliance: NWCCU 2.E.1, 2.E.2, 2.E.3 
Approving Body: Board | Classification: Institution-wide 

Policy:  
This policy outlines the cash management policies for Pacific Northwest University of Health Sciences 

Bank Accounts 
All bank accounts shall be authorized by at least one member of the board of trustees and either the president or a chief officer of the University. There shall be no bank accounts other than those reflected in the general ledger. 

  1. Bank accounts shall be reconciled monthly by personnel independent of check processing and deposit preparation. All transactions are recorded in the appropriate period. 
  2. The university does not overdraw cash accounts. Fund balances are reconciled at least quarterly to ensure fund position is adequately covered. 
  3. Check signers are authorized by at least one member of the board of trustees. Authorized signers are prohibited from signing checks made out to him/herself or any related party. Any changes to authorized signers are communicated to the controller (or his/her designee), who is responsible for promptly modifying the signature cards. 

Payroll disbursements.  
Payroll disbursements are either signed by an authorized check signer, or if paid via Electronic Funds Transfer (EFT), the remittances are approved by an authorized signer. 

All electronic fund transfers/remittances shall require the same supporting documents and authorizing signatures as non-electronic disbursements. All EFTs are signed by an authorized check signer after review of supporting documentation. 

Receipts and Disbursements 
Checks received are restrictively endorsed and logged upon receipt and placed in a secure location until deposited. 

Transfers of cash between university accounts can be delegated to the Controller or CFO for day-to-day cash management. 

All cash disbursements shall be entered into the general ledger accounting system. All transactions are recorded in the appropriate period. Cash disbursements are controlled by an automated function within the accounting system. 

All expenditures shall be approved prior to payment and coding is classified by the assigned staff accountant. 

Outstanding checks shall be tracked and monitored. 

Investments  

  1. All investments shall be made in accordance with a board-approved investment policy. 
  2. Cash and investment accounts shall be reconciled monthly and reported to the Board of Trustees. Earnings shall be allocated to the appropriate GL account. 
  3. All cash and investment accounts shall be monitored for coverage under FDIC or other equivalent assurance that the funds are safeguarded. 

Definitions: 
N/A 

Procedure: 
Cash Management Procedure 

Related documents: 
Investment Policy 

Policy Resources

For assistance with policies and procedures contact:

Lori Fulton
lfulton@pnwu.edu