Baseline Standards - Cash Receipts

Cash Receipts - Internal Control Objectives Minimum Internal Control Techniques

A. Completeness of recording cash receipts

  1. Use of departmental pre-numbered and controlled Journal Entry (JE) Form or other documents that are subsequently accounted for, in recording all cash receipts.
  2. Receipt of currency and checks performed by someone who does not reconcile cash and is supervised by the department business manager.
Response:
  • The College';s cash policy is very specific about the use of a number log and controlled journal entries. All journal entries are done by the receiving department. Cash deposit receipts are prepared and sent by campus police to the Bursar's Office.
  • A designated employee handles all cash in each department. All cash is logged by the employee into the departmental database. The Accountant/Financial Coordinator reconciles cash is supervised by the DBA.

B. Propriety of account classification

  1. Department business manager checks cost center coding on Journal Entry Forms prior to posting to PeopleSoft.
Response:
  • The DBA certifies all Journal Entries for accuracy and correctness.

C. Accuracy of summarization of cash receipts

  1. Verification of mathematical accuracy of JE’s by someone other than the individual who prepares the JE's.
Response:
  • The DBA certifies all Journal Entries for accuracy and correctness.

D. Adequacy of physical safeguards

  1. Immediate restrictive endorsement of all checks upon receipt.
  2. Adequate physical controls, (e.g., work area layouts, safes, etc.) of cash receipts prior to depositing.
Response:
  • All checks are restrictively endorsed upon receipt.
  • It is our goal to deposit all checks/cash within a 24-hour period. All checks/cash are kept in a locked secured area prior to depositing. The College uses the cash bag system to deposit all cash.

E. Timeliness of bank deposits

  1. Journal Entries are completed daily for all cash receipts and deposited in accordance with university cash handling policies by persons (this function is handled at the college level) not involved in (a) accounts receivable, (b) accounts payable, or (c) reconciliation to PeopleSoft.
Response:
  • Journal Entries are completed according to UH policy. See Cash Handling Policy for details.

F. Consistent and efficient responses to inquires

  1. The College Business Manager is responsible for all revenue and cash receipts related inquiries and is the primary contact person to whom all questions are directed.
Response:
  • The DBA is the primary contact for cash receipt questions.