102-11 Contracting with a Third Party for University Business
Fiscal Operations Manual
Section 100: Revenue (External) - Depositing & Recording
The University or an individual department may need to engage a third party to assist in the processing and management of cash, cash equivalents, credit cards, and ACH transactions. Third parties may provide:
- Lockbox services
- Web/Internet interfaces to internal and external clients
- Processing of currency, coin and other cash equivalents
- Processing of electronic bank account payments, such as ACH
- Credit and debit card processing
Relying on third parties to process University cash, cash equivalents, credit/debit card, and ACH transactions requires extreme care in the selection and ongoing management of such third parties. Accordingly, the following polices are necessary to safeguard University assets:
- Business Affairs, in conjunction with the State Treasury, must approve any third party relationship where the third party is in possession of University assets to process University cash, cash equivalents, credit/debit card, and/or ACH transactions.
- Before a department enters into any such relationship, Business Affairs must review the third party’s cash handling procedures, security standards, and references.
- At least bi-annually, Business Affairs will review third-party relationships whereby the third party processes cash, cash equivalents, credit/debit card, and/or ACH transactions. The review will include, with the department, an assessment of cash handling/processing and adequacy of services provided.
- Third parties that assist the University or individual departments with management of cash and cash equivalents must provide documentation of regulatory compliance (including, but not limited to, Payment Card Industry Data Security Standards and State statutory or regulatory privacy requirements). They must also provide accurate and timely handling of cash, cash equivalents, credit/debit card, and/or ACH transactions and transactional data as is established for the University and state agencies.
For additional information see the Cash Handling Handbook