Generally, a check is considered stale-dated six months after the date on the front of the check. The departments receiving the checks are responsible for collecting their returned checks. The department should call the customer and request guarantee funds or use a check cashing serivce to collect returned checks. Also, the sooner deposits are made, the less time the departments will have to safeguard these funds. Interest is lost in delaying deposits.
Departments are responsible for ensuring proper segregation of duties for cash receipts.
Two different employees handling money does not necessarily create a segregation of duties. The segregation occurs when one person handles the money and a second person records the transaction. In smaller offices when one employee is responsible for numerous tasks, duties are often combined. When one individual is responsible for the entire cash receipt process, verification and review by a supervisor, manager, separate accounting person, or department head reduces the risk of theft or misappropriation. Ensure that the individual doing the reconciliation verifies that all the pre-numbered receipts are accounted for.