Rocky Mountain College
Cash Receipts Policies and Procedures
If you have a Petty Cash fund or accept credit card payments, please also see the Petty Cash
Procedures and/or the Credit Card Transaction Procedures
The purpose of this policy is to provide accountability for monies received, provide
guidance on appropriate cash handling procedures, and to assure that proper controls are in place.
The goal is to provide employees with a clear understanding of the policy so that they may
comply with the policy and handle transactions in an appropriate and timely manner.
All employees of the College are responsible for complying with these policies and
procedures. Compliance protects the employee in situations where questions may arise. All
employees are obligated to report (to your supervisor, VP or the CFO) any suspected fraud, theft,
or irregularity that may be causing a loss of cash.
The objectives of this policy are to:
1. Outline policies and procedures
2. Create a framework for employees to appropriately handle transactions
3. To ensure proper controls on cash
4. To create a uniform system for handling transactions
At times in this document, the word “cash” will be used in the generic sense, which
covers cash, checks and money orders.
Policies and Procedures
All transactions require a receipt to the payer at the time that payment is received. An
alternative receipt process is acceptable with the approval of the Business Office. For example,
it is appropriate for donors to receive a receipt with the thank you card that is sent out.
A valid form of identification is required with each check received. A government issued
picture identification such as a driver’s license or passport are acceptable. The checks should be
initialed and the I.D. number, along with type of I.D. and state or country of issuance should be
written on the face of the check.
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The check should have a preprinted address and phone number. If this information is not
printed on the check (and is not included in any other paperwork such as a registration form) it
must be written on the check by the individual collecting the check.
Cash received by any department cannot be used to cash anyone’s personal check.
Checks should be made payable to Rocky Mountain College. Checks should be
restrictively endorsed immediately. Stamp or print the following on the endorsement line on the
back of the check:
FOR DEPOSIT ONLY
Rocky Mountain College
Recording Cash Receipts
A log of receipts will be kept for all transactions, including donations, and will be
updated at the time of each transaction. The form will require the name of the customer, the
date, the amount, the check number (if applicable) or a receipt number, the account the funds
should be deposited to, and the purpose of the funds (i.e. donation to the athletic department or
theater program revenue). The original version of the Cash Receipts Log shall accompany the
deposit to the Business Office, and a copy shall be kept on record in the department. If a log is
hand-written, it must be neat and legible.
Any department that uses a cash register will follow a different procedure. A daily log
should be kept showing sales, any classifications of transactions, the amounts received, and any
overages or shortages. This log will be or updated when the register report is generated and
Bringing Cash Receipts to the Business Office
Cash receipts submitted to the Business Office will be recorded on a Cash Receipts Log
that will be available on the Business Office website, or in some cases, on a department-specific
cash receipts log, or on an Excel spreadsheet. If necessary, the Business Office will help a
department set up a spreadsheet to log its cash receipts.
All cash receipts should be brought to the Business Office on the day they are received.
If this is impossible, bring them over the morning of the next business day. All receipts shall be
accompanied by a Cash Receipts Log prepared by the department. The department should keep,
for not less than one fiscal year, a copy of the log as well as a copy of any checks received. This
will safeguard both the employee and the College in the event of any disputes.
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Location of cash: All funds shall be kept in either a locked drawer or a lock box in a secure
location. Access to these funds shall be limited to approved regular employees only.
Special events: A department that needs a cash box for a special event may check one out from
the Business Office, and will need to discuss the cash handling procedures with the Business
Office before the event.
Vary your routine: Bringing cash receipts to the Business Office from other locations on campus
should not be done at the same time or by the same route to ensure employee safety.
Expenditures shall not be paid out of receipts: Expenditures made may be reimbursed though
an expense report or the use of a purchase order. In departments where petty cash is needed, the
fund will be set up through the Business Office and monitored by the Business Office.
Who handles RMC cash and checks? Cash handling shall be limited to regular employees of the
College. Student employees should not handle cash/checks or transport cash receipts, if at all
possible. Non-employee, non-students should never handle cash/checks or transport receipts.
Send it direct to the Business Office: Expected checks for known items, including donations and
grants, should be mailed directly to the Business Office. If checks are received in other offices,
the provider should be notified to mail future checks directly to the Business Office. The
cashier should be notified in advance of checks that are expected to arrive in the near future,
and a purpose or account number provided.
Copy the Business Office on your billings: Similarly, departments that prepare billings shall
simultaneously send copies of those invoices showing account number or purpose to the
Bank accounts: No one is authorized to establish a checking account bearing Rocky Mountain
College’s name, showing the College as the owner or co-owner, or housing funds due to the
College, except certain officers of the College, as approved by the Board of Trustees.
Appropriate Segregation of Duties
Whenever possible the appropriate measures should be taken to segregate the duties of
individuals involved in cash receipts and revenue recording. Individuals collecting funds should
be different from the individual recording the transaction.
Any department that needs assistance in implementing the above policies and procedures,
or has any questions about them, should contact the Cashier at X1012 or firstname.lastname@example.org.
This office can provide information and guidance on practical implementation than insures
protection of the interests of the College and its employees
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