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INTERNAL CONTROLS
The township shall provide education and training for township officials and other personnel involved in financial administration on accounting procedures, investments, budgeting and fraud prevention as annually approved in the township budget.
(Board and Administrative Policies Manual, § 4.25)
The functions of authorizations, recordkeeping and processing financial transactions shall be segregated where possible. Any township official or employee who is authorized to write checks or initiate transfers on behalf of the township shall not be authorized, or permitted, to sign them.
(Board and Administrative Policies Manual, § 4.26)
(A) The cash balances of the various fund ledgers shall be reconciled to the bank statements monthly. The Treasurer must keep track of the total cash and investments allocable to each fund and must reconcile these amounts to each month’s bank statements.
(B) A listing of all cash and investments, along with a copy of the bank reconciliations, must be provided to the Clerk each month.
(C) The Clerk must reconcile the cash and investments recorded in the general ledger to either the Treasurer’s reconciliation or to the bank statements directly.
(D) Bank statements and reconciliations shall be retained for audit purposes.
(Board and Administrative Policies Manual, § 4.28)
CASH HANDLING AND RECEIPTING
(A) Generally. The Township Treasurer shall maintain an imprest cash fund (petty cash drawer) to exchange currency in order to make change for a cash financial transaction.
(B) Optional: petty cash.
(1) The Township Treasurer shall maintain a petty cash fund of up to $100 to provide for the immediate purchase of emergency materials, supplies or service only. Routine or other non-emergency purchases shall not be made from the petty cash fund. The purchase requisition/purchase order procedure is required for all normal purchases.
(2) Loans, cash advances, making change and personal check cashing are prohibited. Cash refunds shall not be issued for overpayments at the time of occurrence (i.e., either a credit should be issued or a check refund generated through accounts payable).
(Board and Administrative Policies Manual, § 4.30)
(A) The Treasurer (or other person authorized by the Treasurer) is responsible for all cash receipts. There must be a record of all individual cash transactions, including receipts in triplicate form. All cash transactions must be recorded using a sequentially pre-numbered document. The receipt shall include the amount received, method of payment, name of the payer, purpose and name of staff receiving payment.
(B) All remittance advices received shall be attached to a duplicate pre-numbered document. Checks must be stamped for “deposit only” at the point and time of collection. Checks returned for insufficient funds or closed accounts should be forwarded to the Treasurer for reconciling.
(C) On a daily basis, authorized individuals who receive cash shall turn over all cash and a copy of all issued receipts to the Treasurer intact. The amount turned over should equal the total of the cash drawer receipts for the day. The Treasurer shall issue a receipt to the person/department for all cash received. Each cash register should be closed out or cleared at the register every time a deposit is made.
(Board and Administrative Policies Manual, § 4.31)
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