INTRODUCTION Petty Cash-Pay-Out Form (PC) NU Store Item # 73-1010,

form used to detail purchases and document reimbursements

This manual was prepared to provide standardized accounting made from a petty cash fund.
procedures for the school in Ming Yuan College. School principal, post dated a date on a document or check which follows the
secretary cashiers, clubs and other parties involved in handling of date of actual initiation or execution.
funds should familiarize themselves with the policies and procedures Direct Payment Request (DPR) referred to in this document
prescribed in the manual to ensure that financial records are uniformly to be used to open and/ or replenish a petty cash fund, open a
maintained. This manual was reviewed approved by the Accountant. change fund or used as eligibility identification to cash a
Each policy in this manual was thought out and felt to be Northwestern University check advance at the Bursar`s Office.
appreciate. If you have a suggestion or idea on changes that may reconcile to balance to a separately maintained set of data.
need to be made to improve the accountability of the school finances reconciliation a calculation that shows how one balance or
or to streamline the accounting processes, please let us know. figure is derived systematically from another.
restitution restoration of monies to its rightful owner(e.g.
As with most any manual, updates, additions, and corrections replacing an of check)
will need to be made periodically as needed. If you notice anything in restrictively endorsed refers to affixing the signature, name
the manual that is wrong or should be changed, please notify the and account number to whom the transaction is to be credited
accounting department. We want this manual to be useful, which and bank to be deposited.
means it must be up-to-date and correct as possible. revenue the increase in assets or the decrease in liabilities
The information in this manual supersedes all prior publications during an accounting period, primarily from operating activities.
concerning school accounting procedures. This may include sales of products, rendering of services and
earnings from interest, etc.
settlement report the report generated by the terminal when
an open batch is successfully closed stale dated a check that
PURPOSE OF MANUAL
is dated in the past, usually six months or more; or a check with
The purpose of this manual is to document the accounting, instructions written on the face of the check, such as, “void after
budgeting, treasury, and procurement policies and procedures of 90 days”.
CMYC. This manual applies to its centralized school support
operations.

1 50
cash receipt ticket (CRT)form used to record, communicate and GUIDING PRINCIPLES OF THE CMYC FINANCIAL
document deposits made by user departments to Revenue and POLICIES & PROCEDURES
Balance Sheet accounts; entered and submitted online.
 Transparency. Financial reporting will be transparent, and
charge-backs term used to describe a debit to an account for a align to the budgets developed for each school and central
charge , credit or debit card transaction. operations.
custodian the employee that is solely responsible for a petty cash or  Equity. To the greatest extent possible, funds will follow the
change fund. students, and will be allocated to address needs of each student
depository bank the designated bank(s) to which Catholic Ming at ASD schools.
Yuan College deposits all funds.  Autonomy. School leader will be given autonomy over the
detail report a listing of the individual credit card transactions controllable expenditures in their financial statements. They
processed on the terminal in the batch to be closed may allocate resources in such ways that maximize student
directed certificate an official certificate used to establish bank outcomes.
accounts for the safekeeping of University funds. These resource allocations may change, even during the school
established dollar limits a reasonable and acceptable amount of year, as academic results are measured and funding
funds, set by each department, for being out of balance. requirements are adjusted.
general ledger the name for the formal ledger containing all of the  Accountability. The CMYC assumes responsibility, within its
financial statement accounts. It has equal debits and credits as financial capabilities, for providing at public expense all
evidenced by the trial balance. PeopleSoft GL maintains the services, equipment, and supplies that may be required in the
University`s general ledger based on all activity being posted to the interest of education in the schools under its jurisdiction. In
system. exchange for autonomy, school leader will be held accountable
intact unchanged, remaining complete. for the financial results at the school.
journal tape a cash register tape holding the printed record of all
transactions that are rung up; a permanent record. OBJECTIVES OF THE CMYC FINANCE & ACCOUNTING
lapping concealing a shortage by delaying the recording of cash FUNCTION
receipts.  To ensure liquidity and solvency of the CMYC
media term used to describe the form of payment, i.e., U.S Currency,  To promote resource allocation in the annual budgeting and
check, charges, wire transfers, etc. long term financial planning process that is aligned to CMYC
Over & Short the title for a departmental account (Revenue Source mission and strategic plan and mission.
40702) used to account for differences between book balances of
funds and actual funds on hand.

49 2
 To provide the CMYC leadership team and the commissioner GLOSSARY
with timely and accurate financial information to make
decisions This glossary attempts to define the following terms in the
 To establish efficient procedures for accounting, reporting, context of the Cash Handling Document.
purchasing delivery, payroll, and payment of vendors and
contractors. accounts receivable amounts due the University on account
 To ensure compliance with all applicable federal, state, local, from customers who have bought merchandise or received
and private funds and regulations. services. Accounts receivable are a current asset in the balance
sheet.
A. Types of Activity Funds and Proper Classification balance sheet a statement showing the Fund`s financial
position at the end of an accounting period. On the Balance
Two basic classification of activity funds exist in Catholic Ming Sheet, Total Assets are equal to Total Liabilities and Fund
Yuan College: School activity funds, which belong to the school Balances.
and are used to support school programs, and student activity balance sheet account appears in the balance sheet. Unlike
funds, which belong to the students and are used to support budget statement balances for revenue sources and object
student organization and clubs. The purpose of these funds results codes, balance sheet accounts are not closed out at the end of
in following distinction. the year but continue to exist into the next year. They include
cash, receivables and payables.
1. School activity funds belong to the school, are used to batch number the number that is printed on a batch
support its co-curricular (activities outside the regular settlement tape from the charge, credit and debit card terminal
classroom that directly add value to the formal or stated and is the unique identifier for that particular batch of
curriculum) and extra-curricular (encompassing a wide variety transaction.
of other school-directed activities, typified by organized sports blanket fidelity bond insurance coverage against specified
and other non-academic interscholastic competitions) activities losses that occur from acts of dishonest act or defalcations of
and are administered by the school under School direction. employees. This bond may be applied to persons or positions.
Approval for disbursing school activity fund monies, cash term used in this document to include currency, check,
consequently, rests with the principal only as directed by the money order, negotiable instruments and charge card
Board of Education (Board). The School determines how school transaction.
activity fund monies are spent and the school programs that
receive support.

