ATTACHMENT II



| |DEPARTMENT OF MANAGEMENT SERVICES |

|[pic] |ADMINISTRATIVE POLICY |

|TITLE: Cash Receipts |POLICY NUMBER |

| | |

| |Financial Management Services |

| |06-101 |

| | |

| |(formerly 2.04A) |

|EFFECTIVE: March 5, 2006 | |

|REVISED: April 20, 2012 | |

PURPOSE

To establish policy for opening mail and handling monies received through the post office or through direct delivery to program areas and to document the departmental units involved and their respective functions in cash receipts processing.

SCOPE

This policy is applicable to any area of the Department of Management Services (DMS/department) where cash, checks, money orders or other monetary instruments are received. The exceptions are those program areas that maintain independent revenue operations.

AUTHORITY

Internal to DMS

DISTRIBUTION

|The following individuals should be notified | |

|of this policy |Method of Notification |

| All DMS Employees |DMS Communications via employee distribution lists |

| |DMS Web site |

|DMS Executive Leadership |Executive Leadership meetings |

POLICY

A. Post Office Receipts:

1. DMS courier picks up mail daily from the Post Office and delivers to the Disbursement Section. All incoming checks are stamped with a Bank of America endorsement stamp for deposit and the accompanying paperwork from the envelope is paper clipped together.

2. The Disbursement Section logs all endorsed checks into an Excel check log spreadsheet.

3. The Revenue Section processes all endorsed checks and check logs.

The Receipts Log contains the following information:

- Date

- Log Number

- Payee

- Check Number

- Amount

B. Program Area Receipts:

1. All offices responsible for collecting receipts restrictively endorse and record those receipts in a log as soon as they are received. The restrictive endorsement reads “Department of Management Services For Deposit Only” (or contains the account number and “For Deposit Only.”) The receiving office maintains a receipt log for all checks received. At a minimum, the log contains the date, check number, customer name, and amount. If an office receives a check(s) that is not for their program area, forward it to the Bureau of Financial Management Services (FMS) on a separate transmittal form. Do not endorse the check(s).

2. FMS makes all of the deposits for the department.

3. Transmit receipts that total less than $500 to FMS within seven calendar days of receipt. Transmit all cash, as well as other receipts totaling $500 or more within one working day of receipt. FMS will deposit all receipts transmitted from other offices within three business days of receipt. Receipts are to be accompanied by a transmittal form containing at least the following: the date, transmittal number, Org Code and Fund to which the funds should be deposited.

4. The transmission of all monetary receipts is hand carried by an employee of the transmitting or collecting office to the FMS. The deposit must be hand delivered to FMS staff, and is not to be left unoccupied. Do not send any deposits through the regular (US Postal Service) mail or inter-office mail.

5. FMS acknowledges all receipts to the transmitting or collecting office by signing the transmittal form. The Revenue Section will return a copy of the transmittal form with the deposit number on it to the transmitting or collecting office. The transmitting or collecting offices provides FMS with the name(s) to which the acknowledgements are to be sent. All transmitting or collecting offices maintain a log of the deposits sent to FMS, and reconcile this log to the acknowledgements received from FMS. The employee who serves as the custodian and prepares the log or transmittal is not allowed to reconcile the receipts. A different employee performs this function.

6. All receipts from requests for public records are made through the Office of the General Counsel.

C. Custodial Office Receipts:

1. Whenever an operational unit of the department exercises responsibility for collecting receipts to be deposited into the funds of the department, the appropriate division director designates a custodian /alternate custodian.

2. The designated custodian is responsible for providing current approved local procedures regarding the collection of cash receipts to employees with receipt responsibilities.

3. Each office may designate an alternate custodian as a designee of the custodian who assumes the same rights and responsibilities as the custodian during the temporary absence of the custodian.

D. Receipt and Subsequent Handling by Revenue Section:

1. Upon delivery of the receipt items and receipts log to the Revenue Section, a calculator tape is run on all items attached to the log and compared to the log total.

a. If the totals do not agree, perform a reconciliation and correct the log.

b. Process and deposit receipts in accordance with the internal procedures for handling receipts of the Revenue Section.

c. If a check is returned, create a letter and attach a copy of the letter and check to the log in which the item was initially recorded. The DMS endorsement on the back of the check is cancelled by our ‘Cancel Endorsement’ stamp.

2. If program area assistance is needed, assemble copies of checks or other monetary instruments, attach them to Revenue Transmittal Forms (see attachment) and send to program areas.

a. The program area identifies the source of receipts and returns a copy of the completed Revenue Transmittal Form to the Revenue Section within three days of receiving the check copies.

b. If item(s) is not to be deposited, the Revenue Section furnishes a formal statement as to their disposition. Forward or return items as appropriate. Attach copies of the transmittal and check returned to the receipts log on which the item was initially recorded.

c. Outstanding items are followed up at least once a week until they are returned on a transmittal or other disposition provided. If a check is given to a program area, the check is signed off on the check log by whoever picks up the check.

3. Log Sheets are closed when all items have been accounted for as being deposited with the deposit number recorded on the log or such other final disposition, as appropriate, with supporting documentation attached.

RESPONSIBILITIES

|Individual |Responsibilities |

|or Group | |

|Bureau of Financial Management|Annual review and update this policy. |

|Services |Provide guidance to divisions and employees. |

| |Research current policy to determine whether a policy revision or policy rescission is required. |

| |Submit request to create, amend and rescind policy. |

| |Maintain appropriate paper work regarding state-owned property. |

| |Ensure policy content is accurate. |

| |Monitor policy compliance and elevates concerns as appropriate. |

|Employee |Adhere to this policy. |

|Program Area |All checks and money orders are properly endorsed with the department’s bank endorsement stamp. |

| |All payments are recorded on a Transmittal Form before submitting to FMS. |

| |Ensure that all cash, checks, money orders and other monetary instruments are submitted to FMS in a timely |

| |manner. |

ASSOCIATED FORMS

Financial Management Services-101 - Revenue Transmittal Form

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