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CASH RECEIPTS _ DEPOSITS DRAFT 03_23_01 SECTION III CASH

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CASH RECEIPTS _ DEPOSITS DRAFT 03_23_01 SECTION III CASH Powered By Docstoc
					                                                                                    DRAFT
                                                                                    10/01/12
                                              SECTION III

                              CASH RECEIPTS AND DEPOSITS


The City receives funds from a number of sources. The majority of transactions for cash receipts
are from the utility users tax, water, and refuse utility billing payments. Cash and checks are also
received from the issuance of business licenses, permits and bus passes.

Larger sums received from other governmental agencies are typically electronically transferred to
the City's bank.

City checking accounts are maintained in the local branch of Sanwa Bank. Transfer of cash and
checks from the City Hall to the bank is done by armored car with some minor exceptions.


A. STAFFING

1. Normal staffing for cashiering are two Account Clerk II positions. One is hereafter referred to
   as the cashier and the other as the billing clerk.

2. The cashier has primary responsibility for customer service including answering telephone
   calls received at the public counter, receiving utility and other payments and general
   customer service functions.

2. The billing clerk is primarily responsible for utility billing, including maintenance of the data-
   base, entering meter readings, posting cash payments and delinquency follow-up.

3. Each position is the primary back up for the other.


B. CASH RECEIPTS PROCESS

   General Procedure

   1. All cash receipts are recorded on the Integrated Fund Accounting System (IFAS). Each
      entry shall include at least:

       a.   Date of receipt
       b.   Source of the receipt (customer name or department name, etc.)
       c.   Account number to be credited
       d.   Receipt number
       e.   Description of payment

   2. Cash receipts are entered into IFAS and receipts are generated on NCR tape. The
      original receipt is given to the customer or department originating the cash transaction.




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  3. The documentation relating to the cash transaction is placed in the cashier's daily
     envelope.

  4. Cash reports submitted by departments are processed daily as follows:

       a. The cash amount is reconciled to cash submittal documentation. If incorrect, the
          initiating department is requested to make necessary corrections.

       b. A receipt is prepared indicating the account to be credited.

       d. The cash reports are stamped "PAID." The cash reports are placed in the cashier's
          daily envelope.

       e. The original receipt is returned with the cash bag to the originating department.

       f.   The yellow NCR tape is maintained with the cashier’s daily envelope.

       h. When the police department presents a cash report, the cash must be counted and a
          receipt is completed while the individual is at the counter. This is not always possible
          because of time constraints. The police department may leave deposits “subject to
          verification” as time permits.

  Water and Refuse Payments

  1. Over-the-counter water and refuse payments are recorded as follows:

       a. The water bill will be the source document.

       b. The customer portion of the bill (top of bill) is stamped with the date stamp.

       c. The bottom portion of the bill is stamped “PAID” and returned to customer as a
          receipt.

       d. Water stubs received over the counter will be placed in the cash drawer. Water stubs
          received through the mail will be recorded on the daily close-out card.

       e. A total of water sales appear on the “Batch Proof” at the end of the day. The total will
          include the water stubs for payments received both over-the-counter and through the
          mail.

  2.   Mail and Curb-side Box Payments

       Mail is usually received at about noon each day. The cashier usually processes mail
       payments. If the volume is particularly heavy, both the cashier and the billing clerk do the
       processing. Mail payments are processed in the following manner:

       a. Payments received from the curb-side box are combined with the mail.

       b. Checks are reviewed to see that they are made out and signed properly.


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     c. A tape total is run for the checks and the billing stubs.

     d. Checks are encoded using the encoder/endorsement machine.

     e. The machine total is compared with the billing stub total and reconciled if necessary.

     f.   The total is then entered on the daily 3 x 5-inch summary card.

     All payments and other items are removed from the curb-side mailbox each morning. The
     daily newspapers are left inside the front doors so that a departmental representative may
     pick them up.

     Water payment envelopes are opened and included in the mail payments at the end of
     the day. On final payment days for delinquent accounts, the box is checked again just
     after 5:00 p.m. to see if any last-minute payments have been deposited.

  Miscellaneous Accounts Receivable Payments

  1. Departments which issue invoices for miscellaneous accounts receivable are instructed to
     submit a copy of the invoice to the Finance Department. The Budget Coordinator records
     those into a summary spreadsheet.

  2. As payments are received, they are processed as follows:

     a. The cashier obtains 3 copies (cashier, A/R file, and department) of the invoice from
        Budget Coordinator

     b. A cashier receipt is prepared. All copies are marked as paid with a receipt number by
        cashier.

     c. One copy is placed in the daily receipt envelope. The second copy is returned to the
        Budget Coordinator to be filed in A/R file. The third copy goes to the issuing
        department.

