These procedures have been developed to provide an adequate internal control system. Using this system, departments provide an accurate accounting of cash received and protect university employees who handle cash. 1.Separation of Duties Proper internal control requires that different individuals be responsible for handling each aspect of the cash receipt procedure. For example, the person who receives cash does not prepare the deposit, and the person who prepares the deposit does not handle the reconciliation. Recording Cash Receipts Cash must be recorded as soon as it is collected.
Cash stolen without a record of receipt is more difficult to trace than cash that is recorded.
The person recording the receipt of cash has no further involvement in cash handling, recording, depositing, or reconciliation. For most departments, these three methods of recording cash are satisfactory. For instance, a department that receives a sufficient volume of checks may be allowed, after written approval, to maintain a check log instead of completing cash receipt forms. For more information or questions on your specific needs, email Beth Corry . All cash receipts should be recorded on receipt forms.