Table of Contents: Chapter 8

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803 CASH RECEIPTS POLICY

803.1 Applicability

This Cash Receipts Policy applies to all activities of the City with regard to the receipt, processing, reconciling, and custody of cash receipts of all funds, including the following: General Fund, Special Revenue Funds, Debt Service Fund, Capital Projects Funds, Enterprise Funds, Internal Service Funds, and Expendable Trust Fund.

803.2 Objectives

Internal controls over cash receipts are established to meet five objectives:

803.2.1 To provide reliable data for management. Transactions that represent economic events are recorded in accordance with prescribed procedures in the right accounts in a timely manner.

803.2.2 To safeguard assets and records. Access to assets and related documentation is restricted to authorized personnel. Furthermore, the accounting records are maintained so that they continue to reflect the operations of the City.

803.2.3 To establish accountability for assets, with timely verification and appropriate follow-up.

803.2.4 To promote operational efficiency, reduce unnecessary duplication of effort, and deter inefficient use of City resources.

803.2.5 To assure that transactions are recorded to permit preparation of financial statements in conformity with generally accepted accounting principles (GAAP).

803.3 Cash Handling Procedures

803.3.1 Daily mail receipts should be restrictively endorsed and a listing prepared (an adding machine tape of receipts will suffice).

803.3.2 Pre-numbered receipt slips should be issued for all over the counter cash received. An individual separate from the cash receipts function should account for the numerical sequence of the receipt slips. Any void receipt slips should be retained in order to keep the numerical sequence intact.

803.3.3 Cash receipts from customers should be promptly posted to customers' accounts by an individual separate from the cash receipts function.

803.3.4 Any adjustments to customers' accounts must be properly authorized and handled by an individual separate from the cash receipts function.

803.3.5 All cash receipts should be kept in a secure location prior to depositing the funds, such as locking cash drawers or cash registers.

803.3.6 An individual separate from the cash receipts function should reconcile cash receipt slips issued and the listing of mail receipts with actual cash on hand daily. If a cash register is used, a daily tape of transactions should also be reconciled with the cash on hand.

803.3.7 All reconciled receipts should be deposited intact daily. If cash is kept on hand for making change, it should be counted each day before closing and reconciled to cash received and deposited for the day.