Money Handling

 Who is Responsible for Handling the Money?

The District’s Cashier’s office is the main clearing house for monies collected on a daily basis by the Food Service Department and for all monies collected on the campus from students and parents for school related activities.  However, throughout the school year it often becomes the teacher’s responsibility to collect money for various items, such as fees, dues, fundraiser activities, yearbooks, library fines, lost books, and lost uniforms. After the money is collected by the teacher, it is temporarily deposited with the school bookkeeper, who will deposit the money with the District Cashier.  As you can see, many people are responsible for handling and securing money throughout the district.

In the following sections we are trying to provide valuable information on how to receipt and secure funds in order to protect everyone that becomes involved in the cash collection process. Please adhere to the procedures.

Section A - procedures for receipting of money collected from the students- (teacher/coach),

Section B - procedures for the school secretary or bookkeeper - (campus bookkeeping),

Section C - procedures for preparing the paperwork and the collected money for deposit with the district cashier/bank - (general ledger bookkeeping.)

 Although the receipting and bookkeeping process is similar for the Food Service Department and the Campus Secretary/Bookkeeper, they differ in that Food Service uses a computer program called F.S.A P. and the Campus Secretary/Bookkeeper can use preprinted manual forms or an Excel based program.  Accuracy, honesty, and attention to details are key elements when collecting and counting money.  Therefore, we are constantly trying to improve this process, especially in the area of handling and securing of the money and the time involved in processing necessary paperwork. 

 Supply List  for the purpose of collecting, receipting and depositing money

It is the policy of Pasadena Independent School District to always provide a receipt to students or parents whenever money is collected.  The standard district form to use for this process is the Teacher’s Summary of Collection form (summary sheet).  This form is an audited item and must be secured and accounted for by the school depository designee.  With this understanding the following procedures should be adhered to at all times. 

 Section A - Receipt Procedures -   Teachers, Coaches, and Club Sponsors

                                                           (Activity & Agency Accounts)

         Supplies:  Teacher’s Summary of Collection form (summary sheet)
                Small Zippered Money Bag

1. The Teacher’s Summary of Collection form (summary sheet)  is a four part form used by the Teachers to collect money from the students (Book Fair, Yearbook, Fundraisers, etc.).  Each form is numerically stamped and must be accounted for.  Each person issued a teacher summary form is responsible for that form.  Do not lose, deface or destroy this form.  The form is a key element in the control of cash receipts.  A Teacher’s Summary of Collection Log will aid the school secretary/bookkeeper with limiting the number of days these forms are kept for the purpose of collecting money.  Be sure that only the teacher signs the form out and in.  Do not allow students to do this for a teacher.  
    
2. Complete the heading on the form properly.  Use complete name, date and classification of receipt.
    
3. Please write student’s names clearly and put the amount, tax (if any), totals and item description on the lines indicated.  
    
4. All original (white) will be given to the student or if unused or voided the receipt must be stapled to the second page.  The second copy (white) becomes part of the paperwork required in completing a deposit with the District Cashier, and the third copy (yellow) will be retained on campus with your records.  The fourth copy (pink) may be returned to the teacher for their records after the money has been verified by the campus designee.
    
5. Total the form, including tax. 
    
6. Sort all collected money by bill denomination, coin denomination and checks.  Run an adding machine tape on each denomination and a summary tape for the  entire collection.  The money collected should balance with the total at the bottom  of each summary sheet. 
    
7. At the end of the collection activity, it is the teacher’s responsibility to have counted all collected money, account for all receipts including voided ones, and to  turn in all used or unused summary sheets.  It then becomes the school designee’s responsibility to verify the funds, verify the summary sheets by  insuring that the money and the information on the sheets agree, and write an  appropriate receipt for the activity.  
    
8. Good Idea - Purchase school colored, heavy duty vinyl zippered bags from an  office supply  or bank supply vendor to use for storing of collected money.  The  bags can be numbered, logged out along with the summary sheets.  This works  well instead of using brown paper envelopes or plastic zip lock bags.  It is a good  investment and the supply should last for years.