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Loss of Funds Table 1. Examples of Authorized School Activity
Funds
 Refer to selection-Reporting Over & Short Athletic Programs Field Trips
 Funds lost due to circumstances beyond the control of the
custodian must be repaid from the unit`s funds or other available Donations Grants
operating funds.
 In the case of burglary or theft the University Police should be Fundraising Activities School Play
notified immediately.
 To reimburse a fund for stolen currency, a memorandum should Dances Yearbook
be requested from the University Police acknowledging that the
theft has been reported and investigated by them. A copy of the Academic Activities Interschool Contest
memorandum including the incident number and exact dollar
amount should be attached to the DPR as detail to support the
request for reimbursement.
1. Student activity funds support activities that are based in
non-co-curricular or no extra-curricular student organizations.
Verification of Fund by Department Students not only participate in the activities of the
organization, but also are involved in managing and directing
Change funds will be verified on an annual basis by the department the organization’s activities. Disbursing monies from the
head or designee. A verification form will be sent by Accounting student activity fund may be subject to approval by the student
Services. The Department head or designee should verify and organization and its sponsor, rather than by the board.
reconcile the fund. Under no circumstance should the custodian
verify the fund. Table 2. Examples of Authorized Student
This annual verification form should be submitted to the Accounting Activity Funds
Services department. Department supervisors should periodically
perform surprise counts on a regular basis. Alumni Funds Non-Curricular Funds

Memorial Funds Faculty Funds

47 4
All activity funds must be reported in the school financial statements  Any discrepancies in the fund are the responsibility of the
and are subject to the School audit. Accordingly, all activities custodian.
reported need to remain within the School prescribe accounting  Change funds must not be commingled with other funds used
structure. for any other purpose.

Procedure to Change Custodian

1.2 Definition and Purpose of Activity Funds
If a fund custodian is transferring jobs or terminating
Activities have become a part of the regular school program employment at Catholic Ming Yuan College, it is necessary to
because of their value in supplementing academics and providing transfer the fund to a new custodian. The fund should be
students with leadership skills training. Thus, the purpose of student counted and reconciled by the current custodian and then
activity funds should be to promote the general welfare, education, turned over to the new holder. The new custodian should
and morale of all students and to finance the normal, legitimate co- acknowledge receipt of the fund by signing a form
curricular activities of the student body. Student activity funds belong documenting the transfer of funds and the accompanying
to the student bodies of the various schools. These resources are in responsibility. The form below may be copied or printed from
the custody of school employees but are the property of the students. this document and used for this purpose.
However, the school and the have a fiduciary responsibility to The form should be sent to the Accounting Services
safeguard these funds and thus all Board Policies must be followed in department.
receipting and disbursing of these funds.
Administrative policy of the school requires that income Fund Restrictions
received for a specific school function or activity be disbursed only for
that function. Additionally, activity fund monies should benefit those  The change fund is to be used only for making change
in cashiering operations.
students who have contributed to the accumulation of such monies
 The change fund must be balanced on daily basis.
and significant balances should not be rolled over from year to year.
 The change fund cannot be used for expenditures
Money required of the student body as a whole shall be expended so
 Each change fund must be renewed annually.
as to benefit the student body as a whole, and not for the benefit of  If a unit ceases to be an authorized cash collection
a special group. In very unusual circumstances, the school principal unit; any change funds must be deposited with a
may relocate funds to the general function. Upon dissolution of any CASH RECEIPT TICKET (CRT) to the chart string,
function, the school principal shall insure that any liabilities of that which was debited when the change fund was
function are liquidated. Any remaining funds will be reallocated. established.

46
5
Out-of-pocket reimbursements must follow the same guidelines as Student activity funds shall not be used for any purpose that
Petty Cash reimbursements. represents an accommodation or loan of its employees or other
persons. Board employees may not make purchases through
CHANGE FUNDS student activity funds in order to take personal advantage of the
school petty cash purchasing privilege.
Purpose
Change funds are made available as an advance to authorized cash
handling units for the purpose of making change for currency sales 1.3 Board Policies
and/or services.
Following are some of the policies that relate to the school
accounting. Please acquaint yourself with the contents of these
Request and Authorization policies and others contained in the School policy manuals.
A written request, Direct Payment Request (DPR) to the Accounting  Staff Conflict of Interest Policy
Services Department must first be approved by the department head  Student Fees, Fines, and Charges
or business manager. The request should state the reason(s) the fund  Gifts from the Public
is required and the amount needed for daily operations. A custodian  Revenues from Non Tax Sources
for the fund designated in the designated in the written request.  Grants from private sources
Accounting Services will assign the Fund and Account number to be
changed.

1.4 Basis of Accounting

Custodian Responsibilities
Activity funds will be accounted for using the cash basis method of
 The custodian of the funds is fully responsible for the accounting which recognizes revenues when they are received and
safekeeping of the fund and for its proper usage. The custodian expenses when they are paid. Activity funds should also operate
must exercise in the administration and protection of the fund on a cash basis, meaning that no commitments or indebtedness
in his/her profession. May be incurred unless the fund contains sufficient cash.
 The fund should be locked at all times and the key should be
kept in the custodian`s possession. At no time should the funds
be left in unlocked desk drawer or cabinets.

6
45
1.5 Auditing of Activity Fund Records To Close a Fund
Board policy states that all school funds should be regularly
The custodian should first fully reimburse the fund by preparing
audited. These audits ascertain that (1) the school funds are being
a DPR with payout documentation attached. Fund total is then
properly reported, (2) School accounting policies and procedures are
deposited using the (CASH RECEIPT )) form (print and make
being followed, and (3) maximum efficiency is being attained from the
additional copy for Accounting Services) (account number
use of these funds. Audits also give assurance to principals that their
assigned when fund was opened). Both of these procedures may
financial procedures are adequate to protect them and their
be performed at the same time. Also, be sure receipt contains the
personnel.
name of the custodian to be relieved of responsibility. A copy of
To meet this audit requirement, an annual external audit is the committed CASH RECEIPT should be sent to Accounting
conducted by a private accountant. As part of this audit process, the Services.
outside auditors review the financial and administrative records in
compliance with generally accepted auditing and accounting
standards. Normally, the external auditors schedule their audits at the To Decrease a Fund
end of the school year. Use the same procedure detailed above. The CASH RECEIPT form
description should contain the fund total, the amount of reduction,
The school has also established an internal audit function to and the fund custodian`s name. A copy of the committed CRT
assist management in evaluating its financial systems and internal should be sent to Accounting Services.
controls. The internal editors will conduct audits of school activity
funds on a regular basis. The auditor will contact individual schools to
inform them of a scheduled audit and also conduct periodic audits of Reimbursements of Personal Funds Used for School-
specific items (petty cash funds, school lunch ticket sales, payroll Related Expenses
attendance forms, distribution of payroll checks, etc.) throughout the Reimbursements for personal expenditures under 5,000 in the
year on a surprise basis. Upon completion, the auditor will discuss any department where no petty cash fund exists may be obtained
audit findings with the school principal. An audit report, including from the Accounting Office. PC forms with supporting
school responses to any recommendations made, will be presented to documentation should clearly indicate the amount claimed. An
the School Administrator. Within (20) workdays after receipt of an adding machine tape documenting the total should be attached
internal audit report, the principal shall submit a signed, written reply to the DPR claiming reimbursement.
on school letterhead to the internal auditor.

