Exhibit A – University of Maine System Cash Collections Audit Program
Presentation
Exhibit A has a short form followed by text.
Form Fields
- University
- Department
- Location
- Responsible Manager
- Authorized Cash Amount
- Person Responsible for Cash
- Auditor
- Date
Text
General Information
- Review any prior audit findings and document actions taken to resolve those findings.
- Determine cash handling and related procedures by asking the following questions:
- For what purpose(s) does the department collect cash?
- Who collects and handles the cash, prepares and makes the deposit, and reconciles receipts to amounts deposited per the accounting system?
- What is the approximate amount of cash collected annually by the department?
- What is the peak cash collection period?
- When do personnel restrictively endorse the checks by marking them for deposit only to a University account? (Note: checks should be endorsed upon receipt.)
- How are cash collections recorded (i.e., pre-numbered receipt forms, cash register, etc.)?
- What are the department’s procedures for making deposits?
- How often are cash receipts deposited and to what chartfield combinations are the amounts recorded?
- What procedures are used to reconcile the accounting system to cash collections documentation?
- If cash collections are posted to another department’s/campus’ chartfield combination, does that department/campus reconcile to the supporting documentation? Has supporting documentation been made available to that department/campus for review?
- How is cash kept secure until it is deposited?
- Is physical access to cash limited only to personnel responsible for the cash?
- Are any loans made out of the funds? If so, to whom and why?
- Determine the procedures for reporting shortages and overages.
- When did the individuals who handle cash last attend a Cash Management Training session? Agree department’s response to Cash Management Training attendance sheet(s).
Note: Ensure that duties are properly segregated and that other procedures appear adequate for the circumstances. Document any concerns related to the above
Cash Testing
- If the department has a change fund, count the cash on hand using the Cash Count Sheet. Reconcile the cash on hand to the authorized amount.
- Cash Collections Testing:
- For cash register systems, select a minimum sample of five days from various days throughout the year. For those days, compare the register tapes to the deposit receipt(s), other supporting documentation, and to the accounting system. If applicable, compare tape beginning and ending balances to the previous and next day’s balances respectively to ensure completeness.
- For manual receipt systems, select a minimum sample of five days. For those days account for the numerical sequence of receipts and note the total cash, checks, and credit card amounts collected. Agree amounts to other original source documents to ensure completeness of funds reported as collected. Further, agree the cash and check amounts to the deposits made with the business office (or bank as applicable). Finally, agree the deposits to the accounting system.
Note results, including timeliness of deposits.
Billing for Goods/Services
- Determine whether the department issues invoices. If so, determine:
- The invoicing process including what software program is used.
- How often bills are generated.
- The process used to control invoices (i.e., pre-numbering, retaining copies, etc.).
- Who generates the bills.
- How uncollected amounts are treated.
- Obtain a current aged accounts receivables listing.
- If the receivables are recorded in the accounting system.
- If duties are properly segregated.
Conclusion
- Review observations with the department manager and discuss controls that need to be improved. For material weaknesses, ask management to respond with a written corrective action plan.
- Send a summary of the results, as described in APL I-F, to Internal Audit.
- Follow up on any open items.
Exhibit B – University of Maine System Cash Count Sheet
Presentation
Exhibit B is a form with five sections.
Section 1 Form Fields
- Campus
- Department
- Cash Custodian
- Department Location
- Location $ Amount
- Total $ Authorized
- Date
- Time
- Auditor
Section 2 Form Fields – Coins
This forms includes space to notate the Quality and Extension of the following fields:
- Pennies – rolled – value $0.50
- Pennies – unrolled- value $0.01
- Nickels – rolled – value $2.00
- Nickels – unrolled – value $0.05
- Dimes – rolled – value $5.00
- Dimes – unrolled – value $0.10
- Quarters – rolled – value $10.00
- Quarters – unrolled – value $0.25
- Halves – rolled – value $10.00
- Halves – unrolled – value $0.50
- Dollar – rolled – value N/A
- Dollar – unrolled – value $1.00
This is followed by space to notate extension of total coins.
Section 3 Form Fields – Bills
This forms includes space to notate the Quality and Extension of the following fields:
- Ones – pack – value $25.00
- Ones – single – value $1.00
- Fives – pack – value $100.00
- Fives – single – value $5.00
- Tens – pack – value $100.00
- Tens – single – value $10.00
- Twenty – pack – value $100.00
- Twenty – single – value $20.00
- Fifty – pack – value $100.00
- Fifty – single – value $50.00
- Hundred – pack – value $500.00
- Hundred – single – value $100.00
This is followed by space to notate extension of total bills.
Section 4 Form Fields
- Total cash (coins and bills).
- Total Check (attach list including date, maker, amount)
- Total Paid Vouchers (attached list including date, payee, amount)
- Stamps on Hand (list attached)
- TOTAL of Cash, Checks, Paid Vouchers and Stamps (Items 1,2,3 &4)
- Less Receipts (per Cash Register or Manual receipts)
- Balence
- Less Amount Authorized
- Balance – Over (Short)
Section 4 Form Fields
Text: “My cash was counted and returned to me intact”
- Cash Custodian Signature
- Date
For assistance with this form, please contact 207-581-5491 or emily.bragg@maine.edu.