Example - Log for the Summary of Collection Forms (summary sheets) 

Example -  Teacher’s Summary of Collections Form

 

Section B - Receipt Procedures -   Secretary/Bookkeeper

Supplies:  Summary of Collections Log
              Teacher’s Summary of Collection Receipt Forms  (summary sheets)
              Cash Receipt Book
              Cash Refund Book
              Small Zippered Bags
              Bill and/or Coin Counter

 Instructions for Cash Receipts - District Approved Receipt Book Only

1. It is the responsibility of the school secretary/bookkeeper to verify all collected monies, secure the Teacher’s Summary of Collection Sheets, receipt the funds and  secure the money in a safe place.  This is commonly referred to as making a deposit with the school secretary or bookkeeper.
    
2. Use only one cash receipt book at a time for all cash collections.  Multiple receipt  books are no longer necessary for each fund.  Use only cash receipt books and   cash refund books obtained from the warehouse.  (Catalog #32-003600, #32-07200)         Once all the receipts have been written, the receipt book needs to be secured and  retained as outlined in the district’s records management procedure guidelines.  
    
3. A cash receipt should be completed as soon as the money is submitted to the Secretary/Bookkeeper. A receipt can be written for an individual summary sheet or for a group of summary sheets that are used for the same activity.  The total on the  summary sheets and the money included must match. Remember that the original  cash receipt remains in the receipt book, pink copy goes to the payee, and the  yellow copy is to be turned in to the District  Cashier. 
    
4. When a teacher is turning in money collected on fundraisers, etc., and has used  more than one summary Sheet, only one cash receipt reflecting all used summary sheets is necessary. Please write receipt number on each summary sheet.
    
5. Exception - A cash receipt can be written instead of using a summary sheet when     collecting library fines or items under $5.00.
    
6.  Important – It is the responsibility of the teacher to be sure that money and   summary sheets are secured during the collection process.  Therefore, any time   during a collection activity the school secretary/bookkeeper can secure items in  the school vault until the teacher is ready to turn over funds and paperwork for  deposit.  

Section B – Refund Procedures  -    Secretary/Bookkeeper

 Supplies:  Cash Refund Book                         Warehouse Stock - Catalog #32-007200
                Petty Cash Checking                                                           

If a refund becomes necessary, follow the instructions below:

1.  Cash Refund Slips are pre-numbered and must be used in numerical order.

2.  In the event a refund slip must be voided, all copies should remain in the book. 

3.  There are two ways to handle refunds:

     (a.)   If the amount of the refund is $5.00 or under:

Fill out a Cash Refund Slip and refund the cash.  Record the refund on your Remittance of Collections Form as a reduction when preparing your money for deposit to come up with the net deposit.  Record the net deposit you have calculated from the Remittance of Collection onto the deposit slip. The white copy of the refund slip is to be turned in to the District Cashier, the yellow copy is given to the person receiving the refund and the pink copy remains in the refund book.  Note:  A signed explanation for the refund from the sponsor must accompany the cash refund slip.

 (b.)   If the amount of the refund is over $5.00:

Fill out a Cash Refund Slip and issue the refund through petty cash checking.  The check can be made payable to the student and/or parent.

    1.  Not Cashing the Petty Cash Check

        The white copy of the refund slip is to be turned in with the petty cash checking reimbursement.  The yellow copy is given to the person receiving the refund and the pink
        copy remains in the refund book.   Note:  A signed explanation for the refund from the sponsor must accompany the cash refund slip.

    2.  Cashing the Petty Cash Check

        Have parent/student endorse back of check.  Yellow refund slip should be issued to parent/student along with refund money.  White copy of refund slip should be turned in
        with Petty Cash Checking reimbursement.  Petty Cash Checking check should be receipted in cash receipt book and copy of check should be included in the remittance of
        collection to Cashier.  Record the refund on the remittance of collection form as a reduction in the "Less Refunds" row.  Pink copy remains in the refund book.
        Note:  A signed explanation for the refund from the sponsor must accompany the cash refund slip.