7 44
Overages and Shortages
Overages in the fund must be deposited with Accounting Office; The reply shall give explanations and/or actions taken, for any
shortages are to be repaid by the department`s operating funds. deficiencies or violations cited in the audit report. A compliance
Shortages must be fully documented in writing. audit may be conducted approximately six months after the initial
audit to determine whether the audit recommendations were
Theft or Loss of Fund implemented.
The approach we take with the school audits is to treat them
 Shortages in the fund must be reimbursed. The reimbursement as an opportunity to teach and to train. You are encouraged to ask
of the shortage should bring the account back into balance.
questions. Audit findings usually have more to do with someone
 Funds lost due to circumstances beyond the control of the
not knowing correct procedures rather than somebody making a
custodian must be repaid from the unit`s funds or other
choice to do something wrong. We would like to take the
available operating funds.
 If burglary or theft is suspected, the Police should notified opportunity afforded by the audit to give answers and offer
immediately after discovery. training. In the rare case, however, that there is an audit finding
that occurred because of a conscious choice to disregard
established policies and procedures, you can expect appropriate
Verification of Fund by Department disciplinary action.
Petty Cash funds will be verified on an annual basis by the
department head or designee. A verification form will be sent by
Accounting Services. The Department head or designee should verify 1.6 School Ledger Formats
and reconcile the fund. Under no circumstance should custodian
verify the fund. This annual verification form should be submitted to
the Accounting Services department. The school provides all secondary schools with the School
Accounting software to track student activity funds. Elementary school
accounting is done at the School level using the system. Under either
To Close or Decrease a Fund system, the school should close off cash transactions at the end of
If the petty cash fund is no longer needed by the department for the each month and bring account balances up to date. All receipts on
purpose intended or if the amount of funds on hand is too much, it hand should be deposited within (3) business days of receipt, but
is the custodian`s responsibility to close or decrease the fund.
definitely by month end.

43 8
  To reimburse a fund for stolen currency and /or paid bills and
THE SCHOOL ACCOUNTING SOFTWARE invoices, a memorandum should be requested from the Police
acknowledging that the left has been reported and investigated
The Accounting system runs on Microsoft Access compatible by them including the incident number and exact dollar
computers. Instructions on the processes of receipting cash, recording amount. A copy of the memorandum should be attached to the
deposits and expenditures, and closing, balancing, and reporting DPR as detail to support the request for reimbursement.
monthly financial transactions are located.  More than one purchase or payout may be listed on the same
PC, when the account to be charged and the employee being
reimbursed remain the same.
2.1 General Duties and Responsibilities  Presentation of the approved PC form to the fund`s custodian
will result in reimbursement.
All individuals within a school should be aware that activity funds are  No single expenditure of more than 10,000 may be reimbursed
public or fiduciary funds in nature. It is necessary to exercise good through the Petty Cash Fund. Amount in excess of 10,000 must
judgment, integrity, and due care in the handling of these funds. be reimbursed using a Non-Travel Expense Form through the
checks.
 Research studies, which are paying participants, must provide
a signature log, which includes participant`s name, Social
General responsibilities for both the Principal and Finance Security number, address, date of research, amount paid and
Relating to School Finances include: signature of participant. These reimbursements are restricted
to 5,000 per person/per calendar year. CMYC employees acting
1. To account for all cash received by the school with the
as research participants may be reimbursed through Petty Cash
exception of School Food Service meal programs and up to 5,000 cumulative per calendar year.
Community School tuition.  Departments should use a Travel and Expense report in lieu of
2. To provide for the safekeeping and handling of all school a PC form when the expenditure includes local travel or
money and other school property, irrespective of the source of entertainment less than 5,000. Amounts in excess of 5.000
such money or property. should be reimbursed the checks.
3. To disburse funds only for appropriate items as intended at the  The custodian should make payouts directly to the individual
requesting the reimbursement with the PC form. No payouts
time of collection, and to accurately document each
should be made to departmental employees for delivery of
disbursement. currency to another party.
4. To maintain current and accurate balances on all accounts
under the control of the school.

9 42
  Research studies, which are paying participants, must provide 2.2 Duties of School Principals
a signature log, which includes participant. These
reimbursements are restricted to 5,000 per person/per Duties and responsibilities of school principals include, but are not
calendar year. CMYC employees acting as research participants limited to, the following:
may be reimbursed through Petty Cash up to 5,000 cumulative
1. Notifying the Internal Auditor, if the principal becomes aware
per calendar year.
 Departments should use Travel and Expense report in lieu of a of any evidence of fraud related to school funds. The Internal
PC form when the expenditure includes local travel or Auditor will, in turn, immediately notify the Administrator.
entertainment less than 5,000. Amounts in excess of 5,000 2. Implementing and complying with the regulations, standards,
should be reimbursed through the checks. and procedures contained in this Manual and any other policies
 The custodian should make payouts directly to the individual adopted by the Board or by the Accounting Department
requesting the reimbursement with the PC form. No payouts
(Accounting) as authorized by the Board.
should be made to departmental employees for delivery of
3. Preauthorizing purchases, approving invoices for payment, and
currency to another party.
signing checks.
4. Reviewing the system reports and the Principal’s Cash Report
Petty Cash Fund Replenishments (PCR) for accuracy and completeness and submitting these
reports to Accounting to be complied for Board on a timely
 Petty Cash Fund should be replenished on a regular basis. basis.
Receipt and Petty Cash-Pay-Out Form should be reconciled and 5. Assuming responsibility for equipment located at the school,
reimbursed on a monthly basis. including equipment security, inventory control, care, and
 Reimbursements should not be made for receipts presented
utilization.
which are older than 90 days.
 Disbursements from your fund may be reimbursed by preparing 6. Complying with purchasing procedures prescribed by the
a properly approved PR. Board, including bid policies and procedures established for
 To replenish a fund, currency reimbursements may be obtained student activity and other internal school funds.
from the Accounting Office. PC forms with supporting 7. Notifying the School when equipment is stolen, misplaced, or
documentation should clearly indicate the amount claimed. destroyed. Also, complying with the Board’s policy requiring
Adding machine tape documenting the total should be attached notification of the school regarding the disposition or transfer
to the DPR claiming reimbursement. If someone other than the
of property before the disposition or transfer takes place.
payee is picking up the cash they must present a valid ID and
instructions must be typed on the DPR indicating the name of 8. Maintaining a current edition of the manual on school premises
the person picking up the cash. and making it available to all school personnel.