  3. The Budget Coordinator records payment or partial payment of all invoices and notifies
     the appropriate department of any delinquencies.

  4. Risk Management is also notified of partial payment of any invoices involving damage to
     city property or other risk management-related items.

  5. The Budget Coordinator records all collections even if the department originating the
     invoice receives the check.

  6. Accounts receivable amounts are reviewed at the end of each fiscal year for collectibility.
     Items that have become delinquent and have remained so for an extended period are
     referred to the City's collection agency. Those items deemed to be non-collectible are
     referred to the City Council for write-off after approval of the city attorney.




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  Electronic Remittances

  1. Remittance advice for electronic deposits (sales taxes, property taxes…etc) from other
     public agencies are received by mail and given to the Budget Coordinator/Senior
     Accountant.

  2. The Senior Accountant makes a copy listing the account number to be credited and the
     effective date of the deposit and gives the remittance advice to the cashier.

  3. The cashier issues a receipt for the deposit and attached it to the remittance advice.

  4. The original copy of the   receipt is given to the Budget Coordinator maintaining the file as
     follows:
          Budget Coordinator:   sales taxes, property taxes, and other revenues
          Senior Accountant:    utility users taxes
          Senior Accountant:    grants

  Parking Permits

  1. Quarterly/Monthly Parking Permits

     Quarterly/monthly permits are sold for parking in city lots. Permits are pro-rated when sold
     during the quarter. The cashier at the Engineering Department processes payments as
     follows:

     a. The Engineering Department maintains the “Blue Zone Passes” spreadsheet
        indicating name, address, permit number and amount of the permit in the “Parking
        Permit Folder”.

     b. The cashier at the annex prepares a receipt showing the account number for the lot
        and gives the original copy of the receipt to the customer.

     c. At the end of the day, the cashier forwards the “Daily Cash Report”, money, and cash
        register tape to the Finance Department for deposit.

  2. City Parking Lot Permits

     The Community Services Officer at the Police Department removes the money from the
     five machines in the municipal parking lots approximately every three weeks. Once the
     money collected are verified against the number of tickets sold, the Officer prepares the
     “Cash Report” and forwards it with the money to the Finance Department for deposit.

  3. Overnight On-Street Parking

     For overnight parking in residential areas, citizens must obtain a ticket from a machine
     that located at the Police Department. The Senior Records Technician at the Police
     Department removes the money from the machine and delivers it with the “Cash Report”
     to the Finance Department twice a week.


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     The Senior Records Technician also processes miscellaneous receipts for the Police
     Department, including alarm permits, police reports, witness fees, finger printing
     fees…etc, and forwards the “Cash Report” and the money collected to the Finance
     Department.

  Departmental Receipts

  Departmental receipts are for such purposes as sale of reports, parking citation fines and
  parks and recreation fees. It is the policy of the city that such receipts are brought to the
  Finance Department either on a daily or periodic basis depending upon the amount of money
  involved. The CRA, Police, and Recreation and Parks Departments deposit their receipts
  daily and the Library on a periodic basis.

  The receiving department prepares a cash report that shows the detail of the coin, currency
  and checks received. The form also indicates the fund(s) and account(s) to which the receipts
  should be credited.

  When the Finance Department receives the funds:

  1. The cashier verifies the amount of the deposit.

  2. A receipt is given to the departmental representative or sent to the department by inter-
     departmental mail.

  3. The money received is combined with regular cash receipts.

  Building Permits

  1. The cashier at the annex records building and other construction permits at the time of
     payment

  2. The original copy of the receipt is given to the customer.

  3. At the end of the day, the cashier forwards the “Daily Cash Report”, money, and cash
     register tape to the Finance Department for deposit.

  Business Tax Payments

  For business license tax payments, the cashier issues a receipt for the payment indicating
  business license number and amount paid. The original copy is given to the customer with an
  explanation that the business license will be mailed once necessary departmental approvals
  are obtained. The cashier retains the business license tax form, stamps it as paid and
  returns it to the business license tax clerk.

  Bus (Transit) Passes

  1. Receipts for bus passes are recorded at the time of payment by the cashier at the annex

  2. The original copy of the receipt is given to the customer.


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   3. At the end of the day, the cashier forwards the “Daily Cash Report”, money, and cash
      register tape to the Finance Department for deposit.

   4. At the end of the month, the Management Analyst at the Transportation Department
      reconciles the total bus receipts with the passes issued.

