Loss of Money and Securities

Scope

This policy provides guidance for reporting losses of money and securities. 

Reason for Policy

To ensure that losses are reported on a timely basis.

Policy Statement

All losses of University money and securities including those for which the University has legally accepted custody and responsibility must be reported regardless of the cause and amount. 

Categories of Losses to Be Reported – All losses resulting from or involving:

• Actual or suspected theft, burglary or robbery
• Errors in record-keeping or making change where theft is not suspected
• Acceptance of invalid of non-redeemable paper include post office or express money orders, and forged or altered checks, drafts, promissory notes, etc.
• Acceptance of counterfeit U.S. or Canadian paper currency

Reporting Requirements

• The theft or disappearance of money or securities owned by the University, or for which the University has legally accepted custody and responsibility, is to be reported immediately to the University Police by both telephone and by completing UM Form 155.
• UM Form 155 is to be signed by the Department or Administrative Head who is charged with the care, custody or control of the money or securities, which was either stolen or disappeared.The form should be forwarded to the Campus Division of Finance within 24 hours after discovery of the loss and to UM Risk and Insurance Management and UM Internal Audit within 48 hours after discovery of the loss.
• Any errors of $50 or more should be reported to an administrative supervisor or fiscal officer.
• All losses affecting credit deposits must be reported on the Cash Receipts Report (CRR) regardless of the cause of amount of loss.
• Attempted theft, burglary or robbery must be reported immediately to the supervisor and the University Police Department even though no loss actually occurred.

Additional Reporting Requirements for Counterfeit Currency

• If counterfeit currency is discovered while in the possession of the University, it must be reported and surrendered to the U.S. Secret Service by the discoverer.If a credit deposit is involved, the resulting shortage must be reported on the CRR.
• If counterfeit currency is discovered by the bank and reported as a reduction to a deposit, the Campus Cashier’s Office must file the reports required above and make the necessary adjustments to the deposit.The bank will notify the U.S. Secret Service and surrender the counterfeit currency directly.

Making Statements Regarding Losses – Employees are not to make any statement regarding a loss to the press or anyone other than a member of the:

• University Police Department
• Campus Division of Finance
• Campus Cashier’s Office
• UM Internal Audit department
• UM Office of Risk and Insurance Management
• UM Treasurer’s Office
• UM General Counsel’s Office

Definitions

Cash Receipts Report (CRR) - the daily recording of revenue received by an entry in the financial system with the correct account and MoCode.  Once approved, the funds post to the general ledger.

Accountabilities

UM System Internal Audit:

• Investigate reports of loss

UM System Risk and Insurance Management:

• Investigate reports of loss

UM System Treasurer’s Office:

• Assist campuses in reporting loss
• Assist banks, as needed, with counterfeit currency incidents

Campus Division of Finance:

• Ensure that UM Form 155 has been completed correctly
• Forward UM Form 155 to UM Risk and Insurance Management and UM Internal Audit within 48 hours after discovery of loss
• Report counterfeit currency to U.S. Secret Service

Campus Departments:

• Report a theft of any amount, or an error of $50 or more to their administrative supervisor or fiscal officer, who will inform University police.
• Complete UM Form 155 and forward to Campus Division of Finance within 24 hours of loss discovery

Campus Police Department:

• Investigate reports of loss

Additional Details

Forms

UM 155 – Disappearance of Assets and Money

Related Information

History

Formerly Cash Receipts Manual 501 – Loss of Money and Securities (effective 02/28/1997)

Procedure