41 10
 Employee gift should never be purchases with these funds

2.3 Duties of school Finance  A receipt or invoice should be obtained for each
expenditure. Vendor receipts should show the date, amount
Duties and responsibilities of individual school finance include, but are and description of purchases.
not limited to, the following:  If the vendor does not normally furnish receipts or the
expenditure is for
1. Notifying the Auditor, if the principal becomes aware of any such items as bus or train fare, the purchaser must
evidence of fraud related to school funds. The internal Auditor complete and sign a Petty Cash –Pay –Out Form (PC) with
will, in turn, immediately notify the administration. appropriate dates, amounts and reasons for expenditure.
2. Maintaining a record of day-to-day financial transactions. The custodian will approve and reimburse the purchaser.
3. Reconciling the checking account and bank statement to the  No amount over 1,000 should be reimbursed without a
school’s financial records at the end of each month, and receipt.
reporting the status of school funds by a monthly Principal’s  The employee seeking reimbursement should
Cash Report.  Fill out a Petty Cash – Pay –Out Form (PC)
 Include the explanation of purchase
4. Providing for the safekeeping and handling of all school money
 Sign and date
and other school property, irrespective of the source of such  Attach the detailed receipt or invoice for the purchase with
money or property. scotch tape on all four sides of receipt
5. Submitting reports and other materials to Accountant to be  The designated supervisor or dean must also sign/ approve
compiled for Board on a timely basis, as directed. the reimbursement form. A proxy signature will not be
accepted.
 More than one purchase or payout may be listed on the same PC,
when the account to be charged and the employee being
Accounting Policies and Procedures reimbursed remain the same.
Cash Management & Investment  Presentation of the approved PC form to the fund`s custodian
will result in reimbursement.
Cash Handling Units  No single expenditure of more than 10,000 may be
reimbursed through the Petty Cash Fund Amount in excess
of 10,000 must be reimbursed using a Non-Travel Expense
A cash handling unit is defined as any department making a Form.
minimum of two or more deposits per month. Departments

11 40
Fund Restrictions that have small numbers of deposits should coordinate with
their financial manager for consolidation of deposits. The
 Petty cash funds are to be maintained on an impress basis, departments are now responsible for making their own bank
which means the amount of the fund remains constant. deposits including filling out bank deposits slips, preparing and
Currency and coin plus petty cash receipts in the fund should entering into the Online Cash receipt system. Documentation
always equal the authorized amount of the fund. for all deposit procedures is included within this Manual in the
 This fund belongs to Catholic Ming Yuan College and should be appropriate task area.
kept on the School property at all times. As such, the fund can
be subject to surprise count by the Accounting Services and the
School external auditors during normal business hours.
 Department supervisors should periodically perform surprise Segregation of Duties
count on a regular basis.
 No money may be loaned or barrowed from the fund for There must be segregation of duties between the person
personal use. receiving cash and the person responsible for maintaining the
 The fund may not be used to cash personal checks. school records (e.g., School General Ledger (from which your
 Mishandling of funds may result in dismissal and / or Budget Statements are printed), department billing, Accounts
prosecution of involved employees and/ or relinquishment of
Receivable).
the fund by the department.

Petty Cash Fund Disbursements Cash receipt activity should be reconciled to the Budgets
 Petty cash disbursements may be made for: statements monthly. The reconcilement should be reviewed by
 Emergency purchases someone independent of the cash handling or recording functions.
 Freight, C.O.D.s, postage due The following responsibilities should be distributed among
 Authorized local travel or entertainment under 3,000 personnel so one person is not responsible for all aspects:
 Payment of research participants up to 5,000 cumulative for
the calendar year (with prior grant authorization from  Opening mail
Accounting Services for Research and Sponsored Programs  Endorsing checks
(ASRSP)).  Preparing deposits
 Food purchases under 5,000 with proper documentation  Reconciling to budget statements
provided, including business purpose of the event. Note that
 Billing and collection duties distributed among personnel
tax may not reimburse for purchases of food and incidentals
from local vendors or grocers.

39 12
 Responsibilities of Individual Departments The custodian must exercise caution in the administration and
protection of the fund in his/her possession.
Compliance with School Policy and Procedures • Access to the fund should be limited to the petty cash
Departments are responsible for complying with the policies custodian.
 The fund should be locked in an office safe, file safe, or
and procedures outlined in this document and for developing detailed
reinforced lockable file or desk with a padlock and bar that
written departmental written procedures.
secures all drawers at all times and the key should kept in the
custodian`s possession. At no time should the funds be left
Counterfeit Currency in unlocked desk drawers or cabinets. Funds should not be
retained in desk drawers or standard file cabinets since they
All authorized cash handling units are responsible for exercising are easily accessed with minimal forcing or readily available
reasonable care in screening cash transactions for counterfeit keys.
currency. If a questionable bill is received, the department should • Petty cash funds must not be commingled with any other
retain possession of the bill and contact the police immediately. Do funds or used for any purposes other than those listed in this
not return the bill to the payer. policy document.
• Any discrepancies in the fund are the responsibility of the
Safekeeping of Funds custodian and procedures in maintaining the petty cash fund.
All forms of Cash (currency, checks, money orders, negotiable
instruments and charge card instructions) should be physically
protected through the use of vaults, locked cash drawers, cash
registers, cashiers cages, locked metal boxes, etc. Procedures to Change Custodian
If a fund custodian is transferring jobs or terminating employment
It is the responsibility of each department to make whatever at Catholic Ming Yuan College, it is necessary to transfer the fund
provisions are necessary to properly safeguard the cash receipts in to a new custodian. The fund should be counted and reconciled
the area. Generally, any amount of cash on hand that exceeds 1000 by the current custodian and then turned over the new holder.
must be maintained in a vault or heavy safe (one which cannot easily The new custodian should acknowledge receipt of the fund by
moved by two persons using a hand cart). Amounts under 1000 signing a form documenting the transfer of funds and the
should be maintained in a file safe or reinforce file cabinet with a accompanying responsibility. The form below may copies or
padlock and bar that secures all drawers. Cash should not be retained printed from this document and used for this purpose. Completed
form should be sent to Accounting Services.

