Accounting - Cash Handling

  • Receipts and deposits

    Outlined below are some reminders with regard to processing receipts:

     

    Receipt all money at the time of collection, even if not depositing that day. Receipts must be pre-numbered and pre-printed with the district or school name.


    Receipt in sequential order, with mode of payment (cash or check) and fund noted on each receipt. Distribute receipts as follows:

    • Original – Give to payor.
    • 1st copy – Attach to transmittal information and file at school.
    • 2nd copy – Keep in receipt book as a sequential file.

     

    Do not send Business Services copies of receipts. Each location is required to maintain the receipts per the records retention schedule (currently six years).

    • Supporting documentation - All receipts written should identify who the funds were received from and the reason funds were received. When small dollar amounts are being collected by teachers from many individuals, a separate money collection Form may be used in lieu of individual receipts. A summary receipt is then written daily for the total of receipts recorded for that date on the money collection form. The funds are then deposited according to the cash handling guidelines.
    • Voiding receipts - Voided receipts are to be noted as such; i.e., write the word “VOID” across the face of all copies of the receipt; include a written explanation for the void and initial. All three copies are kept with the receipt book (elementary schools) or with transmittal backup (secondary schools). A new receipt for the correct amount is then prepared.
    • Refunds - Refunds may not be made from cash receipts. If it is necessary to refund money to an individual who has paid a district fee or fine, a Refund Request form should be completed. This request is accompanied by a copy of the original receipt and sent toBusiness Services for a revolving fund check if the refund is from general fund. Low dollar amounts (under $5) may be paid using petty cash. If it is an ASB fund refund, it may be processed out of the Imprest checking account if your school has one. 


    2. Restrictively endorse with an endorsement stamp all checks upon receipt of funds. Checks should NOT be exchanged for cash or accepted in amounts above the purchase price. If a check from a parent comes to school with a student and is higher than the purchase, the parent may donate the overage or request a refund.

     

    3. List deposits by the date the bank stamped the deposit slip. All money collected is to be deposited intact directly into the depository account. “Intact” means the composition of total cash and checks received and receipted must match the total cash and checks deposited and the total deposit must equal the total receipts issued. No funds should be held back from a deposit.

     

    4. Deposits and transmittals shall be made on a timely basis. It is best to deposit with the next courier pickup to minimize risk of theft. However, because this is not always feasible, the MINIMUM district standard is to deposit at least weekly. Exceptions may be granted during school breaks when courier and/or bookkeepers are not working.


    Bank deposits

    Prepare deposit slips in triplicate. Run adding machine tape listing check amounts and total. Include first initial and last name on deposit slips (or tape if appropriate) for all checks received.

     

    ll bills should be facing the same direction, and rubber banded according to bank requirements. Coin should be rolled in appropriate denominations. The original deposit slip goes to the bank with the money enclosed in a sealed plastic deposit bag. Keep the 2nd copy of the deposit slip and a copy of the tape for your records. Send remaining deposit slip with your transmittal to Accounting.

     

    The deposit will be delivered to the bank by the district courier during his/her regular route per guidelines below. The courier is not taking responsibility for the accuracy of your deposit, just that he or she accepted the bag(s). Under special circumstances building employees may personally drive to the bank and make the deposit. Courier pick up of sealed money bags- ASB fund, general fund and food service deposits are picked up by the district courier. Following is the daily routine for pick-up of sealed money bags:

     

    1. If the school has deposits to make, the building secretary and food service staff must have deposit slips filled out and money in a sealed plastic money bag(s) in time for the courier pick-up.

     

    2. The district courier will pick up the money bags at each location during his/her regular route.

     

    3. There will be a sign-out sheet at each building to sign the bags out. The courier will work with each building secretary on specific places to pick up and sign for money bags. Money bags left overnight for morning courier pick-up must be locked in a secure area within the office.

     

    4. After picking up the sealed money bags at each building, the courier logs the bag numbers on his/her daily sheet. The money bags are secure in the van.

     

    5. This procedure is repeated at each school building site.


    6. At the end of the daily building route, the courier delivers the sealed money bags to the Snohomish branch of Bank of America. The courier has a key to the lock-drop box at this branch. All money bags should be checked off on the daily sheet and deposited in the lock-drop box.


    7. The courier’s daily log sheet of bank bag numbers taken to the bank should be given to Business Services. This daily log sheet helps in the unlikely event we need to track down a lost bag.

     

    Transmittals

    A summary of cash/checks being transmitted is sent toBusiness Services through a revenue transmittal form. Transmittals list the monthly revenues by deposit date for each fund. Please staple the deposit slips in date order to your transmittal forms. Transmittals must be submitted at least monthly to accounting. Send revenue transmittals to Business Services by the 24th of each month. For the August and September transmittals please submit two separate transmittals, one for each fiscal year. The 24th of every month are the minimum transmittal timelines. The district encourages sending transmittals more often than once per month if large amounts of money are received.