   CRA Payments

   1. The payments are recorded on the CRA pegboard.

   2. The original copy of the receipt is given to the payee.

   3. The cash and/or checks are placed in the envelope marked "CRA" and included in the
      deposit.


C. DAILY CLOSING PROCEDURES

The following steps are performed by the cashier and/or billing clerk in closing out the cash
drawers each day:

 1. At 3:30 p.m. cash and checks are removed from both cash drawers leaving $75 in cashier's
    drawer and $50 in billing clerk's drawer.

 2. Each clerk prints a “Batch Proof” showing daily totals.

 3. The billing clerk and cashier then run tapes on water stubs and check for their respective
    drawers.

 4. Each completes an “End of the Day Total” form which reconciles coin, currency and check
    receipts with water stubs and the “Batch Proof”.

 5. Any differences are debited or credited to the cashier's over and short account.

 6. Any direct (electronic) or special deposits are noted on these sheets to determine the total
    deposit for the day. A "special" deposit in this case is the one that is personally taken to the
    bank.

 7. The cashier verifies the contents of the billing clerk's drawer. Daily total includes water
    receipts received by both the billing clerk and cashier and mail receipts total.

 8. The coin, currency and check totals are summarized from each “End of the Day Total” sheet
    and the result is entered on a 3 x 5 inch summary card by the cashier.

 9. The currency is combined by type and non-mail checks from each drawer are encoded and
    endorsed. All receipts for the day, including currency, coin, and checks, are placed in a
    cloth deposit bag to be placed in the safe until the next day at which time it is deposited.




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10. The cashier compares daily total (“Batch Proof” totals plus water sales total) to the 3 X 5 inch
    summary card. The grand total on the “Batch Proof” and the 3 x 5-inch summary card must
    agree. If they do not agree, the discrepancy needs to be reviewed for resolution.


D. NOTES RECEIVABLE

Notes receivable are prepared by the Covina Redevelopment Agency (CRA) and reviewed by the
CRA attorney. The Budget Coordinator administers those billing for periodic payments. As
payments are received and recorded, a copy of the receipt is sent to the CRA for information
purposes.


E. BANK DEPOSIT PROCEDURE

At the end of the day, all cash drawers and deposits are placed in the office safe. Each morning,
cash drawers are returned to the cashiers and billing clerk. Deposits go to the account clerk for
processing of deposit with the bank.

   City Deposit

   A. Currency & Coin

       1. Currency & coin are verified against cashier tape.

       2. Three copies of the deposit slip are prepared using proper (usually previous) business
          date.

       3. Using smaller partitioned bag, one copy of the deposit slip is placed in the small
          portion of the bag with the slip facing out so that they can be read through bag.

       4. The second and third copies of the deposit slip along with the cashier tape are placed
          in the daily activity envelope (5 x 8 inch envelope). The envelope is filed in the lateral
          file cabinet in the cashier area.

       5. Coin and currency are placed in the larger portion of the bag.

       6. Four copies of the armored car transmittal slip are prepared using the current date.

       7. The Finance Department maintains the first copy of the slip with a courier’s signature.
          The remaining copies are stapled to the outside the bag.

   B. Checks

       1. Three copies of the deposit slip are prepared using the proper (usually previous)
          business date.




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       2. The first copy of the deposit slip is attached to the bundle of checks using rubber
          bands with the numbers facing out. The bundles are placed in the plastic see-through
          deposit bags so that the deposit slip can be read through side of bag.

       3. Four copies of armored car transmittal slip are prepared using current date. The
          Finance Department maintains the first copy of the slip and the remaining copies are
          stapled to the outside of the bag.

   C. Deposit in the safe

           The bags are placed in the safe until the courier arrives in the afternoon to pick up the
           deposit.

   CRA Deposits

   1. Verify cash & checks against the CRA cash ledger.

   2. Prepare a separate deposit slip for the CRA bank account. The courier will pick up the
      CRA deposit along with the city deposit.


F. NSF CHECKS

Checks returned by the bank (due to non-sufficient funds, closed accounts, missing signature or
any other reason) with a copy of the bank debit advice are received by the Senior Accountant. If
originally received by the police, library, or parks and recreation departments, the original check
is returned to the department for collection along with a copy of the debit advice.

If the Finance Department originally received the check, a copy of the check and the bank debit
advice are forwarded to the billing clerk. The billing clerk then reverses the payment posting and
posts the additional NSF fee.

The cashier prepares the “Returned Check Log” before the check and bank notice are filed in the
non-sufficient funds (NSF) file by customer name. The check writer is notified and asked to do
whatever is required to solve the matter.




_________________________________                      ______________
Approved by the Finance Director             Date


__________________________________                     _______________
Approved by the City Manager                           Date




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