Cash Receipts Policy
Many University units, both on and off campus, provide goods and services, which require funds to be collected by these units. All funds collected should be transmitted intact and in a timely manner to the Business Office. It is mandatory that all funds collected be properly safeguarded and that the unit's recording and transmittal practices provide an unbroken audit trail which reflects where funds were initially collected, recorded, deposited, and appear as a credit in an official University account.
Cash Receipts Standards
Receipts: There should be a dated, chronological record of original entry prepared for each individual payment. Receipts can be prepared three different ways to accommodate all types of units accepting money.
- Written by a machine designed specifically to write receipts. The machine should write according to minimum requirements (e.g., Business Office, Receipt Writer).
- Cash Register receipts that are produced in duplicate. Although it does not provide all the information, it is considered sufficient for writing receipts for retail establishments dealing with small, numerous transactions. (e.g.,Cash Register)
- Pre-numbered, hand written receipts prepared in triplicate. Receipt numbers must be sequential. The second copy is to be retained by the unit for record maintenance, the original is to be attached to the Cash Receipts Summary and Transmittal Form sent to the Business Office, and the first copy is given to the Payee. It is not acceptable to wait several days to prepare and/or deliver the receipt.
Security: All cash receipts should be stored in a secure location (e.g., lock box, safe, etc.) until transported to the Business Office. A restrictive endorsement (i.e., "For Deposit Only") should be applied as soon as practicable after checks are received. The following example is suggested:
FOR DEPOSIT ONLY
GEORGIA COLLEGE & STATE UNIVERSITY
Restrictive endorsement stamps are available at the Business Office, Parks Hall 111.
Cash Receipts Summary and Transmittal: Summarizing receipts on a timely basis provides necessary formation for posting to the Cash Receipts Journal. Prepare the pre-numbered Cash Receipts Summary and Transmittal Form in duplicate. Attach the second copy of all corresponding Receipts to the Cash Receipts Summary and Transmittal Form. Transmit the original Cash Receipts Summary and Transmittal Form and receipts with cash receipts to the Business Office. The monies should be transported in a secure fashion to the Business Office. No transmittals are to be through campus mail. Campus Police should transport money of substantial amounts. Retain the copy of the Cash Receipts Summary and Transmittal Form (now validated by the Business Office) to be filed for record maintenance. Units with a high volume of cash typically should make transmittals daily. Smaller units may make transmittals less frequently. All units should make transmittals at least once per week. All funds collected must be transmitted intact (i.e., the exact amount collected must be deposited). Units may not establish a cash refund from cash collected or make cash refunds from cash collected. It is inappropriate to cash personal checks or to make loans (I.O.U.'s) from cash receipts.
Record Maintenance: File the unit's copies of all Receipts in numerical order with any supporting documents deemed advisable. File the unit's copies of all Cash Receipts Summary and Transmittal Forms in numerical order with any supporting documents deemed advisable.
Account Examination: Examine the account status reports to ensure that all account credits were properly applied.
Record Name: Receipt
DESCRIPTION: A document, which gives evidence of receiving cash.
Minimum Information Required:
Date
Number (pre-numbered serially)
Received from (source)
Type of funds (cash, check, etc.)
For (account distribution: i.e., fund group, type, source, etc.)
Total amount received
Received by (cashier's name)
Prepare in duplicate or triplicate according to unit specifications
Duplicate:
Original to remitter
First copy filed for record maintenance
Triplicate:
Original to Business Office
First copy to Remitter
Second copy filed for record maintenance
Record Name: Cash Receipts Summary and Transmittal Form
DESCRIPTION: A record, which summarizes a group of receipts showing account distribution and evidencing the amounts of funds credited to a specific account with the Business Office in the name of the transmitting unit.
Minimum Information Required:
Date
Number (pre-numbered serially)
Transmitting unit's name and all the names of the accounts to be credited.
Receipts numbers from _____ to _____
Number of receipts
Number of checks
Account distribution and amounts
Total by fund group
Total to be transmitted
Prepare in duplicate
Original: to Business Office
Duplicate: filed for record maintenance
Receiving Checks
A directive of the Federal Reserve Bank of Atlanta states the following:
"After September 1, 1967, any check, draft, etc., not bearing the routing symbol-transit number of the paying bank pre-printed in magnetic ink will not be handled as a regular check by the Federal Reserve Banks."
Because of this Federal Reserve Bank directive and the refusal by some banks to process counter checks and drafts, Georgia College & State University units may not accept counter checks or drafts, but must require payers to obtain blank checks from their respective banks before making payments to the University by check.
University units may accept checks only if Georgia College & State University is named payee. Georgia College & State University may be named payee in one of two ways.
- Preferably a check should be made payable to the order of Georgia College & State University.
- However, if a check that is made payable to the order of someone other than the University is presented by the payee as a means of payment, the University may be named payee by endorsement. Endorsement to the University by a payee should include the following language:
Pay to the Order of Georgia College & State University
_______________________
(Signature of Original Payee)
If a check that is made payable to the order of someone other than the University is presented by someone other than the payee as a means of payment, the University may be named payee by the endorsement of the presenter, as follows:
___________________
(Signature of Payee)
Pay to the Order of Georgia College & State University
___________________
(Signature of Presenter)
The Funds Availability Act has greatly changed the way checks are processed through the Federal Reserve System. Financial institutions are under strict regulations on where endorsements may be placed. The new law requires that all payee endorsements (yours) must be within 1½" of the trailing edge of the check. The trailing edge is the left edge as you look at the front of a check. Use that same edge on the back of the check to determine your endorsement area.
The limited endorsement area must also be used for the following:
- Subsequent endorsements (i.e. if someone endorses a check and gives it to you to negotiate, both must endorse within the 1½" area.)
- Identification information (Bobcat Card ID, driver's license, phone number, etc.)
If anything is placed outside of the 1½" limit, it may cause the check to be returned.