     

    Security of funds

    All funds collected must be adequately secured at all times (this includes petty cash and change funds). Keep cash in a locked safe or container in a locked cabinet. Call the district office if you need a safe at your location. Do not leave cash unattended. Lock it up if interrupted during deposit/transmittal preparations.

     


    School and department administrators are responsible for ensuring the following occur:

    • Changing safe combinations and collection of keys as personnel changes.
    • Limiting the number of people who have access to combinations and keys.
    • Not storing cash in areas where general staff or students have access.
    • Evaluating the safety of money and the protection of students and employees on a regular basis.
    • Making bank deposits frequently and keeping cash in schools to a minimum.

     

    Do not keep any PTA/PTO or faculty moneys in the district safe. A separate secure collection box for parent activities can be used as long as the money is picked up within two business days by a parent group representative. District employees are not to handle public/district property.

     

    Theft

    Report any missing cash or other public property immediately to the Snohomish Police Department, Business Services and Melody Gillette in Purchasing (for insurance purposes).

     

    NSF redeposits

    Occasionally we receive NSF or returned checks. NSF checks must be redeposited differently than normal revenue checks:

    • NSF redeposits do not go on your transmittal.
    • NSF redeposits can be sent to Business Services at any time during the month.

     

    The following explains how NSF redeposit slips are filled in:

    • Clearly mark the deposit slip “NSF REDEPOSIT." 
    • Write the name of the person who wrote the check. If your redeposit includes more than one NSF, list all names and amounts. This is the most frequently omitted step, but is essential.
    • As soon as you get a stamped copy of the deposit slip from the bank, please send it to Accounting.
    • If an NSF is not collected after trying to deposit twice, please attempt to contact them by phone. If they do not respond, we can do one of the following:
      • Call Accounting to send them to collections (if large amount). 
      • Determine as uncollectible and write off. You may write it off by submitting a written request, signed by your building principal. Please send the original check with the written request, a copy of the certified letter, and include the budget code to be credited.

     

    Business Services will work with schools to collect NSF checks. Please call her with any questions and to coordinate this effort.

     

    Cash overages and shortages

    If the amount of cash on hand is different than the total receipts issued, an overage or shortage has occurred. An attempt should be made to determine the cause of the discrepancy and the proper steps taken to resolve the error.

     

    If the cause cannot be determined, the following steps should be followed:

    • Overages - The amount of the overage should be immediately receipted on a district receipt, with the explanation of “Cash Overage” written on the receipt. The money should be deposited and transmitted.
    • Shortages - The transmittal or bank deposit records remitted to Business Services should note the shortage. If the amount of the shortage is material, the employee should immediately notify his/her supervisor and Business Services.

     

    Following are over/short accounts for both ASB and general fund (where LL is location):


    Fund code description

    • General - Schools 960 0100.29.0000.LLL.0000.0990 Over/Short
    • ASB - 960 1015.00.0000.LLL.0000.0000 Over/Short

     

    Checking accounts

    No one is allowed to open any type of bank account for depositing school district funds, including staff members. Only the School Board can authorize a new bank account. The collection of money from student fees, fines, fundraisers, ASB, etc., must be deposited into an existing authorized district account upon receipt of those funds. It is illegal to have independent checking or savings accounts on behalf of Snohomish School District. If you become aware of one, please let Business Services know.

     

    Parent funds are considered private and accounted for by using PTA rules and regulations (see Private Money in ASB section). District staff should not handle parent funds or checking accounts.

     

    Change funds

    A specified amount of money may be issued to locations needing to make change. An employee will be designated as the custodian of the change fund and is responsible for the security of the fund. Change funds must be authorized in advance. Do not hold back revenue receipts to create a change fund.

     

    At the time of deposit or transmittal, the amount of the change fund should be counted and reconciled to the authorized amount and retained (kept) by the custodian. Be sure to keep general fund and ASB change funds separate, and in a secure area.

     

    At the end of the school year, change funds are redeposited in the originating checking account. General fund change is turned in to Business Services, and ASB change funds are deposited back into the imprest checking account. The change fund is reissued at the beginning of the next school year, if still needed.

     

    Petty cash

    For petty cash disbursements:

    • Obtain proper authorization prior to purchasing the item; verbal is acceptable.
    • Request a receipt from the vendor that clearly shows the item was paid.
    • List name of person being reimbursed if other than custodian.
    • Note: Petty cash is a reimbursement process. Employees must purchase the item personally first, then receive petty cash. It should be an even trade - receipt for cash - so that at all times your receipts and cash equal the amount of your total petty cash fund.
    • For purchases above $25, consider following the purchase order or P card process for those vendors that accept them instead of using petty cash. Please call Business Services for guidance if unsure.

     

    For reimbursement of petty cash fund, please send Business Services:

    • Completed petty cash envelope, including account codes.
    • Original receipts.
    • Calculator tape of receipts (total of receipts should match total on envelope).
    • Building principal signature on envelope authorizing the transactions.
    • Send petty cash reimbursements to Accounting once per month, or as often as needed.