CASH HANDLING PROCEDURES October 15, 2014

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.

THANK YOU!