Cash Handling Procedure-Elem - DOC

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					           CASH-HANDLING …an Overview!
Cash handling continues to be a highly audited area and is where many audit findings

When a state auditor arrives in your building, you will be asked about your cash handling
procedures. Here are some things to think about…

    What school district cash handling transactions are happening in your building on
     a daily basis?
    Has this activity been reviewed and approved by your building administrator?
     Before any cash collections are made, the building administrator should approve
     the activity and determine the proper fund classification (ASB, GF, Private
    Has the person handling the cash had cash handling training?
    How are those dollars secured and who has access to them?
    How recent are the collections?
    Are there receipts immediately available for all cash on hand? Who specifically
     paid the money and receipted it?
    Is all your cash/checks accounted for? How does it reconcile against the receipts?
    What is the make-up of each deposit? Were all the checks accounted for
     separately from the cash? Do the totals add up?
    How often are deposits made? Do the dates on your deposit slips reflect timely
    Are you referencing specific receipt numbers on your cash transmittal forms?

             Examples of Some Legal & Audit Requirements
All cash (money) received by district personnel must be receipted and deposited accord-
ing to State of Washington’s laws and auditing requirements:

    Monies need to be turned into the office on a daily basis.
    All checks should be endorsed immediately upon receipt.
    All cash (checks) must be receipted on pre-printed, pre-numbered South Kitsap
     School District receipts. (Absolutely No Redi-Forms!!)
    Money must be deposited intact, which means we must deposit it in the same form
     it was received.
    Accept checks for the exact amount only. (Checks cannot be written for a higher
     amount so that change can be given back to the customer.)
    Do not accept post dated checks.
    All district funds must be immediately accounted for and deposited into a South
     Kitsap School District bank account.
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    It is illegal to have a checking or savings account on behalf of the South Kitsap
     School District without prior approval by the School Board at an official Board

                                      Money Handling
    Good money handling practices are essential within the school district.
    These guidelines must be followed to ensure proper safekeeping of all money
     handled by school-district employees.
    All money taken in should be counted as soon as possible, receipted, endorsed,
     and deposited in the appropriate district account. (General Fund or ASB).
    No large sums of money should be allowed to accumulate.
    Large sums of money should not be left in safes or vaults over the weekend with
     the exception of petty cash or change funds. (This means deposits must be made
     weekly or daily basis if necessary.

                                        Receipt Books
    All monies must be receipted in a SKSD receipt book that is pre-numbered and
     has the South Kitsap School District imprint.
    SKSD Receipt Books can be obtained by contacting the Accounting Department.
    Receipts need to be filled out completely, including the cash/check composition.
     The original receipt is given to the payee and the pink copy stays in the book.
     Under no circumstances are all copies to be removed from the book.
    Endorse each check with a “SKSD For Deposit Only” immediately upon receipt.
     If you need additional stamps, email Dina McVey.
    Your school is accountable for all the receipt books you have in your possession;
     what are your internal controls for checking receipt books in and out?

                          Mistakes when writing Receipts
    Staple the original in the book, print VOID across the receipt, and initial it.
    Write a new receipt.
    Remember: pre-numbered receipts are one of the major controls for cash-handling
     that are reviewed by the State Auditor.

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    Over and Short VS. Lost, Stolen or Unaccounted for Monies or

    Over and Short
    Beyond Over and Short??
       o Immediate attention and follow-up is required.
       o Lost, stolen or unaccounted for monies.
       o Immediately notify your supervisor
       o Immediately notify Business Services

                                           ASB Monies
       Fees collected from students and non-students as a condition to their
        attendance at any optional non-credit extracurricular event of the district which
        is of a cultural, athletic, recreational or social nature; or
       Fundraisers and Donations – profits of which will be spent on optional non-
        credit extracurricular events which is of a cultural, athletic, recreational or
        social nature;

                                         Private Moneys
      There are very strict laws governing private moneys. This is the only method
      available to collect money to donate for scholarships and charitable organization.

           Charitable Fundraising procedures are located on the S-Drive under the
            Business Services Guidebook/Cash Handling
            Procedures/Fundraisers/Charitable Fundraisers.
           Unique procedures for these activities.
           Funds cannot be mixed in with ASB monies. Separate accounts are set up
            in the 6000 series to identify each NEW charitable fundraiser.

                       Petty Cash & Petty Cash Procedures
             Know the procedures
             Intended for low dollar infrequent expenses
             Maximum $50.
             Requires pre-approval.
             Original receipts are required.
             Remember to stamp PAID on each original receipt at the time it is paid.
             Replenishment of the petty-cash fund is required whenever the expenditures
              meet or exceed fifty percent (50%) or more of the petty cash allocation. If

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            the expenditures do not meet or exceed fifty percent (50%) of the petty cash
            allocation, then a reimbursement should be made on at least a quarterly
            basis. All petty cash reimbursements must be submitted before summer
           Always submit your final petty cash reimbursement before the end of each
            fiscal year. This can be done before you leave for the summer or as soon as
            you return in August.

                    Fundraising and Reselling Merchandise
     Review the procedures in the Fundraising Handbook located on the S-Drive under
          Business Services Guidebook/Cash Handling Procedures/Fundraising.

     What will the proceeds be spent on? (This needs to be approved before the
      fundraising events take place)
          o Total cost / details?
          o Is this a school/school district approved expense?
          o Is additional approval required?
     Is this a General Fund, ASB, Private Fund (Charitable or Scholarships) fund
      activity? (Fundraising events must fall into one category only)
     When will the proceeds be spent? If ASB, was this fundraiser part of your
      budget plan?
     What is the detail fundraising plan?
          o What activities are involved?
          o When will the activities occur?
          o Where will the activities occur?
          o If a fundraiser will be held after school operating hours, have you made
              arrangements for a night deposit at the bank? (Cash monies should not be
              taken home or kept in an employees car over night!)
          o What are the anticipated expenses, revenues, profits (fundraiser forecast
          o What internal controls are required to ensure proper cash handling
              procedures are met?
          o Have all persons involved with the fundraiser been training on cash
              handling procedures?
          o How will the cash and inventory be secured?
          o Is there a separation of duties?
          o Immediate follow-up is required to ensure all requirements have been met
              in a timely manner.
          o Reconciliation completed within 30 days of the completed fundraiser.

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