CENTRAL OHIO MENTAL HEALTH CENTER
Subject: Check Receipts
Effective Date: 10/16/2009
Approved by: ______________________________
Mark Travis, Executive Director
Cash (including checks payable to the organization) is the most liquid asset of an
organization. Therefore, it is the objective of Central Ohio Mental Health Center to
establish and follow the strongest possible internal controls in this area.
II. Processing of Checks and Cash Received in the Mail
A. Cash receipts are centralized to ensure that cash received is appropriately
directed, recorded and deposited on a timely basis.
B. Mail is opened in the finance and accounting area and a listing of cash/checks
received is prepared in an open area, in the presence of other employees, and
under the supervision of a senior accounting department representative. The
individual preparing the daily list of receipts shall be someone that is not involved
in the accounts receivable or accounts payable process.
C. A deposit slip is prepared from the cash/checks received. Deposits are prepared
and taken to the bank. A copy of all correspondence and checks is maintained
in monthly folders. A second copy of the deposit is given to the accounting
III. Endorsement of Checks
A. It is the policy of Central Ohio Mental Health Center that all checks received that
are payable to the Organization shall immediately be restrictively endorsed by
the individual who prepares the daily receipts listing. The restrictive endorsement
shall be a rubber stamp that includes the following information:
1) For Deposit Only
2) Central Ohio Mental Health Center
3) The bank name
4) The bank account number of Central Ohio Mental Health Center
IV. Timeliness of Bank Deposits
It is the policy of Central Ohio Mental Health Center that bank deposits will be made on
a daily basis, unless the total amount received for deposit is less than $500. In no event
shall deposits be made less frequently than weekly.
V. Reconciliation of Deposits
A. On a periodic basis, the Chief Financial Officer or Accounting Manager, who do
not prepare the initial cash receipts listing or bank deposit, shall reconcile the
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listings of receipts to bank deposits reflected on the monthly bank statement.
Any discrepancies shall be immediately investigated.
B. All invoices are matched to the file copy of the original invoice, or copies of
checks are matched to an accounts receivable invoice. All invoices or other
supporting documentation are stamped “paid” with date of deposit.
C. This information is entered into the cash receipts system and subsequently
posted to the general ledger cash accounts and accounts receivable subsidiary
ledger where applicable.
D. Receipt for patient fees are processed through the data management accounts
receivable system, with copies of the EOB maintained for reference.
VI. Processing of Credit Cards
A. Central Ohio Mental Health Center accepts MasterCard, Visa and American
Express credit cards for payment, all of which are authorized through the
participating credit card company. This is done by following the credit card
authorization instructions from the participating credit card company.
B. For all credit card payments, Central Ohio Mental Health Center will document
the following information:
1) Customer/Organization name, address and phone number
2) Name of credit cardholder
3) Address of cardholder
4) Credit card number
5) Expiration date
C. All credit card processing shall be performed by accounting or front office staff.
VII. On-Site Collections
Cash, check and credit card payments on account received at front office sites will be
listed and transferred to the accounting office daily unless the amount is less than
$250.00. The accounting office staff will verify the amount to the patient payment
summary. The accounts receivable will be posted and deposit prepared with receipts
received through mail collections.
VIII. EOB Posting Procedure
Revised: 10/16/2009, 06/08/2006
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