13 38
Establishing or Increasing a Petty Cash Fund in desk drawers or standard file cabinets since they are easily
accessed with minimal forcing or readily available keys.
• to open or increase a petty cash fund, a Direct Payment
Request(DPR) form, approved by the department head or
business manager, must be submitted for approval to the Cash pick-up and transfers by school employees should not
Accounting Services department of the Evanston Campus. conform to any regular time or day of the week schedule. Such
transfers should be irregular, subject to change without notice,
• A custodian for the fund must be appointed and is the party with times known only to a secret few.
responsible for safekeeping, disbursing, and balancing the fund.
The custodian must be named as payee on the DPR.
• The account number to be used will be assigned upon approval Transfer of Accountability
by Accounting Services. A petty cash fund cannot be established
Transfer of accountability must be recorded, (name, date, time,
by charging an object of expense. The Fund, Dept. ID and
Account numbers that will be charged for ultimate responsibility and amount) if the deposit is not being transported by the person
for the fund should be listed in the description section of the DPR. preparing the deposit. All transfer logs should be retained for the
current fiscal year plus 2 fiscal years. All documents should be
• Determine the fund amount by estimating expenditures for a maintained in such a manner as to provide suitable audit trail for
two-week period. Generally, petty cash funds may not be
all transactions.
established in excess of 10,000.
• After completion of the approval process by Accounting
Services, fund may be received at the Accounting Office. Control Concepts
• The payee must present their valid ID to obtain cash at the The list of internal control questions will help you access the
Accounting Offices. cash controls in your area. Answer each question to answer your
own department’s controls. At the end, review your answers for
practices or controls, which are not in effect. These represents
Custodian Responsibilities internal control weaknesses. For each weakness determine the risk
it represents to your operations, whether there are mitigating
• The custodian of the fund is fully responsible for the controls, and what action, if any, needs to be taken.
safekeeping of the fund and for its proper usage.

37 14
 Cash Receipts, Revenue and Petty Cash Return Checks
• Any check cashed at the Accounting Office and returned by
Segregation of Duties the bank is subject to a Service Change of 500.
 Are the following responsibilities distributed among personnel • Immediate restitution by the employee or student for the
so one person is not responsible for all aspects? returned check(s) and service fee(s) required.
o Opening mail?
 Student`s registration and transcripts will not be processed
o Endorsing checks? until their account is cleared.
o Preparing deposits? • Employees who have checks returned by the bank must make
immediate restitution is not made.
o Reconciling to budget statements?
• Check cashing privileges will be permanently revoked after
 Are billing and collection duties distributed among personnel? two checks have been return by the bank or if restitution is not
made immediately.
Safeguarding of Cash/Receipts
 Are checks endorsed immediately upon receipt? PETTY CASH FUNDS
 Are receipts kept in a secure location until deposit? (e.g., safe,
locked drawer, etc.)? Purpose
 Is access to credit card terminals and cash registers restricted
to authorized personnel? This section of the document defines and outlines School policy
with respect to the maintenance of petty cash funds.

Cash Receipt Processing

Introduction
 Are made daily and/or in compliance with cash handling Policies
& Procedures guideline? All departments maintaining petty cash funds should exercise
 Are daily cash register readings recorded on the daily cash controls over their use. A petty cash fund is a small amount of
reports and reconciled to daily deposits? currency issued and held by departments to cover payment of
 Are processed credit card charges/credit handled properly and day-to-day miscellaneous purchases and postage charges. The
timely? petty cash fund is not to be used to circumvent University
 Are sales forms and invoices pre-numbered and accounted for procedures and record keeping in regards to purchases and
to ensure all sales are billed and recorded? payments.

15 36
Pledges  Is an open receivable aging report generated and reconciled to
open invoices and reviewed monthly?
The Financial Accounting Standard Board (FASB) requires all
 Are accounts receivables reconciled to General Ledger
unconditional pledges to be accounted for in the financial reports of
monthly?
the School. All pledges need to be reported to GRS via a pledge
transmittal form (same form can be used for pledges with the first Gift Receipts
pledge payment
 Are receipts properly classified as gifts?
 Are gift transmittals prepared timely?
Check cashing Employee Reimbursements
Purpose  Are receipts properly classified as employee reimbursements?
 Are the receipts processed timely
This section of the document outlines and defines School policy
regarding check cash privileges. Nature and Source of Revenue
 Are revenue sources properly classified?
 Are potential sponsored program revenues channeled through
Check Cashing Requirements
the office of research and Sponsored projects (ORSP)?
• Cashing of checks by departments is strictly prohibited under any
Petty Cash/Imprest Fund
circumstances. The Accounting office is the only authorized check
cashing facility at the School. This privilege is limited Catholic Ming  Is access to the petty cash fund restricted to the petty cash
Yuan College Checks only. custodian?
 Are petty cash disbursements made upon presentation of
• CMYC Check advances may be cashed. There is no fee to cash a
approved petty cash payout forms with supporting
check advance. Bearer of check must present a valid ID. If you will be
documentation (e.g., receipts)?
cashing an unusually large check (over 20,000) the Accounting
 Is the petty cash fund replenished frequently enough to ensure
requires 1-day notice prior to 1 pm.
sufficient funds are available and expenses are charged to the
• Catholic Ming Yuan College checks (payroll and/or reimbursement fiscal year?
checks) may be cashed at the Accounting Office for no more than  Is the petty cash fund in agreement with the general ledger?
5,000. There is no fee to cash a School check.
Departmental Bank Accounts