4.  The proper account to be charged must be adequately detailed on the refund slip.

Example - Cash Refund Form

Cash Refund Form

School: ____________________________

Date:  _____________________________

Refunded By: _______________________

Charge Against:  ____________________

                        (Account Code)

Received from Pasadena Ind. School District     $ ________________

__________________________________________________Dollars

For: ____________________________________________________

Received By: _____________________________________________

                           (Signature of Person Receiving Refund)                         

Example -  Cash  Receipt Form

Example - Remittance of Collections Form for Secretary or Bookkeeper

Example – Secretaries and Bookkeepers form

Section C – Deposit Procedures -   Secretary/Bookkeeper

This section contains instructions for the preparation of the required paperwork that must accompany the deposit to the District Cashier.  The paperwork is an audited document and is used to post entries to the General Ledger.  Also, in this section are the instructions for the preparation of the collected money for deposit with the Bank.

Supplies:  Receipts and Teacher’s Summary of Collection Forms (summary sheets)
                Cash Refund Slips
                Remittance of Collection Form (or use computer program)
                Bank of America Deposit Slip (s)
                Plastic Bank Deposit Bags – (white)
                Locked Brown Zippered Bag
                Currency Straps
                Check Endorsement Stamp
                Daily Deposit Summary Form (optional)

Good rule of thumb:  Prepare a deposit if you have accumulated $1,000.00 at your campus: or had a fund raiser

        Otherwise:  Deposits Made

                High School Weekly

                Intermediate Bi Weekly

                Elementary/Middle School Monthly

 The Remittance of Collections Excel Program  is very user friendly, simplifies the paperwork process, and eliminates numerous common errors.

 Instructions - Remittance of Collection form.  This required documentation must be emailed as an attachment to dfairleigh@pasadenaisd.org and CC Internal Auditor Maritza Davis.

1. Each cash receipt must be accounted for when preparing the deposit.  The remittance of collection form is the audited summary record of all transactions.  Begin, by arranging receipts in numerical order including your voided ones. Next, run a calculator tape of your receipts followed by a tape total of currency, coin and checks that you have to deposit.  These totals must agree or you have an error that will need to be corrected.
    
2. Proceed by filling out the form from left to right.

Receipt Number:  Individual receipts are listed consecutively in the first column of the form.

Control Total:  Leave Blank.

Activity Code Columns or Other Code Columns:  Choose the column indicating what account code the money should be credited to.  If you have a consecutive number of receipts for the same account code, you may group the receipts and enter as one line item. (#203756-203759).  This form is to be used for all Funds (Activity, Agency, and Local Maintenance). The most common revenue codes are preprinted in various columns.  The column labeled “Other” can be used for deposits that do not occur on a regular basis.  A complete account code is necessary to assure that deposits will be correctly posted to the General Ledger.

Page Total:  At the bottom of the form, total each column.  The control total should be the sum of all the other column totals.   If you have more than one remittance of collection form, indicate individual page totals on each.

Grand Total:   Is the sum of each individual page and the Net Total is the sum of all the pages.

Department Activity:  Only if it has an activity code.

Less Refunds:  Group refund slips and enter total amount of receipts in control total column.

Net Total:  Grand total less refund total = net total
                    This is the amount of cash that needs to be turned in with paperwork. 

Upon completion of the Remittance of Collection Form email as an attachment to the district cashier and CC Internal Auditor Maritza Davis:
 

Important:  It is very important that the deposits be made with accuracy.  Take your time and follow the steps carefully. Remember,  it is from this transaction paperwork that entries are posted to the General Ledger.   At the end of the instructions there is a list of common mistakes that should be avoided.  With practice, deposits should become an easy routine.  If at any time you need to bring your currency and/or coin to the Cashier’s Office to be counted and verified, call the District Cashier to secure a time that is convenient for her and for you.  Your presence is required.

Counting  Money for a Deposit

Count the currency (bills), coin, and checks separately. Follow the guidelines below for each item. Use  “Daily Deposit Summary Form” (see example) to record the exact monies that makeup the entire deposit. It is recommended that school secretaries/bookkeeper use this form. If you use this form, include it in your deposit plastic bag to make a clean deposit and retain one copy for your records.   The record becomes very important if there is a discrepancy once the money is deposited at the bank.  The total dollar amount on the deposit summary form should equal the net total on the Remittance of Collection Form.  

