(A) A procedure must be in place, which will ensure that all payments received are processed on a timely basis and that any payment may be traced from initial receipt to bank reconciliation.
(B) Cash handling procedures should include the following internal control procedures.
(1) Maintain strict control over all receipt documentation.
(2) Use pre-numbered or sequentially numbered receipts, either manual or point of sale generated, for all money received. Receipts must include the mode of payment information and identify the issuer. Spoiled receipts should be marked “VOID” and retained in the receipt book. On a monthly basis, the Deputy Clerk will sign and verify that all receipts are intact and accountable for each account for the current year. If the Deputy Clerk is unavailable to sign, then the duty will fall onto the President of the Council, or the Vice President if the President is unavailable.
(3) All cash received must be accounted for in detail and reconciled to a corresponding bank deposit batch or cash summary report.
(4) Cash received from any type of fundraising activity for any department must be turned over to the Clerk-Treasurer by the end of the next working business day after the fundraising event. Cash shall be accompanied by a signed receipt with two separate signatures that verify the amount of cash presented to the Clerk-Treasurer for deposit. At no point shall a department, except the Clerk-Treasurer’s office, hold cash in their office or personal possession from the fundraising event beyond the end of the fundraising event, unless the event is held on a Friday and the next working business day for the Clerk-Treasurer’s office is following Monday.
(5) During non-business hours and business periods, where access to cash is not required, all funds are required to be in a locked vault, safe or other secure cabinet/drawer.
(6) Vault or safe combinations and/or keys must be limited to the Clerk-Treasurer only. Upon the absence of the Clerk-Treasurer, the Deputy Clerk may be given temporary access with permission from the Clerk-Treasurer.
(7) Funds are to be deposited in the bank on a timely basis. Deposits taken to and/or picked up from the bank, will be recorded using a bank log book which documents the date, time out, verification that the bag was locked, signature of the town employee releasing the deposit, signature of the town employee taking custody of the funds, the date returned, time returned and signature of employee returning the bag. The Clerk-Treasurer must also sign to verify that a receipt was received from the bank that matches the amount of the deposit.
(8) The Clerk-Treasurer and Deputy Clerk is responsible to ensure that the cash box is locked, placed into the safe, and the safe is locked when they leave the office. No funds are to be left unattended and unsecured at any time.
(9) Checks received in the mail or in person, must be endorsed with the town’s “For deposit only” stamp immediately upon receipt.
(10) Under no circumstances should cash disbursements be made from cash receipts, unless cash is being used in the change making process.
(11) The Clerk-Treasurer will prepare monthly bank reconciliation. Bank reconciliation shall be recorded in Key Fund Accounting program and reconciled to each accounts bank statement on a monthly basis. The town’s Deputy Clerk will perform review and sign off on the bank reconciliation. If the Deputy Clerk is unavailable, this duty will fall unto the Town Council’s President and then unto the Vice President if the President is unavailable. Any discrepancies between funds deposited and bank activity should be investigated and resolved with assistance from the Deputy Clerk when necessary.
(12) All cash shortages and overages are recorded with the ability to ascertain individual accountability.
(13) All refunds and voided transactions shall have the following supporting documentation when available:
(a) Transaction date;
(b) Customer or vendor name, address, phone number and signature (if available);
(c) Original customer receipt (when available); and
(d) Reason for the refund or voided transaction.
(Res. 2017-001, passed 6-12-2017)