35 16
The use of departmental or personal checking/or other bank accounts Information required for accurate gift processing includes the
by the School personnel for the depositing of and/or safekeeping of donor`s name, card number, expiration date, date of the call
school funds is strictly prohibited. Only the Board of Trustees acting (where applicable), charge amount and card type.
through a directed certificate approved by the assistant secretary and
Securities and Bonds: Gifts of securities and bonds are sent from
the senior vice President for Finance has authority to approve any such
the donor directly to the Investments Department. Document is
accounts. The school controller arranges for all authorized bank
sent from Investments to GRS for recording and receipting.
accounts.
Gifts-In-Kind: Non-monetary gifts such as paintings, equipment,
real estate, etc., should be transmitted to GRS via a Gift-In-Kind
Fidelity Bond Transmittal Form. Valuation of the gift is necessary for proper
recording and receipting. Items valued over $5,000.00 must have
All employees of the school are covered by a blanket fidelity bond. an independent appraisal.

Requirements for Deposits Frequency of Deposits Bequest and Trusts

Deposits are to be made in a timely manner to ensure proper posting All deferred girts are to be handled through consultation with the
of accounts and to insure the safety of School funds. Office of General Counsel and Gift Planning Offices.
All bank deposits are to be made at the Metrobank unless alternate
arrangements have been made in conjunction with the Metrobank,
Monday-Friday between 9 a.m. and 4 a.m. Corporate Matching gift Forms and Checks

Deposits must be routed directly from the department to the school. If you receive a Matching Gift Form with a donation, the form
School funds for deposit must never be taken off campus. should be attached to the gift and sent to GRS. You should not fill
out the form. GRS must be complete the matching form in order
for proper credit to be assigned to both the individual and
Form to be Used corporate donor. All corporate matching gift checks should be
directed to GRS. No transmittal form is needed. If you have
Deposits should be recorded using the Cash Receipt Ticket (CRT). The questions regarding the applicability of matching gifts, please
form is used to record, communicate and document deposits made by contact GRS.
the user departments to Revenue and Balance Sheet accounts. The
bank deposits for these transactions are made by your department,
and may be dropped and pickup to the bank once they are completed

17 34
Centralized depositing ensures proper receipting and and sealed. The Cash Receipt Ticket (CRT) is available. The paper
acknowledgement of donors. Without an official School receipt, the Cash Receipt Ticket form may be used in emergency situations or
donor may not be able take an IRS tax deduction for the gift amount. for forwarding information to a centralized area in your
Donor information is recorded in database for historical tracking of the school/department for online data entry and preparation of bank
donor`s relationship to the School. Departments and schools use this deposits.
database in the generation of reports and acknowledgements.
Money Deposited Intact
Money should be deposited promptly and intact in the bank.
Transmitting Gifts and Pledges Cashing checks from School deposits, borrowing cash for personal
use, lapping receipts to cover shortages in cash receipts,
The transmittal forms referenced in this section are available through
withholding checks for deposit in order to float checks, commingling
GRS. Contact the GRS Department Assistant and the form will be
of personal and school funds, and modification of cash records are
mailed to you.
all serious offenses and may result in immediate discharge from
employment and/or prosecution.

Outright Gifts Guidelines in the Event of a Robbery

Currency or checks: When receiving gifts of currency or checks, a Gift The following guidelines are provided to help insure staff safety and
Transmittal Form is to be filled out and sent along with the funds to minimize loss to the School. Unnecessary risks should never be
GRS. Detailed instructions are on the form. When transmitting large taken.
batches of checks (over 20 checks), a tape should be run to help verify
 Cooperate with robber. Avoid any confrontation and facilitate a
the total amount in the batch.
rapid departure.
Endorsements: All gift checks sent to GRS by department offices  Stay as calm as possible. Take no risks. Try not to panic or
should be restrictively endorsed using a special gift process stamp show any sign of anger or confusion.
provided by GRS. (Do not use your regular departmental endorsement  Make a mental note of any descriptive features or
stamp). distinguishing marks on the robber. Such as his/her clothing,
hair color, eye color, scars, tattoos, etc. Touch nothing in areas
Charge: When receiving credit card gifts, Gift Transmittal Form is
where robbers were and note specific objects touched by
to be filled out and sent along with the credit card information to
robbers.
GRS. Detailed instructions are on the form. When transmitting a
 If it is safe to observe, the direction that the robber took should
batch of credit card gifts, a tape should be run to help verify the
be determined. If possible, observe color and of vehicle leaving
total amount in the batch.
the scene.

33 18
  Departments having security alarms should trip the alarm as  Bank reports reflecting rejects and charge-backs will be
soon as it is safe. sent to the originating department from the Accounting
 University Police should be called as soon as it is safe. Office.
 The robbery should not be discussed with anyone until the
police arrive.
Charge, Credit and Debit Card Deposit Requirements
 Cooperation with the University Police is important.
 The victim should, above all else, remain calm and try to Charge, credit and debit card deposits should be made with the
remember the details. Write them down. A form is provided CRT no later than one day after any and all card transactions. This
below to aid in recalling details. differs from the deposit requirements for currency or checks.
 At your department’s request Police will assist in devising
specific procedures for your operation.
Monthly Reconciliation of Statements
Billing will sent monthly, via the Accounting, rom the bank. A
RECEIPT AND COLLECTION OF CASH
printout will be provided with actual date and Batch number to
aid in reconciliation.
Purpose
The Accounting will be available to help reconcile the account for
The section of the document summarizes the proper procedures to the statement.
collect currency, checks and charges.

Methods to Record Cash Receipts GIFTS

All cash handling units must maintain written examples of their
Purpose
cash balancing procedures.
This section of the document and defines procedures for handling
Manual Processing charitable gifts to Catholic Ming Yuan College.

Incoming checks and currency must be recorded in a log,

worksheet, ledger or on pre-printed, numerically controlled Introduction
(multiple copies) receipts for each transaction. The only exception
All charitable gifts to Catholic Ming Yuan College are processed
to this would be in the case where pre-numbered tickets are sold.
through Development Gift and Record Services (GRS). Gift check
should never be deposited directly by a department.

