Cash Receipts

To establish a standard procedure for the collection and management of receipts to ensure adequate and appropriate internal control measures for the safekeeping of Health Department funds.  Receipts include, but are not limited to, clinic fees, environmental fees, grant funds or allocated revenue and miscellaneous receipts.

In the event a division receives funds of any type, it is imperative that controls are in place such that the funds are properly safeguarded, accounted for, and documented.  

• All cash, checks, and money orders are to be deposited directly into the designated account for that type of receipt.

• Under no circumstances are disbursements to be made from cash receipts (i.e. for purchases, refunds or to cash personal checks).

This policy defines funds separately as follows:

• cash (currency and coins)

• checks and money orders

• electronic fund deposits

• Division/Site Designated Employee – responsible for intake of receipts and transmittal to Accounting Staff with supporting documentation

• Division/Site Manager – responsible for establishing and maintaining proper environment for safekeeping of funds

• Accounting Staff – responsible for confirmation of receipts and deposit into account in timely manner

• Accounting Supervisor – responsible for proper recording of cash into financial system and reconciliation of account monthly

• Deputy Director of Health – responsible for verifying deposits and reconciliations and overall responsibility for cash control

Safeguards for the receiving and logging of mail as it pertains to miscellaneous cash receipts for each site shall be in place and maintained. The following procedures shall be followed for the processing of mail that potentially contains payments or other amounts belonging to NKY Health:

1. The Site Designated Employee shall open mail the same day as received and shall immediately restrictively endorse all checks, money orders and other negotiable instruments with a Health Department bank “For Deposit Only” stamp. 
   
   Exceptions to this are environmental and local board of health receipts that are deposited into different accounts. For this reason, environmental check receipts are restrictively endorsed with the Environmental bank account stamp by the Environmental Health Assistant, and local board of health check receipts are endorsed with the “For Deposit Only” stamp.
   
   

2. Payments and their supporting documentation shall be sorted according to type of payment in order that environmental and clinic fee receipts can be efficiently forwarded and entered into the appropriate recordkeeping system. 

3. All receipts received in the mail, including environmental, local board of health and clinic miscellaneous receipts, shall be recorded on the daily Miscellaneous Cash/Check Receipts Log indicating date received, payor, check number, check date and amount.  Environmental, local board of health and clinic miscellaneous receipts forwarded to another employee for processing should be noted on log with initials.  Reference attached log. 

4. The Miscellaneous Cash/Check Receipts Log, receipts and supporting documentation shall be forwarded to the Accounting Staff on scheduled courier run days.)

5. Confirmation of receipt is provided by the Accounting Staff with initials on log and copy returned to Site Designated Employee for recordkeeping purposes to be compiled and forwarded to the Buildings and Accounting Administrator at the end of each fiscal year.

6. Once logged, payments received in the mail shall be subject to the same policies and procedures for safeguarding and depositing of funds as all other NKY Health receipts.

All checks and money orders are to be made payable to the Northern Kentucky Health Department and must be immediately endorsed with a Health Department bank “For Deposit Only” stamp. 

Service fees collected are entered immediately into the appropriate system on the day fees are received.  A pre-numbered or printed acknowledgement (receipt) is to be generated immediately for fees collected for services provided.  Money received shall be matched and balanced with daily cash receipt reports generated.  Copies are to be made of all checks received.  

Funds are to be kept in a secured lock box and/or safe with access restricted to limited staff until it can be forwarded to the Accounting Specialist in a secured money bag along with corresponding paperwork.  Totals listed on paperwork must match totals by payment type.  Funds are to be forwarded via Courier on scheduled run days (Tuesdays).  The Division/Site Designated Employee will give secured money bag directly to the Courier for transport.

Accounting Staff verifies receipts against the log or corresponding paperwork and provides confirmation with initials and copy back to designee.  Receipts are to be deposited weekly at a minimum or as needed to limit cash on hand to be under $1,000 to avoid accumulation of large sums.  

Deposit records are forwarded to the Accounting staff to be entered into the General Ledger.  Corresponding paperwork is kept with the stamped deposit ticket and/or receipt.  Electronic fund deposit paperwork is sent to the Accounting staff by Department for Public Health Finance.  The Accounting staff enters electronic funds into the General Ledger on the date it is received into the bank account.  Printed General Ledger entries are filed with deposits and electronic fund deposit paperwork.

The Accounting Supervisor reconciles deposits and Electronic Fund Transfers (EFTs) against the monthly bank statement.  Any discrepancies are thoroughly investigated and documentation made of the findings.  The Deputy Director of Health initials approval for each bank account reconciliation, assuring that the bank statement adjusted balance reconciles with the General Ledger cash balance.  The Deputy Director can review and compare all cancelled checks, bank statements, deposit slips, transfers, and other transaction records prior to reconciliation.

Program financial reports are generated by the Budget & Grants Manager and distributed to the Division Directors within five business days following the monthly General Ledger close which is generally by the 15th of the month.

6/20/2023

• Added Revision Log

4/16/2024

• Updated titles/responsibilities.