 Next, prepare the deposit slip(s).  The date on the deposit slip should be the same as the date on your Remittance of Collection Form.

Currency Deposit Requirements

·     Sort currency by denomination, placing bills flat, and face up and in one direction.

·     Stack bills by denomination and strap in packages of 100 bills.  If there are less than 100 bills of any denomination, reverse the strap and place around bills indicating the amount.  Stamp the strap with your school stamp.

·     Count your currency and enter this total on the appropriate line of the Deposit slip.  

Coin Deposit Requirements

Our depository bank – Bank of America requires that a separate deposit be made for more than $40 worth of coin.   Therefore, a separate plastic money bag and deposit slip must be used.  Never roll coins.    

 When you put your money into the Clear Plastic Bag for the Bank, do the following: 

·         Coins with Currency - If you have more than $40.00 dollars then you will need to put the coins in a Special Coin Bag separate from the Clear Plastic bag with the Currency. 

·         Large Amounts of Coins - If you have less than $40.00 dollars you should put all your coins in the 6 X 9 manila envelope and then place the manila envelope into the Clear Plastic bag with the Currency for the Bank.

·         Label Envelopes - When using the 6 x 9 manila envelopes please remember to stamp it with your Deposit Stamp and write the Total Amount of Coins in the envelope.

·         Paper Money - Please make sure all bills are facing the same way.  It helps keep the numbers accurate and saves the bank a lot of time.

Ø  Bills should be separated by denomination.  100 bills of one denomination equal a full strap.

Ø  For less than a full strap of mixed denominations, bundle all other bills face-up starting with the lowest denomination to the highest.  Use the reverse side of the strap to bundle all bills. Write the amount of money on the strap.

Ø  When you strap money, do not use paper clips, rubber bands, staples or tape within the strap.  (Ex:  Strap of ones, do not paper clip every 10 ones within the strap).

Ø  On each strap, stamp date and the initials of the person counting.

         Enter total amount for the checks on appropriate line of deposit slip and enter the total number of checks enclosed on the appropriate box.

Bank Deposit Slip

Follow this checklist to prevent errors:

·    Date on Deposit Slip is the same as on Remittance of Collection

·    Currency and coin are entered on correct lines.

·   Checks with calculator tape are entered on correct line and the number of checks enclosed is entered.

·    Add total of currency, coin and checks.  Enter on total line of deposit slip.

·    Record security bag number on deposit slip.

·    Record school name on bottom of deposit slip.

·    Enclose white copy of deposit slip in deposit bag.

·    Yellow copy is attached to the Receipts and Teacher Summary Form.

·    Pink is retained for your records.

CAUTION: must be used when preparing the deposit bag (s).  If done incorrectly,  the deposit will be rejected!

Plastic Security Deposit Bag – for currency and/or coin

Follow this checklist to prevent errors:

                  “From” Section of Bag:

 Secure the plastic bank Deposit Bag and the brown interschool envelope which contains the deposit documentation in the brown zippered bag.  Lock the zippered bag.  The brown zippered bag is to be placed in the cafeteria vault for pick up by a Pasadena ISD police officer, for delivery to the Cashier’s office. If there is a large deposit, please call the PISD Police Department and request a pick up at your office.

Mistakes to Avoid

Accuracy is extremely essential when handling money deposits.  Each mistake done, no matter how small, costs the school district money.  It also creates extra time consuming tasks for the bookkeepers at the bank, at the district, and at the campus.  Please review the following list of common mistakes: 

·      The grand total on the deposit slip does not match paperwork

·      The grand total was not entered on the deposit bag

·      The total number of checks was not entered on the box

·      Checks were not properly endorsed with stamp provided

·      Different totals were entered on the deposit slip and the bag

·      Bills were strapped when there was a total of $100.00, not 100 bills

·      The deposit slips were stapled to the deposit bag

·      Checks declared were not enclosed in the deposit bag

Example – Bank Deposit Slip and Currency Straps

  Sample – Plastic Security Deposit Bag

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Last modified: 11/09/2011