Policy & Procedures: Cash Receipts & Deposits - General
Purpose: To establish policy and procedures for the handling of cash receipts and deposits, to include currency, coin, checks, ACH transactions, and credit card transactions.
Scope: This policy applies to all school and district operations, administration, licensed educators, staff, students, organizations, and individuals that handle cash receipts or accept payment in any form on behalf of the district or any school. The scope includes all activities and locations where funds are collected.
Segregation of Duties: Wherever possible, duties such as collecting funds, maintaining documentation, preparing deposits and reconciling records should be segregated among different individuals. When segregation of duties is not possible due to the small size and limited staffing, compensating controls such as management supervision and review of cash receipting records by independent parties should be implemented.
Definition: "Public funds" are defined as money, funds, accounts, regardless of the source from which the funds are derived, that are owned, held, or administered by the state or any of its political subdivisions, including LEAs or other public bodies (Utah Code 51-7-3(26)).
CASH RECEIPTS POLICY
(Proposed: March 2014)
1. The District and all schools shall comply with all applicable state and federal laws.
2. All receipting of funds should be done at identified cashier's offices only. No receipting shall be done in other unapproved locations.
3. Employees shall not open bank or investment accounts which have not been approved by the Board of Education.
4. All funds shall be kept in a secure location until they can be deposited. Funds should be deposited daily or within three days after receipt. Employees should never hold funds in any location for any reason.
5. All checks should be made payable to the "Beaver County School District" or individual school by name and be restrictively endorsed upon receipt. Checks should not be made payable to an employee, a specific department, or a program.
6. Appropriate internal controls and segregation of duties should be implemented for all cash activity. Cash should always be verified. Where verification is difficult, cash should be counted by two individuals.
7. All funds (cash, checks, credit card payments, etc.) received must be receipted and recorded in the District or School accounting records. Passwords should be established on the accounting system computers.
8. Documents should be available, and should demonstrate that proper cash controls are in place (signatures for approval, tally sheets, reconciliations, etc.)
9. Under no circumstances are disbursements to be made directly from cash receipts (i.e. purchases, reimbursements, refunds, or to cash personal checks).
10. All payments of fees shall correspond with the approved fee schedule, as required by Board Administrative R277-407. School Fees..
RECEIPTS & DEPOSITS PROCEDURES
All monies received must be receipted and recorded in the district or school’s records. All checks or payments intended for the District or school must be deposited into one of the approved District or school accounts. Monies collected should be turned into the on-site safe on the day they are received. Employees should never hold funds for any reason. Most schools are within minutes of their local bank and daily deposits should be made with the bank when it is practical to do so. Deposits should be taken to the bank preferably on a daily basis and no later than 3 days (state law).
Mail - Where reasonably possible, mail should be opened by an individual independent of the cash receipts process, and funds received should be documented in a receipts log.
Receipts - Secretaries provide patrons with a receipt and retain a duplicate copy of each receipt for future reference.
Frequency of Deposits - State 3 Day Deposit Law - All cash receipts are recorded in the district or school accounting system no later than 3 days from the date of receipt. All cash receipts must be deposited with the bank no later than 3 days from the date of receipt. When possible, deposits are taken to the bank on a daily basis. When cash (checks, currency, and coins) on site reaches $500 or more, a deposit with the bank is highly encouraged. When cash (checks, currency, and coins) on site reaches $1,000 or more, a deposit with the bank shall be made that same day--no exception.
Administrators: School administrators should encourage daily deposits with the bank with school personnel. Funds are always more secure being deposited and stored at the bank. Most schools are within minutes of their local bank, and daily deposits should be a routine and convenient element to school operations.
Deposits - A report for each deposit is printed from the accounting system to match the amount of the deposit. A copy of the deposit slip that was taken to the bank should be attached to the report generated from the accounting system. There should be a notation on the report that references the deposit to cash collection records--i.e. receipt numbers, a log, date of the event, etc. The person making the deposit should notify the appropriate administrator the date and amount of the deposit being made for communication purposes; this may be done by e-mail. The reports are filed for future reference and audit.
Deposits - The amount counted for each deposit matches the amount on the deposit slip and accounting system report. Cash is always counted and verified by two individuals before making a deposit with the bank.
Restrictive Endorsement Stamp - All checks received should be stamped "For Deposit Only" on the back of the check in the endorsement area.
Deposits - The cash/checks/coins are placed in a plastic bank security deposit bag with one copy of the deposit slip at the time of the count (not at a later time/date) and 1) stored in the safe until the deposit is taken to the bank, or 2) taken directly to the bank on the same day. A copy of the deposit slip should be stapled to the accounting system deposit report and kept on file for future reporting and reference.
Deposits - Plastic bank security bags are always used to store and transport deposits to the bank. The school makes a request to the District Office for more bags when needed.
Collections at Office - Collections are never stored in classrooms, desks, or closets or other areas in the school/office and are secured and recorded at the office daily. Coaches and other personnel are instructed that all cash collections should occur at the office. Staff members and coaches should not take money home for personal storage. Each school is required to store money and checks in the school safe until the funds can be deposited at the bank. When the school financial secretary is not available, the principal should ensure all funds (money and checks in any form) should be stored in the school safe.
School Safe & Safeguarding Cash - School personnel should minimize the amount of cash stored on site each day and make daily deposits with the bank as much as reasonably possible. All cash/checks/coins are stored in the safe when deposits cannot be made with the bank. Cash drawers should be locked and secured at all times. Transporting and securing cash in the school safe or with the bank should be done by two individuals together where possible. The school principal should minimize the number of people who have access to the safe.
Counting Cash - Cash is always counted and verified by two individuals at any time custody of the cash changes or at the close of business. This should be done before leaving for the night and a form is signed by both persons involved with counting to verify the amounts. Cash is always counted and verified by two individuals before going to the bank to make a deposit or at the close of business. Many schools provide opportunities for students to count cash as an educational experience. When this is done, two adults should still count the cash to provide verification and documentation.
Cash Counts in Appropriate Locations - When counting cash, workers should do so in a semi-public but safe location. Locations that provide for safe distances from potential theft and away from public view should be used where possible. This is for both personal safety and cash security purposes.
School Activities - Safeguarding Cash - All cash/checks/coins are stored in the safe when deposits cannot be made with the bank. Under no circumstances is cash to be taken home by personnel. Cash should be carried to the safe from the event by two individuals together.
After Hours & Night Bank Deposits - If after hours or night bank deposits are made, the deposits should be made with two individuals traveling to the bank together for safety purposes.