19 32
 Cash collected should be balanced on a daily basis to sales/income
recorded (per the log or ticket copies).it will then be deposited to the
Procedures to Deposit and Report Charge and Debit Sales
bank and posted to the General Ledger (Your Budget Statements).
Upon installation, the Accounting will provide instructions on the use
The maintenance of a numeral life of all receipts is the
of the terminal and customized deposit procedures, instruction form
responsibility of the department. Since all pre-numbered
for use of terminal and report generating, and procedures for
receipts must be accounted for, all original copies of voided
handling disputed transactions.
receipts should be stapled together and must be retained by
• Charge, credit, and deposit card deposits must be reported on a the department. Copies of transaction receipts are to be
Cash Receipt Ticket. A totals report, Detail report, and Settlement retained by the department and attached to the departmental
report must be printed at the end of each day. The Totals and Detail copy of the (CASH RECEIPT )).
reports must be run prior to setting the batch at the end of the day. Departments should keep records of the inclusive receipt or
After balancing the batch must be closed. When the batch settles, a ticket numbers and total amount for which the receipt were
Settlement report will print. written or tickets sold. Deposits with the Bursar’s Office should
also reflect the inclusive receipt or ticket numbers and the total
• Retain the printed Totals, Detail and Settlement reports with a
amount collected. Sales proceeds should be kept in a locked
printout of the (CRT) for 3 years beyond the current year.
metal box or cash drawer at all times. Accountability over
• The card terminal will electronically remit daily totals directly to transaction proceeds should be assigned to a specific individual
the bank. or individuals so there is a means of establishing accountability.

• If the terminal is inoperative, charge and credit card sales should

Utilizing a Cash Register, PC or other Electronic
be done manually using an imprinter. When the terminal is back in
Equipment
service, any document transactions must be entered. Debit card
It is recommended that purchases of cash registers or receipt
transactions cannot be done manually and later entered in the card
producing equipment should be discussed with the Accounting
terminal because the customer must be present to enter his/her pin
Office prior to placing the order. Management should ensure
number.
that a balancing worksheet, cash balancing procedures, and
• Charge –backs and rejects of card transactions will be charged to spot audit procedures are established. The unit should
the departmental account. determine, up front, how the program will balance and how the
record keeping process will be accomplished. The following
minimum controls must be in place. The register must have:

31 20
  A journal tape to record all transactions. The charge, credit and debit cards listed are the only type
 A key or supervisor password which enables reading or totals authorized for use of the School. This is in an effort to contain
to be taken. The cashier must not have access to this key. costs to the departments and the School by directing volume to a
 A grand total which cannot be reset to zero or any other limited number of charge, credit and debit card vendors; as
number. The Cashier must not have the ability to void and volume increases discounts can better be negotiated to the
refund transaction keys, supervisor password and procedures. merchant’s (School) benefit.

Procedures for Cash Registered Sales

Departmental Responsibility
 All sales should be recorded through the cash register. The cash
Charge card transactions are monetary transactions and therefore
register provides:
are subject to the same control and reconciliation policies and
(1) a locked in record of the amount of funds entered on the
cash transactions. A daily accounting of receipts, from sales or
register
deposits, should be balanced against these electronic
(2) a printed ticket to be given to the costumer or a visible
transactions. They should be processed with any currency, coins,
record of the costumer’s examination
and checks. Automatically, the actual funds for the card
(3) a safe place for holding a change fun’ d and un-
transactions are electronically deposited into the School bank
deposited receipts
account and reconciled by the Accounting Office. All departments
that wish to accept charge card payments through any media
 The cash drawer in the register should never be left open
(electronic, Web) must have a unique merchant number.
unless a transaction us being processed.
Departments should review the policy and application. Applicants
 All register totals should be balanced at the end of the day (or
must be approved by the Controller’s office to become a
change of shift).
merchant. The Accounting office makes arrangements with the
 Accountability of sales proceeds and change bank funds should
School designated bank to issue merchant numbers, establishes
be assigned to specific individuals, which means that each
them with the preferred processor ands has them associated with
employee who operates out the same cash register should be
one of the School bank accounts.
assigned his own bank and cash drawer. Funds should not be
commingled between cash drawers. All units authorized to accept charge, credit and debit card
 The cash register should be closed out and total cash receipts payments must exercise reasonable care in screening transactions
should be reconciled on a daily basis. to reduce card misuse and loss of funds, and adhere to Payment
Card Industry Standard at all times.

21 30
An important management tool is the reconciliation of budget to  Overages and shortages should be fully explained. Overage
actual activity. and shortage dollar limits and frequency of occurrence
should be established, and corrective action should be taken
if the limits are exceeded.
How and Where to Report Discrepancies  All corrections should be made through the cash register.
The journal tape should be marked to indicate the action
If a deposit line is not found or discrepancy is found on budget
taken. Management should review and approve all
statements or in General Ledger contact the Accounting Services for
corrections.
clarification.
 Departmental administrators should perform periodic,
VISA/MASTERCARD unannounced cash reconciliations of the cash register.

Purpose
This section of the document defines and outlines School Policy with Check Acceptance
regard to the acceptance and handling of charge, credit and debit
Checks are to be written payable to “Catholic Ming Yuan College”
card transactions.
Inc; any other information on payee line is for the convenience of
Introduction the department only and not necessary for proper credit.

To accommodate costumers wanting to pay by charge, credit or  All checks must be drawn on the Philippine Bank.
debit card, authorized units may accept Visa/MasterCard payments.  If you have a foreign check, it must be the excess of
This process is consistent with other cash handling procedures, 10,000. You will not include in your deposit you credited.
though some additional steps are required. The Ming Yuan will credit your account upon receipt of
funds from the bank.
Generally, only authorized cash collection units may request
 Look for any messages pre-printed on the check; i.e., “not
authorization to become a Visa/MasterCard merchant. Departments
valid over 20,000”, etc.
that accept any ATM card. Please contact the Accounting Office for
 Check the date. No stale date (older than 90 days.) No post
current prices and discount rates for credit card processing. All
date (dated in the future).
completed applications must be submitted to the Accounting Office.
 Check should be made payable to “Catholic Ming Yuan
Upon approval, the procedures outlined in this section must be
College”. If the check is made out specifically to a
followed when depositing and reporting charge, credit and debit
department or a person’s name, it must be endorsed as
sales on the CRT. The approval may take 3-5 weeks depending upon
such.
availability of equipment
 Written amount and numerical amount must be the same.

