GENERAL CASH RECEIPTS POLICY (July 2010)

Departments that have had their cash receipts policies and procedures reviewed, documented and/or tested by the Internal Control Officer (ICO), during the last 3 years,  should continue to use the existing guidelines but should review the general guidelines to identify any areas requiring improvement or change. They should communicate this information to the ICO who will assist them in any necessary updates.

The term “cash” as used herein includes currency, checks, money orders etc.

CENTRAL CASH COLLECTION AREA (Student Accounts)

• Segregate responsibility for receiving “cash”, maintaining accounting records, preparing deposit slips, making bank deposits, disbursing cash, reconciling cash, registering students, and posting financial aid awards, when feasible. Implement additional supervisory reviews for those procedures that cannot be segregated amongst different employees.
• Restrictively endorse checks ("for deposit only") immediately upon receipt.
• “Cash” receipts received through the mail should be safeguarded to ensure all payments received in the mail have been properly recorded. This may be accomplished by having someone open the mail that does not have any other responsibility for posting, depositing, or reconciling cash receipts. When it is not feasible to segregate these responsibilities, mail should be opened by two designated employees. The number of payments received should be recorded and acknowledged by both employees and reconciled at the end of the day to internal accounting records to ensure all funds are accounted for.
• Display signs advising payers to request a receipt.
• Issue a press-numbered receipt form or a computer generated receipt or statement to acknowledge the receipt of cash.
• Require supervisory approval for all voided transactions, and ensure that the supporting documentation includes evidence (i.e. signature) of these approvals.
• Utilize a safe to store funds between bank deposits.
• All “cash” receipts must be deposited into the College’s operating bank account approved by the Office of the State Comptroller.
• Deposits should be made daily.
• Deposits are to be made "intact" as received, i.e., cash for needed expenditures should not be deducted from a deposit nor should personal checks be cashed from the funds.
• Utilize a courier service, whenever possible.
• Reconcile daily “cash” receipts to the receipts posted within the accounting records and daily deposit slips. Investigate and resolve any discrepancies.

REMOTE CASH COLLECTION AREAS (Departments)

• All departments accepting “cash” must have prior approval by the College’s senior administration, written policies and procedures and a notification process to the Business Office. 
• Endorse all checks immediately upon receipt (preferably with an endorsement stamp).
• Signs should be displayed advising payers to request a receipt form.
• “Cash” receipts should be controlled by using press-numbered receipts, cash registers, or pre-numbered tickets.
• Press-numbered receipt forms should be printed in triplicate. The original should be given to the payer, the duplicate used to establish accountability for the “cash” collected, and the triplicate retained in numerical sequence to establish accountability for the forms printed and used.
• A “cash” receipts log should be maintained when using press-numbered receipts for tracking each receipt. The “cash” receipts log should include:
 o Receipt Number
 o Date each remittance was received.
 o Name of the remitter.
 o Amount of each remittance.
 o Form of each remittance (e.g. check, cash, and money order).
 o Check number and date.
 o Purpose of the collection (if known).
• “Cash” receipts received through the mail should be safeguarded to ensure all payments received in the mail have been properly recorded. This may be accomplished by having someone open the mail that does not have any other responsibility for posting, depositing, or reconciling cash receipts. When it is not feasible to segregate these responsibilities, mail should be opened by two designated employees. The number of payments received should be recorded and acknowledged by both employees and reconciled at the end of the day to internal accounting records to ensure all funds are accounted for.
• Reconcile “cash” received to the cash register tapes or to the cash receipts log at the end of the day or at the end of each shift.
• Submit “cash” receipts with a record of funds collected to student accounts at the close of each business day, if feasible. If daily transmittal is not feasible, transmittals should be made at least once a week.
• Safeguard “cash” in a safe or lockbox to safeguard funds between deposits.
• Deliver deposits to student accounts manually, never send via campus mail.
• Reconcile deposits provided to student accounts to internal records to ensure all deposits transmitted have been properly reported in the accounting system.