Presentation on theme: "CASH HANDLING PROCEDURES October 15, 2014. What is “Money”? Money refers to cash, checks, money orders, or cashier’s checks. Organization established."— Presentation transcript:
What is “Money”? Money refers to cash, checks, money orders, or cashier’s checks. Organization established to aid students, not for personal gain.
Receiving Money Receive and count money while in the presence of the person submitting the funds. Receipt issued noting the following information: Type: Cash, Check, Money Order or Cashier’s Check Date of Receipt Name of the person and/or organization submitting the funds Clear Signature of the person receiving the money
Receiving Money Both parties should retain copy of the receipt White copy – person submitting money Yellow copy – attached to deposit slip as back up Pink copy – stays in receipt book Any checks received should be restrictively endorsed immediately. Post dated checks should not be accepted, regardless of the source Checks, Money Orders and Cashier’s Checks should be recorded in the receipt book, even if received via mail.
Receiving Money Never leave people alone with money. At least 2 people sell tickets At least 2 people count the money at the end of the event (Any transaction that requires the handling of money, requires at least 2 people) After money is counted, each person signs the deposit form(s) and puts it in a locked bag/box for the treasurer. Use tickets for cash events. Issue a ticket to every person who attends. This makes it easier to count how many people came through the door and to project how much cash should be collected.
Recording & Depositing Money Prior to depositing money, at least 2 people should have counted the money All money must be delivered to the treasurer to deposit funds daily. Receipts should be reconciled with all money turned in and deposited.
Recording & Depositing Money Money received should only be deposited in the Parent Organization’s account. Deposit slips should be retained and reconciled monthly to the account Receipts should be promptly recorded in the Parent Organization’s transaction register.
Safeguarding Money Do not keep money in unsecure locations Tupperware container Unlocked drawer Unlocked filing cabinet Vehicle Do not store the records of the money received (i.e., receipts, copies of checks) in the same place as the money.
Safeguarding Money Money received and not yet deposited should not be used for purchases, check cashing, loans, advances, reimbursements or any other purpose. All unused checks should be kept safe and secure at all times. “Blank” checks should never be issued and checks should never be pre-signed.
Safeguarding Money Sequence of check numbers should be accounted for when reconciling the bank statement to the Parent Organization’s books Issuing checks payable to “CASH” or to the “SPONSOR” should be avoided. Besides being approved, detailed documentation should be retained
Financial Red Flags Bank Statements not seen by the treasurer, president, other signers on the account, and board members on a monthly basis. Financial reports are not given at the monthly meetings Beginning balance does not agree with the last reported ending balance Financial reports do not show each deposit, each check written, figures do not balance/total.
Financial Red Flags Money counted by only one person Missing checks or deposits Checks issued to family members Check’s made out to “CASH” Check’s issued for the same amount each month
Financial Red Flags Two or more signers on the bank account related, married, or residing in the same household Receipts not issued for money received Invoices/Receipts missing from vouchers Budget not approved or reviewed by membership Fundraising activities not approved by membership
Financial Red Flags Amount of profit does not agree with amount in contract signed with the fundraising company Less money deposited for fundraiser than paid to company for product received. Bills are received for items not in budget or approved by membership PTO members profit monetarily from any fundraiser.