Cash Receipts for Environmental Health and Safety

To establish a standard procedure for the collection and management of environmental program receipts in the Environmental Health and Safety Division to ensure adequate and appropriate internal control measures for the safekeeping of Health Department funds and in accordance with Administrative Reference Manual Environmental Fee Revenue Procedures Guidance.  

Environmental revenues are those revenues generated by the payment of permits and fees collected through programs administered by the Environmental Health Program.  Environmental revenues include both fees obtained from mandated program services and those fees obtained through activities operated by the district health department.

• An Environmental Holding Account must be established and maintained by the NKY Health and used for all environmental programs.  This account is mandated by statute.   

• All fees generated by environmental services and programs are to be documented and entered into the EHMIS system on a regular basis; and, prior to deposit into the Environmental Holding Account.  

• The Environmental Holding Account is to be checked against Report 49 and 50 each month.  

• Based on those reports, the Environmental Holding Account should be “zeroed” out at the end of each month with a check being issued to the Kentucky State Treasurer through the Division of Public Health Protection & Safety and a check issued to the district health department’s general account.   

• Monthly balances and transactions should be reviewed and approved by management prior to close out of each month and documented with the date and initials of the person performing the review.  

This policy defines funds separately as follows:

• cash (currency and coins)

• checks and money orders

• electronic fund deposits

• An application for permit should be completed whenever there is a new establishment or when there are changes made to an existing establishment.  Typically, a fee will accompany the application on all new facilities or when the ownership changes for an existing facility.  Permit fees should be collected at the time the permit application is received whenever possible.  Invoicing of permit fees is allowable when necessary; however, fees should be received and entered prior to the final approval and generating of the permit to operate.  On all new establishments, an opening inspection report should accompany the permit application when being entered into the system.  Renewal applications for all permitted program areas should be mailed out at least thirty days prior to the permit expiration date.  

  • State owned facilities such as state park food service operations, routinely pay permit fees through an inter-accounting system that is processed through the state.  The application for permit should be entered into the system at the local level and flagged as a state owned property.  These facilities are then identified by the State office and forwarded for payment processing through the EMARS- the Electronic Management Administrative Reporting System, which in turn sends the bill to the appropriate Cabinet.  

  • Charitable or other fee exempt facilities such as schools and soup kitchens shall be entered into the data system as normal and flagged as fee exempt on the application for permit form.  

• The majority of fees are collected in the office.  It shall be ensured that 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 for the environmental fee account.  The account number is entered directly on to the check in the memo section.  Cash is to be discouraged as a method of payment but can be accepted if no other form of payment is possible. Cash in large denominations or that appears to be suspicious can be marked with a counterfeit detector pen to verify.   

• Environmentalists should not accept fees in the field except for temporary food service permit fees which may be collected provided they are $20.00 or less or the risk of not being paid exceeds the risk of accepting the fee.  Vendors prepaying should be encouraged to assure proper security and tracking of these funds.   

• All fees collected in the field and their receipts are to be given by the Environmentalist to the Environmental Health Assistant upon return to the office.  Funds are to be kept in a secured lock box and/or safe with access restricted to the person or persons assigned to process the money and the Director or their delegate until it can be forwarded through the Courier to Accounting Staff in a secured money bag along with corresponding paperwork.

1. Service fees collected are entered immediately into the appropriate system on the day fees are received.  A printed acknowledgement (receipt) is to be generated at time of receipt and made available to the vendor if desired.  This receipt should include the amount, the name of the person or entity making the payment, the date of transaction, name of the person accepting the payment and the purpose of the payment.   A permit application or request may suffice as the receipt as long as the necessary information is included on the application and a copy is available for both the applicant and to the agency.  For all other non-documented services, a pre-numbered receipt should be issued whenever monies are received.  

2. Receipts are distributed as follows:

• Copy #1 Goes to client.

• Copy #2 Retained in office file for that facility.

• Copy #3 Sent to the Accounting Staff with money attached via courier run on Tuesdays weekly.  A calculator tape of each daily batch of environmental receipts must be run and reconciled to the daily report and the total cash to be sent.  Attach the calculator tape to the money and receipts.  

3. Receipt Forms:  The appropriate application forms as listed below can be used to serve as valid receipt for payment or a printed permit copy through the EHMIS system  

• Application for permit to operate a food service establishment.

• Application for permit to operate a retail food market.

• Application for permit to operate a temporary food service establishment.

• Application for permit to operate a hotel or motel.

• Application for permit to operate a septic tank cleaning business.

• Application for permit to operate a septic tank cleaning vehicle.

• Application for site evaluation for onsite sewage disposal systems.

• Application for license for onsite sewage disposal system installers.

• Request for inspection of existing subsurface sewage.

• Disposal system and/or private water supply system.

• Application to license a youth camp.