29 22
  Check must be signed. Procedures to Reconcile Accounts
 Restrictively endorse immediately with your department bank
Verify Match and Post Status using CRT
deposit stamp.
Departments may retrieve committed Cash Receipts online to
verify matching and posting status of individual deposits and the
Payment by Check in Person overall Cash Receipts.
 Checks should have the costumer/student information pre- Only Cash Receipts with a posting Status of “Posted” on the Cash
printed on the face of the check. Receipt will appear on budget statements.
 Starter/blank checks may not be accepted without approval by
an authorized supervisor. Proper identification (Driver’s
License or CMYC ID) or affiliation to CMYC must be presented Using Committed Copies
and name, address and phone number will be noted on the
Departments that have access can look up their accounts in the
face of the check before being approved by a supervisor.
General Ledger one to two days after the deposit is made, unless
 The payer’s telephone number(s) should be written on the face
there is a problem with the Cash Receipt or the bank deposit. The
of the check.
amount posted in the General Ledger (from which your budget
 Payer must show some form of photo ID, such as CMYC ID,
Statements are produced) should be compared to the entry
Driver’s License or state photo ID. The ID information should
committed in the CASH RECEIPT system. Changes made by
be written on the face of the check. CMYC ID for student,
Correction Journals of bank adjustments will not be reflected on
faculty or staff. Driver’s license number or license number or
the original CRTs, they will be shown as separate line items or
Company ID number for non-CMYC customers.
budget statements.
 The individual receiving the funds is to initial the face of the
check as evidence of personal responsibility for complying with
all information and identification requirements.
Using Budget Statements
On a monthly basis, departments receive monthly budget
Endorsement of Checks statements. Total deposits and account balances should be
verified against totals in the departmental records. An analysis of
outstanding deposits should be made and checked for further
All checks should be restrictively endorsed to the school immediately disposition. It is very important to establish revenue budgets to
upon receipt. This protects the check if lost or stolen provide a basis for variance analysis on a monthly basis.

23 28
Reporting Over & Short The endorsement must include the following:
A daily accounting of cash received from sales or deposits will be For Deposit Only
balanced against the total amount on the daily ledger or rung on
Catholic Ming Yuan College
the departmental cash register. Any amount that is over or short is
Department Deposit
to be reported on the same day and reflected on the CRT using
7543178108
appropriate chart string, as well as on the departmental balancing
Bacolod City
worksheet.
Corrective action should be taken if established peso limits and
*5 digit location number that is assigned to you by the School and
frequency of overages and/or shortages are exceeded.
printed on your bank account number

What the Accounting-Cashier does with Department’s

Deposits
Limitations on Acceptance of Payments by Check
The cashier will accept the sealed deposit bag and provide a receipt.
These deposits are picked up from the Accounting Office daily by
car carrier and transported to the bank. Accounting Office will also
Departments are not authorized to return currency to the payor in
track and monitor committed CRTs, receipt of bank deposits, and
the event that the check exceeds the amount due to School.
track discrepancies or missing deposits. Correcting entries will also
Payment by traveler’s checks is the only time a department may
be processed by the Accounting Office through over/short entries.
return the difference between amount of travelers check and
If a department has a car service, the deposit is transported directly
balance due to the payor. Departments may not accept post-dated
to the bank.
checks. All checks received by a department must be deposited as
outlined in Preparing Your Bank Deposit. Currency or checks
received, as a refundable deposit for goods or services may not be
CASH RECEIPT RECONCILIATION held in the department in lieu of depositing funds and later issuing
Purpose refunds. Generally these should be handled using a Card Sale (CS)
form within the department and money deposited on a CRT.
This section of the document explains procedures to ensure that all
funds are properly deposited and recorded by reconciling CRTs and
bank deposits to the General Ledger statements.

27 24
Returned Check Procedures  Use a printing calculator.
 Enter date on bank deposit slip.
Any checks returned by Catholic Ming Yuan College depository
 Count your currency, listing totals by denomination on
banks as uncollected are sent to the Payors. Examples of returned
calculator. Rubber band the tape around the bills. List the
checks include; non-sufficient funds (NSF), account closed, payor’s
amount on the bank deposit slip.
signature missing, refer to maker and postdated or stale dated
 Count all coins and place in small envelope and list on the bank
checks.
deposit slip.
The Accounting Office prepares a deposit adjustment, debiting the  Run a calculator tape on all checks. Place rubber band or paper
originating department’s account for the amount of the check and clip around checks. List the total on the first line for the checks.
at the same time assessing a service fee (currently 500 per check).  Run a calculator tape of all totals and enter total on bottom
line and again where it indicates “please enter total”.
The adjusting entry and the returned checks are mailed to the
 Enter total number of checks where indicated, “total items.”
originating department for collection. It is the originating
 The bank deposit slip is a two part form. The original will go
department’s responsibility to notify the check writer and use due
in the bank deposit bag with the currency, coin and checks.
diligence to collect the amount of the check and the service charge
The duplicate is retained in your department with the original
from the payor. Generally, restitution should be in the form
balancing tapes run by the person balancing the days work.
currency, money, order, cashier’s check or certified check. All
charge-backs are made to the Chart String where check was Other Forms
originally deposited and Revenue Source 40704, with the exception
Any non-standard form for the deposit of cash receipts must be
of deposits to a Balance Sheet account,
reviewed and approved by the Office of Student Accounts and the
When restitution is obtained, the department should prepare a Accounting to meet their specific criteria prior to printing forms.
CASH RECEIPT TICKET (CRT) crediting the same account that was
Correction of Errors
debited by the Accounting Office.
If any error, as to account number or distribution, is found after a
If after proper due to diligence is performed, collection problems
CRT has been committed and processed, the department must
exist, the Director of Accounting Services may be consulted
complete a Correlation Journal and submit to Accounting Services.
regarding returned items which remain uncollected after 90 days
If an error is found after a CRT is committed but before posted,
from the date of debit.
contact the Accounting Office. The Accounting Office will adjust the
Preparing a Bank Deposit over/short on the cash account or debit/credit the appropriate
account.
 The person making the bank deposit should be someone
other than the person balancing the days work.

25 26
 Hacienda Binitin, Brgy. Blumentritt,
Murcia, Negros Occidental, Philippines
Tel # (034) 441-2570