Examples of Deposit and Receipt Reconciliation Procedures
Departments need to have an appropriate deposit and receipt reconciliation procedure in order to comply with NDSUís receipting policy. For example:
Department A collects $300 cash & $400 checks from 7 customers ($100 each) on June 14th. Department A should record a receipt for each payment: 7 receipts are recorded for $100 each. Either at the end of the day on June 14th or the start of the day on June 15th, Department A needs to prepare a deposit to Customer Account Services. The cash and checks to be deposited are added up to $700.00. This actual deposit total is reconciled to the total of the 7 receipts from the receipt record. This reconciliation should be documented on a separate worksheet and should be retained in the department. The $700 of cash & checks needs to be deposited at Customer Accounts Services on June 15th.
It would be non-compliant with NDSU policies for the department to deposit anything other than the full $700. For example, it would be inappropriate to 1) only deposit the checks received or, 2) only deposit a portion of the cash or 3) to use the cash collected to pay for some expenses or start a till/change fund. According to policy, monies collected need to be deposited in full, on a daily basis.
If department A was authorized to maintain a $50 till fund for making change, there would actually be $350 of cash & $400 of checks at the end of the day in the above example. The reconciliation would then show that there is $750 of cash & checks at the end of the day, but the receipt record would still show only $700. In order to reconcile the cash to the receipts, the $50 till fund cash needs to be handled as a reconciling item. Only the $700 should be deposited with Customer Account Services.
Department A may not need to use the traditional paper receipt, but there needs to be some kind of appropriate receipt record to document the receipt of monies; such as: cash register till tape, spreadsheet record, or some other subsidiary record. There needs to be some kind of receipt record in order to reconcile the monies available for deposit to a record of what monies were collected. If departments are unsure of the appropriateness of their receipt record, they may want to consult with Customer Account Services.