• Application to license a frozen food locker.

• Application for permit to operate a mobile home park.

• Application for permit to construct or alter a mobile home park.

• Fee application to operate a swimming pool. 

1. Open a new A/R cash drawer to record daily receipts.

2. Key data into the CDP Computer System EHMIS Module.    

3. At the end of each day, close out the A/R cash drawer and print out CDP Report #48.

4. Run a calculator tape of money received by reporting area and compare to daily report totals.  Investigate and correct any discrepancies.  Late fees are run separately on calculator tape. 

5. Make copies of all checks received.  Check copies and receipts are included with paperwork.

6. Special month-end handling: Money received on days at end of the month that is not scheduled to be deposited until the following month is entered in for that day and into the next month as the Processing Period Month.

1. The Environmental Health Assistant will compile paperwork and money weekly each Monday, place in secured money bag and given directly to the Courier for transport each Tuesday to Accounting Staff.

2. Accounting Staff verifies money against the receipts and supporting documentation attached. Receipt confirmation is provided with initials and date on Report #48 and copy sent back to the Environmental Health Assistant.  The deposit is made by close of business each Tuesday to limit cash on hand to be under $1,000 to avoid accumulation of large sums. 

3. The Environmental Health Assistant is to maintain check copies and initialed #48 Reports for a period of one (1) fiscal year and destroy by the end of August of the new fiscal year.  Original documentation is kept on file with Accounting in accordance with retention limits.

1. At the end of the month, the Environmental Health Assistant is to send copies of CDP Report #247 Kentucky Environmental Accounts Receivable by county, CDP Report #49 Environmental Monthly Cash Entry Register and CDP Report #50 Report of Cash Receipts along with any documented and approved adjustments to the Buildings and Accounting Administrator for reconciliation with the monthly bank statement

2. Deposit records are forwarded by Accounting Staff to the Buildings and Accounting Administrator.  Corresponding paperwork is kept with the stamped deposit ticket and/or receipt.

3. Deposits and returned item(s) are reconciled against the monthly bank statement.

4. According to amounts prorated by statute, checks will be drawn payable to the Kentucky State Treasurer and to NKY Health's General Account at the end of each month to “zero out” the Environmental Holding Account.  

5. The bank reconciliation along with the Report of Cash Receipts and checks are forwarded to the Director of Administration and Accounting for review.

6. The Director of Administration and Accounting reviews for accuracy and approves with initials and date on the bank reconciliation.

7. Checks written on the Environmental Holding Account must be signed by two authorized individuals.  

8. The Accounting Manager will then forward the CDP Report #50 along with the Kentucky State Treasurer check to the Department of Public Health prior to the 10th of the month.  The check made out to the General Account will be deposited to that account. 

In accordance with 902 KAR 8:165, NKY Health shall conduct an annual audit.  Environmental fees and collection practices is to be included in this audit in order to verify program fees and the effectiveness of the Internal Control Procedures.

• All Requests for Refund should be completed using the Request for Refund form with supporting documentation attached.  

• The Environmental Health and Safety Manager or Director of Environmental Health and Safety must approve all Requests for Refunds prior to completion.  

• If the refund includes state fees that have already been processed, the agency must mail the completed Request for Refund form to the Cabinet for processing of the refund.   If the refund involves local money only, the Request for Refund form is completed and signed off on by the Environmental Health and Safety Manager or the Director of Environmental Health and Safety.  

• A check is to be issued from NKY Health's General Operating Account.

• Writing off bad debts shall be completed when attempts have been made to collect the debt and the account exceeds 120 days.  

• A facility permit should not be renewed when there are outstanding balances against that particular facility and permit holder.  

Follow these steps:

1. The Environmental Health and Safety Manager or the Director of Environmental Health and Safety approves all write off of bad debts.  

2. The Environmental Health Assistant selects the establishment and enters the name or initials of the Approver along with an Adjustment Reason from the dropdown list box.  

3. A Write-Off Approval form is to be generated for printing and sign-off by the Approver.  

4. All refund and write offs should to be forwarded to the Buildings and Accounting Administrator each month for monitoring and review.  

1. Upon notification from the bank that a check has been returned due to insufficient funds, the Buildings and Accounting Administrator is to notify the Environmental Health Assistant and the Environmental Health and Safety Manager.  

2. Upon the Environmental Health and Safety Manager’s approval, document the check number, amount, name of customer and associated establishment or address.  

3. At that time, the Environmental Health Assistant is to back the check out of the EHMIS system and provide documentation to the Buildings and Accounting Administrator.  

4. The Buildings and Accounting Administrator is to provide written notification in a timely manner to contact the person issuing the check, notifying them the check has been returned.

6/20/2023

• Added Revision Log

12/28/2023

• Updated staff titles to reflect current operations