Expand null Menu [ + ]

Cash Controls

Many City and Hartford Public Schools (HPS) departments and operations are responsible for receiving and processing cash and/or checks.  It is important to make sure that money received is adequately controlled, accurately accounted for and promptly deposited in a designated City or HPS bank account and recorded in the Financial Management System so that the Treasurer’s Office can maximize the amount of City funds available for investment and meet daily payment obligations. Failure to adequately control and promptly record and deposit cash and checks can result in the misplacement or misappropriation of funds and/or lost revenues including investment income. The following are some key controls regarding cash receipt processing.

  • There should be an adequate segregation or separation of duties over related processes. One individual should not be responsible for all aspects of the cash receipt process (receiving, recording, depositing and reconciling).
  • There should be a control mechanism including budgets and accounts receivable ledgers in place to make sure that the City and HPS receive all monies due. Any differences between amounts expected and received should be identified and investigated.
  • Cash and checks received should be immediately recorded in a log, cash register or a similar means of control.
  • Checks received should be restrictively endorsed immediately upon receipt with a stamp indicating that they are for deposit only to a designated City or HPS bank account.
  • When dealing with the public, receipts should be issued as documentation in support of all transactions paid with cash or check. Ideally cash registers should be used to record payments and receipts generated to support the transactions. Where cash registers are not available, pre-numbered, multi-ply receipt forms should be used with one copy going to the customer and one copy retained by the operation.
  • Ideally, cash and checks received should be deposited the same day whenever possible. Any cash or checks not deposited the same day should be maintained in a securely locked location with limited access until deposited.
  • Records (logs, adding machine tapes, cash register tapes) of cash and checks received should be reconciled to the related transactions that generated the receipts. For instance, if ten fishing licenses are issued, there should be cash and checks equal to ten times the license fee.
  • Cash and checks should be separately accounted for and reconciled to related cash register or system control totals where possible.
  • After receipts have been counted, reconciled to control totals and deposited, a report of receipt must be completed and recorded immediately in the Financial Management System.
  • There should be designated custodians responsible for cash and checks in each operation. Whenever cash and checks are transferred from the custodian to another responsible person or entity the cash and checks should be recounted and the dollar amount transferred signed off on by the two involved parties.
  • Records of cash and checks received should be independently reconciled between the control source such as the cash register, the bank deposit and the report of receipt to ensure that they have been properly accounted for throughout the cycle.
  • Cash processing policies, procedures and controls should be documented for each operation or unit responsible for handling cash receipts.
  • Department management should periodically verify that cash processing policies, procedures and controls are being followed as required.

All of these conditions may not apply to your particular operation. If you have any questions or concerns regarding cash controls in your operation contact Internal Audit, the Finance Department or the Treasurer’s Office.

HARTFORD CITY HALL ADDRESS: 550 Main Street, Hartford, CT 06103 PHONE: (860)757-9311 HOURS: 8AM - 5PM