PPM Section 330-60

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Recording to the General Ledger

Reconciliation of Bank Statement to the General Ledger

Internal Audit Services

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Policy and Procedure Manual

Chapter 330, Financial Management and Services
Section 60, Accounting and Financial Services and Internal Audit Services Responsibilities--Cash and Cash Equivalents
Approved: 8/3/05
Supersedes: 7/4/01

Responsible Department: Accounting and Financial Services
Source Document: Business and Finance Bulletin BUS-49, Policy for Handling Cash and Cash Equivalents

See Section 330-55, Departmental Cashiering Operations--Policy Overview.

I. Recording to the General Ledger

A. Deposits

1. Deposits to the bank must be reviewed, approved and recorded to the general ledger in a timely manner.

2. All bank deposits must be recorded to the general ledger during the appropriate month.

B. Journal entries

1. Individuals with cash-handling responsibilities may not prepare journal entries.

2. All journal entries must be reviewed and approved by designated employees in Accounting & Financial Services. The preparer and reviewer/approver must be two separate individuals.

II. Reconciliation of Bank Statement to the General Ledger

Every bank account must be reconciled to the general ledger by Accounting & Financial Services on a monthly basis. Reconciling items associated with deposits must be resolved in a timely manner.

A. Numerical sequence control over cash register transaction numbers and handwritten receipt numbers shall be maintained.

B. All collections reported must be verified to cash register tapes or other numerically controlled receipts.

C. Void and refund transactions shall be reviewed for acceptability, complete supporting documentation, and proper approval by the cashier's supervisor.

D. Significant or recurring cash overages and shortages shall be investigated promptly and reported to the Campus Cashier Coordinator. (See III, below.)

E. Any significant discrepancies in supporting documentation detected by Accounting & Financial Services will be immediately communicated in writing to department management, independent of cashiering responsibilities.

F. A surprise cash count and verification of change funds for which cashiering employees are accountable shall be performed on a periodic basis, but at least annually, and in the presence of the fund custodian.

G. Procedural elements of reconciliation of bank statement to general ledger. The person(s) performing the following tasks must have no cash-handling responsibilities.

1. Collections reported must be verified to bank deposit.

2. Notices from the depository bank of deposit overages/shortages must be mailed to and promptly investigated by the designated individual in Accounting & Financial Services.

3. Reconciling items associated with a deposit that cannot be resolved within 30 days must be reported to the Campus Cashier Coordinator.

4. Documentation of the reconciliation must be maintained and must include evidence of appropriate review and approval by a supervisor.

III. Internal Audit Services

The campus Director of Internal Audit Services shall periodically audit or cause to be audited cashiering operations and shall establish the audit intervals to be observed.