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Strong internal controls are necessary to prevent mishandling of funds and safeguard assets. They protect both the University and the employees handling the cash. Safeguarding Cash Link
Recording Cash Receipts Link
Reconciliation Link
Segregation of Duties LinkNo one person should be allowed to collect, handle or transport and deposit checks/currency without some additional control feature to ensure that all funds are accounted for. Examples of such controls are as follows:
Gifts/Personal Checks Link
Related SU policy: Gift Acceptance Policy Fees and other Revenues LinkUse an accounts receivable account to process billing and collection for routine revenue activities. If you are unsure if a cash receipt should be recorded as revenue or an offset to an expense, contact General Accounting in the Comptroller’s Office for assistance. Internal controls surrounding this type of activity include:
Related SU policy: Revenue from Transactions with External Parties Bank Accounts LinkThe opening of any University bank account requires proper approval.
Related SU policy: Bank Accounts How do you handle cash receipts?How to Process Cash Receipts. Apply Cash to Invoices. Access the accounting software, call up the unpaid invoices for the relevant customer, and apply the cash to the invoices indicated on the remittance advice that accompanies each payment from the customer. ... . Record Other Cash (Optional) ... . Deposit Cash. ... . Match to Bank Receipt.. Why is there a need for internal control for cash receipts?Strong internal controls are necessary to prevent mishandling of funds and safeguard assets. They protect both the University and the employees handling the cash.
What are the key controls over cash receipts and payments?To control cash transactions, organizations should adopt some of the following practices: Require background checks for employees, establish segregation of duties, safeguard all cash and assets in secure locations, and use a lockbox to accept cash payments from customers.
What are the 4 internal control measures for cash?Receive and deposit cash. Record cash payments to receivable records. Reconcile cash receipts to deposits and the general ledger. Bill for goods and services.
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