The proper control of cash receipts is the responsibility of the agency director. This resource intends to aid an agency in understanding its risks and identifying applicable controls to minimize those risks.

General Guidelines

• Segregation of duties in the handling of cash is one of the most effective ways to gain control over this asset. No individual is to have complete control in the handling of cash. Specifically, no one individual’s duties should include the actual handling of money, recording receipt of money, and the reconciliation of bank accounts or with the state treasurer.
• Incoming cash must be made a matter of record as soon as possible.
• Two persons should open the mail when they expect cash or checks in the mail. One person needs to create a cash list another person should review the cash list with the receipts. A copy of the cash list is then forwarded to the DES Finance Cashier with receipts. A second copy of the cash list is used for accounting controls. A weekly comparison of the cash list and Cash Receipt Report received via email should be completed.
• Amounts of currency contained in each item of mail are verified. Documents enclosed with the currency received are machine date stamped or dated and initialed by the employee opening the mail.
• A secure area is needed for the safeguarding and processing of cash received. Access to the secured area is restricted to authorized personnel only. The secured area is locked when not occupied.
• Cash is protected by the use of registers, safes, or locks, and kept in areas of limited access.
• Collections made over the counter or in the field are documented by the issuance of sequentially pre-numbered official receipts or through cash registers or automated cashiering systems. All such receipts are to be strictly accounted for and the reason for any missing documents determined and documented. Blank form receipts are not used. Receipts indicate mode of payment, such as cash, check, etc. The total dollar amount recorded on cash receipt forms, by mode of payment, is balanced daily to total cash, checks, etc. collected
• The cash receiving function of an agency is centralized to the extent possible.
• When cash is received in branch offices, it is to be transmitted to the central office through the banking system. Branch office personnel are restricted to making cash deposits and central office personnel make any cash withdrawals and reconcile bank accounts.
• A balance and summary of all cash receipts is prepared daily. Any shortages or overages are carefully investigated and, to the extent possible, corrected.
• Receipts are deposited intact on a daily basis. When a deposit slip is prepared, the cashier must get signed approval from a supervisor before making the bank deposit.
• Authenticated, duplicate deposit slips are retained and compared with amounts recorded in cash receipts records.
• Moneys are picked up or delivered to appropriate authorities on a scheduled basis.
• Adequate records are maintained to ensure the correct handling and final disposition of items held in suspense. Suspense accounting is eliminated whenever possible by the direct deposit of the item to the correct fund and account. However, deposits are not to be delayed because the account distribution cannot be immediately determined.

• Cash receipts retained on the premises overnight are minimized and locked up in a secure place, such as a safe.
• Cashiers are prohibited from cashing personal checks or notes of personal indebtedness.
• Written procedures on all cashiering and cash control procedures are maintained by each agency.

Invoicing

DES provides automated invoicing using the Agency Billing System (ABS) in Agency Financial Reporting System (AFRS).

DES manages aged outstanding receivables.